Logistics, Business & Public Policy

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A theoretical model on how firms can leverage political resources to align with supply chain strategy for competitive advantage
(Wiley, 2022-03-10) Grover, Abhay K.; Dresner, Martin
The success of a firm's supply chain strategy depends on resources in the political environment and the supply network in which it operates. If the political environment is not conducive to a firm's supply chain strategy, a firm can either change its supply chain strategy or seek a political environment that is more favorable to its supply chain. This paper examines this second alternative. The structure-conduct-performance (SCP) paradigm and the competitive dynamics literature are used to explore the relationships between political actions that leverage supply network resources, supply chain strategies, and firm performance. We extend a well-known typology of political actions from the strategic management literature and suggest that beyond influencing or complying with the political environment, firms may choose to moderate the political environment (circumvent or submit) or stay neutral (free ride). An integrated model is developed to explore the relationships between political actions and supply chain strategy, along with a series of propositions outlining how political actions can facilitate supply chain risk management strategies. Finally, suggestions are provided for future research.
Antecedents and Effects of Retail Shelf Availability
(2019) Celebi, Heidi; Evers, Philip T; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Retail shelf availability research has been limited by the inability to measure stockouts. Not being able to fully capture stockout occurrences has led to studying either the effects of stockouts or their antecedents. It has also led to using various fundamentally different stockout attributes as measures across studies. The relationship between stockout attributes is not clear, making it difficult to have a consensus on either the drivers or the impact of stockouts. This thesis considers both antecedents and effects of stockouts by incorporating actual stockout events under two different risk pooling methods. The first set of models simulate stockout-based customer switching (the inventory effect) to study pooling by substitution for a retailer setting service level goals for two products. The second set of models study pooling by postponement, termed “instore logistics postponement,” using archival data from a new shelf sensor technology that captures actual stockout events. An extension to the second part of this study examines the nonlinear relationship between stockout attributes. Both parts of the dissertation contribute to the stockout literature in different ways. The simulation work contributes towards reconciling opposing views on the performance effect of risk pooling through substitution, also showing how different performance measures may accentuate or mask the impact of stockouts. The shelf technology work contributes to logistics postponement by studying how a two-tier inventory within the store may affect stockouts along more than one stockout attribute, and whether less frequent but longer stockouts are linked to better performance than shorter but more frequent stockouts.
Arbitrage Free Approximations to Candidate Volatility Surface Quotations
(MDPI, 2019-04-21) Madan, Dilip B.; Schoutens, Wim
It is argued that the growth in the breadth of option strikes traded after the financial crisis of 2008 poses difficulties for the use of Fourier inversion methodologies in volatility surface calibration. Continuous time Markov chain approximations are proposed as an alternative. They are shown to be adequate, competitive, and stable though slow for the moment. Further research can be devoted to speed enhancements. The Markov chain approximation is general and not constrained to processes with independent increments. Calibrations are illustrated for data on 2695 options across 28 maturities for 𝑆𝑃𝑌 as at 8 February 2018.
AN ASSESSMENT OF THE IMPACT OF UNDESIRABLE OUTPUTS ON THE PRODUCTIVITY OF UNITED STATES MOTOR CARRIERS
(2012) Britto, Rodrigo; Britto, Rodrigo A; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
The U.S. economy depends heavily on the trucking industry as it moves 70% of the entire nation's freight. With the inclusion of $295 billion in truck trade with Canada and $195.6 billion in truck trade with Mexico in 2007, it is apparent that any disruption in truck traffic will lead to rapid economic instability (ATA Releases: American Trucking Trends 2008 - 2009, 2008). Yet, the critical nature of the trucking industry comes at a societal price. Indeed, undesirable outputs, e.g., truck crashes and associated injuries and fatalities, have very significant economic and human consequences. This dissertation uses Data Envelopment Analysis (DEA) to investigate the impact of undesirable outputs on the productivity of the motor carrier industry during the years 1999-2003. Previous DEA studies at the firm level have focused on the relationship between inputs and desirable outputs. The proposed approach in this dissertation simultaneously considers both the positive and negative outputs. This dissertation addresses two key problems with the DEA analysis technique previously identified by Yang and Pollit (2009): i.e., failure to take into consideration undesirable outputs and the failure to assess the impact of exogenous variables on the DEA scores of individual firms. As a result, this study will provide a new perspective into the productivity of U.S. motor carriers by incorporating both of these considerations into a more comprehensive DEA analysis. It will also provide opportunities to evaluate how individual firms might change their mix of inputs in order to simultaneously maximize desirable outputs and minimize undesirable ones.
