Three essays in risk management in financial institutions

The choice to adopt risk-sensitive measurement approaches for operational risks: the case of Advanced Measurement Approach under Basel II New Capital Accord This paper investigates the choice of the operational risk approach under Basel II requirements and whether the adoption of advanced risk measurement approaches allows banks to save capital. Among the three possible approaches for operational risk measurement, the Advanced Measurement Approach (AMA) is the most sophisticated and requires the use of historical loss data, the application of statistical tools, and the engagement of a highly qualified staff. Our results provide evidence that the adoption of AMA is contingent on the availability of bank resources and prior experience in risk-sensitive operational risk measurement practices. Moreover, banks that choose AMA exhibit low requirements for capital and, as a result might gain a competitive advantage compared to banks that opt for less sophisticated approaches. - Internal Risk Controls and their Impact on Bank Solvency Recent cases in financial sector showed the importance of risk management controls on risk taking and firm performance. Despite advances in the design and implementation of risk management mechanisms, there is little research on their impact on behavior and performance of firms. Based on data from a sample of 88 banks covering the period between 2004 and 2010, we provide evidence that internal risk controls impact the solvency of banks. In addition, our results show that the level of internal risk controls leads to a higher degree of solvency in banks with a major shareholder in contrast to widely-held banks. However, the relationship between internal risk controls and bank solvency is negatively affected by BHC growth strategies and external restrictions on bank activities, while the higher regulatory requirements for bank capital moderates positively this relationship. - The Impact of the Sophistication of Risk Measurement Approaches under Basel II on Bank Holding Companies Value Previous research showed the importance of external regulation on banks' behavior. Some inefficient standards may accentuate risk-taking in banks and provoke a financial crisis. Despite the growing literature on the potential effects of Basel II rules, there is little empirical research on the efficiency of risk-sensitive capital measurement approaches and their impact on bank profitability and market valuation. Based on data from a sample of 66 banks covering the period between 2008 and 2010, we provide evidence that prudential ratios computed under Basel II standards predict the value of banks. However, this relation is contingent on the degree of sophistication of risk measurement approaches that banks apply. Capital ratios are effective in predicting bank market valuation when banks adopt the advanced approaches to compute the value of their risk-weighted assets.

Understanding consumers repurchase in the context of online shopping: an empirical study

