Pricing and Capacity Allocation for Shared Services


Manufacturing & Service Operations Management

printemps 2017, vol. 19, n°2, pp.230-245

Départements : Informations Systems and Operations Management

Mots clés : customer mix; customer interaction; price discrimination; capacity allocation; shared services

We study the pricing and capacity allocation problem of a service provider who serves two distinct customer classes. Customers in each class are inherently heterogeneous in their willingness to pay for service, but their utilities are also affected by the presence of other customers in the system. Specifically, customer utilities depend on how many customers are in the system at the time of service as well as who these other customers are. We find that if the service provider can price discriminate between customer classes, pricing out a class, i.e., operating an exclusive system, can sometimes be optimal and depends only on classes’ perceptions of each other. If the provider must charge a single price, an exclusive system is even more likely. We extend our analysis to a service provider who can prevent class interaction by allocating separate capacity segments to the two customer classes. Under price discrimination, allocating capacity is optimal if the “net appreciation” between classes, as defined in the paper, is negative. However, under a single-price policy, allocating capacity can be optimal even if this net appreciation is positive. We describe in detail how the nature of asymmetry in classes’ perception of each other determines the optimal strategy

Strategic Investment in Renewable Energy Sources: The Effect of Supply Intermittency


Manufacturing & Service Operations Management

Summer 2017, vol. 19, n°3, pp.489-507

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

Mots clés : Electricity Generation, Renewables, Intermittency, Capacity Planning and Investment, Incentives and Contracting

To analyze incentives for investing in the capacity to generate renewable electricity, we model the trade-off between renewable (e.g. wind) and nonrenewable (e.g. natural gas) technology. Renewable technology has a higher investment cost and yields only an intermittent supply of electricity; nonrenewable technology is reliable and has lower investment cost but entails both fuel expenditures and carbon emission costs. With reference to existing electricity markets, we model several interrelated contexts - the vertically integrated electricity supplier, market competition, and partial market competition with long-term fixed-price contracts for renewable electricity - and examine the effect of carbon taxes on the cost and share of wind capacity in an energy portfolio. We find that the intermittency of renewable technologies drives the effectiveness of carbon pricing mechanisms, which suggests that charging more for emissions could unexpectedly discourage investment in renewables. We also show that market liberalization may reduce investment in renewable capacity while increasing the overall system's cost and emissions. Fixed-price contracts with renewable generators can mitigate these detrimental effects, but not without possibly creating other problems. In short: actions to reduce the intermittency of renewable sources may be more effective than carbon taxes alone at promoting investment in renewable generation capacity

Topological network design of closed finite capacity supply chain networks


Journal of Manufacturing Systems

octobre 2017, vol. 45, pp.70-81

Départements : Informations Systems and Operations Management

Mots clés : Closed;Finite networks;M/M/1/K;M/G/c/c;M/G/∞ queues

In this paper, we examine the layout, location, and general topological arrangement of queues in a closed finite queueing network environment for supply chains. Since our focus is on manufacturing environments, then maximizing throughput is a worthy performance measure objective. We are given a network topology G(V, E) with a finite set of nodes and edges and we wish to assign the queues to the nodes V ∈ G such a way that the maximum throughput is achieved. This is a nonlinear continuous optimization problem with implicit integer variables so the problem is at least NP-Hard. We also examine the impacts of Additive Manufacturing (AM) on the throughput of the supply chain. Decentralization of the supply chain topology as evidence by the increased dispersal of nodes within the topology tends to increase the throughput of the system, so the AM leaf nodes can have a measurable and significant impact on SCM throughput.

Adaptive use of social networking applications in contemporary organizations: Examining the motivations of Gen Y cohorts


International Journal of Information Management

December 2016, vol. 36, n°6, part A, pp.1111–1123

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

Mots clés : Corporate social networking; Adaptive use intention; Technology adoption; Collaboration; Innovation; Generation Y; Motivation

With the entry of the contemporary generation (Gen Y) into the workforce, organizations are interested in leveraging Gen Y’s technological preferences when designing their information systems. Specifically, motivated by Gen Y’s dependence on Social Networking Applications (SNAs) in their private lives, organizations have initiated the implementation of Corporate Social Networks (CSNs) to facilitate closer collaboration and knowledge sharing within organizations. However, these initiatives have not been received with the expected enthusiasm from Gen Y employees. To better understand this apparent anomaly, the current study explores the Gen Y cohort’s intended adaptive use of SNAs in organizational settings, as CSNs. This study uses an enriched Delphi technique to examine the perceptions and concerns of members of Gen Y regarding use of CSNs. In addition, employing a structured qualitative approach and contextualizing the needs hierarchy theory to the specific case of Gen Y employees, this study identifies six organizational requirements for successfully implementing CSNs. This work extends the literature on adaptive use of Enterprise 2.0 systems and delineates a set of useful implications for managers intending to implement such systems for Gen Y employees.

