Emerald | Journal of Advances in Management Research

Insurer and intermediary perceptions on the response of Thai local non-life insurance companies to deregulation

Oran Vongsuraphichet, Lalit Johri — 2011-11-01 00:00:00.0

Abstract

Purpose – The purpose of this paper is to examine insurers’ and intermediaries’ perceptions of the response to Thailand's non-life insurance industry to deregulation. Design/methodology/approach – This research paper is based on existing literature and consultation with industry experts, resulting in the development of a 13-variable questionnaire on perceptions of the local non-life insurance industry's response to deregulation. A convenience sampling technique was used for the survey respondents, who comprised two groups (insurers and intermediaries), involved in the non-life insurance industry in Thailand. Factor analysis was applied to the 246 responses to provide some exploratory analysis of underlying factors that account for the patterns among the variables. Findings – The results of the factor analysis derived four factors that explain the perceptions of insurers and intermediaries to the response of local non-life insurance industry to deregulation. The four factors include survival, alliance, local knowledge, and mergers and acquisitions (M&A). Furthermore, the findings indicate that whereas insurers perceived that survival would be the highest priority for local insurers, it was considered to be a secondary priority by the intermediaries. The latter group perceived that alliances and local knowledge were the most significant priorities for local insurance companies after deregulation. Research limitations/implications – The data gathered for the study are limited to the perceptions of two respondent groups from one industry. Moreover, this paper did not consider the views of policy makers or the variables that relate to or are caused by deregulation factors. Therefore, future research may extend these findings to other industries, countries, and respondents to provide a more general application. Practical implications – The research findings offer managerial implications for both insurers and intermediaries and also implications for researchers on refocusing their efforts in managing non-life insurance companies. Local insurers should improve and generate factors such as financial strength, accurate pricing, innovative sale methods, an understanding of the local culture, and alliances with other industries. Originality/value – The paper presents an original insight into an important element of insurers’ and intermediaries’ perspectives on response of local insurance companies after deregulation to the Thai non-life insurance industry.

A case study on redesign of supply chain network of a manufacturing organization

Navin K. Dev, Rahul Caprihan, Sanjeev Swami — 2011-11-01 00:00:00.0

Abstract

Purpose – The purpose of this paper is to analyze the case of a manufacturing firm situated in an industrial city of India, focusing on supply chain management issues of the concerned organization from two operational perspectives: supply side (or the procurement side) and the distribution side of the system. Design/methodology/approach – The authors first considered the outsourcing decision-making problem in a static environment using analytical expression by means of a variable fraction of demand. Next, the authors extended the scope of this problem by considering outsourcing decisions in a dynamic environment, using the sequential decision-making approach with various operational and inventory factors. Finally, the authors carried out the study of the distribution side of the supply chain of industry using discrete event simulation. Findings – It was observed that, in the case study organization, because of the rather unstructured approach in dealing with the outsourcing perspective, the authors suggested the adoption of a more scientific approach in computation of fraction of demand to be outsourced. Further, since the distribution network typically experienced high inventory levels throughout the supply chain, it was decided upfront to optimize this performance measure. Originality/value – The primary objectives of this exercise are to: address the operational concerns of a real-life manufacturing environment; apply the theoretical models in a realistic environment, and compare the results of theory with practice; and provide actionable managerial recommendations.

The perceived impact of JIT implementation on operations performance: Evidence from Chinese firms

Zhi-Xiang Chen, Kim Hua Tan — 2011-11-01 00:00:00.0

Abstract

Purpose – The purpose of this paper is to investigate the perceived impact of just-in-time (JIT) implementation on operations performance, identify the relationship between elements of JIT (integrated and individual) and performance metrics, and based on the results, present some helpful suggests for improving JIT implementation in manufacturing industry. Design/methodology/approach – Framework and hypotheses based on literature review were first constructed, then a questionnaire was developed to collect data from mainland China; in total, 224 information responses were obtained, then statistical analysis was carried out to test the hypotheses. Based on the data analysis results, conclusion and managerial insight were summarized. Findings – Results show that, no matter what kind of industry or scale of sale of the firm, implementation of an aggregate bundle of JIT elements can improve production operations performance. However, for individual elements of JIT, their impacts are different; some basic elements of JIT like 5S, multiple-skill employee and JIT purchasing can play a more remarkable role than other elements. Practical implications – The conclusions of this paper can benefit firms in improving implementation of JIT in practice, especially for those firms in developing countries. Originality/value – Although a number of studies on JIT implementation have been reported in developed countries, little attention has been paid to the status of Chinese firms; this paper has value for examining the practice of JIT in China and reference value for other developing countries’ firms.

Bio-immune systems analogy for effective managerial decision making in conflicting environment

Sidhartha S. Padhi, Prem Vrat — 2011-11-01 00:00:00.0

Abstract

Purpose – The purpose of this paper is to investigate the analogy of the human immune system with the economic auction theory. Design/methodology/approach – The paper develops an analogy of bio-immune system with competitive bidding in auction, then develops a model of the situation and discusses its managerial implications. Findings – The human immune system can be benchmarked to model decision making under competitive environment, such as biddings in auctions and obtains gainful insights. Practical implications – Various engineering, management, social science, and defense and security-related applications of the model are suggested. Originality/value – The paper presents a novel and innovative model with tremendous potential for varied applications.