Buy Now, Think Later: Product Returns and Firm Performance
(2018) Pritchard, Alan Matthew; Windle, Robert J.; Evers, Philip T.; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation studies the short-term and long-term impacts of return policies and feedback text on firm performance. Archival data, text analytics, and econometric analysis are used to further develop signaling theory, transaction cost economics, and procedural justice theory in operations, logistics, and supply chain management. The first essay is motivated by the ambiguity of prior research on the relationship between return policies and demand in the online setting. The return policy components that impact landed prices are identified and the relationships between terms of sale and demand are studied. After controlling for price, a lenient return policy is found to signal the unobservable quality of the seller’s product and demonstrate their capability to properly handle sales, shipping, and returns. A lenient return policy also helps mitigate customers’ risk associated with a mismatch between the product and their expectations and is shown to be positively associated with landed price and demand. The second essay demonstrates that the impact of a customer’s satisfaction or dissatisfaction with a seller or their product extends to other customers when their satisfaction or dissatisfaction becomes public knowledge, impacting sellers’ future demand. The impact of negative, trust revoking feedback is shown to differ from the impact of non-trust revoking, negative feedback, such as nonspecific complaints and complaints about price. In other words, the text associated with numerical feedback ratings determines the strength of the negative rating’s impact. Moreover, it is shown that negative feedback can be altered and even counteracted with a satisfactory service recovery, while the variance of complaint types in sellers’ feedback histories is negatively associated with demand. Overall, this dissertation demonstrates the benefits of two signals of quality: a lenient return policy and positive feedback history. Methodological contributions include the use of two original datasets and the combination of text analytics and regression analysis to inform managerial decisions. Managerial implications suggest that firms should take the leniency of their return policies and the strength of their online reputations into consideration when pricing and estimating demand.
The Competition on Online Marketplaces
(2022) Su, Hao; Dresner, Martin E.; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation examines competition in online marketplaces using data from the largest online marketplace in the U.S., Amazon.com. The first essay studies direct sales competition between a marketplace operator and third parties that sell their products on the marketplace and examines factors that third-party sellers may use to avoid direct competition with the marketplace operator. I find that third-party sellers can best avoid competing directly with Amazon by selling unbranded products and by marketing products that are fulfilled by Amazon. The second essay investigates competitive results between the marketplace operator and third-party sellers. I find that despite inherent competitive disadvantages, third-party sellers may increase their likelihood of winning the sales competition against the marketplace operator when they offer a lower price than the marketplace operator and when they use the marketplace operator’s fulfillment services. In addition, a third-party seller using direct fulfillment is less likely to outcompete a seller using operator-managed fulfillment services, but it can be more competitive when it offers lower prices and when it sells low-priced products. The third essay investigates how employment of the marketplace’s store banner impacts sales performance for both private label products and non-private label products on an online marketplace. I find that directly branding private labels and using store banners on non-private label products are both associated with greater sales performance. In addition, lower-priced products and non-private label products may achieve greater benefits from store banners. The findings contribute to the online marketplace literature by empirically testing the impact of direct sales, fulfillment services, and store banner use on competition between a marketplace operator and third-party sellers. The findings also contribute to important antitrust considerations.
