nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2007‒06‒18
six papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Information, Technology and Information Worker Productivity: Task Level Evidence By Sinan Aral; Erik Brynjolfsson; Marshall Van Alstyne
  2. Business Process Risk Management, Compliance and Internal Control: A Research Agenda By Rikhardsson, Pall; Best, Peter; Green, Peter; Rosemann, Michael
  3. The Conceptual Framework for Business Process Innovation: Towards a Research Program on Global Supply Chain Intelligence By Møller, Charles
  4. An inventory control project in a major Danish company using compound renewal demand models By Larsen, Christian; Seiding, Claus Hoe; Teller, Christian; Thorstenson, Anders
  5. A Note on Corporate Taxation, Limited Liability, and Asymmetric Information By Miglo, A.
  6. A Direct Test of the Homevoter Hypothesis By Carolyn A. Dehring; Craig A. Depken, II; Michael R. Ward

  1. By: Sinan Aral; Erik Brynjolfsson; Marshall Van Alstyne
    Abstract: In an effort to reveal the fine-grained relationships between IT use, patterns of information flows, and individual information-worker productivity, we study task level practices at a midsize executive recruiting firm. We analyze both project-level and individual-level performance using: (1) detailed accounting data on revenues, compensation, project completion rates, and team membership for over 1300 projects spanning 5 years, (2) direct observation of over 125,000 email messages over a period of 10 months by individual workers, and (3) data on a matched set of the same workers' self-reported IT skills, IT use and information sharing. These detailed data permit us to econometrically evaluate a multistage model of production and interaction activities at the firm, and to analyze the relationships among key technologies, work practices, and output. We find that (a) IT use is positively correlated with non-linear drivers of productivity; (b) the structure and size of workers' communication networks are highly correlated with performance; (c) an inverted-U shaped relationship exists between multitasking and productivity such that, beyond an optimum, more multitasking is associated with declining project completion rates and revenue generation; and (d) asynchronous information seeking such as email and database use promotes multitasking while synchronous information seeking over the phone shows a negative correlation. Overall, these data show statistically significant relationships among technology use, social networks, completed projects, and revenues for project-based information workers. Results are consistent with simple models of queuing and multitasking and these methods can be replicated in other settings, suggesting new frontiers for IT value and social network research.
    JEL: D2 D8 J44 L8 M0 O30
    Date: 2007–06
  2. By: Rikhardsson, Pall (Department of Management Science and Logistics, Aarhus School of Business); Best, Peter (Faculty of Business); Green, Peter (The University of Queensland Business School); Rosemann, Michael (Faculty of Information Technology)
    Abstract: Integration of risk management and management control is emerging as an important area in the wake of the Sarbanes-Oxley Act and with ongoing development of frameworks such as the Enterprise Risk Management (ERM) framework from the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on an inductive methodological approach using literature review and interviews with managers engaged in risk management and internal control projects, this paper identifies three main areas that currently have management attention. These are business process risk management, compliance management and internal control development. This paper discusses these areas and identifies a series of research questions regarding these critical issues
    Keywords: Risk management; Internal control; Business processes; Compliance; Sarbanes-Oxley Act; ERP systems; COSO; COBIT
    Date: 2006–09–18
  3. By: Møller, Charles (Department of Management Science and Logistics, Aarhus School of Business)
    Abstract: This paper proposes a research program on Business Process Innovation: Towards Global Supply Chain Intelligence. Few words are more ubiquitous in business or society today than "innovation". This reflects that businesses are striving for ways to survive and thrive in an increasingly complex and connected world (IBM 2006). <p> Most industrial supply chains today are globally scattered and nearly all organizations rely on their Enterprise Information Systems (ES) for integration and coordination of their activities. In this context innovation inevitably is driven by advanced information technology. <p> Organizations today are required not only to operate effective business processes but they also need to accommodate to changing business conditions at an increasing rate. Consequently the ability to develop and implement new processes driven by the Enterprise Information Systems is a central competence in most industries, and furthermore it is a critical practice for a global enterprise. <p> The next practice in Global Supply Chain Management is Business Process Innovation. Business Process Innovation is the transformation of a global supply chain driven by a new advanced Enterprise Information Systems technology. This technology holds the potential to "close the control loop", but until now few organizations have managed to unleash the full potential of global supply chain intelligence. Thus, there is an emerging need for managing the transformation and for new approaches that will lead to robust global supply chains. <p> This paper presents a conceptual framework for Business Process Innovation. A research proposal based on five interrelated topics is derived from the framework. The research program is intended to establish and to develop the conceptual framework for business process innovation and to apply this framework in a global supply chain context. These topics are presented in the following sections, but first the background for the program is discussed.
