bluuebunny/crossref_metadata_2025 huggingface dataset:
Organizing knowledge in the knowledge development cycle
Authors: Bhatt Ganesh D.
Published: July 2002

The main aim of the paper is to examine some of the strategies that can be matched to increase the effectiveness of the knowledge development cycle. In manufacturing and operational works, the effectiveness of different organizing strategies to enhance the quality of manufacturing processes and products is well established. In knowledge works, however, we lack such frameworks. Unlike manufacturing and operational processes, knowledge development processes are often chaotic, unstructured, and unsystematic, resulting in intangible products. Therefore, the principles of manufacturing strategies cannot be applied in the knowledge development cycle. In knowledge works, organizing strategies should be defined and initiated based on knowledge development phases (e.g. knowledge creation, knowledge adoption, knowledge distribution, and knowledge review and revision). Each phase, in the knowledge development cycle, needs to be evaluated in context of its characteristics on repetition, standardization, reliability, and specifications.
A resource‐based view of organizational knowledge management systems
Authors: Meso Peter , Smith Robert
Published: July 2002

With the advent of knowledge management, intellectual capital is gaining increasing recognition as the only true strategic asset. This has led to a proliferation of organizational knowledge management systems (OKMS), for managing intellectual capital. This article addresses the question: “Are OKMS strategic assets within the context of the resource‐based view?” Two views of OKMS emerge – the technical and the socio‐technical view. An analysis of OKMS from each perspective is presented and their resultant implications on the competitive position of the firm explained. The findings indicate that, for a firm to reap long‐term strategic benefit from OKMS, it should adapt the broader socio‐technical view when developing, implementing and managing its OKMS. This suggests that firms need to consider not only the technology but also the organizational infrastructure, the organizational culture and the people who form the OKMS, and the knowledge that is to be processed by these OKMS.
How do managers use knowledge about knowledge management?
Authors: Bailey Catherine , Clarke Martin
Published: July 2002

Despite the ever‐burgeoning literature and growth of conceptual models and tools, hard‐pressed managers seem to find it difficult to appreciate the special significance that knowledge management (KM) has for redefining their managerial work. In two complementary articles, this problem is investigated and ideas developed to help turn existing information about KM into “usable ideas”. In this first article, the importance of helping managers to relate knowledge management to what is organisationally important (currency), to what furthers an individual’s goals and interests (personal relevance), and to what is practical within an individual’s current capacity (actionable), is explained. Currency is explored using a managerial knowledge portfolio that identifies the knowledge to be managed in the critical areas of managerial focus, strategy, operational processes and change management. Actionability is explored using an organisational knowledge management activity matrix that describes KM activities in terms which are meaningful and provides a basis for a KM audit.
Management strategies for individual knowledge and organizational knowledge
Authors: Bhatt Ganesh D.
Published: July 2002

In the present postindustrial society, knowledge has become a key resource. However, organizations face innumerable challenges in nurturing and managing knowledge. Unlike manufacturing activities, knowledge activities are difficult to monitor and control, because only a part of knowledge is internalized by the organization, the other part is internalized by the individuals. This duality between individual knowledge and organizational knowledge demands different sets of management strategies in knowledge management. This paper provides a framework that explores the differences between individual knowledge and organizational knowledge, and proposes a set of management strategies for knowledge management. The paper also discusses the ways through which an organization can transform individual knowledge into organizational knowledge.
Knowledge management and drug development
Authors: Koretz Stuart , Lee Greg
Published: July 2002

The paper is aimed at two distinct readerships: drug industry participants who are interested in how knowledge management applies to their industry and knowledge management workers who are interested in seeing how general knowledge management issues play out in this problem domain. To accommodate the latter, without boring the former, a lengthy sidebar offers an introduction to drug development and key vocabulary. We describe key business and operational issues in knowledge management for drug development, show how knowledge management is an appropriate technology for modern drug development, argue for the importance of domain models, and make connections to representative theoretical and experimental work.
From information technology to knowledge technology: taking the user into consideration
Authors: Merlyn Paul R. , Välikangas Liisa
Published: July 2002

This paper focuses on the famous productivity paradox ‐ despite widespread investments in information technologies, very few of them can be shown to positively impact the productivity statistics. The authors argue that the way out of the productivity paradox is to transition out of traditional investments in information processing technologies, offering diminishing returns, to investments in knowledge technologies, offering increasing returns. They argue that such a shift, in order to be effective, must be built with a core focus on meeting the users’ needs in knowledge work. Topics reviewed include knowledge retrieval, including knowledge servers and their architecture; knowledge capture; and knowledge navigation and discovery. The paper concludes with an assessment of emerging knowledge technologies.
BEST business excellence:
Authors: Edgeman Rick L.
Published: July 2002

