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ItemEvaluation of strategies for repeat procurement(Georgia Institute of Technology, 2011-12-12) Held, Christopher M.For the past several decades, there has been a fundamental dispute between the appropriate mechanism for repeat procurement. On one hand, the supporters of Porter (1979) advocate a competitive setting where short-term contracts are used to increase buyer power and lower supplier prices. On the other hand, the supporters of Deming (1986) advocate the idea of long-term contracts to align buyer and supplier incentives. This trade-off between long-term and short-term contracts has fundamentally affected the practice of procurement, with most suppliers opting for hybrid strategies such as Incumbent Biasing: a strategy characterized by short-term contracts with frequent rebidding with an advantage given to the incumbent. This work examines this hybrid strategy to determine its effectiveness. First, we create an empirical model that identifies and measures the trade-offs between the Porter and Deming strategies. Using this model, we find that Incumbent Biasing has an impact on procurement performance via two mechanisms: first, Incumbent Biasing decreases bidding competitiveness in repeat procurement bidding, which decreases performance; second, Incumbent Biasing has a moderating effect where it improves incentive alignment between the buyer and supplier and improves procurement performance. We show that depending on the current contract design, the net effect of Incumbent Biasing on overall procurement performance can be either positive or negative. This is first work to empirically test the impact of Incumbent Biasing on procurement performance and the first to identify the positive and negative mechanisms by which this impact occurs. Using this research, managers will be able to identify their firm's position with regards to incentive alignment with their supplier to determine if Incumbent Biasing has a net positive effect for their firm. After identifying the impact of Incumbent Biasing on procurement performance, we contribute to the literature by testing this analysis through two additional extensions. First, using secondary data analysis we show that our construct for procurement performance is correlated with firm performance. We do this by comparing the answers to our procurement performance construct items to the change in gross margin of the publicly traded respondents in our study over time. This shows that our construct is not only reliable, but that procurement performance has a positive impact on overall firm performance. This is the first work to provide an empirical construct for procurement performance that is validated via secondary data analysis of firm performance. Second, we test a competing theory to Incumbent Biasing which is Multi-Sourcing: the strategy of spreading a contract to multiple suppliers to maintain competitiveness in bidding. Approximately $46\%$ of our sample identify as using both strategies simultaneously and we test for an impact between the two. We show that the two strategies to not impact each other and can be viewed independently. Subsequently, we test two Multi-Sourcing constructs in our model and find that there is no significant impact on bidding competitiveness from Multi-Sourcing. Subsequently, we examine the impact of repeatedly awarding a contract to a pool of bidders. In our model, one contract is bid repeatedly over time, resulting in bidders gaining information about their competitors' cost. The academic literature is mixed on how a buyer should approach this type of contract bidding interaction. On one hand, it is argued that establishing an awarding structure that favors the incumbent decreases the frequency of switching, and thus cost. On the other hand, it is argued that an awarding structure that favors the non-incumbent (entrant) bidders places competitive pressure on the incumbent and generates low margin bids. This issue is further complicated by the practice cited in the academic literature of ``defection', where entrant firms either perceive a bias or believe that their cost is uncompetitive and will not bid in future stages. We create a framework that explores the apparent contradictions in these recommendations and gives conditions when biasing toward the incumbent or entrant should be implemented. We first characterize bidders based on their effort to bid and their cost to supply the contract. We then show that in the case of low effort to bid and high cost for the entrant, entrant biasing is optimal; when the reverse is true incumbent biasing is optimal. Using the results from our analysis, we provide guidance to buyers facing a repeated procurement
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ItemThe Creative Populist Revolution(Georgia Institute of Technology, 2011-11-16) Nordgren, CarlCarl Nordgren discusses the importance of all people becoming more "creatively entrepreneurial." In this talk he addresses four practices that enhance one's ability to be creatively entrepreneurial.