Competition, Firm Financial Pressure, and Location Strategy: 3 Essays on Firm Domestic and International Expansion
(2022) Jaffe, Roxanne L; Chung, Wilbur; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation examines the relationship between firm capabilities, including firm financial condition, and expansion strategy in a competitive environment. In Essay 1, I build a formal model of firm geographical expansion and entry timing based on Cournot competition that is driven by heterogeneity in firm, location, and competition traits. Using Monte-Carlo simulation, I identify firm best responses and Nash Equilibrium which serve as predictions for empirical inquiry in Essay 2 and Essay 3. Variation in firm traits and location traits lead to different expansion outcomes including whether firms expand at all, whether firms enter a market early or later, and which geographical location firms choose. While similar firms choose similar expansion behavior, as firms’ relative capabilities and revenue pressure differ, staggered entry becomes more appealing, resulting in differential firm profits. Additionally, expansion strategy becomes more nuanced when considering the interaction between firm, competitor, and location traits, both domestically and internationally. I focus on two key mechanisms of interest and test these empirically: revenue pressure in Essay 2, and liability of foreignness in Essay 3. I focus on a subset of propositions that map to my empirical setting: expansion into cities by firms in the micro-mobility industry (scooter, bike, and moped share companies). In Essay 2, the empirical results for US expansion activity support model predictions that more capable firms expand before less capable firms, but that revenue pressure pushes firms to expand earlier than they would prefer. Extending the model to capture international expansion in Essay 3, I find that liability foreignness helps explain the entry timing of firms at the country level, as well as a subset of entry decisions at the city level. This final essay highlights the nuances of various measures of liability of foreignness, as well as the importance of separating out different levels of analysis (e.g., at the city and country level) when examining firm entry decisions.
DELIVERY PLATFORMS: DO THEY DELIVER RESULTS?
(2022) PARK, HYOSOO Kevin; Dresner, Martin; Pan, Xiaodan; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Over the past decade, direct-to-consumer retail deliveries have increased significantly, bolstered by the development of dedicated restaurant and retailer delivery platforms. This dissertation, composed of three essays, examines topics related to the performance of delivery platforms and their retail partners.The first essay compares the impact of delivery partnerships and in-house delivery capabilities on the direct channel sales of restaurant chains. Furthermore, the moderating effects of containment and health measures imposed during the COVID-19 pandemic are examined. I find that delivery platform partnerships and in-house deliveries both positively impact restaurant sales. However, as containment and health measures increase, impacts from delivery platforms wane. Conversely, in-house delivery becomes more beneficial at impacting restaurant sales as containment and health measures increase. In the second essay, I analyze how delivery platform partnerships affect the sales of both grocery retailers and delivery platforms. Two distinct partnerships stages are assessed: 1) platform access, where a grocery retailer’s same-day delivery is only offered through a partner platform’s website, and 2) usage integration, where the platform’s same-day delivery services are integrated into the retailer’s website. I find that platform access provides positive impacts for online sales of both the retailer and the delivery platform. However, usage integration, the second level of the partnership integration, provides benefits to the retailer’s online channel but not to the platform channel. The third essay analyzes how delivery platform partnerships impact retailer and delivery platform sales and how vertical integration between the two partners moderates these relationships. I find that delivery platform partnerships have a positive effect on both retailer and delivery platform sales. However, these positive impacts depend on whether the two partners are vertically integrated. Without a common ownership structure, delivery platform sales crowd out retailer store sales. Likewise, retailer sales crowd out delivery platform sales without vertical integration.