L'utilisation de l'Internet comme medium pour faire ses courses et achats a vu une croissance exponentielle. Cependant, 99% des nouveaux business en ligne échouent. La plupart des acheteurs en ligne ne reviennent pas pour un ré-achat et 60% abandonnent leur chariot avant de conclure l'achat. En effet, après le premier achat, la rétention du consommateur en ligne devient critique au succès du vendeur de commerce électronique. Retenir des consommateurs peut sauver des coûts, accroître les profits, et permet de gagner un avantage compétitif.Les recherches précédentes ont identifié la loyauté comme étant le facteur le plus important dans la rétention du consommateur, et l'engagement ("commitment") comme étant un des facteurs les plus importants en marketing relationnel, offrant une réflexion sur la loyauté. Pourtant, nous n'avons pu trouver d'étude en commerce électronique examinant l'impact de la loyauté en ligne et de l'engagement en ligne ("online commitment") sur le ré-achat en ligne. Un des avantages de l'achat en ligne c'est la capacité à chercher le meilleur prix avec un clic. Pourtant, nous n'avons pu trouver de recherche empirique en commerce électronique qui examinait l'impact de la perception post-achat du prix sur le ré-achat en ligne.L'objectif de cette recherche est de développer un modèle théorique visant à comprendre le ré-achat en ligne, ou la continuité d'achat ("purchase continuance") du même magasin en ligne.Notre modèle de recherche a été testé dans un contexte de commerce électronique réel, sur un échantillon total de 1,866 vrais acheteurs d'un même magasin en ligne. L'étude est centrée sur le ré-achat. Par conséquent, les répondants sélectionnés aléatoirement devaient avoir acheté au moins une fois de ce magasin en ligne avant le début de l'enquête. Cinq mois plus tard, nous avons suivi les répondants pour voir s'ils étaient effectivement revenus pour un ré-achat.Notre analyse démontre que l'intention de ré-achat en ligne n'a pas d'impact significatif sur le ré-achat en ligne. La perception post-achat du prix en ligne ("post-purchase Price perception") et l'engagement normatif en ligne ("Normative Commitment") n'ont pas d'impact significatif sur l'intention de ré-achat en ligne. L'engagement affectif en ligne ("Affective Commitment"), l'attitude loyale en ligne ("Attitudinal Loyalty"), le comportement loyal en ligne ("Behavioral Loyalty"), l'engagement calculé en ligne ("Calculative Commitment") ont un impact positif sur l'intention de ré-achat en ligne. De plus, l'attitude loyale en ligne a un effet de médiation partielle entre l'engagement affectif en ligne et l'intention de ré-achat en ligne. Le comportement loyal en ligne a un effet de mediation partielle entre l'attitude loyale en ligne et l'intention de ré-achat en ligne.Nous avons réalisé deux analyses complémentaires : 1) Sur un échantillon de premiers acheteurs, nous trouvons que la perception post-achat du prix en ligne a un impact positif sur l'intention de ré-achat en ligne. 2) Nous avons divisé l'échantillon de l'étude principale entre des acheteurs répétitifs Suisse-Romands et Suisse-Allemands. Les résultats démontrent que les Suisse-Romands montrent plus d'émotions durant l'achat en ligne que les Suisse-Allemands. Nos résultats contribuent à la recherche académique mais aussi aux praticiens de l'industrie e-commerce.AbstractThe use of the Internet as a shopping and purchasing medium has seen exceptional growth. However, 99% of new online businesses fail. Most online buyers do not comeback for a repurchase, and 60% abandon their shopping cart before checkout. Indeed, after the first purchase, online consumer retention becomes critical to the success of the e-commerce vendor. Retaining existing customers can save costs, increase profits, and is a means of gaining competitive advantage.Past research identified loyalty as the most important factor in achieving customer retention, and commitment as one of the most important factors in relationship marketing, providing a good description of what type of thinking leads to loyalty. Yet, we could not find an e-commerce study investing the impact of both online loyalty and online commitment on online repurchase. One of the advantages of online shopping is the ability of browsing for the best price with one click. Yet, we could not find an e- commerce empirical research investigating the impact of post-purchase price perception on online repurchase.The objective of this research is to develop a theoretical model aimed at understanding online repurchase, or purchase continuance from the same online store.Our model was tested in a real e-commerce context with an overall sample of 1, 866 real online buyers from the same online store.The study focuses on repurchase. Therefore, randomly selected respondents had purchased from the online store at least once prior to the survey. Five months later, we tracked respondents to see if they actually came back for a repurchase.Our findings show that online Intention to repurchase has a non-significant impact on online Repurchase. Online post-purchase Price perception and online Normative Commitment have a non-significant impact on online Intention to repurchase, whereas online Affective Commitment, online Attitudinal Loyalty, online Behavioral Loyalty, and online Calculative Commitment have a positive impact on online Intention to repurchase. Furthermore, online Attitudinal Loyalty partially mediates between online Affective Commitment and online Intention to repurchase, and online Behavioral Loyalty partially mediates between online Attitudinal Loyalty and online Intention to repurchase.We conducted two follow up analyses: 1) On a sample of first time buyers, we find that online post-purchase Price perception has a positive impact on Intention. 2) We divided the main study's sample into Swiss-French and Swiss-German repeated buyers. Results show that Swiss-French show more emotions when shopping online than Swiss- Germans. Our findings contribute to academic research but also to practice.

