Cahiers de recherche

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Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

Energy efficiency projects are often executed by specialized entities, namely energy service companies (ESCOs). A typical ESCO's core business is conducted using performance-based contracts, whereby payment terms depend on the energy savings achieved. Despite their success in public, commercial, and industrial sectors, ESCOs in the residential sector are involved in fewer projects and face several challenges. First, an energy efficiency project often leads to changed consumption behavior; hence it is more difficult to evaluate the energy savings that are due to the project itself. The second challenge is that residential clients are more risk averse and, thus, less willing to contract for projects whose outcomes are uncertain. Third, a lack of monitoring protocols leads to ESCO's moral hazard problems. This paper studies ESCO contract design issues, focusing primarily on the residential market for energy efficiency. As opposed to other sectors, coordinating contracts do not exist. We show, however, that simple piecewise linear contracts work reasonably well. To improve their profitability, ESCOs can reduce uncertainty about the technology employed and/or develop ways of verifying post-project energy efficiency. Since policy makers are understandably keen to promote energy efficiency, we show also how regulations and monetary incentives can reduce inefficiencies in ESCOs' relationships and thereby maximize environmental benefits.

Mots clés : Sustainable Energy, Energy Efficiency, Performance-Based Contracts, Double Moral Hazard


Départements : Informations Systems and Operations Management, Management et Ressources Humaines

The digital economy has now a widespread impact on the whole economy and leads companies to transform and adopt new competition rules. Our objectives in this paper are:1) to analyze these evolutions and,2) to understand the role of informations systems in these changes. We have investigated two opposite environments: a pure Internet player selling an SaaS offering, and a traditional business that distributes products through a physical network of thousands of outlets. Our results show that both Internet players and traditional companies experience changes in the industry value chain, a growing importance of services, and develop new business models focused on an extended value proposition and cooperation with customers. The role of information systems is characterized by the evolution of the IT infrastructure, the expansion of inter organizational information systems and digital platforms and the development of new IT capabilities.

  • MOSI-2016-1135
  • Could Deal Promotion Improve Merchants' Online Reputations? The Moderating Role of Prior Reviews
  • X. LI

Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

It is by now almost accepted as a stylized fact that offering deal promotion (such as via Groupon or LivingSocial) deteriorates local merchants’ online reputations (e.g., the average of Yelp review ratings). However, in this paper we show that the stylized fact is not true in certain circumstances. We theorize that the valence and volume of prior reviews can play an important moderating role in the effect of deal promotion. Empirically, we show that restaurants with a relatively low prior average rating and a relatively small review volume have improved their online reputations by offering Groupon promotion. The proportion of such restaurants is substantial. The findings are robust to multiple identification strategies and econometric specifications. The results underscore the substantial heterogeneity in the effect of deal promotion on local merchants’ online reputations. Merchants need understand the moderating role of prior reviews (e.g., the valence and volume of prior reviews) and design appropriate strategies to maximize the returns from offering deal promotion.

Mots clés : Online reviews, Deal promotion, Moderating role, Difference-in-differences, Propensity score matching


Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

Despite the potential benefits, many organizations have failed in service-oriented architecture implementation projects. Prior research often used a variance perspective and neglected to explore the complex interactions and timing dependencies between the critical success factors. This study adopts a process perspective to capture the dynamics while providing a new explanation for the mixed outcomes of SOA implementation. We develop a system dynamics model and use simulation analysis to demonstrate the phenomenon of “tipping point.” That is, under certain conditions, even a small reduction in the duration of normative commitment can dramatically reverse, from success to failure, the outcome of an SOA implementation. The simulation results also suggest that (1) the duration of normative commitment can play a more critical role than the strength, and (2) the minimal duration of normative commitment for a successful SOA implementation is associated positively with the information delay of organizational learning of SOA knowledge. Finally, we discuss the theoretical causes and organizational traps associated with SOA implementation to help IT managers make better decisions about their implementation projects.

