Profit sharing, technical efficiency change and finance constraints

This paper analyses the mechanisms through which profit-sharing schemes may induce debt constrained firms to improve technical efficiency over time to guarantee positive profits. This hypothesis is first formalised in a partial equilibrium framework and then is tested on a sample of Italian traditional and cooperative firms. Technical efficiency change indexes are computed by DEA. These are regressed on a measure of finance constraints to analyse their impact on firms’ efficiency growth. The results support the hypothesis that a restriction in the availability of financial resources can affect positively the growth in efficiency in firms with profit-sharing schemes.

Profit sharing in a manufacturing plant in a developing country : communication and organisational dynamics

The adaptation of profit sharing creates a fundamental change in employee compensation by making a portion of total compensation directly dependent upon the total profits of the firm and the performance of the employee. The major goal of this study is to test for and measure the impact of the independent variable, a profit sharing plan implemented at Shahvand Industrial Company, upon communication behaviour, communication outcomes, and organisational outcomes as dependent variables. A quasi-experimental non-equivalent control group design with pre and posttest was the research design used to test the effects of profit sharing participation on permanent-part-time operative employees implemented by SIC. Several conclusions were reached as a result of the statistical analysis of the data collected in this study. Overall, few of the hypothesised effects of profit sharing participation appeared to have been realised according to the empirical results of this study. The finding that certain communication behaviours were more favourable for profit sharing participants than for non-participants support the general hypothesis of the integrated profit sharing model. The observed changes in communication behaviours indicate that information sharing and idea generation are important components of the profit sharing process. The results of this study did not reveal any changes in either communication or organisational outcomes. A significant finding of this study is that the implementation of profit sharing plans require a relatively long period of time. Patience is required to achieve high levels of success and management must make long-term commitment to profit sharing. Findings of this study should be interpreted with caution, taking into consideration that most of the previo.us researches on profit sharing have been conducted in Western European or American countries, while the current study was based on data collected from an organisation in a developing country. This implies that the findings reported in this thesis may not be comparable in certain respects to results derived from companies in major industrialised economies.

The implications of cost behaviour for profit planning and control

The work described in the following pages was carried out at various sites in the Rod Division of the Delta Metal Company. Extensive variation in the level of activity in the industry during the years 1974 to I975 had led to certain inadequacies being observed 1n the traditional cost control procedure. In an attempt to remedy this situation it was suggested that a method be found of constructing a system to improve the flexibility of cost control procedures. The work involved an assimilation of the industrial and financial environment via pilot studies which would later prove invaluable to home in on the really interesting and important areas. Weaknesses in the current systems which came to light made the methodology of data collection and the improvement of cost control and profit planning procedures easier to adopt. Because of the requirements of the project to investigate the implications of Cost behaviour for profit planning and control, the next stage of the research work was to utilise the on-site experience to examine at a detailed level the nature of cost behaviour. The analysis of factory costs then showed that certain costs, which were the most significant exhibited a stable relationship with respect to some known variable, usually a specific measure of Output. These costs were then formulated in a cost model, to establish accurate standards in a complex industrial setting in order to provide a meaningful comparison against which to judge actual performance. The necessity of a cost model was •reinforced by the fact that the cost behaviour found to exist was, in the main, a step function, and this complex cost behaviour, the traditional cost and profit planning procedures could not possibly incorporate. Already implemented from this work is the establishment of the post of information officer to co-ordinate data collection and information provision.

Profit, productivity and price performance changes in the water and sewerage industry:an empirical application for England and Wales

This paper aims to analyse the impact of regulation in the financial performance of the Water and Sewerage companies (WaSCs) in England and Wales over the period 1991–2008. In doing so, a panel index approach is applied across WaSCs over time to decompose unit-specific index number-based profitability growth as a function of the profitability, productivity and price performance growth achieved by benchmark firms, and the catch up to the benchmark firm achieved by less productive firms. The results indicated that after 2000 there is a steady decline in average price performance, while productivity improves resulting in a relatively stable economic profitability. It is suggested that the English and Welsh water regulator is now more focused on passing productivity benefits to consumers, and maintaining stable profitability than it was in earlier regulatory periods. This technique is of great interest for regulators to evaluate the effectiveness of regulation and companies to identify the determinants of profit change and improve future performance, even if sample sizes are limited.

Four-leg converters with improved common current sharing and selective voltage-quality enhancement for islanded microgrids

Four-leg dc-ac power converters are widely used for the power grids to manage grid voltage unbalance caused by the interconnection of single-phase or three-phase unbalanced loads. These converters can further be connected in parallel to increase the overall power rating. The control of these converters poses a particular challenge if they are placed far apart with no links between them (e.g., in islanded microgrids). This challenge is studied in this paper with each four-leg converter designed to have improved common current sharing and selective voltage-quality enhancement. The common current sharing, including zero sequence component, is necessary since loads are spread over the microgrid and they are hence the common responsibility of all converters. The voltage-quality enhancement consideration should however be more selective since different loads have different sensitivity levels towards voltage disturbances. Converters connected to the more sensitive load buses should therefore be selectively triggered for compensation when voltage unbalances at their protected buses exceed the predefined thresholds. The proposed scheme is therefore different from conventional centralized schemes protecting only a common bus. Simulation and experimental results obtained have verified the effectiveness of the proposed scheme when applied to a four-wire islanded microgrid.