Heritage Sporting Event : An Old Recipe for a New Problem

In the last decades, the globalized competition among cities and regions made them develop new strategies for branding and promoting their territory to attract tourists, investors, companies and residents. Major sports events - such as the Olympic Games, the FIFA World Cup or World and Continental Championships - have played an integral part in these strategies. Believing, with or without evidence, in the capacity of those events to improve the visibility and the economy of the host destination, many cities, regions and even countries have engaged in establishing sports events hosting strategies. The problem of the globalized competition in the sports events "market" is that many cities and regions do not have the resources - either financial, human or in terms of infrastructure - to compete in hosting major sports events. Consequently, many cities or regions have to turn to second-tier sports events. To organise those smaller events means less media coverage and more difficulty in finding sponsors, while the costs - both financial and in terms of services - stay high for the community. This paper analyses how Heritage Sporting Events (HSE) might be an opportunity for cities and regions engaged in sports events hosting strategies. HSE is an emerging concept that to date has been under-researched in the academic literature. Therefore, this paper aims to define the concept of HSE through an exploratory research study. A multidisciplinary literature review reveals two major characteristics of HSEs: the sustainability in the territory and the authenticity of the event constructed through a differentiation process. These characteristics, defined through multiple variables, give us the opportunity to observe the construction process of a sports event into a heritage object. This paper argues that HSEs can be seen as territorial resources that can represent a competitive advantage for host destinations. In conclusion, academics are invited to further research HSEs to better understand their construction process and their impacts on the territory, while local authorities are invited to consider HSEs for the branding and the promotion of their territory.

Rapid antagonistic coevolution between strains of the social amoeba Dictyostelium discoideum.

Social groups face a fundamental problem of overcoming selfish individuals capable of destroying cooperation. In the social amoeba Dictyostelium discoideum, there is evidence that some clones ('cheaters') contribute disproportionately to the viable spores in a fruiting body while avoiding the dead stalk cell fate. It remains unclear, however, whether this cheating is actually the product of selection. Here, I report the results of an experimental evolution study designed to test whether clones of D. discoideum will evolve resistance to cheating in the laboratory with genetic variation created only through spontaneous mutation. Two strains, one green fluorescent protein (GFP)-labelled and one wild-type, were allowed to grow and develop together before the wild-type strain was removed and replaced with a naïve strain evolving in parallel. Over the course of 10 social generations, the GFP-labelled strain reliably increased its representation in the spores relative to control populations that had never experienced the competitor. This competitive advantage extended to the non-social, vegetative growth portion of the life cycle, but not to pairwise competition with two other strains. These results indicate strong antagonism between strains, mediated by ample mutational variation for cheating and also suggest that arms races between strains in the wild may be common.

Strategic Enterprise Architecture Management - Challenges, Best Practices, and Future Developments

The discipline of Enterprise Architecture Management (EAM) deals with the alignment of business and information systems architectures. While EAM has long been regarded as a discipline for IT managers this book takes a different stance: It explains how top executives can use EAM for leveraging their strategic planning and controlling processes and how EAM can contribute to sustainable competitive advantage. Based on the analysis of best practices from eight leading European companies from various industries the book presents crucial elements of successful EAM. It outlines what executives need to do in terms of governance, processes, methodologies and culture in order to bring their management to the next level. Beyond this, the book points how EAM might develop in the next decade allowing today's managers to prepare for the future of architecture management.

