Open Access. Powered by Scholars. Published by Universities.®
- Discipline
-
- Social and Behavioral Sciences (1052)
- Organizational Behavior and Theory (912)
- Finance and Financial Management (700)
- Strategic Management Policy (528)
- International and Area Studies (425)
-
- Asian Studies (415)
- Human Resources Management (351)
- Marketing (319)
- Operations and Supply Chain Management (276)
- Portfolio and Security Analysis (259)
- Technology and Innovation (248)
- Psychology (224)
- Corporate Finance (213)
- Economics (177)
- Business and Corporate Communications (170)
- Industrial and Organizational Psychology (163)
- Finance (143)
- International Business (143)
- Business Law, Public Responsibility, and Ethics (127)
- Education (126)
- Entrepreneurial and Small Business Operations (124)
- Higher Education (109)
- Communication (107)
- Sales and Merchandising (93)
- Business Administration, Management, and Operations (90)
- Physical Sciences and Mathematics (82)
- Sociology (77)
- Medicine and Health Sciences (72)
- Public Affairs, Public Policy and Public Administration (70)
- Keyword
-
- Singapore (126)
- Innovation (67)
- China (60)
- Corporate governance (45)
- Trust (43)
-
- Business schools (37)
- Sustainability (32)
- COVID-19 (30)
- Creativity (30)
- Personnel selection (29)
- Corporate social responsibility (28)
- Hedge funds (28)
- Leadership (28)
- Performance (28)
- Culture (27)
- Decision making (25)
- Entrepreneurship (22)
- Negotiation (22)
- Power (22)
- Asia (21)
- Liquidity (21)
- Marketing (21)
- Mindfulness (21)
- Internationalization (20)
- Return predictability (20)
- Validity (20)
- India (19)
- Institutional investors (19)
- Japan (19)
- Personality (19)
- Publication Year
Articles 1201 - 1230 of 3153
Full-Text Articles in Business
A Broad Stroke Or Different Strokes For Different Folks? Examining The Subtleties In Crisis Management Approaches Between State-Owned Enterprises And Privately-Owned Enterprises In China, Augustine Pang, Yang Hu, Eugene Woon
A Broad Stroke Or Different Strokes For Different Folks? Examining The Subtleties In Crisis Management Approaches Between State-Owned Enterprises And Privately-Owned Enterprises In China, Augustine Pang, Yang Hu, Eugene Woon
Research Collection Lee Kong Chian School Of Business
Several previous studies have been conducted to examine China’s management of internal crises, but few have investigated the approaches to crisis management used by domestic Chinese organizations. It is critical to study these organizations because their approaches exemplify the intricacies of crisis management at the local level. In China, there are two main types of organizations: state-owned enterprises (SOE) and privately owned enterprises (POE). This study aimed to determine how their business orientations led to different styles of crisis management in terms of media relations, government relations, and crisis responses. The findings showed that SOEs sought shelter from the government, …
Social Media: Mini-Movements To Encourage Civil Discourse Wanted, Siow-Heng Ong
Social Media: Mini-Movements To Encourage Civil Discourse Wanted, Siow-Heng Ong
Research Collection Lee Kong Chian School Of Business
No abstract provided.