Determinants of customer partnering behavior in logistics outsourcing relationships: a relationship marketing perspective
(2007-04-24) Rossiter Hofer, Adriana; Dresner, Martin E; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Developing close relationships with third-party logistics providers (3PLs) has been acknowledged in the literature as a beneficial strategy for 3PLs and customer firms. It has been shown that customers embedded in close relationships with 3PLs achieve higher levels of operational and financial performance. 3PLs also benefit from engaging in these relationships by generating higher levels of customer satisfaction, customer retention, and referrals to new customers. In order to complement these findings, this study integrates theories and empirical evidence drawn primarily from relationship marketing to develop a model of the antecedents of customer partnering behavior in logistics outsourcing relationships. It is proposed that a combination of key interorganizational conditions and customer characteristics directly impacts a customer's partnering behavior with a 3PL. More specifically, a customer embedded in a relationship with a 3PL in which there are high levels of dependence, trust, and satisfaction, is more likely to exhibit higher levels of partnering behavior with a 3PL. In addition, a customer's prior experiences with partnering, and policy of engaging in interactive relationships with customers, will also positively impact its partnering behavior with a 3PL. Antecedents of dependence and trust are also identified in the model. Data are collected through a web-based survey with customers of a large Brazilian 3PL and the model tested using structural equation modeling. The results support several of the hypotheses proposed in the model. In particular, evidence is found that customer-specific characteristics, such as a customer relationship marketing orientation and prior experience with 3PL partnering, have a positive effect on a customer partnering behavior with a 3PL, above and beyond the effect of interorganizational conditions, as advocated in traditional behavioral models. Contributions of this research include the depiction of the interplay between environmental forces, interorganizational conditions, and firm-specific factors that are hypothesized to impact a customer's partnering behavior with its 3PL. With an understanding of the mechanisms on which a customer's partnering behavior is built, 3PLs can take effective action in the pursuit of the development of closer relationships with their customers, contributing to the maintenance and expansion of their customer base.
DRIVERS OF ORGANIZATIONAL MODULARITY IN SUPPLY CHAINS - A CROSS SECTIONAL STUDY OF U.S. MANUFACTURING INDUSTRIES
(2005-12-07) Cheng, Liang-Chieh; Grimm, Curtis M.; Dresner, Martin E.; Logistics, Business and Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation investigates the driving forces behind the emerging phenomenon of "organizational modularity", by which firms create "virtual" organizations through outsourcing functions, by using contract manufacturers, by forming alliances, and by using temporary employment contracts, as they organize their activities within supply chains. Using transaction cost analysis as the overarching theoretical framework for the analysis, a number of hypotheses that relate industry structure to modularity are developed. A large scale industry-level data set is used to test the hypotheses. Statistical results show that heterogeneity of supply sources, and scale economies in focal and downstream industries, are positively associated with greater use of modular forms, whereas other factors, such as the concentration of upstream and downstream industries, are associated with less modularity. In the current outsourcing environment, these findings provide crucial insights to capture the dynamics of the prevalent modular networks.
THE EFFECTIVENESS OF SELLER CREDIBILITY SYSTEMS IN THE ONLINE AUCTION MARKET: MODELING THE SELLER'S POINT OF VIEW
(2004-08-06) Zhou, Ming; Windle, Robert J.; Dresner, Martin; Logistics, Business and Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
The Internet has turned out to be an appealing place for doing business, with its unprecedented ability to bring together a large number of buyers and sellers, cover a wide scale of market and automate transaction processes, etc. However, this powerful technology of information transformation brings a greater trust problem than corresponding transactions in brick-and-mortar markets, because of the lack of information on product quality and seller honesty. Product information may be selectively disclosed, which increases the chance of fraud and dishonest behaviors. This research focuses on online feedback systems. Analytical models are developed to assess the impact of such feedback systems. Feedback systems, by themselves, are shown to work under certain conditions even in an ideal environment. Influences from incentives for providing feedback, shilling and ID changing are comprehensively discussed. If consumers do value trust, one should expect the more trustworthy sellers to generate higher prices for their products than the less trustworthy sellers. A higher price can offer incentives for sellers to be trustworthy. Following the analytical model, empirical tests of online feedback system are conducted.