Modeling of post-construction failure factors of bridges

Sanjay Sampat Wakchaure, Kumar Neeraj Jha — 2011-11-01 00:00:00.0

Abstract

Purpose – The failure of a bridge is a complex phenomenon due to the involvement of a large number of factors. Bridge failure cannot be attributed to a single cause due to the intricacies involved in the relationship among the factors causing failure. The aim of this paper is to identify the various factors causing bridge failure and show an interdependence/relationship among them. Design/methodology/approach – Interpretive structural modeling (ISM), which is a tool of structural analysis for interactive learning, has been used to develop a hierarchical structure of the phenomenon of bridge failure showing the interrelationship of the causative factors. Impact Matrix Cross Reference Multiplication Applied to a Classification (MICMAC) tool has been used to quantify and classify the factors for bridge failure on the basis of their influence and dependence. Findings – In total, 14 factors, which may contribute to the failure of a bridge, have been identified through the literature survey and interaction with bridge experts. Even though all the 14 factors are important, the authors have found that the environmental factor has the maximum influence, while the age factor is the most dependent of all factors. Research limitations/implications – The proposed research utilizes the ISM and MICMAC tools and thus has all the limitations of structural modeling. The application of structural equation modeling in the civil engineering field is limited, but it is hoped that a similar approach can be applied in other areas of engineering. Originality/value – The factors causing bridge failure have been identified and hierarchical interdependence model has been arrived at by using ISM. On the basis of MICMAC analysis, the factors have also been classified into three categories, namely, influent, autonomous and dependent. The study reaffirms the importance of all factors in the overall performance of a bridge.

Impact of MoU on financial performance of public sector enterprises in India

Seema Gupta, P.K. Jain, Surendra S. Yadav — 2011-11-01 00:00:00.0

Abstract

Purpose – Memorandum of Understanding (MoU) has been conceived as an instrument to quantify/assess social and commercial obligations/performance of central public sector enterprises (PSEs) in India. The purpose of this paper is to measure the financial performance of the MoU PSEs and to compare their performance with PSEs which have not opted for MoU (referred to as non-MoU PSEs) over a period of 13 years. Design/methodology/approach – Financial ratio is a well accepted technique to assess financial performance. Accordingly, the financial performance of CPSEs has been assessed on the basis of 15 ratios pertaining to the profitability, efficiency, liquidity and solvency. Findings – The findings suggest that MoU seems to have yielded decisive improvement in the performance of PSEs which have signed MoUs during the period of the study under reference. At the same time, the performance of non-MoU PSEs is unsatisfactory. In sum, MoU have enhanced not only commercial profitability but also have enhanced operational efficiency of the PSEs. Research limitations/implications – The paper focuses only on financial aspects; the significant non-financial aspects such as social responsibilities, environments etc. are not reckoned in the study to judge the total performance. Originality/value – The study is the first of the type to cover a long time-span of 13 years to assess virtually all non-financial CPSEs operating in India.

Consumption values: scale development and validation

Jyoti Sikka Kainth, Harsh V. Verma — 2011-11-01 00:00:00.0

Abstract

Purpose – The purpose of this paper is to build on the Consumer Perceived Value (CPV) phenomenon by theoretically defining and empirically developing a Services Perceived Value Scale (SPERVAL) in the context of services industry. Design/methodology/approach – The multidimensional SPERVAL scale relies upon exploratory research to identify “Value Indicators”. Given the constructs included in the proposed research model, it is quite clear that testing the model involves a study of consumers. Accordingly, this study is focused on consumers’ views and a blend of both quantitative and qualitative research methods were used. The study has used qualitative research as a starting point, using exploratory research methods of focus group discussions and interviews. The results generated from the research were quantitatively analyzed with descriptive research by using questionnaires as the instrument. Findings – KMO and Bartlett's Test justified the use of factor analysis on the data. The reliability of the SPERVAL Scale was 92.629 per cent (Cronbach alpha), part 1=0.9046, part 2=0.8405 (split half) and the correlation between forms was 0.7511. Research limitations/implications – Marketers can understand the psychology behind evaluation of consumption values in the context of services industry by way of CPV dimensions and drivers. Service providers can also use the research findings to build on their competitive advantage by developing core competencies in these areas. Limitations of scope with respect to sampling area and sample size existed. Originality/value – The paper presents a new Consumer Perceived Value Scale in the context of service consumption.

Leading indicators of innovation as a competence for individuals: an empirical study

Pradeep Waychal, R.P. Mohanty, Ajit Verma — 2011-11-01 00:00:00.0

Abstract

Purpose – The purpose of this paper is to construct an empirical model of innovation as a competence of individuals and validate it. The model takes into consideration the multidimensional characteristics of individuals and the parameters of surrounding ecosystem and establishes their associations with the innovation as a competence. Design/methodology/approach – The model is built based on an extensive review of literature relating to innovation. A diagnostic study is conducted in a large information technology (IT) company to validate the model. The experiment is conducted over a sample of 442 individuals and uses appropriate reliability measures and chi square analysis as a validation technique. Findings – The study establishes association of various measures of innovation competency with individual characteristics and ecosystem parameters. Some of the salient findings are that individuals having a high degree of self-belief, and an ecosystem where the habits of celebrating success and competitive market are found, do better on innovation as a competence. Research limitations/implications – This study has significant implications and its findings can facilitate individuals and ecosystem managers to undertake progressive actions. Although the findings are limited to the IT industry, the implications can spread over to formulating competence development strategy in any organizational setting. However, the scope exists to make the research broad based, including factors such as geography, culture, business area of operation, size of organization, etc. Practical implications – Innovation as a competence of an individual is pivotal to an organization's competitive advantage. This study can facilitate competency management, such as competency planning, deployment, development, utilization and ecosystem up-gradation. Originality/value – The model is empirical in nature and has been tested in a large Indian IT firm and the managers have found this model pragmatic and practical.

Sustainability and business

2011-11-01 00:00:00.0