Presents the “BEST” model for sustainability built on the pillars of biophysical/environmental, economic, societal and technological principles. Attempts to relate this model to the principles and criteria of representative business excellence models with the goal of achieving business excellence with a social and environmental conscience. Looks at some core considerations of BEST sustainability as well as some commonly agreed upon business excellence principles. Concludes by discussing areas where sustainable development and business excellence may converge.
Service Quality in the Knowledge Age
Authors: Harris Michael , Harrington H. James
Published: July 2002

By almost every measure manufacturing quality has improved tremendously in the past decade; unfortunately, the same is not true for service. Yet, manufacturing processes represent less than 5 per cent of all business processes. Clearly, the opportunity area for the twenty‐first century is in the understanding and improvement of the service processes that drive value and customer experience. There are two major characteristics of service that distinguish it from product. The understanding of these differences and often‐painstaking attention to detail in delivery determines ultimate success and competitiveness of service. The first is that almost every service is a series of situations where every subsequent process depends on those that precede it. The second unique characteristic of service is that the customer usually plays an important role in the process and each involvement strongly influences downstream processes and requirements. The vast riches and opportunities of the future service‐oriented world belong to those who understand the customer experience from the customer’s viewpoint and can and will offer high value solutions.
Quality is dead in Europe – long live excellence ‐ true or false?
Authors: Dale B.G. , Zairi M. , Van der Wiele A. , Williams A.R.T.
Published: July 2002

This deliberately provocative paper challenges the replacement of quality and total quality management by the term “excellence” in the EFQM excellence model. It also claims the current emphasis on “points scoring” is detracting from the fundamentals of quality management.
Evaluation of business strategies in the UK construction engineering consultancy
Authors: Yisa Silas , Edwards David J.
Published: July 2002

Invariably, business strategies are methods used to make and sell products or perform services. Often strategies employed are determined by the company’s reaction to events that are beyond its control. In the UK construction industry, consulting engineering firms are exposed to increasing marketplace competition. The rapid change from the traditional contract procurement route to the relatively new design and build, and management contracting towards the end of the 1980s in the UK, has also introduced many consulting firms to a new form of competition. These and other issues have, therefore, led to the investigation of how today’s small and medium sized consulting firms are coping in the present marketplace. Focuses on five key areas of business strategies that are fundamental to a firm’s survival and increased profitability. Discusses the findings of an explanatory survey of partners and chief executives of 57 consulting firms, carried out to identify existing practices in these firms. The survey results support the need for a more co‐ordinated marketing strategy, increased partnership with other consulting firms, and the need for strategic planning through careful environmental analysis.
The new concept of manufacturing “DNA” within an analytic hierarchy process‐driven expert system
Authors: Razmi J. , Rahnejat H. , Khan M.K.
Published: July 2002

Ever since the bronze age, graphical representations have been employed to convey a message or a phenomenon. Graphical representations have been and continue to be a powerful tool to record events and changes throughout history. It is often helpful to use conceptual models to visualise problems, and in order to find possible solutions. Manufacturing planning and control (MPC) as a discipline is no exception to this rule. Many useful methods/models in this field including Gantt charts, CPM, PERT, and fishbone diagrams have been employed. However, representing complex multi‐variate problems through ordinary conceptual models can be quite arduous and the results may not be objectively accurate. This paper illustrates how a chain of “state‐space” models can be formed, based on the analytic hierarchy process (AHP), which can pertain to existing complex practical manufacturing circumstances in an objective manner.
Situations for innovation management: towards a contingency model
Authors: Drejer Anders
Published: July 2002

The need for firms to become more innovative has probably never been greater. Today concepts such as the new economy, new technologies, hyper‐competition and clock speed are used to explain that the dynamics of competition and markets has never been greater. Thus, there is a large focus on the concept of innovation management in firms. Discusses innovation management, understood as being the activities that firms undertake in order to yield new solutions within products, production and administration. The main contribution is a discussion of how a general framework for innovation management can be tailored to individual situations/different firms.
Strategic innovation at large companies through strategic community management – an NTT multimedia revolution case study
Authors: Kodama Mitsuru
Published: July 2002