Enabling innovation:knowledge control, sharing and coordination boundaries in UK and German manufacturing

We investigate how boundaries in knowledge control, sharing and co-ordination influence UK and German manufacturing firms’ innovation intensity (an indicator of the volume of product change) and product life (an indicator of the pace of generational change). In general UK plants more commonly face knowledge control boundaries related to plant ownership or control, while German plants more commonly face boundaries related to knowledge sharing and knowledge co-ordination between functional groups. Our empirical results emphasise the importance of the strategic management of innovation. Knowledge control boundaries – related to external ownership, group membership and decision making autonomy – have a weak negative influence on plants’ innovation outcomes. Strategic decisions relating to multifunctional working and networking are found to be more important in overcoming knowledge sharing and co-ordination boundaries. Knowledge sharing boundaries, related to plant or company boundaries, prove most important where a plant has no in-house R&D capability. Knowledge co-ordination boundaries related to functional or multi-functional working have strong but differential effects on different innovation output measures: functional boundaries increase product life in both countries, and in Germany maintaining functional boundaries is also associated with increased innovation intensity.

The global financial crisis, working people and sustainable development

Although they had nothing to do with the actual causes of the 2008 Global Financial crisis, it is ordinary workers and their families who have arguably suffered the most from its effects. While governments and international agencies seem most concerned to protect the returns to Capital in the name of financial austerity and economic good sense, little has been done to protect the well-being of working people or the global environment. Both trade unionists and environmentalists oppose the destruction wrought by neoliberal market economics; the challenge is for them to work more closely together in the future to promote truly sustainable development.

A barrier and techno-economic analysis of small-scale bCHP (biomass combined heat and power) schemes in the UK

bCHP (Biomass combined heat and power) systems are highly efficient at smaller-scales when a significant proportion of the heat produced can be effectively utilised for hot water, space heating or industrial heating purposes. However, there are many barriers to project development and this has greatly inhibited deployment in the UK. Project viability is highly subjective to changes in policy, regulation, the finance market and the low cost fossil fuel incumbent. The paper reviews the barriers to small-scale bCHP project development in the UK along with a case study of a failed 1.5MWel bCHP scheme. The paper offers possible explanations for the project's failure and suggests adaptations to improve the project resilience. Analysis of the project's: capital structuring contract length and bankability; feedstock type and price uncertainty, and plant oversizing highlight the negative impact of the existing project barriers on project development. The research paper concludes with a discussion on the effects of these barriers on the case study project and this industry more generally. A greater understanding of the techno-economic effects of some barriers for small-scale bCHP schemes is demonstrated within this paper, along with some methods for improving the attractiveness and resilience of projects of this kind. © 2014 Elsevier Ltd.

Numerical modelling of devices and advanced transmission schemes embracing Raman effect

This thesis presents a theoretical investigation on applications of Raman effect in optical fibre communication as well as the design and optimisation of various Raman based devices and transmission schemes. The techniques used are mainly based on numerical modelling. The results presented in this thesis are divided into three main parts. First, novel designs of Raman fibre lasers (RFLs) based on Phosphosilicate core fibre are analysed and optimised for efficiency by using a discrete power balance model. The designs include a two stage RFL based on Phosphosilicate core fibre for telecommunication applications, a composite RFL for the 1.6 μm spectral window, and a multiple output wavelength RFL aimed to be used as a compact pump source for fiat gain Raman amplifiers. The use of Phosphosilicate core fibre is proven to effectively reduce the design complexity and hence leads to a better efficiency, stability and potentially lower cost. Second, the generalised Raman amplified gain model approach based on the power balance analysis and direct numerical simulation is developed. The approach can be used to effectively simulate optical transmission systems with distributed Raman amplification. Last, the potential employment of a hybrid amplification scheme, which is a combination between a distributed Raman amplifier and Erbium doped amplifier, is investigated by using the generalised Raman amplified gain model. The analysis focuses on the use of the scheme to upgrade a standard fibre network to 40 Gb/s system.

