Table of Content

28 September 2015, Volume 24 Issue 5 Previous Issue    Next Issue

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Platform’s Strategies for Virtual Communities with eWOM considering Information Transmission Efficiency 2015, 24 (5):  625-633.  doi: F123 Abstract ( )   Based on the theory of Two-Sided Markets, we discuss the platform’s optimal pricing strategy and how to choose the best information transmission efficiency in a virtual community with eWOM. The study shows that when both types of merchants access the platform, the revenue is bigger than that when either type of merchants accesses the platform. Also, the platform is capable of adjusting its own information transmission efficiency to maximize its revenue. When the information transmission efficiency is high and the merchants’ price is high, the low quality merchants may not participate in the community, and the consumers’ optimal price rises with the decrease of the transmission efficiency. When the information transmission efficiency is low, the high quality merchants may be regarded as low quality and exit the community, and the consumers’ optimal price rises with the growth of the information transmission efficiency. References | Related Articles

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Impact of IS Project Governance Mode on the Project Performance 2015, 24 (5):  634-643.  doi: C 931.6 Abstract ( )   This paper is concerned with the relationship between IT Governance and IS Project Management, its significant to performance improvement for IS Project. We collect 142 IS projects data and do analysis of the relationship. The results explain and demonstrate that the impact between IS Project governance and IS Project performance. The finding is that the governance organization and risk control mechanism has positive impact on IS project success. Furthermore, during the project implementation phase, the project leaders have positive impact on project success. The study provides a reference for future research and a guide for enterprise’s practices for solving the problems of high failure rate of IS projects. References | Related Articles

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A Formal Model of Contingency Disaster Plans for Emergency Responders 2015, 24 (5):  644-653.  doi: C 94 Abstract ( )   An important part of Chinese contingency disaster plans is to provide useful information for different emergency responders, informing them what should be done in a certain kind of scenarios. A formal model can help responders get these kinds of information from the Internet. In this paper, we propose a formal model based on upper ontology, with contributions as follows: (1) A domain ontology of Chinese plans is constructed; (2) N-ary relations can be represented in our model; (3) The users can retrieval the useful information from our model; and (4) Temporal reasoning can help to link the rescue works scattering in different chapters and sections. References | Related Articles

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An Empirical Analysis of the Impact of Commercial Union on Online Shopping 2015, 24 (5):  654-663.  doi: C 93 Abstract ( )   Previous e-commerce studies emphasize the individual trustworthiness in online shopping. Based on the literature, we explore the complementary role of the collective trustworthiness of the e-commerce commercial union, i.e., the role of collective trustworthiness and individual trustworthiness on consumer online purchase intention and price premium, and the moderating effect of consumers' personal characteristics. Through a survey of 485 consumers, we find that individual trustworthiness significantly influences consumers online purchase intention, but does not influence the price premium. Commercial union’s collective trustworthiness significantly influences consumers' online purchase intention and price premium. In addition, personal trustworthiness propensity moderates the effect of individual and collective trustworthiness. Finally, we find that the commercial union’ security and protection system significantly influences collective trustworthiness of commercial union. References | Related Articles

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Cooperation and Conflict Behavior between Individuals and Organizations and its Robustness Analysis --Evidences from Mass Emergency Events 2015, 24 (5):  664-672.  doi: F 936 Abstract ( )   Based on mass emergency events and using game theory and behavioral operations management theory, we study the co-evolution mechanism of cooperation and conflict behavior between individuals and organizations. We first build the evolutionary game model and discuss the equilibrium at each phase. We then build the evolutionary model of employees’ cooperation and conflict, and present the social network structure of employee’s group conflict. Simulation analysis under different measures of employee behavioral decision-making, as well as the robustness of network structure are presented to analyze the stability of the conflict between employees’ behavior. The study shows that the large the population size, the more difficult the management of organization, and the organization toughness measures for different levels have different impact on employees’ conflict behavior; Employee behavior with the organization’s management measures and the degree of punishment co-evolve; The network relationship between employees has different robustness in different stages, and it is better when it has developed to the point of serious event. Thus the organization’s optimal decision is to correctly understand staff conflict behavior and the degree of punishment of the outside world, give a reasonable management measures to improve the performance of the organization, and avoid conflict of mass events. References | Related Articles

