How Do Knowledge Management Announcements Affect Firm Value? A Study of Firms Pursuing Different Business Strategies

The importance of knowledge management (KM) efforts is well recognized in the popular and academic press. However, KM efforts do not always lead to improved firm performance. This paper argues that different kinds of KM efforts may be appropriate for firms pursuing different business strategies, and the impact of a KM effort on firm performance would depend on whether the effort is aligned with the firm's business strategy. Prior literature on organizational learning, KM, and business strategy is used to develop these arguments, and also to identify the nature of KM efforts that would be most appropriate for firms pursuing Defender, Analyzer, and Prospector business strategies. An event study is used to evaluate the stock market reaction to a firm's public announcement of the KM effort. The empirical results, based on 103 KM announcements from 1995 to 2002, are consistent with the theory-based expectations, showing alignment between the KM effort and business strategy to be positively associated with impact on firm value. Some of the implications of these results for practice and future research are examined.     

A note on "A methodology for supply base optimization"

Supply base optimization is a critical issue facing firms that are striving to achieve an efficient sourcing strategy. While several decision models have effectively been utilized for evaluating and selecting potential suppliers, methodologies for supply base optimization have not received significant attention in the literature. The main contribution of this paper is the development of a quantitative methodology for supply base optimization. This involves reconfiguring the buying firm's supply base by evaluating and selecting potential suppliers with respect to the strengths of existing suppliers and excluding underperforming suppliers from the firm's supply base. We compare our methodology, which is anchored in data envelopment analysis (DEA), with traditional and advanced DEA models for supplier evaluation in highlighting its relative advantages. We test our models on an actual dataset of suppliers from a large, multinational, telecommunications company.     

An interactive approach for selecting IR&D projects

The authors present a strategy for systematically allocating resources to competing independent research and development (IR&D) projects in a company building systems for the US Department of Defense. The approach is less mathematically complex than many techniques reported in the literature, utilizing the judgement of key business and technical elements in the organization. The authors first give a taxonomy characterizing various approaches and briefly review R&D selection methods reported in literature. Then they describe an interactive process that they have developed for selecting IR&D projects which, rather than substituting complex calculations for good technical and material judgement, facilitates better utilization of the expertise of various organizational elements within the context of corporate strategic planning. Procedures are included for idea submittal and evaluation. Experiences are discussed obtained during the application of the process to a corporation with multiple business units     

An exploratory investigation of the effects of supply chain complexity on delivery performance

As just-in-time delivery has become increasingly commonplace and customer demands continue to tighten, the importance of fast, reliable delivery cannot be overstated. This is particularly true for firms competing internationally, where the complexity of the supply chain must be managed within a global network. To explore the linkage between supply chain complexity and delivery, a two-dimensional framework is proposed that conceptualizes the degree of complexity embedded in a supply chain along two major dimensions: (1) form of technology and (2) nature of information processing. Technology is characterized using a conventional operations strategy framework of structural and infrastructural elements. In contrast, information processing captures both the level of complicatedness and of uncertainty that exists in the supply chain. Collectively, these two dimensions create a two-by-two framework that defines supply chain complexity and provides a strong theoretical basis for linking different aspects of complexity to delivery performance. An exploratory empirical investigation using an international database focused on immediate upstream and downstream echelons of a supply chain at the firm level. Results show strong support for the linkages between delivery performance and both complicatedness of the product/process and uncertainty of the management systems. In contrast, little evidence was found that greater product variety and more complicated supply networks adversely affected performance. Thus, management initiatives to improve delivery performance are best focused on improving informational flows within the supply chain and leveraging new process technologies that offer flexibility to respond to uncertainty.     