The article will propose strategic community management as a new management style and innovation technique for large, established companies, that is implemented through the creation of a variety of strategic business communities. The article will take up, as a new model case of the use of strategic community management in business, the expansion of Japan’s multimedia communication market achieved by Nippon Telegraph and Telephone, Inc. (hereafter, NTT), Japan’s largest telecommunications carrier, over roughly the past four years. The article will explain how NTT cultivated this new multimedia market, which was spawned from its creation of business communities (both internal and external, and including communities with customers) using strategic outsourcing and various strategic partnerships with businesses in other industries.
Measuring the dimensions of market knowledge competence in new product development
Authors: Li Tiger , Tamer Cavusgil S.
Published: July 2002

The dimensions of market knowledge competence (MKC) in new product development are still not sufficiently understood. This research presents a conceptual framework of MKC that is multidimensional. It further develops items that assess the distinct dimensions of MKC. The measures of the three dimensions are validated through data collected from the software industry. The findings also show that a multidimensional model of MKC provides a more adequate explanation of new product outcomes than a unidimensional model. Suggests potential aims for future research such as the conduct of a comparative study involving multiple categories of products.
Evolution, financial management and learning in the small firm
Authors: Deakins David , Morrison Alana , Galloway Laura
Published: July 2002

There is an assumption that inadequate financial management practices are contributors to turbulence in the small firm sector; yet there have been few investigations into the factors that influence an owner‐manager’s approach and the processes involved in the evolution of strategy and associated learning in this area. Previous studies have adopted a comparative static approach that is survey‐based; we argue that these studies can only give limited insights. We adopt a comparative case study methodology to develop an evolutionary process view of financial management in small firms. Despite the increased attention paid to owner‐managers in the small firms sector, we know comparatively little about the process of financial management and how small firms learn and adjust strategy and decision‐making in this area. In this paper, we attempt to shed some light on the process issues within small firms from qualitative evidence collected as part of a programme of case study research with entrepreneurs and owner‐managers. We discuss case evidence and focus on how owner‐managers reach financial management decisions, how they learn and adjust behaviour within the entrepreneurship process.
Social constructionism: a theoretical framework to underpin support for the development of managers in SMEs?
Authors: Devins David , Gold Jeff
Published: July 2002

Policy documents stress the importance of learning and knowledge to the competitiveness of the economy. The documents draw attention to the positive impact on economic performance although the link between management training and small firm performance remains empirically contested. Many outside agencies, and particularly those which are publicly funded, face significant difficulties in bringing new learning to smaller organisations. In particular, generalised notions, recipes and tool‐kits of techniques for how small business managers should be developed can easily be dismissed as irrelevant by the small business managers themselves. This would suggest a methodological gap which highlights the failure of many interventionist frameworks. Argues that this gap can be bridged by taking a social constructionist view to supporting small business managers and the development of their organisations. Provides an introduction to the key ideas of social constructionism and their relevance to understanding the support process underpinning the development of managers in smaller businesses. Concludes with a discussion of the implications of social constructionism for those involved in researching, evaluating and developing services to support management development in small business organisations.
Competitive strategy and firm size in the estate agency industry
Authors: Bishop Paul , Megicks Phil
Published: July 2002

Examines the relationship between competitive strategy and firm size in the UK estate agency industry, by presenting evidence from a recent empirical study of the industry in South West England. The analysis indicates that the industry is generally characterised by differentiation strategies rather than price competition and suggests that this may be attributable to a relative lack of economies of scale and the localised nature of the market. However, different types of firm place a greater emphasis upon different strategic positions. Suggests that small firms wishing to establish a long‐term position in a market in which larger firms are operating need to assess both the market environment and the market position of their rivals if they are to discover particular market niches in which they can develop competitive advantage.
Empowering self‐study learning through evaluation
Authors: Gilleard Jenni
Published: July 2002

Evaluation is becoming increasingly important as companies seek to measure performance improvement as a result of training initiatives. Describes the introduction of an evaluation process into a self‐study business English writing programme. Suggests that using a suitable pre‐ and post‐test questionnaire can help to establish a means of self‐assessment for trainees to assist continuous development. Indicates trainers may need to become more mindful of the limitations of investing self‐study modules with the ability to automatically empower the learner unless the training material accommodates for the learning culture of the trainee, and provides support for the self‐directive notion. Also discusses the implications of establishing evaluation techniques within self‐study training. Provides suggestions for exploiting self‐study as a more effective empowering tool.
Turning a system loose with empowerment: reflections on an intervention in South Africa
Authors: Sullivan Kristine
Published: July 2002