New insights on measuring bank branches efficiency through DEA:transactional, operational, and profit assessments

This thesis presents a number of methodological developments that were raised by a real life application to measuring the efficiency of bank branches. The advent of internet banking and phone banking is changing the role of bank branches from a predominantly transaction-based one to a sales-oriented role. This fact requires the development of new forms of assessing and comparing branches of a bank. In addition, performance assessment models must also take into account the fact that bank branches are service and for-profit organisations to which providing adequate service quality as well as being profitable are crucial objectives. This study analyses bank branches performance in their new roles in three different areas: their effectiveness in fostering the use of new transaction channels such as the internet and the telephone (transactional efficiency); their effectiveness in increasing sales and their customer base (operational efficiency); and their effectiveness in generating profits without compromising the quality of service (profit efficiency). The chosen methodology for the overall analysis is Data Envelopment Analysis (DEA). The application attempted here required some adaptations to existing DEA models and indeed some new models so that some specialities of our data could be handled. These concern the development of models that can account for negative data, the development of models to measure profit efficiency, and the development of models that yield production units with targets that are nearer to their observed levels than targets yielded by traditional DEA models. The application of the developed models to a sample of Portuguese bank branches allowed their classification according to the three performance dimensions (transactional, operational and profit efficiency). It also provided useful insights to bank managers regarding how bank branches compare between themselves in terms of their performance, and how, in general, the three performance dimensions are connected between themselves.

Social capital and tacit knowledge sharing in organisational projects in Malaysian ICT companies

An increasing number of organisational researchers have turned to social capital theory in an attempt to better understand the impetus for knowledge sharing at the individual and organisational level. This thesis extends that research by investigating the impact of social capital on knowledge sharing at the group-level in the organisational project context. The objective of the thesis is to investigate the importance of social capital in fostering tacit knowledge sharing among the team members of a project. The analytical focus is on the Nahapiet and Ghoshal framework of social capital but also includes elements of other scholars' work. In brief, social capital is defined as an asset that is embedded in the network of relationships possessed by an individual or social unit. It is argued that the main dimensions of social capital that are of relevance to knowledge sharing are structural, cognitive, and relational because these, among other things, foster the exchange and combination of knowledge and resources among the team members. Empirically, the study is based on the grounded theory method. Data were collected from five projects in large, medium, and small ICT companies in Malaysia. Underpinned by the constant comparative method, data were derived from 55 interviews, and observations. The data were analysed using open, axial, and selective coding. The analysis also involved counting frequency occurrence from the coding generated by grounded theory to find the important items and categories under social capital dimensions and knowledge sharing, and for further explaining sub-groups within the data. The analysis shows that the most important dimension for tacit knowledge sharing is structural capital. Most importantly, the findings also suggest that structural capital is a prerequisite of cognitive capital and relational capital at the group-level in an organisational project. It also found that in a project context, relational capital is hard to realise because it requires time and frequent interactions among the team members. The findings from quantitative analysis show that frequent meetings and interactions, relationship, positions, shared visions, shared objectives, and collaboration are among the factors that foster the sharing of tacit knowledge among the team members. In conclusion, the present study adds to the existing literature on social capital in two main ways. Firstly, it distinguishes the dimensions of social capital and identifies that structural capital is the most important dimension in social capital and it is a prerequisite of cognitive and relational capital in a project context. Secondly, it identifies the causal sequence in the dimension of social capital suggesting avenues for further theoretical and empirical work in this emerging area of inquiry.

The global audit profession and the international financial architecture:understanding regulatory relationships at a time of financial crisis

This paper explores how regulatory relationships in the global audit arena are being affected by the current financial crisis. Key policy initiatives and debates are analyzed, along with institutional interactions, in particular between the International Federation of Accountants (IFAC), international regulators and the large audit firms. The events are placed in the context of the new international financial architecture which has developed over the last decade. Using the illustrative lens of bank auditing, questions are asked of the nature and status of audit practice and the regulatory arrangements governing such practice. The paper shows the active nature of the regulatory responses to the crisis and the shifting and competing influences among key regulatory and professional participants in the global audit arena. Emphasis is placed on the need for audit researchers to be sensitive to the developing global financial architecture, and its potential implications for the study of audit practice in different national and international contexts.

An overall profit Malmquist productivity index with fuzzy and interval data

Although crisp data are fundamentally indispensable for determining the profit Malmquist productivity index (MPI), the observed values in real-world problems are often imprecise or vague. These imprecise or vague data can be suitably characterized with fuzzy and interval methods. In this paper, we reformulate the conventional profit MPI problem as an imprecise data envelopment analysis (DEA) problem, and propose two novel methods for measuring the overall profit MPI when the inputs, outputs, and price vectors are fuzzy or vary in intervals. We develop a fuzzy version of the conventional MPI model by using a ranking method, and solve the model with a commercial off-the-shelf DEA software package. In addition, we define an interval for the overall profit MPI of each decision-making unit (DMU) and divide the DMUs into six groups according to the intervals obtained for their overall profit efficiency and MPIs. We also present two numerical examples to demonstrate the applicability of the two proposed models and exhibit the efficacy of the procedures and algorithms. © 2011 Elsevier Ltd.