Mots clés : Service-oriented architecture (SOA), System dynamics, Tipping point, Organizational traps, Normative commitment


Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

To reduce preventable readmissions, many healthcare systems are transitioning from Fee-for-Service (FFS) to other reimbursement schemes such as Pay-for-Performance (P4P) or Bundled Payment (BP) so that the funder of a healthcare system can transfer to the hospital some of the financial risks associated with patient re-hospitalizations. To examine the effectiveness of different schemes (FFS, P4P, and BP), we develop a "health co-production" model in which the patient's readmissions can be "jointly controlled" by the efforts exerted by both the hospital and the patient. Our analysis of the equilibrium outcomes reveals that FFS cannot entice the hospital and the patient to exert readmission-reduction efforts. Relative to BP, we find that P4P is more "robust" in the sense that it can induce readmission-reduction efforts under milder conditions. However, BP can induce greater efforts compared to P4P. More importantly, we characterize the conditions under which BP (or P4P) is the dominant scheme from the funder's perspective. Finally, we find that patient cost-sharing can generate two benefits: (a) it provides incentive for patients to exert efforts; and (b) if not excessive, it can reduce the readmission rate.

Mots clés : co-productive services, hospital readmissions, pay-for-performance, bundled payment


Départements : GREGHEC (CNRS), Informations Systems and Operations Management

This paper models a multi-player environment comprising a grid operator responsible for meeting electricity demands, a photovoltaic (PV) manufacturer, customers who might install PV (solar) systems, and a regulator charged with setting an optimal feed-in tariff (FIT). The grid operator must meet exogenous electricity demand and also buy back all electricity (produced by PV systems) at the FIT set by a regulator, which seeks to minimize grid operator costs. Customers decide whether or not to invest in a PV system. Adoption rates affect the manufacturer and operator by (respectively) establishing the demand for PV and determining how much electricity is fed into the grid. The PV manufacturer's decision variable is the sales price per PV unit. The decisions of all players in the model are intertwined in a way that clearly affects their respective welfare. We demonstrate in particular how technology and market characteristics -- including PV manufacturing cost and market competition -- change the optimal decisions of players and thereby influence the effectiveness of FITs, the number of PV adopters, and the cost to provide the social benefit of on-demand electricity. Our findings confirm the importance of considering technology manufacturers when devising schemes to incentivize adoption of PV systems.

Mots clés : Feed-in tariff policy, Renewables, Technology adoption


Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

Evidence shows that suppliers refrain from investing in energy efficiency (EE) measures because they fear that a buyer with greater bargaining power will use the EE-related cost reductions to push prices down, in the purchase bargaining process, and thereby further reduce the supplier's profit margin. Suppliers are also discouraged from EE investment by the uncertainty associated with new technologies. These issues are studied via our model of the bargaining process, in a two-tier supply chain, between a single supplier and buyer; we analyze how the supplier's EE technology adoption is affected by the buyer's relative bargaining power and also by technology uncertainty. We compare various contracting arrangements commonly used in industry to overcome these obstacles, including price commitment by the buyer and shared investment contracts while characterizing their optimal properties with respect to different criteria - in particular, supply chain profit and the equilibrium level of EE investment. In terms of both criteria, we find that shared investment contracts perform better than price commitment contracts, although the latter increase supplier profit when a buyer's bargaining power is relatively high. We also show that, in a two-player model, the bargaining process between firms moderates how uncertainty affects supplier's investment behavior.