Empowerment is a term most misused in today′s business world. This article shows how a firm in South Africa used empowerment to build coherence, clarity, clear direction and identified perimeter′s identified by an executive or leadership team through the use of the 2,000 people in the organization in four weeks. It discusses the use of large scale organizational change initiatives and their use in building empowered systems.
Strategic performance empowerment model
Authors: Geroy Gary D. , Wright Phillip C. , Anderson Joan
Published: July 2002

Employee empowerment is one of the key management concepts of our time, but the empowerment concept has not yet become part of our corporate culture. In order to make it possible for managers to utilize empowerment concepts, the authors have developed a model, based on coaching, modeling and career path development in both an organizational and individual context. In the final section of the paper (Implications for Practicing Managers), the authors emphasize that implementation is not an easy task, as the manager must override traditional, authority‐based mindsets to develop a different paradigm.
An ongoing learning dialogue
Authors: Smith Janet
Published: July 2002

This article proposes that by placing an emphasis on dialogue within the organization and between customers and suppliers, organizations will achieve increases in creativity, adaptability, job satisfaction and hence productivity. By integrating dialogue into the lives and work of employees, they gain a greater understanding of their colleagues, resulting in improved working relationships ‐ emphasis is placed on the importance of non‐work‐related dialogue. They also gain a greater understanding of the organization as a whole, considering where they can assist, improve and even refocus the organization. The article discusses ways of enabling dialogue groups within the author’s own organization.
Business models for the human resource management discipline
Authors: Houtzagers Gijs
Published: July 2002

This article starts with describing what the surplus value of modeling is for the processes of selection, implementation and optimization of human resource (HR) systems in terms of money, time and quality. The second part explains the architecture of the HR model. Eight components are defined: organization; human resource logistics; compensation and benefits; employability management; relations; health, safety and environment; information strategies; and employee administration. Within these components all generic HR processes are defined by means of best practices.
Financial accounting system for quality circle programmes
Authors: Devadasan S.R. , Karthikeyan M. , Kannan K. , Sundararaj G. , Balamurugan K.
Published: July 2002

Appraises that the quality circle programme is one of the enablers of total quality management (TQM) projects. Points out that a considerable number of quality circles fail throughout the world in spite of their contributions toward attaining TQM objectives. Claims that lack of financial accountability causes management to underestimate the contributions of quality circles. Suggests a framework to financially account for quality circle programmes. Describes the efforts made to validate it by attempting implementation in a medium size manufacturing enterprise. Presents financial statements concerning a quality circle prepared using a commercially available accounting package. Concludes by discussing the future scope and issues connected with the implementation of the proposed quality circle accounting system.
Developing individual freedom to act
Authors: King Duvall Cheryl
Published: July 2002

Empowerment, a term often misunderstood, is a synergistic process of individual development through which the base of influence in an organization is enlarged. Individual empowerment requires that the philosophy of the organization, principally enacted through its administrative system, support employees in accomplishing organizational goals. Support comes from effective and efficient managerial allocation of organizational resources. Two different organizational philosophies are presented and discussed in terms of their impact on empowerment: organizational resource conservation and organizational resource integration. Differences between the philosophies are explained through a conceptual model of preventing failure versus assuring success. Implications of each philosophy for the practice of management in knowledge organizations are discussed. These implications are based on the assumption that managerial behaviors determine how successful will be the process of empowerment.
A business excellence approach to generic benchmarking in SMEs
Authors: McAdam Rodney , Kelly Michael
Published: July 2002

Aims to carry out generic benchmarking within a group of SMEs involved in applying the business excellence model as part of TQM improvement initiatives. Examines how generic benchmarking enables business excellence to be developed in the organisations. A lot of existing studies on business excellence and SMEs assume that large organisation praxis can be scaled down and applied to SMEs. There is need for studies which allow SMEs to develop their own understanding of business excellence and share best practice across SMEs. First, examines 20 SME case studies to determine critical success factors in business excellence for the SMEs. Second, chooses a sub‐group of eight SMEs for a more detailed study. Third, from these benchmarking studies, chooses a final group of three organisations to develop and implement benchmarked strengths using focus groups. The findings show how benchmarking can enable SMEs to increase the rate of improvement of their quality initiatives.
Technology and process management in the Australian wine industry
Authors: Orr Stuart Christopher
Published: July 2002