Theoretical Principles Relevant To Assessment Center Design And Implementation, George C. Thornton, Filip Lievens
Theoretical Principles Relevant To Assessment Center Design And Implementation, George C. Thornton, Filip Lievens
Research Collection Lee Kong Chian School Of Business
Decades ago, assessment centers (Acs) originated by applying the best available evidence and theory to the assessment of managerial performance dimensions. The objectives of this chapter are to take stock of these existing theoretical principles, present additional theoretical principles that have emerged in recent times, and describe the practical implications of these principles for effective Ac design and implementation. Thus, while all Acs include several essential elements, developing and implementing a specific Ac involves a complicated set of choices. This chapter shows how these choices can be guided by theories relevant to the Ac method as a whole and each …
Intercultural Relationships And Creativity:Current Research And Future Directions, Fon Wiruchnipawan, Roy Y. J. Chua
Intercultural Relationships And Creativity:Current Research And Future Directions, Fon Wiruchnipawan, Roy Y. J. Chua
Research Collection Lee Kong Chian School Of Business
In the global economy, individuals have to engage in cross-cultural interactions when tasked to develop creative new products or services. Research on the effects of cultural diversity on creativity, however, has been equivocal. One stream of research champions that cultural diversity in relationships broadens ideas and resources for creative thinking, whereas skeptics counter that intercultural tensions and conflicts hurt rather than help. This chapter discusses both sides of the argument. We examine the effects of intercultural relationships on creativity from three perspectives: (a) how a culturally diverse social environment (including social networks) influences individuals’ creativity; (b) how individuals can successfully …
The Social Amplification Of Haze-Related Risks On The Internet, Mark Chong, Murphy Choy
The Social Amplification Of Haze-Related Risks On The Internet, Mark Chong, Murphy Choy
Research Collection Lee Kong Chian School Of Business
This study explores the implications of the digital network society for public health communication and management through an empirical study on communication related to the transboundary haze crisis in Singapore. Using the Social Amplification of Risk Framework (SARF), the authors applied sentiment and thematic analysis on haze-related posts on an online discussion forum (HardwareZone) and a social networking site (Facebook), as well as to haze-related articles in The Straits Times (a newspaper). The study shows that the medium matters in social amplification of risk: Facebook had an effect on the amplification of emotions while HardwareZone and Straits Times …
On Substitutability And Complementarity In Discrete Choice Models, Guiyun Feng, Xiaobo Li, Zizhuo Wang
On Substitutability And Complementarity In Discrete Choice Models, Guiyun Feng, Xiaobo Li, Zizhuo Wang
Research Collection Lee Kong Chian School Of Business
In this paper, we propose the concepts of substitutability and complementarity in discrete choice models. These concepts concern whether the choice probability of one alternative in a choice model increases or decreases with the utility of another alternative, and they play important roles in capturing certain practical choice patterns, such as the halo effect. We study conditions on discrete choice models that will lead to substitutability and complementarity. We also present ways of constructing choice models that exhibit complementary property.
Mindfulness And The Risk-Resilience Tradeoff In Organizations, Ravi S. Kudesia, Jochen Reb
Mindfulness And The Risk-Resilience Tradeoff In Organizations, Ravi S. Kudesia, Jochen Reb
Research Collection Lee Kong Chian School Of Business
Through this chapter, we seek to contribute to ongoing discussion about risk, resilience, and how they can be jointly managed (see Linkov, Trump, & Keisler, 2018), particularly in the context of organizations. We start by reviewing the traditional image of organizations. In this traditional image, processes related to risk and resilience are seen as complementary, as these processes pertain to distinct aspects of the organizational environment. We then complicate this theoretical image by introducing five underappreciated ways that risk and resilience processes may not be complementary in practice—because the aspects of the environment to which these processes pertain cannot always …
Contextualizing Social Power Research Within Organizational Behavior, Michael Schaerer, Alice J. Lee, Adam D. Galinsky, Stefan Thau
Contextualizing Social Power Research Within Organizational Behavior, Michael Schaerer, Alice J. Lee, Adam D. Galinsky, Stefan Thau
Research Collection Lee Kong Chian School Of Business