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Technology-Cooperation Innovation Mechanism of Housing Enterprises based on Evolutionary Game Theory 2015, 24 (5):  673-681.  doi: F 407.9 Abstract ( )   The management complexity of technology-cooperation innovation has become one of urgent issues for enterprise alliances with the industrialization of housing construction in China. Evolutionary games theory is used to study the mechanism of cooperation innovation among alliance enterprises under the bounded rationality. The evolutionary path, stable equilibrium strategy, and the mechanism of impact factors are analyzed using evolutionary game model. The numerical simulation of variables affecting the evolutionary results is also carried out. The results show that the evolutionary behaviors have the characteristics of path dependence and two evolutionary stable strategies (cooperation and non-cooperation) exist. The probability of technology-cooperation innovation has a positive correlation with benefits, costs, and synergy effects of innovation, and has a negative correlation with spillover effect of innovation. There exist optimal allocation ratio of innovation benefits and costs to maximize the possibility of technical cooperation innovation. The economic rent from relationship-specific investment has a positive correlation with synergy effects. The default cost and policy incentives in reasonable level may help to reduce opportunistic behaviors. References | Related Articles

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Risk identification and Measurement during Outsourcing Process for Information Technology Vendors 2015, 24 (5):  682-689.  doi: F 273.1 Abstract ( )   While information technology outsourcing today occupying a higher proportion of the whole outsourcing business, the outsourcing party faces high risk after choosing an IT vendor. Using the Deuel Philippines method, we quantify the outsourcing risks based on the related literature. We invite industry experts to give the quantitative evaluation twice and screen the pre-listed risks. Using the risk matrix method analysis, we divide the information technology outsourcing risks into different levels. We then use the Fuzzy Analytic Hierarchy Process (FAHP) to measure the risk based on the studies of the ITO from an enterprise, and find that among risk nodes, there are three high risk level, nigh teen higher risk level and two medium risk level. References | Related Articles

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Interactive Effort, Interrelated Performance Measures Index, and the Choice of Optimal Incentives: The Models and Analysis based on the Principal-Agent Theory 2015, 24 (5):  690-699.  doi: F 062.5 Abstract ( )   Performance management is a very important in enterprise management. Performance appraisal can be achieved by various departments within the enterprise management, and the reasonable selection of performance indicators is the foundation and basis in designing agency contract. We include interrelated performance measures and interactive effort into the project of the optimal incentive contract, employing the comparative static analysis method to study how interrelated performance measures and interactive effort affect the choice of optimal incentives. The study indicates that both performance measures and managerial tasks interact with each other. The incremental information that the various performance measures has brought about depends on the agent's tasks (i.e., substitute or complementary). Moreover, we find that under certain conditions increases in performance measure interrelations translates into increased profits. If the task is mutual substitutable, the impact on the level of profits depends on the relative variance between indicators. Based on this, we put forward some policy suggestions. For example, when the principal designs the incentive contract, he or she should include non-financial indicators, and analyze both various interrelated performance measures and interactive effort. Meanwhile, attention should be paid to how to use the comprehensive performance measures and disaggregate performance measures. References | Related Articles

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The HAR-RV Forecasting Model with the Jump and Signed Jump Variations and Its MCS Test 2015, 24 (5):  700-710.  doi: F 830.9 Abstract ( )   Taking 5-minute high frequency data of the CSI 300 index as an example, and applying the out-of-sample rolling time window forecasting combined with Model Confidence Set which is proved superior to SPA test, we explore the impact of the jump, signed and signed negative (and positive) jump variation on future volatility. The empirical results show that, signed jump variation not only increases the goodness of fit of the model, but also improves the forecasting accuracy of the model. By comparison, the signed jump variation, signed negative and positive jump variation have better explanations to the future volatility, which is asymmetry. The HAR-RV-SJV-D model is the best one among models discussed in this paper, especially its logarithmic form. References | Related Articles