States that manufacturing competence in organizations is determined by the competitive priorities of those organizations and the key operating decisions which they make to achieve those competitive priorities. Sets out to investigate whether manufacturing strategy can be applied to an industry which is not traditionally thought of as manufacturing by determining the industry’s competitive priorities and key decision areas and the relationship between them. Finds that there was a set of competitive priorities and key decision areas which apply to the Australian wine industry and that the most important key decision areas (plant capacity, quality assurance, plant and equipment, production planning and control, product design and top management involvement) were similar to those which apply to many other manufacturing industries.
Benchmarking Australian firms’ usage of contract logistics services
Authors: Millen Robert , Sohal Amrik , Dapiran Peter , Lieb Robert , Van Wassenhove Luk N.
Published: July 2002

States that more firms are locating operations in Australia to serve the domestic market and as a base for entering other Asian markets. Many of these firms will outsource at least part of their logistics function and this is a growing trend throughout the world. Describes how a mail survey of the major operating units at the largest firms in Australia was conducted to determine the current extent of logistics outsourcing in Australia. Provides the results from this survey together with responses from earlier studies on the usage of contract logistics services in the USA and Western Europe for comparative purposes.
Key performance indicators for benchmarking health and safety management in intra‐ and inter‐company comparisons
Authors: Fuller Colin W.
Published: July 2002

Two case studies in health and safety management identified key performance indicators that reflected a company’s overall performance obtained from a full benchmarking audit. An intra‐company benchmarking audit, comparing operational health and safety management performance was completed within 12 semi‐autonomous subsidiaries of a large national food manufacturer. A significant (r = 0.985) positive relationship was obtained between ten operational performance indicators and overall performance. The key factors were found to have a common theme relating to employer‐employee openness in communication on health and safety issues. An inter‐company benchmarking audit comparing strategic health and safety management performance was completed within eight companies in the small, multi‐site retail sector. A significant (r = 0.988) positive relationship was obtained between ten strategic performance indicators and overall performance. The key factors did not have a common theme but there was evidence that integration of health and safety management into long‐term business decision making was a strong factor.
Managing innovation in French small and medium‐ sized enterprises: an empirical study
Authors: Soderquist Klas , Chanaron J.J. , Motwani Jaideep
Published: July 2002

Presents the results of a survey of how innovation is managed by French small and medium‐sized enterprises. Focuses on drivers for change, actions to improve short‐ and long‐ term profitability, sources of innovation, and the relationship between different managerial orientations in the companies and the dynamics of innovation. The results show that a strong customer orientation ‐ together with a true partnership with main customers ‐ and continuous improvement of the company’s internal processes are key factors both for successful R&D and improvement of performance.
A study of successful quality improvement programs in the transportation industry
Authors: Wisner Joel D.
Published: July 2002

This article presents the findings of a comprehensive, exploratory survey concerning transportation quality improvement programs. Various quality improvement program dimensions were compared among two groups of respondents: those who experienced market share increases or cost decreases associated with the quality programs, and those who did not. The survey examined firms’ general focus on quality and customers, the use and design of formal quality improvement programs, and the success and current status of these programs. A number of significant quality program differences were found when comparing the two groups, including differences in top management support, benchmarking practices, customer interaction, and program design elements.
Integrating benchmarking and poor quality cost measurement for assisting the quality management work
Authors: Andersen Bjørn , Moen Rune M.
Published: July 2002

The two quality management concepts of benchmarking and poor quality cost measurement have been developed completely separate from each other and without any interaction between them. Both have also experienced some shortcomings that to some extent have limited their use and results. This paper explores these shortcomings and demonstrates how benchmarking and poor quality cost measurement in some ways are similar and in other ways complement each others’ weaknesses. An integrated framework that combines the two concepts into a powerful approach for assisting an organization’s quality management work is presented. Different points of intersection between the two concepts in this integrated framework are discussed, and it is demonstrated how they support and enhance each other. Such enhancements occur throughout all phases of the benchmarking process, while benchmarking provides an extra dimension to the use of the poor quality cost measurements.
Benchmarking unveils emerging knowledge management strategies
Authors: O’Dell Carla , Wiig Karl , Odem Peggy
Published: July 2002

Based on the findings of a large‐scale benchmarking study, this article highlights the strategies employed by best‐practice organizations to identify, capture, and leverage knowledge. Supported by case study examples from several companies, descriptions of six emerging knowledge management strategies discovered during the benchmarking process are provided. The article reveals how organizations seek to incorporate various knowledge management approaches into their business and sheds light on the changing nature of knowledge management in general.
A note on “The initial yield revealed: explicit valuations
and the future of property investment”
Authors: White Philip
Published: July 2002