Variance importance of system components by Monte Carlo

The authors present an algorithm to compute variance importance, a measure of uncertainty importance for system components. A simple equation has been derived for the measure, and Monte Carlo simulation is used to obtain numerical estimates. The algorithm overcomes NP-difficulty (non-polynomial difficulty) which exists in earlier methods for computing uncertainty importance, and is simpler, more accurate, and more practical. Moreover, it shows the direct relationship between probabilistic importance and uncertainty importance. An example illustrates the evaluation of Monte Carlo variance importance for a sample system     

Alignment of a firm's competitive strategy and informationtechnology management sophistication: the missing link

The need for establishing a link between information technology (IT) management strategies and a firm's competitive strategy has been identified and discussed in the literature. In this paper, factors for measuring IT management sophistication are identified first. Then the effects of the competitive strategy on IT management sophistication are tested empirically. According to a survey of 213 managers, this study finds that competitive strategy has a direct impact on IT management sophistication. This paper concludes with implications for both researchers and practitioners     

Differentiating market strategies for disruptive technologies

The literature is full of anecdotes that show new small firms attacking existing markets with innovations based upon disruptive technologies and achieving phenomenal success. Because of this, some theorists argue that disruptive technologies are best commercialized by new small firms. If this is true, can a logical rationale be developed that explains this unique capacity of new firms? If so, can empirical research of new and established firms in an industry fraught with a disruptive technology identify the advantages that new firms have over established firms in the commercialization process? The purpose of this paper is to examine the different roles of established and new firms in disruptive technology commercialization. The authors begin by developing a model of the innovation process beginning with technology creation and ending with user adoption and application. From this model they develop propositions for testing. The authors use survey data collected from 72 micro-electro-mechanical-systems (MEMS) manufacturing firms. Their results from the MEMS industry show that established firms rarely commercialize disruptive technologies and then prefer to use market-pull strategies to accomplish this. New firms select primarily disruptive technologies and choose either market-pull or technology-push strategies for commercialization. Perhaps more important, time to market for new firms is one-fourth that for established firms. These results suggest that new firms have two advantages in commercialization of disruptive technologies-flexibility in marketing strategy and much shorter times to market.     

An optimal real‐time pricing algorithm under load uncertainty and user number variation in smart grid

The progress of real‐time communication systems for smart grid has led to the importance of real‐time pricing becoming more highlighted. There are many investigations that have already been done. Real‐time pricing frameworks have proposed an implemented distributed algorithm with or without consideration of effect of load uncertainty. In some existing literature the effect of different types of load uncertainty models on average consumption and generated capacity is considered. However, the number of users is considered to be constant. In this paper, it is assumed that the number of users is varying independently and randomly. In this case the effect of variation of number of users on the basis of Poisson process and uniform distribution is compared with results from previous works, when bounded uncertainty model was applied for added noise to the consumption. Simulation results indicate that when users vary on the basis of Poisson distribution, the waste of energy decreases and the welfare increases.     

Reliability, validity, and imprecision in fuzzy multicriteria decision-making

There has been a great deal of interest in the application of fuzzy sets for representing uncertainty in management decision models. One of the important steps in the decision process is the elicitation of fuzzy judgments from the decision-makers. There are two elicitation procedures used in the existing literature: (1) direct numerical assessment and (2) linguistic variables. We introduce a third procedure, which we term the "fuzzy spatial instrument." We examine some characteristics of judgment elicitation procedures as measurement instruments. In particular, we conduct an empirical test of fuzzy measurement instruments using a set of subjects and evaluate the instruments on the criteria of reliability, validity, and imprecision. We conclude that the use of fuzzy instruments will introduce some level of imprecision into the decision-making process due to the nature of the instruments themselves.     

基于重复博弈的Ad hoc网络合作转发模型

针对噪音环境下的Ad hoc网络合作问题,运用不完美信息重复博弈模型分析节点之间的交互过程,使用贝尔曼方程构造满足序贯均衡的合作激励机制。对于该机制,节点间无需交换观察信息,节省了节点能量和网络负担。与已有的序贯均衡策略相比,该机制避免使用对观测误差敏感的触发策略,提高了不完美信息环境下网络的合作率和节点的平均收益。仿真结果表明,使用贝尔曼方程构造的序贯均衡策略既提高了网络的合作率,又有很好的适应性。     

Technology competition and optimal investment timing: a real options perspective

Companies often choose to defer irreversible investments to maintain valuable managerial flexibility in an uncertain world. For some technology-intensive projects, technology uncertainty plays a dominant role in affecting investment timing. This article analyzes the investment timing strategy for a firm that is deciding about whether to adopt one or the other of two incompatible and competing technologies. We develop a continuous-time stochastic model that aids in the determination of optimal timing for managerial adoption within the framework of real options theory. The model captures the elements of the decision-making process in such a way so as to provide managerial guidance in light of expectations associated with future technology competition. The results of this paper suggest that a technology adopter should defer its investment until one technology's probability to win out in the marketplace and achieve critical mass reaches a critical threshold. The optimal timing strategy for adoption that we propose can also be used in markets that are subject to positive network feedback. Although network effects usually tend to make the market equilibrium less stable and shorten the process of technology competition, we show why technology adopters may require more technology uncertainties to be resolved before widespread adoption can occur.     