Essays on investor preferences and corporate strategies
(2024) Nguyen, Huu Loc; Sampson, Rachelle; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Time horizon, an investment’s expected payback period, is a consequential investor preference and a crucial determinant of corporate strategy as it can constrain firms’ investment options. However, a gap exists between research focusing on investor temporal preferences and on corporate intertemporal strategy. Therefore, my dissertation offers a multi-level analysis to examine the dynamic relationship between investor temporal preferences and firm strategy. In the first essay, I construct a real-options signaling game model in which time horizon serves as a key determinant of firm strategic responses to shifts in investor temporal preferences. I test my predictions using the emergence of low-carbon energy innovation in the U.S. Oil and Gas industry during 1980-2018. I find that firms adjust their strategies in response to changes in investor time horizons. When faced with a lengthened investor time horizon, firms are more inclined to prioritize long-term inventive innovation, whereas a shortened investor time horizon prompts a greater focus on short-term adoptive innovation. Furthermore, I find suggestive evidence that such commitments when firms align their strategies to investor temporal preferences enhance firms' innovation performance. The second essay extends my investigation in the first chapter to explore the impacts of the inherent information asymmetry between firms and investors on investor-induced firm strategies. I find that, in high information asymmetry contexts, firms overshoot their investor-induced responses to effectively signal their alignment to shifts in investor temporal preferences. In the third (co-authored) essay, we explore the interplay between investor temporal preferences and firm strategies via top management teams. We study how the career experience of top management influences firm strategies and investor temporal preferences. We construct a novel metric to capture, standardize, and compare executives’ career paths across different functional roles, firms, and industries. Our findings indicate that executives with heightened diversity of experience across various functional roles tend to support longer-term strategies, such as income smoothing over time, aligning with the interests of long-term investors. In contrast, executives with more transitions between firms and industries often exhibit more short-term actions, namely cuts in R&D investments, rendering their firms more appealing to short-term investors.
Firm Decision Making Under Financial Distress: A Study of U.S. Air Fares and an Analysis of Inventories in U.S. Manufacturing Industries
(2007-07-09) Hofer, Christian; Dresner, Martin E; Windle, Robert J; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation investigates the effects of firm financial distress on two key firm decision variables: sales prices and inventories. These analyses contribute to the Structure-Conduct-Performance paradigm literature. Specifically, the feedback loop between financial distress, a result of poor past performance, and two firm conduct parameters, prices and inventories, is explored in great detail. The first essay is motivated by the ambiguity of prior research on the relationship between firm financial distress and prices. The extant economics, corporate finance and strategic management literatures differentially approach this relationship, and empirical research has found only limited, at times ambiguous support for any single theoretical contention. These theoretical perspectives are reviewed and an attempt is made to reconcile the apparent conflict by adopting a strategic contingency perspective that identifies in which way and in what instances firm financial distress may impact prices. The model is empirically tested using data from the U.S. airline industry. The results indicate that firm financial distress and prices are generally negatively related. Moreover, this effect is substantially stronger for firms operating under Chapter 11 protection than for firms approaching bankruptcy. It is further shown that the magnitude of the effect of financial distress on prices depends on firm factors such as operating costs, market power, and firm size, as well as on competitive characteristics such as market concentration and the financial condition of competitors. The second essay analyzes the impact of firm distress on firm inventories and investigates if this relationship is impacted by a firm's power relative to its upstream and downstream supply chain partners. Building on prior work in the economics field, this research is not only based on microeconomics theory, but also draws on inventory theory as well as on prior work on supply chain relationships. A comprehensive inventory estimation model is specified, and novel measures of inventory determinants and power are developed. The hypotheses are tested using panel data from the U.S. manufacturing industry. It is shown that distressed firms hold less inventory and that a firm's power within the supply chain will determine to what extent inventory ownership is reduced during times of financial distress. Implications for supplier selection and supply chain cooperation are discussed. In summary, this research significantly enhances researchers' understanding of why, how, and when firm financial distress affects prices and inventories.
Foreign Direct Investment and Political Uncertainty
(2015) Elwakil, Omar Sherif; Dresner, Martin E; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Recent developments in the general equilibrium theory of multinationals emphasize the importance of multilateral considerations. Yet, existing explanations and corresponding estimations of FDI patterns have largely limited political and institutional investment impediments to a bilateral framework. Through the application of spatial econometric techniques, I demonstrate that the presence of both domestic and regional political uncertainty generate real options effects that lead to the delay or redirection of foreign direct investment. The magnitude and direction of these effects is conditional upon the host country regime type and the predominant multinational integration strategies in the region. Comparing these results with FDI of U.S. origin, I find evidence for divergent investment behavior by U.S. multinationals during regime changes in partner countries. Additionally, I find no evidence that multinationals from developing countries are more likely to complete cross-border deals in environments characterized by greater political risk or political uncertainty.