A response to the article by Baum and MacGregor (1992), “The
initial yield revealed: explicit valuations and the future of property
investment”. Contends that the concept of “underlying
investment value” proposed is specific to individual potential
purchasers or to an individual owner. Points out that the application
proposed for “underlying investment value” is similar to the
capital budgeting process and to earlier proposals for a process of
investment selection in American valuation literature. Baum and
MacGregor put forward “a modern explicit method of
valuation”, which is, in principle, the “summation
method” and this, too, has been part of American valuation
literature for some time. Criticisms of the summation method are equally
applicable to the modern explicit method, but they have not been
seriously addressed by Baum and MacGregor. Includes corrigenda to the
original article.
Forecasting commercial rental values using ARIMA models
Authors: McGough Tony , Tsolacos Sotiris
Published: July 2002

The application of short‐term forecasting techniques to the
prediction of commercial rental values generates valuable information
about the dynamics of rent movements. It also captures short‐run trends
more effectively than do other forecasting procedures. Makes use of
ARIMA models to provide one‐step‐ahead predictions. The results show
that ARIMA models perform better in the case of retail and office
sectors. The forecasts for these sectors are satisfactory. Retail rents
bear a relationship to their past values, whereas office rents are
influenced by shocks in the market – demand or supply driven. The
results of the present study are useful for incorporation in more
general models of rent forecasting. Also presents a full methodology
which facilitates its application.
Valuation of residential property: analysis of participant behaviour
Authors: Adair Alastair , Berry Jim , McGreal Stanley
Published: July 2002

The comparative method of valuation is based on valuers interpreting prices agreed in the open market to arrive at an opinion of value. This requires the consideration of a diverse range of variables and an assessment of their relative impact. Behavioural analysis using an independent sample of buyers and valuers operative in the Belfast residential market indicates that there are statistically significant differences between the two sample groups in the scoring and ranking of variables. In particular valuers are shown to place a greater emphasis on environmental or neighbourhood effects. Discusses the outcome of this empirically‐based research and analyses whether differences in the treatment of variables between the valuer and buyer samples are reflected in different price and value distributions. The results indicate that valuation accuracy to within 5 per cent of transaction price is not upheld; rather it is argued that a 10 per cent threshold has greater credibility.
High‐tech valuation: should artificial neural networks bypass the human valuer?
Authors: Lenk Margarita M. , Worzala Elaine M. , Silva Ana
Published: July 2002

Compares the predictive performance of artificial neural networks to hedonic pricing models, a more traditional valuation tool. The results document similar predictive performance evidenced from both techniques, which contradicts some of the earlier studies which support a position of artificial neural network superiority. Demonstrates that at least 18 per cent of the “normal” property predictions and over 70 per cent of the “outlier” property predictions contained valuation errors greater than 15 per cent of the actual sales price. The combination of these substantial errors and the model‐optimization costs incurred motivate a message of caution before artificial neural networks are adopted by the real estate valuation and/or lending industries.
The impact of retailers’ store selection criteria on the estimation of retail rents
Authors: O’Roarty Brenna , McGreal Stanley , Adair Alastair
Published: July 2002

Examines retailers’ evaluation of micro‐scale property selection criteria with particular attention to the impact of locational, physical and lease term factors. Highlights the relationship between retail function, store selection and rental value. Survey analysis identifies significant variation by retailing function across a range of factors pertinent to the valuation of shop premises. Concludes that retail function ought to be considered in any assessment of retail rental values using the comparative method.
Market information management for better valuations
Authors: French Nick
Published: July 2002

In March 1994 the Mallinson Working Party on commercial property valuations produced their report outlining a number of initiatives which the RICS should undertake to help improve the standing of the valuation survey within the business world. The recommendations related to the need to improve the technical element of the valuers’ skill by updating and extending the mathematical models; extending the access to and the use of data and revising the way in which they express their judgement. As information availability increases, the role of the valuer will need to change to provide the client with more analysis, interpretation and professional judgement. To be able to do this effectively, the profession will need to adopt new valuation techniques to utilize better the information available. Part I provides an exposition of the range of valuation techniques available.
Diversification by sector, region or function? A mean absolute deviation optimisation
Authors: Lee Stephen , Byrne Peter
Published: July 2002