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ItemEssays in international capital markets(Georgia Institute of Technology, 2011-11-14) Lee, KyuseokMy dissertation consists of three essays in international capital markets. In Chapter I, we examine the herd trading behavior of institutional investors trading around the world. Using a new transaction-level trades database of 531 U.S. institutional investors trading across 37 countries for the period 2002-2009, we find robust evidence of intra- and inter-period herdings at the monthly frequency. We find no evidence that trades by institutions in our sample destabilize local stock markets. Further analysis shows that: (i) in the buy side, both intra- and inter-period herdings are more pronounced in countries with weaker information environments; and (ii) in the sell side, intra-period herding is more pronounced in countries with stronger information environments, whereas inter-period herding is not significantly related to information environments. In Chapter II, we document that the degree of co-movement between bilateral USD ex- change rates has increased substantially since the introduction of the euro in 1999 and investigate what drives the increased co-movement. For each of our 33 sampled bilateral USD exchange rates, we measure the degree of co-movement using the R-square from re- gressing weekly exchange rate changes on the weekly world exchange rate factor. Our results show that, for the majority of sample exchange rates, the R-square has increased substan- tially over the period 1999-2010. Specifically, the average R-square was 0.15 in 1999, but it increased to 0.47 by more than 200% in 2010. Further analysis reveals that the rising influence of the euro relative to USD over a third currency can explain most of the increase in the measured co-movement over time. In Chapter III, we examine the level and trend of U.S. domestic market integration. For each of our sample states, we construct the state (market) portfolio comprising public firms headquartered within the state and compute R-square, our measure of integration, from regressing state portfolio returns on national stock market factors. Using weekly returns, we estimate the regression for each year of our sample period 1963-2008. The key findings are: (i) For the majority of sample states, the R-square exhibits a statistically significant upward trend, implying that U.S. domestic stock markets were not fully integrated and have been integrating during the sample period; (ii) consistent with the previous result, the explanatory power of the state factor over individual stock returns has been decreasing for the majority of states; and (iii) the increasing integration of U.S. domestic stock markets is associated with the decreasing home state bias, suggesting that investors' pursuit of nation- wide investment opportunities may be a significant driver of domestic financial integration.
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ItemThe Social Impact Market(Georgia Institute of Technology, 2011-11-09) Wolk, AndrewMr. Wolk, a leading social innovator and pioneering teacher of social entrepreneurship will discuss the importance of social impact markets and the necessity of true social innovation to address persistent social problems.
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ItemResource allocation, incentives and organizational structure for collaborative, cross-functional new product development(Georgia Institute of Technology, 2011-11-02) Hutchison-Krupat, JeremyThis thesis addresses important operational aspects relating to fundamental components of any successfully executed NPD strategy: the processes, incentives and structure of decision rights that should be implemented given the objectives and capabilities of the firm. The first chapter outlines when a firm might prefer to compensate members of a NPD project team either, as individuals (e.g. based on their functional contribution to overall value) or as a team (e.g. based on the overall profit generated). We find that neither team nor individual based compensation is preferred for all types of projects. Specifically, when there is higher uncertainty, the firm can benefit by employing team-based compensation. We discuss the implications of our findings towards the firm's ability to pursue different types of projects. In Chapter 3, we look at the strategic resource allocation processes that are employed by firms in order to decide whether NPD initiatives get funded or not. We find that there is not a "one size fits all" resource allocation process that all firms should employ. Furthermore,we extend this finding by further by providing a rationale explaining why even a single firm could benefit by employing multiple processes internal to the firm. Finally, in Chapter 4, we empirically explore how key managerial levers of the firm (i.e. incentives, tolerance for failure, and project management structure) affect an individual's propensity to invest in a project. Our analysis brings forth several under-explored and novel aspects. We examine how multiple managerial levers work in concert with one another (revealing interactions that, to our knowledge, have not been exposed). We also recognize an important aspect of most (if not all) NPD contexts: the probability of success is strongly tied to the level of resources that are invested.