Although there has been tremendous scientific interest in social power, much of this recent research has relied on experiments in context-poor settings. However, organizations – a context in which power differences emerge naturally – are more complex and dynamic. The current review discusses whether and how defining organizational features at the intrapersonal level (multiple dimensions of hierarchy, dynamics over time, attentional demands), interpersonal level (interdependence, repeated interactions), and organizational level (accountability, culture, virtual work) moderate the effects of power. We also discuss ways to systematically incorporate organizational complexities into the study of social power and recommend fruitful avenues for future …
We’Re Less Likely To Collaborate In Bad Economic Times, Nina Sirola
We’Re Less Likely To Collaborate In Bad Economic Times, Nina Sirola
Research Collection Lee Kong Chian School Of Business
In the fall of 1930, the U.S. economy was on a path to recovery following a contraction that occurred the year before. However, worries about the state of the economy, and the banking system in particular, prompted an increasing number of bank customers to attempt to withdraw their funds, an event known as a bank run. Because banks normally keep only a small proportion of deposits in cash, bank runs create a self-fulfilling prophecy such that initial concerns about banks’ possible insolvency ultimately cause insolvency. The bank run of 1930 resulted in the worst economic downturn in the modern history, …
We’Re Less Likely To Collaborate In Bad Economic Times, Nina Sirola
We’Re Less Likely To Collaborate In Bad Economic Times, Nina Sirola
Research Collection Lee Kong Chian School Of Business
In the fall of 1930, the U.S. economy was on a path to recovery following a contraction that occurred the year before. However, worries about the state of the economy, and the banking system in particular, prompted an increasing number of bank customers to attempt to withdraw their funds, an event known as a bank run. Because banks normally keep only a small proportion of deposits in cash, bank runs create a self-fulfilling prophecy such that initial concerns about banks’ possible insolvency ultimately cause insolvency. The bank run of 1930 resulted in the worst economic downturn in the modern history, …
Heads Will Roll! Routes To Effective Trust Repair In The Aftermath Of A Ceo Transgression, Donald L. Ferrin, Cecily D. Cooper, Kurt T. Dirks, Peter H. Kim
Heads Will Roll! Routes To Effective Trust Repair In The Aftermath Of A Ceo Transgression, Donald L. Ferrin, Cecily D. Cooper, Kurt T. Dirks, Peter H. Kim
Research Collection Lee Kong Chian School Of Business
CEO transgressions are a common storyline in today's business press. Such incidents result in the need to repair trust for both the CEO and the organisation that the CEO leads. Existing empirical research on trust repair has focused primarily on interpersonal trust, resulting in a body of knowledge that provides many insights to the errant CEO but few insights for those who aim to repair trust in the organisation. Since organisations also need to regain the trust of stakeholders after a CEO transgression, research on organisational trust repair is clearly warranted. Organisations have options for trust repair that are not …
The Indigenization Of Crisis Response Strategies In The Context Of China, Augustine Pang, Yang Hu
The Indigenization Of Crisis Response Strategies In The Context Of China, Augustine Pang, Yang Hu
Research Collection Lee Kong Chian School Of Business
Crisis communication, which has been dominated by a practical perspective, has become a nexus where theory meets application. Despite mounting interest in theoretical studies, crisis communication lacks cultural contextualization. Asian communication researchers have advocated for the need to indigenize communication, drawing relevance to cultural influences. In this study, the authors explored indigenous corporate crisis response strategies in the context of China through nine cases. Three Chinese indigenous strategies were identified through qualitative content analysis of corporate crisis responses. These strategies are “barnacle,” “third-party endorsement,” and “setting up new topics.” The differences with Western frameworks were also discussed.
Building Relationships Through Dialogic Communication: Organizations, Stakeholders, And Computer-Mediated Communication, Augustine Pang, Wonsun Shin, Zijian Lew, Joseph B. Walther
Building Relationships Through Dialogic Communication: Organizations, Stakeholders, And Computer-Mediated Communication, Augustine Pang, Wonsun Shin, Zijian Lew, Joseph B. Walther
Research Collection Lee Kong Chian School Of Business
Online media are integral to daily life, and while many organizations use them to reach broad audiences, others still appear to be uncomfortable with online media because they do not understand how to maximize their potential to interact effectively with stakeholders. Numerous organizations use online media for one-way communication to disseminate information, despite the affordances of the media platforms for two-way, dialogic communication. This article draws on two dominant interpersonal theories of computer-mediated communication—social information processing theory and the hyperpersonal model—to propose dialogic strategies that organizations can use to improve their online communication with their stakeholders. We illustrate the application …
When The Tables Are Turned: The Effects Of The 2016 Us Presidential Election On In-Group Favoritism And Out-Group Hostility, Burak Oc, Celia Moore, Michael R. Bashshur