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Optimal Multi-period Loss Aversion Portfolio Model and the Empirical Study 2015, 24 (5):  711-716.  doi: F 830.91 Abstract ( )   Under the framework of prospect theory, the multi-period loss aversion portfolio model is constructed based on the psychological characteristics of dynamic loss aversion. Furthermore, based on the stock market and considering the uncertainty of return of all assets, we empirically investigate the model and compare it with multi-period mean-variance model with regard to optimal final wealth and asset allocation ratio. Changing the initial loss aversion coefficient and initial reference point respectively, we do robustness check on the multi-period loss aversion portfolio model. The conclusion is that compared with multi-period mean-variance model, multi-period loss aversion portfolio model is robust, leading to more optimal final wealth and concentrated asset allocation. References | Related Articles

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Cash Holdings, R&D Investment Smoothing and the Competition of Product Market——Empirical Study of Chinese Listed High-Tech Enterprises 2015, 24 (5):  717-726.  doi: F 832 Abstract ( )   R&D needs continuous investment for a long time, while enterprises’ financing, especially high-tech enterprise’ financing is full of risks. The fluctuations of R&D spending may lead to high adjustment costs, thus firms should maintain a stable R&D spending. Based on eighty listed high-tech companies, we examine the effect that cash holdings have on R&D spending and its impact on firm’s competitive performance in product market. We find that cash holdings has a significant smoothing effect on R&D spending, and the smoothing effect has a positive impact on firm’s performance on product market. Both R&D spending and cash holdings have a greater impact on firm’s performance on product market in firms keeping a higher levels of investment smoothing. Moreover, when firms are financial constraints, the smoothing effect is more significant, and cash holdings’ positive effect on the performance of product market competition is more obvious in firms keeping a higher levels of investment smoothing. References | Related Articles

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Estimation and Utilization of Commercial Prepaid Card Funds Precipitation Probability based on the Queuing Model 2015, 24 (5):  727-736.  doi: C 931.2 Abstract ( )   Taking the single-purpose commercial prepaid card with a fixed nominal value (businesses often call it stored value cards) of a company in Shandong province of China as a case, we establish a multi-channel queuing model of the commercial prepaid cards precipitation capital（M/M/c/∞）and perform the empirical test. The results show that a large number of precipitation funds is formed under the conditions that the average funding service rate is less than the average capital arrival rate. For the precipitation funds utilization, according to the money arrival rate, we obtain the time probability distribution that the consumers are willing to wait for and the corresponding balance. Then, by comparing the three kinds of fund use plan, we find that although it is possible to improve the precipitation efficiency of the funds by improving the average service rate, the company in this case usually bought the bank financial products before the related regulations were issued. Currently, the company just deposits precipitation funds into the bank to obtain stable interests or buys bank financial products more unobtrusively. References | Related Articles

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Manufacturing/Remanufacturing Decisions with Carbon Cap and Trade mechanism 2015, 24 (5):  737-747.  doi: F 224 Abstract ( )   We study a monopoly firm that makes a new product in the first period and make new and remanufactured products in the second period. The remanufactured product is different from the new product and they are competing products in the same market, incur different carbon emissions. The firm must decide the product portfolio based on profits with carbon cap and trade mechanism. We develop a two-period profit-maximization model considering of carbon cap and trade mechanism to characterize the optimization production problem. Through the optimal solution of model and analysis of strategy and numerical experiment, we study the impact of carbon cap and trade mechanism on the enterprises manufacturing/remanufacturing decision and pricing decision, as well as on the carbon emissions and gross profits. References | Related Articles

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Quality Contract design for the Supply Chain with shifting equilibria from incomplete information to complete information 2015, 24 (5):  748-755.  doi: F 224.3 Abstract ( )   The difference between the equilibria with complete and incomplete information is studied in a supply chain consisting of a supplier and a manufacturer. The result implies that when only the supplier has her own private cost information, both the supplier and the producer are worse-off. The contract that can be used by manufacturer when only the supplier has her own private cost information is proposed in a general form. When both supplier and manufacturer have their own private cost information, the game equilibrium depends on the initial state and the parameters, leading to an expected equilibrium. The conditions to be satisfied when both players bear different mental characteristics are discussed as well. References | Related Articles