Firm's network capability and innovation performance: evidences from China hi-tech industry

ABSTRACT : A firm's competitive advantage can arise from internal resources as well as from an interfirm network. -This dissertation investigates the competitive advantage of a firm involved in an innovation network by integrating strategic management theory and social network theory. It develops theory and provides empirical evidence that illustrates how a networked firm enables the network value and appropriates this value in an optimal way according to its strategic purpose. The four inter-related essays in this dissertation provide a framework that sheds light on the extraction of value from an innovation network by managing and designing the network in a proactive manner. The first essay reviews research in social network theory and knowledge transfer management, and identifies the crucial factors of innovation network configuration for a firm's learning performance or innovation output. The findings suggest that network structure, network relationship, and network position all impact on a firm's performance. Although the previous literature indicates that there are disagreements about the impact of dense or spare structure, as well as strong or weak ties, case evidence from Chinese software companies reveals that dense and strong connections with partners are positively associated with firms' performance. The second essay is a theoretical essay that illustrates the limitations of social network theory for explaining the source of network value and offers a new theoretical model that applies resource-based view to network environments. It suggests that network configurations, such as network structure, network relationship and network position, can be considered important network resources. In addition, this essay introduces the concept of network capability, and suggests that four types of network capabilities play an important role in unlocking the potential value of network resources and determining the distribution of network rents between partners. This essay also highlights the contingent effects of network capability on a firm's innovation output, and explains how the different impacts of network capability depend on a firm's strategic choices. This new theoretical model has been pre-tested with a case study of China software industry, which enhances the internal validity of this theory. The third essay addresses the questions of what impact network capability has on firm innovation performance and what are the antecedent factors of network capability. This essay employs a structural equation modelling methodology that uses a sample of 211 Chinese Hi-tech firms. It develops a measurement of network capability and reveals that networked firms deal with cooperation between, and coordination with partners on different levels according to their levels of network capability. The empirical results also suggests that IT maturity, the openness of culture, management system involved, and experience with network activities are antecedents of network capabilities. Furthermore, the two-group analysis of the role of international partner(s) shows that when there is a culture and norm gap between foreign partners, a firm must mobilize more resources and effort to improve its performance with respect to its innovation network. The fourth essay addresses the way in which network capabilities influence firm innovation performance. By using hierarchical multiple regression with data from Chinese Hi-tech firms, the findings suggest that there is a significant partial mediating effect of knowledge transfer on the relationships between network capabilities and innovation performance. The findings also reveal that the impacts of network capabilities divert with the environment and strategic decision the firm has made: exploration or exploitation. Network constructing capability provides a greater positive impact on and yields more contributions to innovation performance than does network operating capability in an exploration network. Network operating capability is more important than network constructing capability for innovative firms in an exploitation network. Therefore, these findings highlight that the firm can shape the innovation network proactively for better benefits, but when it does so, it should adjust its focus and change its efforts in accordance with its innovation purposes or strategic orientation.

Reconceptualizing Chinese state-owned entreprise in Africa : double embeddedness and localization in Ghana