When The Tables Are Turned: The Effects Of The 2016 Us Presidential Election On In-Group Favoritism And Out-Group Hostility, Burak Oc, Celia Moore, Michael R. Bashshur
Research Collection Lee Kong Chian School Of Business
The outcome of the 2016 U.S. Presidential election was a big surprise to many, as the majority of polls had predicted the opposite outcome. In this two-stage cross-sectional study, we focus on how Democrats and Republicans reacted to this electoral surprise and how these reactions might have influenced the way they allocated resources to each other in small groups. We find that, before the election, Republicans showed greater in-group favoritism than Democrats, who treated others equally, regardless of their political affiliation. We then show that Democrats experienced the election outcome as an ego shock and, in the week following the …
The Impact Of Advertising Share Of Voice On The Idiosyncratic Risk Of The Firm, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
The Impact Of Advertising Share Of Voice On The Idiosyncratic Risk Of The Firm, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
Research Collection Lee Kong Chian School Of Business
Integrating literature in marketing, finance and accounting, this study examines the impact ofa firms’ advertising share of voice (ASOV) on investors’ uncertainty about its future financialperformance, i.e., firms’ idiosyncratic risk. Drawing on signaling theory, authors propose that ASOV serves as a signal for investors such that higher ASOV reduces idiosyncratic risk. Consistent with this argument, analysis of 2,777 publicly listed firms over a two-decade period (1995-2014) shows that ASOV has a significant negative effect on idiosyncratic risk.In addition, consistent with the argument that ASOV is a more credible signal when firmshave higher cash flows; authors find that the negative impact …
Scarcity In The Twenty-First Century: How The Resource Nexus Affects Management, Simon J. D. Schillebeeckx, Mark Workman, Charles Dean
Scarcity In The Twenty-First Century: How The Resource Nexus Affects Management, Simon J. D. Schillebeeckx, Mark Workman, Charles Dean
Research Collection Lee Kong Chian School Of Business
Since theadvent of the 21st century and especially since the food andfinancial crisis in 2008, concerns about natural resource availability haveresurfaced. While scarcity concerns date back hundreds of years and arefoundational to economics, how scarcity is interpreted or framed has evolved significantlyin the last two centuries. In this chapter, we recount the evolving scarcity discourseand specifically address the most recent iteration that centres on the idea ofa resource nexus. While significant attention to the nexus has been paid bypolicy-makers and scholars interested in especially water, management scholarshave so far remained absent from these debates. Given recent calls to address grand …
The Management Of Natural Resources: An Overview And Research Agenda, Gerard George, Simon J.D. Schillebeeckx, Teng Lit Liak
The Management Of Natural Resources: An Overview And Research Agenda, Gerard George, Simon J.D. Schillebeeckx, Teng Lit Liak
Research Collection Lee Kong Chian School Of Business
Natural resources underpin the foundation of human activity. Individuals and organizations consume vast amounts of natural resources as a matter of routine without much cognizance of their continued availability in the future or the true cost of a depleting natural resource. Over the past decades of industrial activity, organizations, communities, and nations have acted to protect their interests by investing in and securing their supplies of natural resources that support economic growth. An industrial complex, now variously termed as extractive industries, supplies crucial non-renewable natural resources such as oil and coal for energy or iron and aluminum for construction. Our …
Sleep And Work: The Interactive Mechanism [睡眠与工作：相互作用机制], Xiaotian Sheng, Zihan Liu, Xichao Zhang, Heng Guo, Shu Da, Shiyi Zhou
Sleep And Work: The Interactive Mechanism [睡眠与工作：相互作用机制], Xiaotian Sheng, Zihan Liu, Xichao Zhang, Heng Guo, Shu Da, Shiyi Zhou
Research Collection Lee Kong Chian School Of Business
Sleep-related problems are becoming increasingly severer for workers, which draws great attention from researchers. Based on important empirical researches in recent years, we finish a systematic summary of the conceptualization, measurement, antecedents and consequences of sleep in the workplace. In general, researches measure individual’s sleep from two dimensions including sleep duration and sleep quality. Objective records and subjective reports are both used to collect data. Antecedents of sleep problems can be classified as environmental factors, cognitive factor and behavioral factors. Unsatisfactory sleep also has a negative influence on the psychological state and behaviors of workers, which may lead to workplace …
Projecting Lower Competence To Maintain Moral Warmth In The Avoidance Of Prosocial Requests, Peggy J. Liu, Stephanie C. Lin
Projecting Lower Competence To Maintain Moral Warmth In The Avoidance Of Prosocial Requests, Peggy J. Liu, Stephanie C. Lin
Research Collection Lee Kong Chian School Of Business