Preemptive Learning, Competency Traps, and Information Technology Adoption: A Real Options Analysis

Many previous real options studies suggest that increase in investment uncertainties makes deferral options more valuable. We propose a new real options model where both organizational capabilities and technological learning are emphasized. Our model demonstrates that when a company is capable of reaping sufficient benefits from preemptive learning of a new information technology, it will expedite its adoption of the technology under greater uncertainty. When exogenous gains created by technology advance are independent of technological learning, they tend to have minimal impact on the company's optimal adoption strategy. The results of our analysis also support the view that existing technology capabilities may lead to competency traps hindering a company's technological adaptation.     

Estimating Clock Uncertainty for Efficient Duty-Cycling in Sensor Networks

Radio duty cycling has received significant attention in sensor networking literature, particularly in the form of protocols for medium access control and topology management. While many protocols have claimed to achieve significant duty-cycling benefits in theory and simulation, these benefits have often not translated into practice. The dominant factor that prevents the optimal usage of the radio in real deployment settings is time uncertainty between sensor nodes which results in overhead in the form of long packet preambles, guard bands, and excessive control packets for synchronization. This paper proposes an uncertainty-driven approach to duty-cycling, where a model of long-term clock drift is used to minimize the duty-cycling overhead. First, we use long-term empirical measurements to evaluate and analyze in-depth the interplay between three key parameters that influence long-term synchronization: synchronization rate, history of past synchronization beacons, and the estimation scheme. Second, we use this measurement-based study to design a rate-adaptive, energy-efficient long-term time synchronization algorithm that can adapt to changing clock drift and environmental conditions, while achieving application-specific precision with very high probability. Finally, we integrate our uncertainty-driven time synchronization scheme with the BMAC medium access control protocol, and demonstrate one to two orders of magnitude reduction in transmission energy consumption with negligible impact on packet loss rate.     

Active deception defense method based on dynamic camouflage network

In view of the problem that the existing honeypots often fail to resist the penetration attack due to the lack of confidentiality,an active deception defense method based on dynamic camouflage network (DCN) was presented.The definition of DCN was given firstly,and then the attacker-defender scenario of active deception based on DCN was described.Next,the interaction process of the attacker-defender scenario was modeled by using a signaling game,whose equilibrium can guide the selection of optimal deception strategy.Furthermore,to quantify the payoffs accurately,the two-layer threat penetration graph (TLTPG) was introduced.Finally,the solution for game equilibrium was designed,through which pure strategy and mixed strategy could be calculated simultaneously.The experimental results show that,based on the dynamic camouflage network,the perfect Bayesian equilibrium can provide effective guidance for the defender to implement the optimal defense strategy and maximize the benefits of the defender.In addition,the characteristics and rules of active deception defense DCN-based are summarized.     

Technology alliances and networks: an external link to research capability

Few studies of technology alliances have explicitly examined the link between internal research capability and external sources of innovation via interfirm networks. While different partners bring with them different sets of resource opportunities, the networks can serve as "pipes" of information via indirect partners. This research examined whether the level of research capability moderates the performance impact of a firm's network accessibility in terms of the number of technology partners and the firm's centrality in the network. Interviews were also conducted with management executives and engineers to investigate the underlying motives and strategy of technology alliances. While the statistical findings show that increasing research capability enhances the benefits of information access via centrality, our interview data provide support that the role of good engineers as technology gatekeepers is critical to the success of leveraging partners' resources. Building upon the rich qualitative data, we conclude the study with an organizational framework of technology strategy. This paper contributes to engineering management research by linking both strategic and organizational factors of research capability in acquiring external sources of innovation.     

Is the Price Right?