This study utilises a large sector‐regional real estate data set, based on actual properties in more than 187 locations in the UK over the period 1981‐1995. This is subjected to a portfolio analysis using an algorithm based on mean absolute deviation as the measure of risk. The algorithm is especially effective when the number of assets is greater than the number of time periods, as is typically the case within a real estate portfolio analysis. In addition, such a large data set enables a comparison of the performance of several “conventional” regional classifications with one based on economic (Functional) criteria. The general conclusion to be drawn from this is that diversification by sectors across a Super Region would have outperformed almost all other diversification strategies. However, in comparing Functional grouping with this Super Regional approach, this economically based classification produced results that were equally good.
Estimated realisation price (ERP) by neural networks: forecasting commercial property values
Authors: Connellan Owen , James Howard
Published: July 2002

This work shows that it is possible to link various economic and property attributes to the value of a commercial property over time in a particular market, and arrive at a valuation pattern which can be used to give a short‐term forecast of valuation fluctuations using longitudinal rather than cross‐sectional analysis. Shows that it is possible to do this by using a novel process we have termed “backtrack valuations” or “backtracking”. The method proposed creates a simulated historic record of valuations, from which a neural network can be trained and then used as a model to estimate a forward trend. This is allied to the requirement in the RICS Appraisal and Valuation Manual (Red Book) whereby the valuer may be instructed to provide Estimated Realisation Price which depends on completion taking place on a future date as compared with Open Market Value where achievement of completion is assumed at the date of valuation. There is also the new definition of “Forecast of Value” in the RICS Red Book and we suggest that the valuer would find the technique of forecasting from backtracked time series of interest and use in both these particular circumstances. The source of data for the investigation was Richard Ellis, International Property Consultants, who provided monthly valuations of 16 major commercial properties in Central London. Our forecasts are presented alongside the subsequent Richard Ellis valuations. The results confirm that in the conditions obtaining in this market, it is feasible to predict capital valuations in the short term. The method is being extended and tested in the wider commercial markets.
Transport investment and house prices
Authors: Henneberry John
Published: July 2002

The paper describes the use of hedonic analysis to examine the impact of the South Yorkshire Supertram on house prices in Sheffield. The approach was distinguished by the use of asking prices rather than transaction prices, the use of dummy variables to capture neighbourhood quality effects and the use of a GIS to calculate continuous distance variables. Compared with similar previous studies the equations performed well and identified, for the first time in a British context, a small, discrete transport induced price effect. Supertram initially depressed the prices of nearby houses but prices show signs of recovery. Further research is needed to examine the longer term impact of Supertram on the housing market.
The definition of market value
Authors: Lind Hans
Published: July 2002

A weakness in most discussions about definitions of market value is that no explicit criteria for judging whether a definition is good or bad are presented. In this article three criteria are analysed: the definition should have a clear meaning, the definition should be such that it is possible to know, at least approximately, what the market value is, and finally that the definition should lead to a concept that is relevant for actors on the market. These three criteria are then used to analyse three questions: “Should the definition include a reference to prudent and knowledgeable actors?”, “Should the definition refer to willing buyers and sellers?” and finally, “How shall we interpret the concept of expected or probable price?” The answer to the first and second question is no. The answer to the third question is that a frequency interpretation of probability should be rejected in valuation contexts, in favour of an interpretation where probability is identified with a rationally justified degree of confidence.
Pricing upwards‐only rent review clauses
Authors: Ward Charles , Hendershott Patric H. , French Nick
Published: July 2002

Complicated leasing terms make both the valuation of lease contracts and the calculation of effective rent levels difficult. These complications are compounded by the existence of option‐like features in many contracts. For example, retail leases in the USA generally have overage rent clauses that allow the landlord additional rent if sales exceed a breakpoint, but set a minimum rent level under any sales conditions. Similarly, upward‐only rent review clauses are common in the UK and Australia (as well as other commonwealth countries). Here the rent is fixed at the commencement of the contract, with the option to review the rental figure in line with market conditions at pre‐determined intervals (normally every five years). If rents in the market have increased over the interim period, the rent of the subject property will be adjusted upwards accordingly and this higher level becomes the minimum possible future rent. However, if market rents have either remained static or decreased, the landlords would choose not to operate the rent review clause and the existing rent will continue. The US overage contract can be valued using a binomial approach. The upward‐only adjusting leases cannot because the value of the option is “path‐dependent”. Here, Monte Carlo valuation methods must be used. In this paper we describe both approaches. We show the relationship between the rents on these contracts relative to those without overage or with up and downward adjustment. The key determinants in establishing this relationship are the expected drift and the volatility of either sales (in the case of overage) or market rents (in the case of upward‐only leases).
F rom the wealth of nations to the wealth of the world
Authors: Fontela Emilio
Published: July 2002