When faced with prosocial requests, consumers face a difficult decision between taking on the request’s burden or appearing unwarm (unkind, uncaring). We propose that the desire to refuse such requests while protecting a morally warm image leads consumers to under-represent their competence. Although consumers care strongly about being viewed as competent, five studies showed that they downplayed their competence to sidestep a prosocial request. This effect occurred across both self-reported and behavioral displays of competence. Further, the downplaying competence effect only occurred when facing an undesirable prosocial request, not a similarly undesirable proself request. The final studies showed that people …
Are Disagreements Agreeable? Evidence From Information Aggregation, Dashan Huang, Jiangyuan Li, Liyao Wang
Are Disagreements Agreeable? Evidence From Information Aggregation, Dashan Huang, Jiangyuan Li, Liyao Wang
Research Collection Lee Kong Chian School Of Business
Most studies on disagreement focus on cross-sectional asset returns and well-recognized disagreement measures generally cannot predict the stock market with a horizon less than 12 months. This paper proposes three aggregate disagreement indexes by aggregating information across 20 disagreement measures. We show that disagreement measures collectively have a common component that has significant power in predicting the stock market both in- and out-of-sample. Consistent with the theory developed by Atmaz and Basak (2017), the indexes asymmetrically forecast the market with greater power in high sentiment periods. Moreover, the indexes negatively predict economic activities, and positively predict market volatility, illiquidity, and …
Base Faith, Stefano Harney, Fred Moten
Base Faith, Stefano Harney, Fred Moten
Research Collection Lee Kong Chian School Of Business
The earth moves against the world. And today the response of the world is clear. The world answers in fire and flood. The more the earth churns the more vicious the world’s response. But the earth still moves. Tonika Sealy Thompson might call it a procession. The earth’s procession is not on the world’s calendar. It is not a parade on a parade ground. It is not in the world’s teleology. Nor is the procession exactly a carnival played to mock or overturn this parade, to take over its grounds. A procession moves unmoved by the world. The earth’s procession …
Volume Information In Nikkei And Topix Futures Transactions, Chyng Wen Tee, Christopher Ting
Volume Information In Nikkei And Topix Futures Transactions, Chyng Wen Tee, Christopher Ting
Research Collection Lee Kong Chian School Of Business
According to the Kyle (1985) model of informed trading, information in trade size is likely to effect a permanent price impact. However, two prominent structural models in the literature do not include trade size in their framework. In this paper, we present a nesting relationship of major structural models and formulate a generalized model that includes all trade variables. A new measure to quantify the amount of information in the order flow is proposed. Our empirical analysis shows that it is indeed the "surprise" in trade size that contributes significantly in reflecting the price change of Nikkei and TOPIX futures.
What Happens Online Stays Online? Segment-Specific Online And Offline Effects Of Banner Advertisements, Lara Lobschat, Ernst C. Osinga, Werner J. Reinartz
What Happens Online Stays Online? Segment-Specific Online And Offline Effects Of Banner Advertisements, Lara Lobschat, Ernst C. Osinga, Werner J. Reinartz
Research Collection Lee Kong Chian School Of Business
Many firms allocate increasing parts of their advertising budgets to banner advertising. Yet, for firms that predominantly sell offline, existing research provides little guidance on online advertising decisions. In this study, the authors analyze the impact of banner advertising on consumers' online and offline behavior across multiple distinct campaigns for one focal firm, which predominantly sells through the offline channel. Results suggest that banner and TV advertising increase website visit incidence for consumers who had not visited the focal firm's website in the previous four weeks (non-recent online consumers). For these consumers, banner and TV advertisements indirectly increase offline sales …
Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim
Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim
Research Collection Lee Kong Chian School Of Business
Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks' substitution of home purchase loans for refinance loans: The risk capacity channel through which banks with limited risk appetites prefer safer loans over riskier loans, and the operating capacity channel through which banks with limited operating capacities prefer applications that require less screening time. We find that following the recent financial crisis, banks facing these capacity constraints indeed …
Capacity Management In Agricultural Commodity Processing And Application In The Palm Industry, Onur Boyabatli, Jason Quang Dang Nguyen, Tong Wang
Capacity Management In Agricultural Commodity Processing And Application In The Palm Industry, Onur Boyabatli, Jason Quang Dang Nguyen, Tong Wang