Green Rivalry and Performance
(2014) Kumar, Anupam; Grimm, Curtis M; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This study analyzes the competitive interactions between focal and rival firms in the domain of environmental management (EM) practices and the associated impacts on environmental performance and financial performance. Using competitive dynamics and institutional theory as a basis, the study contends that firm performance is impacted by behavior of both focal and rival firms, and perceptions of legitimacy. Our findings indicate that firms competing aggressively do benefit from their proactive approach, but significant dissimilarity of behavior from their rivals tends to negatively impact firm performance bringing issues of legitimacy to the forefront. Subsequently, the study expands the work outlined above with a larger set of performance measures to look at the impact of rivalry on growth and long term shareholder value. Furthermore, this section also looks into the joint impact of environmental behavior and environmental performance on financial performance via a mediating model using various environmental performance measures. The findings indicate a partial mediation between EM behavior and financial performance from EM reputation and EM policy. In the final part of the dissertation, the study presents exploratory work on two future research topics. The first topic expands the work from focal-rival dyads to include supplier networks as well. The second topic lays out a roadmap for future work in the area of credible EM signaling. This topic takes on issues surrounding greenwashing that has been reported in the popular media. Given the visibility on sustainable activities across the entire spectrum, and the burden of green on firms, it is important to understand how firms are responding and if the returns justify their investments. This study contributes to this discourse by tying theory with behavior and adds additional clarity to firm behavior vis-à-vis green. From a methodological perspective, this study uses an original panel dataset using secondary data sources, which adds to the credibility of the results. The study has important managerial relevance at both the firm level and for policy making.
Greenwashing, Firm ESG Strategy, and Employee Impact
(2022) Barrymore, Nathan; Sampson, Rachelle C; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation studies the causes and consequences of firms’ environmental and social (ESG) actions, with a specific focus on employees. Essay 1 examines greenwashing: when firms present an overly positive view of their environmental and social outcomes. I ask how top managers and investors’ ESG preferences influence companies’ self-reported environmental and social policies, and their independently reported environmental and social outcomes. I find that managers’ ESG preferences, as proxied using their language on earnings calls, correlate with both ESG policies and outcomes. However, investors’ ESG preferences correlate with only policies and not outcomes, suggestive of greenwashing. I conclude that agency issues explain these divergent results.Essays 2 and 3 ask how employees respond to firms’ ESG outcomes and to firms’ pay policies. Essay 2 explores the relationship between a firm’s ESG outcomes and labor productivity. In two contexts, we find that ESG outcomes predict higher labor productivity, but only when there is sufficient information about firm behavior. In one study, the positive impact on labor productivity only exists for large firms. In another study, the positive relationship appears only after a government regulation requiring that firms disclose their carbon emissions. Essay 3 provides large scale evidence on the relationship between wages and employee attrition. We find that paying above median wages for a specific role decreases attrition rates, but only among low and middle wage workers in the US. If stakeholder capitalism is to sustain and integrate into the US corporate system, the movement needs to be based on accurate assessments of environmental and social outcomes. These essays provide an advance in that direction, by using independently reported ESG data to examine how ESG issues impact firm strategy.