In the twenty‐first century, the forces of information technology, markets and globalization will continue to be felt and will bring about both positive and negative effects. The past century saw these forces contribute to the wealth of nations but the greatest challenge for economists in the next century and more is to understand how these forces can bring about the wealth of the world, built around the concept of sustainability (with its four pillars of economic efficiency, social equity, ecological balance, and democratic governance). This article sets an ambitious agenda for economic research along four lines: socio‐economics, mesoeconomics, technoeconomics, and foresight.
Best practice in reengineering: a successful example of the Porsche research and development center
Authors: Zinser Stephan , Baumgärtner Armin , Walliser Frank‐Steffen
Published: July 2002

Successful reengineering requires a systematic procedure for the useful implementation of methods and tools as well as a consideration of critical success factors. As an example of the reengineering of prototype part procurement in Porsche AG’s development centre, a specially developed 3x3 reengineering procedure is represented which not only implements methods and tools but also the reengineering project structure and experiences gained from it. The main aim of re‐engineering was to reduce the running time of the part procurement from 30 days to just one. This means a simultaneous reduction of the prototype construction time to about 20 hours. From results it can be established that after 20 weeks the success of the reengineering stabilised and the targeted running time of one day became apparent. The accompanying project evaluation crystallised various success factors. In particular the establishment of a competent and motivated team leader, as well as on‐line process controlling supported by IT implementation, have proved to be a successfully decisive measure and tool respectively.
Human resource management aspects of business process reengineering: a survey
Authors: Zucchi Fabio , Edwards John S.
Published: July 2002

Examines the relationship between business process re‐engineering (BPR) and human resource management. A number of propositions relating to aspects of human resource management are derived from the literature, and examined by interviewing senior managers in UK organisations where business process re‐engineering projects had either been completed or were still in progress. The propositions are analysed under four major headings: structure and culture, the role of managers, team working, and reward system. The conclusion is that BPR principles on the management of human resources as stated in the literature seem to find a full application in most of the organisations investigated. However, there were two exceptions to the expectations in the literature. The first was that there would be a change to a process‐based structure; a change is seen in the majority of cases, but to a matrix style of organisation. The second was the implication that team‐based reward systems would appear; this has only happened in a minority of cases. Overall, for the organisations studied which have undergone BPR, a very clear pattern emerges with respect to human resource management practices.
An autonomous data collection system for virtual manufacturing systems
Authors: Davidrajuh Reggie , Deng Ziqiong
Published: July 2002

First this paper introduces the concepts of virtual manufacturing system (VMS). The host enterprise and the multiple numbers of supply and distribution enterprises that make up a VMS, and the hierarchical and horizontal relationship that exists between these enterprises are explained. The steps involved in formation and operation of a VMS are then analyzed in detail. Second, we present a three view based methodological approach to make a multi‐agent model of VMS. Finally, with the help of a testing prototype, we show how to develop an autonomous Internet based data collection system for operation of VMS in accordance with the proposed methodological approach.
Flexible workshop: about the concept of flexibility
Authors: Bucki Janusz , Pesqueux Yvon
Published: July 2002

This paper is an introduction to the problem of flexibility. We would like to show the predominant factors of flexibility, since not being aware of them may lead to a failure in the conception and the management of flexible production systems. After having described the present situation and having judged current achievements, this paper suggests definitions for the notions of polyvalency, apparent flexibility, dedicated activity, and specifies the relationship existing between these notions. Flexibility will be considered in relation to the concept of learning. Finally it shows that the flexible workshop, although production oriented, gives firms using it the appearance of services companies.
Gatekeeper and process promotor: key persons in agile and innovative organizations
Authors: Hauschildt Jürgen , Schewe Gerhard
Published: July 2002

A characteristic of agile organizations is the development of innovative products and processes. It has been shown that a key factor of success in managing innovative projects is the existence of key persons. Empirical studies on innovation management show that key persons who are able to overcome existing innovation barriers play a decisive role for innovation success. The basic theoretical concepts behind these findings are the “gatekeeper concept” and the “promotor model”. The two concepts are compared under a static and a dynamic perspective. It will be shown that under a dynamic view, one can combine the gatekeeper concept and the promotor model to a powerful management concept for supporting agility in organizations.