Mots clés : Energy Efficiency, Supply chain coordination, Bargaining process, Technology uncertainty


Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

This paper seeks to identify the optimal policies for promoting product recovery and remanufacturing. Using a stylized equilibrium model, we analyze the problem as a Stackelberg game between a regulator and a monopolistic firm. We compare three types of policies that legislated regulation could effect: (i) A recovery target policy that requires firms to recover no less than a specified fraction of their production for proper disposal or possible remanufacturing; (ii) a taxation policy that both taxes manufacturing and subsidizes remanufacturing; and (iii) a newly introduced mixed approach that incorporates a recovery target as well as taxes and subsidies. We study a firm's behavior under the three policy types, including pricing decisions for new and remanufactured products as well as the strategic decision of whether to create a secondary channel for remanufactured products. We find that legislative intervention makes it more likely that firms will maintain a single-market strategy. We further demonstrate the mixed approach's superiority as measured by a comprehensive set of economic and environmental criteria, and show that this finding is robust under two different objective functions for the policy maker, one that does and one that does not entail a budget neutrality constraint.

Mots clés : product recovery, remanufacturing, optimal sustainable policies, closed-loop supply chains


Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

A discrepancy exists in the literature regarding the type of suppliers to consider when targeting discontinuous innovation (DI). Some authors suggest that DI require leveraging knowledge from a selection of familiar and trustful suppliers, whereas others claim that DI requires leveraging distant knowledge from new suppliers. We argue that establishing relationships with a new supplier mastering knowledge distant from the firm’s one, requires a specific process. Based on a longitudinal study in a firm that developed such relationships and succeeded in enhancing DI, we underline three characteristics of the approach adopted: (i) proposing an open enough formulation to give the suppliers the opportunity to value their competencies but well documented, (ii) having a structured and transparent process, supporting a mutual progressive commitment and (iii) dedicating a specific entity with access to the top management and technical specialists, with a global vision of the questions to be tackled.

Mots clés : Discontinuous innovation, early supplier involvement, leveraging external knowledge


Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

This paper examines the relationship among IT capability, operations strategy decisions and operational performance. Using primary data from a sample of European firms, we test a model of fit between two specific IT capability-building decisions and three competitive priorities, and we analyze the impact of IT capability alignment on several dimensions of process performance. After uncovering three stylized configurations, we note that firms tend to adopt internally coherent IT capability-building decisions but we find only mixed evidence of alignment between IT capability-building decisions and competitive priorities. Interestingly, however, failing to achieve alignment has negative performance consequences but only for firms that develop limited IT capability. Our results suggests that IT plays a central role in the fulfillment of a firm’s operations strategy, not only for firms that pursue differentiation and are interested in improving the effectiveness of their customer-oriented functions, but also for firms seeking efficiency improvements in back-office operations. Although it is, a priori, more expensive, the development of advanced IT capability can support cost leadership strategies more effectively than a frugal approach, as long as IT projects are used to generate operational knowledge and thus improve process efficiency. At the same time, our results cast further doubt on the value of frugal IT capability, even for firms that strive to reduce cost.

Mots clés : This paper examines the relationship among IT capability, operations strategy decisions and operational performance. Using primary data from a sample of European firms, we test a model of fit between two specific IT capability-building decisions and three competitive priorities, and we analyze the impact of IT capability alignment on several dimensions of process performance. After uncovering three stylized configurations, we note that firms tend to adopt internally coherent IT capability-building decisions but we find only mixed evidence of alignment between IT capability-building decisions and competitive priorities. Interestingly, however, failing to achieve alignment has negative performance consequences but only for firms that develop limited IT capability. Our results suggests that IT plays a central role in the fulfillment of a firm’s operations strategy, not only for firms that pursue differentiation and are interested in improving the effectiveness of their customer-oriented functions, but also for firms seeking efficiency improvements in back-office operations. Although it is, a priori, more expensive, the development of advanced IT capability can support cost leadership strategies more effectively than a frugal approach, as long as IT projects are used to generate operational knowledge and thus improve process efficiency. At the same time, our results cast further doubt on the value of frugal IT capability, even for firms that strive to reduce cost.

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Informations Systems and Operations Management


Campus HEC Paris
1, rue de la Libération
78351 Jouy-en-Josas cedex
France

Faculté  

Woonam HWANG

Informations Systems and Operations Management

Voir le CV

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