Research Collection Lee Kong Chian School Of Business
This paper examines the capacity investment decisions of a processor that uses a commodity input to produce both a commodity output and a byproduct in the context of agricultural industries. We employ a multi-period model to study the optimal one-time processing and (output) storage capacity investment decisions---in addition to the periodic processing and inventory decisions---when both input and output spot prices as well as production yield are uncertain. We characterize the optimal decisions and perform sensitivity analysis to investigate how spot price uncertainty affects the processor's optimal capacity and profitability. Using a calibration based on the palm industry, we study …
Inventory Management Based On Target-Oriented Robust Optimization, Yun Fong Lim, Chen Wang
Inventory Management Based On Target-Oriented Robust Optimization, Yun Fong Lim, Chen Wang
Research Collection Lee Kong Chian School Of Business
We propose a target-oriented robust optimization approach to solve a multi-product, multi-period inventory management problem subject to ordering capacity constraints. We assume the demand for each product in each period is characterized by an uncertainty set, which depends only on a reference value and the bounds of the demand. Our goal is to find an ordering policy that maximizes the sizes of all the uncertainty sets such that all demand realizations from the sets will result in a total cost lower than a pre-specified cost target. We prove that a static decision rule is optimal for an approximate formulation of …
Technical Note—On The Relation Between Several Discrete Choice Models, Guiyun Feng, Xiaobo Li, Zizhuo Wang
Technical Note—On The Relation Between Several Discrete Choice Models, Guiyun Feng, Xiaobo Li, Zizhuo Wang
Research Collection Lee Kong Chian School Of Business
In this paper, we study the relationship between several well known classes of discrete choice models, i.e., the random utility model (RUM), the representative agent model (RAM), and the semiparametric choice model (SCM). Using a welfare-based model as an intermediate, we show that the RAM and the SCM are equivalent. Furthermore, we show that both models as well as the welfare-based model strictly subsume the RUM when there are three or more alternatives, while the four are equivalent when there are only two alternatives. Thus, this paper presents a complete picture of the relationship between these choice models.
Hedge Fund Franchises, William Fung, David Hsieh, Narayan Y. Naik, Melvyn Teo
Hedge Fund Franchises, William Fung, David Hsieh, Narayan Y. Naik, Melvyn Teo
Research Collection Lee Kong Chian School Of Business
Duplicate, see https://ink.library.smu.edu.sg/lkcsb_research/5964/. We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. Motivated by the aforementioned spillover effects, first funds outperform follow-on funds, after adjusting for risk. The multiple-product growth strategy hurts investors while benefiting hedge fund firms; multiple-product firms underperform single-product firms but harvest greater fee revenues. Investors respond to this growth strategy by redeeming from first funds of firms with follow-on funds that do poorly. Moreover, skilled investors allocate …
An Assessment Of When, Where And Under What Conditions In-Store Sampling Is Most Effective, Sandeep R. Chandukala, Jeffrey P. Dotson, Qing Liu
An Assessment Of When, Where And Under What Conditions In-Store Sampling Is Most Effective, Sandeep R. Chandukala, Jeffrey P. Dotson, Qing Liu
Research Collection Lee Kong Chian School Of Business
In-store product sampling is a commonly used promotional technique designed to give prospective consumers an opportunity to experience a product prior to purchase. While prior research has documented a positive relationship between short-term sales and perceptual measures of the customer shopping experience, little is known about the long-term impact of sampling or factors that moderate its success. In this paper, we develop an empirical approach that allows us to study the short-term and long-term effects of in-store sampling on both own and competitive products. We apply our approach to six store-level scanner data sets across four different product categories and …
The Interaction Between Operational Flexibility And Financial Flexibility, Onur Boyabatli, Tiecheng Leng
The Interaction Between Operational Flexibility And Financial Flexibility, Onur Boyabatli, Tiecheng Leng
Research Collection Lee Kong Chian School Of Business
This paper examines the interaction between operational flexibility and financial flexibility in a multi-product business unit that makes operational decisions based on financial resources provided by its parent company (or headquarters). We capture operational flexibility through investment in flexible technology and financial flexibility through higher availability of financial resources. We consider the flexible-versus-dedicated technology choice and capacity investment decisions of a two-product business unit under demand uncertainty in the presence of budget constraints. The unit operates under a capital budget for financing the capacity investment, and an operating budget, which is uncertain in the capacity investment stage, for financing the …