Challenging the view of asymmetrical power relations between China and Africa, this thesis questions the "Chinese comparative advantages" (monolithic state power and economic advantages) of Chinese state-owned enterprises (SOEs) in Africa. It argues that the power dynamics between Chinese and African actors are dialectical and pluralistic, with localized social capital representing the true Chinese competitive advantage in Africa. Based on ethnographical fieldwork conducted in Ghana, this thesis shows that Chinese SOEs pursue their globalization in a double context - that of the deliberate "retreat" of the Chinese state, and more importantly, that of Ghanaian governance and society (characterized by political party patronage, extraversion dynamics, and worker agency). The trajectories of Chinese expatriates' expatriation/ social promotion and their SOEs' globalization/ localization are mutually influenced and reinforced. By cultivating local relationships and knowledge, a provincial Chinese SOE in Ghana can outperform a large Chinese central SOE, even if the latter has more support from the Chinese state. Moreover, the recent effort to build a "socially acceptable Chinese community" in Ghana has renewed the power dynamics between the Chinese state and the SOEs. All these observations provide for constructing a new perspective of Chinese SOEs in Africa - a "second-class" Chinese globalization - the SOEs may begin with few privileges, but promotion over time is possible. -- A contre pied des approches postulant des relations de pouvoir asymétriques entre la Chine et l'Afrique, cette thèse interroge les « avantages comparatifs chinois » (pouvoir de l'État monolithique et avantages économiques) des entreprises publiques chinoises (EPC) en Afrique. Elle soutient l'idée selon laquelle les dynamiques de pouvoir entre les acteurs chinois et africains est dialectique et pluraliste, et le capital social localisé étant le véritable avantage compétitif chinois en Afrique. S'appuyant sur un travail de terrain ethnographique au Ghana, cette thèse montre que les EPC poursuivent leur mondialisation dans un double contexte - celui de la «retraite» délibérée de l'État chinois, et, de façon plus importante, celui de la gouvernance et de la société ghanéennes (caractérisées par un clientélisme des partis politiques, une dynamique d'extraversion et le pouvoir de négociation des travailleurs). Les trajectoires d'expatriation / de promotion sociale des expatriés chinois et la mondialisation / localisation de leurs EPC s'influencent et se renforcent mutuellement. En cultivant des relations et des connaissances locales, une EPC provinciale au Ghana peut surpasser une grande EPC centrale, même si cette dernière reçoit plus de soutien de l'État chinois. En outre, les efforts récents visant à construire une «communauté chinoise socialement acceptable» au Ghana ont renouvelé la dynamique du pouvoir entre l'État chinois et les EPC. Ces observations permettent de construire une nouvelle perspective des EPC en Afrique - la globalisation chinoise de « deuxième classe » - les EPC peuvent débuter avec peu de privilèges, mais leur promotion reste possible avec le temps.

From 'Security for Privacy' to 'Privacy for Security'

This article envisions the use of context-awareness to improve single sign-on solutions (SSO) for mobile users. The attribute-based SSO is expected to increase users' perceived ease of use of the system and service providers' authentication security of the application. From these two features we derive two value propositions for a new business model for mobile platforms. The business model can be considered as an instantiation of the privacy-friendly business model pattern presented in our previous work, reinforcing our claim that privacy-friendly value propositions are possible and can be used to obtain a competitive advantage.

Care delivery value chains for ophthalmic clinics in Switzerland

Perceived patient value is often not aligned with the emerging expenses for health care services. In other words, the costs are often supposed as rising faster than the actual value for the patients. This fact is causing major concerns to governments, health plans, and individuals. Attempts to solve the problem have habitually been on the operational effectiveness side: increasing patient volume, minimizing costs, rationing, or closing hospitals, usually resulting in a zero-sum game. Only few approaches come from the strategic positioning side and "competition" among hospitals is still perceived rather as a danger than as a chance to create a positive-sum game and stimulate patient value. In their 2006 book, "Redefining Health Care", the renowned Harvard strategy professor Michael E. Porter and hospital management expert Professor Elizabeth Olmsted Teisberg approach the challenge from the positive-sum perspective: they propose to form Integrated Practice Units (IPUs) and manage hospitals in a modern, patient value oriented way. They argue that creating value-based competition on results should have the same effect on the health care sector like transparency and competition turned other industries with out-dated management models (like recently the inert telecommunication industry) into highly competitive and customer value creating businesses. The objective of this paper is to elaborate Care Delivery Value Chains for Integrated Practice Units in ophthalmic clinics and gather a first feedback from Swiss hospital managers, ophthalmologists, and patients, if such an approach could be a realistic way to improve health care management. First, Porter's definition of competitiveness (distinction between operational effectiveness and strategic positioning) is explained. Then, the Care Delivery Value Chain is introduced as a key element for understanding value-based management, followed by three practice examples for ophthalmic clinics. Finally, recommendations are given how the Care Delivery Value Chain can be managed efficiently and how the obstacles of becoming a patient-oriented organization can be overcome. The conclusion is that increased transparency and value-based competition on results has the potential to change the mindset of hospital managers-which will align patient value with the emerging health care expenses. Early adapters of this management approach will gain a competitive advantage. [Author, p. 6]