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Model for Cascading Failures of Logistics Network Considering Transportation Directions 2015, 24 (5):  756-761.  doi: N 945 Abstract ( )   In order to improve the credibility of destruction assessment after cascading failures caused by emergency in logistics network, a cascading failure model is established based on the influence of transportation directions and the logistics network structure with edge weights. The simulation results show that it is also more reasonable to make up the corresponding redistribution rule and to assess the destruction of cascading failures by using this model. It helps understand the resistance ability to cascading failures, and provides theoretical support for management emergency in logistics network. References | Related Articles

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Dual-Channel Supply Chain Coordination and Optimization with Heterogeneous Consumer Behavior 2015, 24 (5):  762-768.  doi: F 253 Abstract ( )   This paper studies a two-echelon dual-channel supply chain system in which a manufacturer sells a single product to customers through its owned online channel and an independent retailer. In the market, potential customers make their own purchasing decision according to product price on each channel, their preference for each channel—loyalty, and degree of rationality in decision-making process, etc. The main purpose is to analyze how these individuals influence the pricing strategies of supply chain members. Due to complexity of the problem, we use an agent-based modeling approach. The simulation results show that profits of both sides may decrease once the consumer behavior is neglected. The profit sharing mechanism is valid for the coordination of channel conflict. Moreover, the results imply that the manufacturer acting as the leader in Stackelberg game is a better option for the retailer, and the dominant player in the game benefits from information asymmetry. References | Related Articles

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Co-evolution Path of Industry-University-Research Cooperative Innovation Network Driven by Resource Allocation 2015, 24 (5):  769-777.  doi: C 94；F 062.1 Abstract ( )   The problem of the co-evolution between cooperation networks and interpersonal networks in the cooperative innovation network is studied. Based on different organization resource allocation model (random, relationship-oriented, cooperation-oriented and relational- embedded), we determine the connotation of the Industry-University-Research cooperative innovation network collaborative evolution. Then, using the evolutionary game, Nash equivalence game and synergetic order parameters, we construct the theoretical model of the Industry-University -Research cooperative innovation network collaborative evolution. Using computer simulation, we obtain the core density distribution of the order parameters and the vector field analysis to determine the Industry-University-Research cooperative innovation network co-evolution path. The study show that, the Industry-University-Research cooperative innovation network co-evolution path has characteristics of mutations, preferences and symmetry breaking. The relationship-oriented and relational embedded resource allocation is conducive to maintaining the stability of the Industry-University-Research Cooperative Innovation Network; cooperative relationships network and interpersonal network co-exist in the process of Industry- University-Research cooperative innovation Network synergistic evolution. Industry-University- Research cooperative innovation network is spontaneous to co-evolution (ESS) steady-state without external force (from the third-party). References | Related Articles

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Coupling Development between Production Services and Special Equipment Manufacturing 2015, 24 (5):  778-783.  doi: F 062.9 Abstract ( )   Special equipment manufacturing provides dedicated, professional equipment to other industries. With the traditional industries upgrading and shifting to strategic and emerging industries, special equipment manufacturing plays a fundamental and extensive role. Meanwhile, special equipment manufacturing provides material basis for production services. Fusion between service industry and manufacturing industry is the trend of development. It is an important for demonstrating the integration of production services and manufacturing by studying the coupling between production services and special equipment manufacturing. We first analyze the coupling operation mechanism of production services and special equipment manufacturing from the perspectives of time and space, and find it may optimize the industrial structure, enhance the value chain, and promote economic development modes shifting from manufacturing to service-driven manufacturing. We then build the coupling development model using coupling theory in physics, and establish the index system based on industry characteristics. Finally, we empirically analyze the coupling development between production services and special equipment manufacturing. The results show that production services and special equipment manufacturing enter a preliminary coupling stage, but the coordination between the industries has to be vigorously enhanced. References | Related Articles