The Impact of Airline and Customer Characteristics on Airline and Airport Choice
(2012) Cho, Woohyun; Windle, Robert J; Dresner, Martin E; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
The customer choice of a particular air flight is composed of two choice decisions in a multi airport region. The customer chooses the airline and the airport that best meets their needs. This dissertation is composed of two essays. The first essay examines the airline choice decision and the second essay investigates the airport choice decision. In the first essay the focus is the impact of airline operational quality among airline characteristics. This may include nonstop flight services, service frequency, on-time operations, etc. These factors contribute to the overall utility of airline service. Improvements in operational quality can lead to increases in reliability and convenience. As a result customers will choose airlines that offer higher levels of operational quality. Particularly, some customers are more sensitive to operational quality based on their unique characteristics and tend to have stronger preference for the airlines that provide higher levels of operational quality. This essay examines the following three issues; (1) the impact of operational quality on customer's choice of airline, (2) the moderating role of operations exposure (i.e., the extent to which customers are exposed to service operations) on customer choice, and (3) the moderating effect of customer characteristics on operational quality. The second essay looks at the impact of Low Cost Carrier (LCC) presence at airports and focuses on the following issues: (1) the impact of LCC presence on a route (after controlling for the impact of fares and service frequencies) on a customer's choice of airport, (2) the moderating effect of customer demographic characteristics on airline characteristics, and (3) the moderating role of the customer's geographical location on a customer's choice of airport. Both of these essays will utilize survey data collected from the customers departing from the three airports in the Washington Metropolitan Area. This data includes customers' choice of airline and airport along with extensive information on each customer including trip related information and demographic information.
THE IMPACT OF CULTURAL DIFFERENCES ON BUYER-SUPPLIER RELATIONSHIPS.
(2010) Ribbink, Dina; Grimm, Curtis M; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
In today's economy, an ever-increasing number of companies are dealing with partners from across the world giving rise to the need to understand the impact of cultural differences on business interactions. This dissertation uses two different approaches to investigate the impact of culture in buyer supplier relationships. The first study researches the effect of cultural differences in contractual buyer-supplier agreements using transaction cost as a theoretic lens. A large number of relationships translate into contracts between partners, but very few studies have investigated the effect of cultural differences on these written agreements: This research looks at the level of contract completeness and the option to renegotiate the contract as outcome variables. The study investigates the impact of cultural difference in buyer-supplier relationships using Hofstede's cultural dimensions. The main finding is that contract completeness increases as the cultural gap between the buyer and supplier widens. The results for individual culture dimensions on contract completeness are mixed. Cultural distance impacts the option of renegotiation but the individual dimensions fail to have an effect. Finally, asset specificity has the expected positive effect on the level of contract completeness and the option to renegotiate, while more frequent transactions result in lower levels of contract completeness and fewer options to renegotiate. Overall, these findings emphasize that cultural background is a factor in contractual buyer supplier relationships and need to be taken into account in global supply chain management. The second essay investigates the impact of cultural differences in the context of dyadic buyer-supplier negotiations. It looks at the moderating effect of culture. The study uses an experimental design to investigate these issues. In the simulation negotiation, participants, classified by their country of origin, are asked to take on the role of either a buyer or a seller. They negotiate prices and quality levels for three products. This study finds that cultural differences within the negotiation dyad reduce joint profits when compared to dyads of participants with similar cultural backgrounds. Cultural differences weaken the effect of trust and opportunism on joint profits. Overall, this study concludes that cultural differences as encountered in day-to-day business interactions in global supply chains impose greater challenges.