    Keywords: No keywords;
    Date: 2006–07–24
  4. By: Larsen, Christian (Department of Business Studies, Aarhus School of Business); Seiding, Claus Hoe (The Danfoss Group); Teller, Christian (The Danfoss Group); Thorstenson, Anders (Department of Business Studies, Aarhus School of Business)
    Abstract: We describe the development of a framework to compute the optimal inventory policy for <p> a large spare-parts’ distribution centre operation in the RA division of the Danfoss Group <p> in Denmark. The RA division distributes spare parts worldwide for cooling and A/C <p> systems. The warehouse logistics operation is highly automated. However, the procedures <p> for estimating demands and the policies for the inventory control system that were in use <p> at the beginning of the project did not fully match the sophisticated technological <p> standard of the physical system. During the initial phase of the project development we <p> focused on the fitting of suitable demand distributions for spare parts and on the <p> estimation of demand parameters. Demand distributions were chosen from a class of <p> compound renewal distributions. In the next phase, we designed models and algorithmic <p> procedures for determining suitable inventory control variables based on the fitted <p> demand distributions and a service level requirement stated in terms of an order fill rate. <p> Finally, we validated the results of our models against the procedures that had been in use <p> in the company. It was concluded that the new procedures were considerably more <p> consistent with the actual demand processes and with the stated objectives for the <p> distribution centre. We also initiated the implementation and integration of the new <p> procedures into the company’s inventory management system
    Keywords: Base-stock policy; compound distribution; fill rate; inventory control; logistics; stochastic processes
    Date: 2007–03–01
  5. By: Miglo, A.
    Abstract: Becker and Fuest (forthcoming) provides a new explanation for the important and puzzling link between limited liability and corporate taxation. The authors argue that a corporate tax on all entrepreneurs with limited liability is optimal when entrepreneurs can offset potential losses and when asymmetric information exists regarding projects' qualities. This note considers a model with slightly modified production technology. It confirms that entrepreneurs' abilities to offset losses and the existence of asymmetric information may affect government policy. However, it also shows that the optimal taxation policy differs from that in Becker and Fuest (forthcoming).
    Date: 2007
  6. By: Carolyn A. Dehring (Department of Insurance, Legal Studies and Real Estate, The University of Georgia); Craig A. Depken, II (Department of Economics, University of Texas at Arlington); Michael R. Ward (Department of Economics, University of Texas at Arlington)
    Abstract: We propose a methodology that facilitates a direct test of the homevoter hypothesis, which posits that homeowner/voter support for a public good project is positively related to the project’s expected effect on property values. First, we estimate how events that indicate an increasing probability that the public good project will be undertaken impact local residential property values before the referendum is held. These pre-vote impacts are considered noisy signals to homeowners about the market’s assessment of the net marginal benefits of the project. Second, we aggregate these market signals to the precinct level and relate them to precinct-level voting results concerning the proposed project. We apply this method to the 2004 referendum in Arlington, Texas, concerning a publicly subsidized stadium to host the NFL Dallas Cowboys. The analysis supports the homevoter hypothesis and establishes a possible methodology for future evaluations in this small but growing empirical literature.
    Keywords: economic impact, event studies, sports, property values, stadiums
    JEL: R58 H71 L83
    Date: 2007–06

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