Risky business : making decisions off the cuff

In line with accepted decision making theory, individuals engage in rational decision making. Decisions made under conditions of bounded rationality may have serious adverse consequences. Employees making decisions on behalf of their employer are often faced with situations where perfect and complete information is not available, and time is limited. Under such conditions, we posit that employees will make decisions that are increasingly bounded. At its most extreme neither time nor information is available to make a decision and rational decision making, bounded or not, reaches its limits. Many authors suggest that this is the point at which improvisation takes place. Although opinion in the literature is mixed regarding the efficacy of improvised decisions, we argue that improvised decisions place the organisation at considerable risk and as a consequence are undesirable.

The airport city : a new business model for airport development

The airport city concept has been embraced by many airports of different scales and in varied ways around the world. Airports everywhere have diversified their landside revenues with non-aviation commercial and industrial development in order to increase revenues and spread risk in the notoriously volatile aviation market. As intermodal hubs in a connected, globalised world, airports have evolved from transportation nodes into multi-faceted business enterprises. They have assumed a critical role as ‘transactional’ spaces in the global economy (Gottdiener 2001).

Integrating the resource-based view and transaction cost economics in immigrant business performance

This paper presents a new integrated framework that integrates the resource-based view and transaction cost economics to explain the phenomenon of immigrant entrepreneurship. We extend the existing literature on immigrant entrepreneurship by identifying different types of ethnic network resources and demonstrating how these resources interact with transaction costs in the context of Chinese immigrants. Thus, our study contributes to the literature by providing a theoretical framework which identifies mechanisms immigrant entrepreneurs use to strategically deploy resources to minimize costs and maximize performance outcomes.

Design Led Innovation : exploring the synthesis of needs, technologies and business models

The term Design is used to describe a wide range of activities. Like the term innovation, it is often used to describe both an activity and an outcome. Many products and services are often described as being designed, as they describe a conscious process of linking form and function. Alternatively, the many and varied processes of design are often used to describe a cost centre of an organisation to demonstrate a particular competency. However design is often not used to describe the ‘value’ it provides to an organisation and more importantly the ‘value’ it provides to both existing and future customers. Design Led Innovation bridges this gap. Design Led Innovation is a process of creating a sustainable competitive advantage, by radically changing the customer value proposition. A conceptual model has been developed to assist organisations apply and embed design in a company’s vision, strategy, culture, leadership and development processes.

Diffusion of business improvement processes in manufacturing companies in India

Manufacturing organisations spend more on Business Process Improvement initiatives to make them more competitive in growing global market. This paper presents a Rapid Improvement Workshop (RIW) framework which companies can used to identify the critical factors regulating the diffusion of business process improvement in their company. The framework can then be used address how process improvement can be efficiently implemented. We use the results from case studies at Caterpillar India. The paper identifies the critical factors that contribute to the successful implementation of process improvement programs in manufacturing organisations. We further identify certain technological and cultural barriers to the implementation of process improvement programs and how Indian manufacturing companies can overcome these barriers to attain competitive advantage in the global markets.

Should funds invest in socially responsible investments during downturns?

Purpose: This paper investigates whether Socially Responsible Investment (SRI) is less sensitive to market downturns than conventional investments; the legal implications for fund managers and trustees; and possible legislative reforms to allow conventional funds more scope to invest in SRI. ----- ----- Design/methodology/approach: The paper uses the market model to estimate betas over the past 15 years for SRI funds and conventional investment funds during economic downturns, as distinct from during more ‘normal’ (non-recessionary) economic times. ----- ----- Findings: The beta risk of SRI, both in Australia and internationally, increases more than that of conventional investment during economic downturns. Traditional fund managers and trustees in Australia are therefore likely to breach their fiduciary duties if they go long - or remain long - in SRI funds during economic downturns, unless relevant legislation is reformed. ----- ----- Research limitations/implications: The methodology assumes that alpha and beta in the market model are constant. This is the subject of ongoing research. Second, it categorises the state of the market into ‘normal’ economic conditions and downturns using dummy variables. More sophisticated techniques could be used in future research. ----- ----- Practical implications: The current law would prevent conventional funds from investing in SRI. If SRI is viewed as socially desirable, useful legislative reforms could include explicitly overriding the common law to allow conventional funds to invest in SRI; introducing a 150% tax deduction or investment allowance for SRI; and allowing SRI sub-funds to obtain Deductible Gift Recipient status from the Australian Tax Office and other taxation authorities. ----- ----- Originality/value: The accurate assessment of risk in SRIs is an area which, despite its serious legal implications, is yet to be subjected to rigorous empirical investigation. Keywords - SRI, market model, GARCH, trust fund, fiduciary duties, market downturns, Australia.

Sharing with Creative Commons : a business model for content creators

Creative Commons (CC) is often seen as a social movement, dismissed by critics as a tool for hobbyists or academics who do not sell their creations to make a living. However, this paper argues that the licensing of creative copyright works under a CC licence does not preclude commercial gain. If used wisely, CC licences can be a useful tool for creators in their quest for commercial success. In particular, this paper argues that the sharing of creative works online under a CC licence allows creators to circumvent traditional distribution channels dominated by content intermediaries, whilst maintaining a level of control over their copyright works (i.e. explicitly reserving some rights but not all rights). This will be illustrated by case studies on how CC is being used by content creators and intermediaries respectively, and how successful their respective methods are in harnessing this tool.