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ItemThe Next Decade in Banking -- Being Part of the Solution(Georgia Institute of Technology, 2011-10-26) Rogers, William H., Jr.Bill Rogers discusses the important role that banks play in communities and ways in which confidence in the banking industry can be restored.
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ItemObservations on the Work of and Working at the Fed(Georgia Institute of Technology, 2011-10-19) Lockhart, Dennis
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ItemLet's Talk Business Live!(Georgia Institute of Technology, 2011-10-12) Schlimer, MitchLet's Talk Business Live presents a conversation about: Real life lessons in leadership and entrepreneurship from an 8 year journey by the creators of Atlanta's "National Center For Civil & Human Rights". Mitch Schlimer is a serial and social entrepreneur during the last 3 decades, and is the founder of the EPICENTER, which is the home of the Entrepreneur Hall of Fame (www.theehalloffame.com). He is the host of "Let's Talk Business", which is an award winning radio show that now airs every Saturday from 12noon-1PM on Georgia Tech's 100K Watt WREK, 91.1 FM or on the web at www.wrek.org. Let's Talk Business is dedicated to entrepreneurship, small business, innovation and youth empowerment. Through his radio show and other Let's Talk Business Live! events , Mitch has interviewed Sir Richard Branson, Ben & Jerry, Fred DeLuca (Founder of Subway), the late Anita Roddick (founder of the Body Shop), Earl Graves and more than 400 other entrepreneurs and business leaders and authors from around the world. On Wednesday, October 12, 2011, Mitch will host another Let's Talk Business Live! at Georgia Tech's College of Management. This live show will feature Doug Shipman, CEO of the National Center for Civil and Human Rights and A.J. Robinson, president of Central Atlanta Progress (CAP) and the Atlanta Downtown Improvement District (ADID).
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ItemPredicting individual creativity in organizations: why do adults engage in creative activities?(Georgia Institute of Technology, 2011-10-05) Bowers Schoen, Jeremy L.Amabile (1983a) presented the most prominent theory currently used for studying individual creativity in organizations, the componential model, over 25 years ago. This model moved the study of creativity away from an individual differences-based paradigm to one taking into account the situation. The centerpiece of this model, the intrinsic motivation principle, suggests that situational factors influence individual creativity via an individual's intrinsic motivation (Amabile, 1996: 115). My review identifies anomalies in current research using Amabile's model that I use for new theory development. I then test that theory in a laboratory study. New theory I developed and tested explores factors that affect individual creative performance at work. This theory focuses on the effects environmental variables, dispositional traits, and psychological mediators have on creative performance. The trait of achievement motivation is used to directly predict creative performance and also how individuals differentially react to environmental factors. The psychological mediator utilized here is regulatory focus, which is a concept related to the ways individuals frame and engage situations. I describe and test how the facets of regulatory focus (promotion and prevention) account for the ways that environmental factors, achievement motivation, and the interaction of environmental factors and achievement motivation affect creative performance of adults in work-like environments (e.g. behavioral laboratory with adults). Results from this study were significant. First, achievement motivation significantly predicted creative performance. Second, there were no significant effects for regulatory focus, although this was mostly likely a result of limited scale development. Third, achievement motivation interacted with the experimental manipulations (expectations of controlling or informational expected evaluations), as the environmental variable, to predict creativity. This suggests theories of creativity that do not consider personality (c.f. Amabile, 1983a, 1983b, 1996) leave out a potentially important and significant portion of what leads to differences in individual creative performance. Finally, many variables reported to predict creative performance in the literature were used as control variables. In no model tested did any of these control variables reach significance or moderate the effects of achievement motivation, as it was measured in this study, on creative performance. These results suggest the finding here for achievement motivation is robust.
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ItemShared Values, Class Warfare and Social Responsibility(Georgia Institute of Technology, 2011-10-05) Trapani, Kevin