THE IMPACT OF EXECUTIVES WITH SUPPLY CHAIN AND OPERATIONS MANAGEMENT EXPERIENCE ON THE FIRM’S SUPPLY PORTFOLIO MANAGEMENT AND INVENTORY INVESTMENTS
(2020) DLima, Rohan Savio; Corsi, Thomas M; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
The two essays of this dissertation focus on the influence of supply chain and operations management executives on the firm’s supply chain strategies. Essay 1 focuses on the differences in the supply chain and operations management role and investigates how these differences impact the firm’s supplier portfolio management strategies. Essay 2, in turn, investigates the impact of a chief supply chain officer on a firm’s inventory investment when the firm pursues a global sourcing strategy. Both Essays 1 and 2 leverage archival data and econometric data analysis to further the debate in supply chain and operations management research. Essay 1 of the dissertation is grounded in upper echelons theory (UET) and analyzes how differences in the supply chain and operations managers on the firm’s top management team (TMT) impact the firm’s strategic supplier portfolio management (SPM). Strategic SPM requires the firm to set up plans for its supply base as a whole as well as the individual relationships with its suppliers. Two of the key aspects of this are the firm’s geographic sourcing strategy that impacts the firm’s supply base and the firm’s supplier relationship strategy that impacts the firm’s relationships with its individual suppliers. These strategic choices impact the firm’s supply chain and operations and will thus be influenced by the supply chain and operations managers on the firm’s TMT. At the same time, the main difference between supply chain management and operations management lies in the focus of each of these disciplines – operations management emphasizes optimizing the firm’s internal cross-functional processes, while supply chain management centers on optimizing processes within the context of the firm as a part of the whole supply chain. So, leveraging UET, I argue that these differences lead the supply chain and operations managers to significantly different strategic SPM decisions. To assess the validity of my claims, I use various econometric techniques to analyze a panel dataset of 14,530 observations of buyer-supplier dyads over four years. This panel dataset is based on consolidated data from Compustat, Bloomberg’s SPLC module and Bloomberg’s executive database. The results provide consistent support for the hypothesized theory that the differences in supply chain and operations management lead to significantly different outcomes. Essay 2 of my dissertation juxtaposes agency theory and upper echelons theory (UET) to analyze how a chief supply chain officer (CSCO) on a firm’s top management team impacts its inventory investment when it pursues a global sourcing strategy. Using Agency Theory, I argue that firm’s pursuing a global sourcing strategy are exposed to increased supply uncertainty from risk sharing and agency problems. This increased uncertainty leads to a need for increased inventory buffers. Next, supported by UET, I build my hypothesis that a CSCO on the TMT results in lower inventory investments by focusing on reducing the firm’s exposure to uncertainties. Furthermore, given their insights into supply chain relationships, CSCOs are uniquely suited to improve collaboration, coordination and information sharing with its global sourcing partners, leading to lower uncertainties and thus lower inventories. To assess the validity of my claims, I use different econometric techniques to analyze a panel dataset of 2,883 observations over five years. I assembled this panel dataset by consolidating data from Compustat, Bloomberg’s SPLC module and Bloomberg’s executive database. I demonstrate that firms with a chief supply chain officer on their TMT have lower inventory investments when the firm pursues a global sourcing strategy.
The Impact of Executives with Supply Chain Management and Operations Management Experience on Recall Performance and Risk Management
(2017) Paraskevas, John-Patrick; Grimm, Curtis; Corsi, Thomas; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation investigates the impact of the growing presence of executives with supply chain management and operations management (SCOM) experience on the top management team. My dissertation focuses on two major strategic areas in which an executive with SCOM experience may influence firm strategy and firm performance. The first area I have chosen to study is a firm's propensity to engage in product recalls along with their responsiveness to the quality glitches that lead to recall. The second area of study is risk and resilience within a firm’s supply chain. Essay 1 explores the impact of an executive with SCOM experience on product recall propensity and firm responsiveness. We utilize a unique dataset collected from multiple sources on executives’ backgrounds and product recalls, and we find that firms having top management executives with SCOM backgrounds have fewer recalls and faster recall responsiveness. The findings also indicate that the shortened speed to recall is enhanced when a firm engages in a proactive recall strategy. The second essay studies the impact of top executives with SCOM experience as well as top executives with finance experience. We then propose original hypotheses regarding the impact of these two forms of experience on the firm’s supply chain risk profile. We utilize a dataset of manufacturing locations over a three-year period. Our findings indicate that firms with SCOM experience on their top management teams have lower levels of location risk and higher levels of resilience at their production locations. On the other hand our findings indicate that firms with top management teams with finance experience are more likely to take on location risk at their production locations but are similar to firms with SCOM on their top management team in that they also have high levels of resilience. Lastly we explore the impact of an SCOM executive when the firm uses offshore production. My findings for both essays contribute to upper echelons theory (UET) by proposing and testing novel hypotheses regarding the impact of the presence of executives with SCOM experience and finance experience on recall performance and supply chain risk management.