Clone detection in repositories of business process models

As organizations reach to higher levels of business process management maturity, they often find themselves maintaining repositories of hundreds or even thousands of process models, representing valuable knowledge about their operations. Over time, process model repositories tend to accumulate duplicate fragments (also called clones) as new process models are created or extended by copying and merging fragments from other models. This calls for methods to detect clones in process models, so that these clones can be refactored as separate subprocesses in order to improve maintainability. This paper presents an indexing structure to support the fast detection of clones in large process model repositories. The proposed index is based on a novel combination of a method for process model decomposition (specifically the Refined Process Structure Tree), with established graph canonization and string matching techniques. Experiments show that the algorithm scales to repositories with hundreds of models. The experimental results also show that a significant number of non-trivial clones can be found in process model repositories taken from industrial practice.

Automated error correction of business process models

As order dependencies between process tasks can get complex, it is easy to make mistakes in process model design, especially behavioral ones such as deadlocks. Notions such as soundness formalize behavioral errors and tools exist that can identify such errors. However these tools do not provide assistance with the correction of the process models. Error correction can be very challenging as the intentions of the process modeler are not known and there may be many ways in which an error can be corrected. We present a novel technique for automatic error correction in process models based on simulated annealing. Via this technique a number of process model alternatives are identified that resolve one or more errors in the original model. The technique is implemented and validated on a sample of industrial process models. The tests show that at least one sound solution can be found for each input model and that the response times are short.

Global Business Today 2nd edition

Global Business Today is focused on the fundamentals of international business. Not only does this text provide coverage of the strategic imperatives of operating IB out of a small, dependent economy but it also builds a thorough worldwide orientation. In this edition, international business Graduate Attributes have been integrated throughout and there is topical discussion of issues such as the Doha round of trade negotiation, climate change and the rise of China and India. The authors recognise that case studies reinforce relevance and have therefore included either entirely new or significantly revised cases in every chapter. With a concise treatment of the crucial elements of an IB course, Global Business Today is the ideal text for a first subject in international busines

The challenge of defining guanxi in a contemporary business context : a review

Guanxi has become a common term in the wider business environment and has attracted the increasing attention of researchers. Despite this, a consistent understanding of the concept continues to prove elusive. We review the extant business literature to highlight the major inconsistencies in the way guanxi is currently conceptualized: the breadth, linguistic-cultural depth, temporality, and level of analysis. We conclude with a clearer conceptualization of guanxi which separates the core elements from antecedents and consequences of guanxi. Furthermore, we compare and contrast guanxi with western correlates such as social networks and social capitals to further consolidate our understanding of guanxi.

Configurable multi-perspective business process models

A configurable process model provides a consolidated view of a family of business processes. It promotes the reuse of proven practices by providing analysts with a generic modelling artifact from which to derive individual process models. Unfortunately, the scope of existing notations for configurable process modelling is restricted, thus hindering their applicability. Specifically, these notations focus on capturing tasks and control-flow dependencies, neglecting equally important ingredients of business processes such as data and resources. This research fills this gap by proposing a configurable process modelling notation incorporating features for capturing resources, data and physical objects involved in the performance of tasks. The proposal has been implemented in a toolset that assists analysts during the configuration phase and guarantees the correctness of the resulting process models. The approach has been validated by means of a case study from the film industry.

The phenomenon of business process management : practitioners’ emphasis

Since 2005, Business Process Management (BPM) has been one of the top 10 issues for CIO’s. However, while there is a general awareness what BPM is and what it relates to, one needs to ask ‘does everyone have the same understanding of the BPM phenomenon? And if not, is there a pattern to these conceptions and how do the ways of conceptualizing BPM differ?’ This paper presents the practitioner conceptions of BPM using a phenomenographic approach to detect variations in the BPM conceptions emphasised. 26 interviews were conducted with BPM practitioners with various scopes of work (namely program management, project management and execution levels) in this qualitative research. Distinct variations in how BPM is conceptualized among BPM practitioners are revealed, showing that emphasis is put depending on their scope of work either towards value generation, improvement or managing processes. This is of particular relevance to the Information Systems and BPM community in order to align the rigorous work done to date by the research community with the current understanding of BPM in the practitioner community.

Embedding information literacy in a first year business undergraduate course

This article reports on a project to embed information literacy skills development in a first-year undergraduate business course at an Australian university. In accordance with prior research suggesting that first-year students are over-confident about their skills, the project used an optional online quiz to allow students to pre-test their information literacy skills. The students' lower than expected results subsequently encouraged greater skill development. However, not all students elected to undertake the first quiz. A final assessable information literacy quiz increased the levels of student engagement, suggesting that skill development activities need to be made assessable. We found that undertaking the information literacy quizzes resulted in a statistically significant improvement in students' information literacy skills from the pre-test to the post-test. This research therefore extends previous research by providing an effective means of delivering information literacy skill development to large cohorts of first-year students.