Contributions of Design Thinking to Project Management in an Innovation Context


Project Management Journal

avril-mai 2016, vol. 47, n°2, pp.144-156

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

Mots clés : Project management, Design, Innovation, Uncertainty, Design thinking

Researchers have long recognized that standard approaches to project management are ill-suited to address changes in the environment or business needs, particularly in innovative contexts characterized by uncertainty and complexity. Instead of being concerned with the efficient implementation of a deliberate strategy, a project in such a context becomes a process for strategy formulation. Three imperatives for project management arise as a result: managing the explorative phase, managing the involvement of stakeholders in the project, and managing the project in relation to the strategizing process of the firm. We propose that design thinking, a recent evolution in the field of design, can make some important contributions to these imperatives. Design thinking has been highlighted by practitioners as well as academia as a novel methodology that is potentially valuable for improving innovative outcomes, whether they are products, services, or strategies. We examine and articulate these possible contributions through 10 propositions that could form an agenda for future experimentation and empirical research on innovation project management

Could Deal Promotion Improve Merchants' Online Reputations? The Moderating Role of Prior Reviews


Journal of Management Information Systems

2016, vol. 33, n°1, pp.171-201

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

Mots clés : Deal promotion, Difference-in-differences, Moderating roles, Online deals, Online group sales, Online reviews, Propensity score matching

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 to 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

L'ambidextrie des entreprises familiales : comment concilier orientation entrepreneuriale et stratégie de pérennité ?


Finance Contrôle Stratégie

mars 2016, vol. 19, n°1, pp.1-21

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

Cet article montre que les caractéristiques des entreprises familiales leur permettent de promouvoir simultanément des processus d’exploration et de capitalisation conduisant à une ambidextrie organisationnelle. Cette recherche, fondée sur 12 cas d’entreprises innovantes et pérennes, apporte un nouvel éclairage sur cette capacité singulière et ouvre des perspectives de généralisation à des entreprises aux caractéristiques semblables

Le numérique au service des entités dédiées à l'innovation de rupture


Revue Française de Gestion

janvier-février 2016, vol. 42, n°254, pp.65 - 87

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

Mots clés : Ambidextrie, Innovation, Digitalisation, Expérimentation, Open innovation, Rupture Ambidexterity, Innovation, Digitalisation, Experimentation, Open innovation, Breakthrough

Plusieurs entreprises mettent en place des entités dédiées à favoriser l’innovation de rupture. En nous appuyant sur l’analyse de huit entités, nous identifions quatre types d’activités qui y sont menées et montrons comment certains outils numériques favorisent leur exécution. Il y a trois types d’outils : ceux qui font le lien avec l’environnement de l’entreprise pour s’approvisionner en idées et connaissances, ceux qui permettent d’identifier et développer les comportements intrapreneurs et ceux favorisant l’expérimentation. Tous concilient la divergence créative de l’exploration avec la maîtrise des coûts et des délais et favorisent la coexistence de différentes formes d’ambidextrie organisationnelles

You Can’t Bribe a Computer: Dealing with the Societal Challenge of Corruption Through ICT


MIS Quarterly

juin 2016, vol. 40, n°2, pp.511-526

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

Mots clés : Corruption, e-govenrment, Institutions, ICT impact, Base corruption, Permeated corruption, Stakeholder service systems

Despite the influence of information and communication technologies (ICTs) on enhancing transparency and fairness, there is limited theoretical understanding of how ICT affects corruption. Adopting an institutional perspective, we conceptualize the mechanisms through which e-government influences corruption in a nation. Specifically, we theorize the relationship between e-government and corruption at two levels: (1) base corruption observed in national institutions (political, legal, and media institutions), and (2) permeated corruption in the national stakeholder service systems (business and citizen systems). Using panel data from 63 countries over a 4-year period, we test the direct and mediated effects of e-government on corruption in national institutions and stakeholder service systems, respectively. This exploratory study provides preliminary insights into the mechanisms through which corruption manifests in a nation and demonstrates how e-govenrment can be helpful in alleviating it. In addition, the study offers important implications that we believe will be instrumental in stimulating future research on the subject

A Note on 'Sourcing Decisions with Stochastic Supplier Reliability and Stochastic Demand'


Production and Operations Management

octobre 2015, vol. 24, n°10, pp.1636-1639

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

Mots clés : Sourcing, Supplier selection, Random yield

This note complements the study of Burke, Carillo, and Vakharia (2009 hereafter “BCV”) which analyzes a class of single-product multisourcing problems under stochastic demand and random yields. The purpose is twofold. First, we prove that the objective function used by these authors is only a lower bound for the expected profit for which we provide the correct expression. Second, we show on some of the numerical instances provided in BCV's study that the structure and the performance of the BCV ordering policy may be substantially different from the optimal ordering policy. We conclude by giving general qualitative insights characterizing suboptimality of the BCV solution