We conclude that contribution analysis is adaptable and useful for pricing new products. Pricing strategy should be devised during the product development stage, and both price and cost forecasting are important for this purpose. Further, to avoid the often repeated mistake of basing a new product's price on unrealistic introductory production and marketing costs, the experience curve should be used for realistic cost estimates. It is important to know: ? competitive prices (actual and expected), cost structures, and capacity utilization ? buyers' reactions to price ? the firm's cost structure and corporate objectives. Unless the pricing process is firmly imbedded within a dynamic, long-run marketing strategy, it is likely that a pricing policy unrelated to the marketing strategy will evolve. Correct pricing decisions are vital as today's pricing environment increases pressure for better, faster, and more frequent pricing decisions. Better research concerning the competitive market and customer responses to prices and price changes is urgently needed. Within the industrial firm, a price-research budget is needed. We must avoid a common occurrence, i.e., worrying about the market response to a price decision after the decision has been made.     

Channel holding time distribution in public telephony systems (PAMRand PCS)

This paper examines the channel holding time probability distribution in different public telephony systems. The systems analyzed are public access mobile radio under its two possible operation modes (message and transmission trunking) and personal communications systems. The three statistical studies are based on a fully empirical approach and make use of data acquired from actual working systems that the authors considered to be sufficiently representative. Although this empirical approach is obviously highly dependent on the environment, it eliminates the need to assume a number of hypotheses present in all analytical and simulation studies. The results achieved through this approach capture effects that others overlook and enrich the existing literature on the subject, and should be useful for teletraffic engineering mobile systems     

Product Change Intensity in the Personal Computer Industry: A Study of Firm-Supplier Innovation

In this paper, we develop a conceptual model to investigate external factors deemed to be critical to the frequency by which a firm releases new products – a phenomenon we refer to as “change intensity.” Using data collected through a cross-sectional survey administered to 55 firms in the personal computer (PC) industry, and employing hierarchical regression, we examine the relationship between the rates of change in suppliers' component innovations and manufacturers' product innovations, and how that relationship is affected (moderated) by firm-supplier relationship closeness and competitive rivalry. Our results show that a firm's rate of product change is positively related to its key supplier's rate of component change. The results further suggest that the linkage between a firm's innovation frequency and that of its key supplier's is stronger for firms that have closer relationships with their suppliers and for firms that perceive themselves as facing higher levels of competitive rivalry. The study demonstrates the critical role played by suppliers in driving innovation in the PC industry, while also underscoring the importance of formal or informal alliances with suppliers and industry competition in fostering high product change intensities. More research is needed to determine if these findings are limited to the fast-moving PC industry.     

A fuzzy-logic-based approach to project selection

When making decisions we need to consider the possible alternatives and then choose the optimal alternative. The uncertainty of subjective judgment is present during this selection process. Also, decision making becomes difficult when the available information is incomplete or imprecise. This kind of problem exists while selecting a project. There are also several critical factors that are involved in the selection process, including market conditions, availability of raw materials, etc. The decision mechanism is constrained by the uncertainty inherent in the determination of the relative importance of each attribute element. In this paper, me develop a system for the project selection using fuzzy logic. Fuzzy logic enables us to emulate the human reasoning process and make decisions based on vague or imprecise data. Our approach is based on uncertainty reduction. The optimal alternative is formed by the relative weights of each attribute's elements combined over all the attribute membership functions. We also do a case study for the selection of software packages. Our system could be easily applied to other project selection problems under uncertainty     

3D-VANET中基于模糊逻辑和Q学习的拓扑感知路由协议

城市三维车载自组网（Three-Dimensional Vehicular Ad-hoc Network,3D-VANET）中往往存在多种道路形式,每种道路网络拓扑变化特点各异,平面路由协议不能根据道路特点动态调整选路策略,不宜直接用于3D-VANET,为此设计了一种基于模糊逻辑和Q学习的拓扑感知路由协议。该协议通过模糊逻辑方法感知网络拓扑变化与网络负载情况动态调整信标间隔,以平衡邻节点信息准确性与控制开销成本。在此基础上,采用Q学习算法对网络建模,根据链路质量以及链路质量变化调整Q学习算法参数,以灵活选择下一跳转发节点,更好适应网络拓扑的频繁变化。仿真结果表明,与对比协议相比,该协议有利于降低控制开销,同时提高包投递率和减少平均端到端时延。