Behavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies PDF
Preview Behavioral Issues in Operations Management: New Trends in Design, Management, and Methodologies
Behavioral Issues in Operations Management Ilaria Giannoccaro Editor Behavioral Issues in Operations Management New Trends in Design, Management, and Methodologies 123 Editor Ilaria Giannoccaro Department of Mechanics, Mathematics,and Management Polytechnic University ofBari Bari Italy ISBN 978-1-4471-4877-7 ISBN 978-1-4471-4878-4 (eBook) DOI 10.1007/978-1-4471-4878-4 SpringerLondonHeidelbergNewYorkDordrecht LibraryofCongressControlNumber:2012955037 (cid:2)Springer-VerlagLondon2013 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purposeofbeingenteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthe work. Duplication of this publication or parts thereof is permitted only under the provisions of theCopyrightLawofthePublisher’slocation,initscurrentversion,andpermissionforusemustalways beobtainedfromSpringer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyright ClearanceCenter.ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience?BusinessMedia(www.springer.com) Foreword Inrecentyears,wehavewitnessedanemergingareaofresearchtermedbehavioral operations management. Major academic journals have published special issues, and professional societies have held conferences to communicate the exciting developmentswithinthisnewfield.Whiletherehavebeenpreviousbookswritten onthetopic,thecurrentbookmarksanimportantstepforwardinestablishingthis genre of academic research. This book focuses on the spectrum of contexts ranging from individual and organizationalbehaviorstothebehaviorofnetworksoforganizations.Itaddresses decision making, cognitive biases, cultural norms, organization knowledge, and politics at the individual, organizational, and network levels. The topics of decentralized decision making and local autonomy are considered, along with the issues of power, conflict, trust, and equity. The recurring themes throughout this book are the ways to positively affect the process and system dynamics across different units of analysis. Though it is not intended to be a casual read, this is a great reference book offering many ideas for future research and methodologies pertaining to the exciting field of behavioral operations management. Thomas Y. Choi Bob Herberger Arizona Heritage Chair Director, Center for Supply Networks Arizona State University v Contents 1 Behavioral OM Experiments: Critical Inquiry Reawakening Practical Issues in Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Elliot Bendoly and Stefanie Eckerd 2 Complex Systems Methodologies for Behavioural Research in Operations Management: NK Fitness Landscape. . . . . . . . . . . 23 Ilaria Giannoccaro 3 Trust in Face-to-Face and Electronic Negotiation in Buyer–Supplier Relationships: A Laboratory Study. . . . . . . . . 49 Rossella Moramarco, Cynthia Kay Stevens and Pierpaolo Pontrandolfo 4 Lean Supply Chains: A Behavioral Perspective—Examples from Packaging Supply Chains in the FMCG Sector . . . . . . . . . . . . . . 83 Pauline Found 5 Supply Chain Integration: A Behavioral Study Using NK Simulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Ilaria Giannoccaro 6 Cognitive Biases, Heuristics, and Overdesign: An Investigation on the Unconscious Mistakes of Industrial Designers and on Their Effects on Product Offering . . . . . . . . . . . . . . . . . . 125 Valeria Belvedere, Alberto Grando and Boaz Ronen 7 Incentives in Organizations: Can Economics and Psychology Coexist in Human Resources Management? . . . . . . . . . . . . . . . . 141 Ugo Merlone vii viii Contents 8 Incentives for Cost Transparency Implementation: A Framework from an Action Research . . . . . . . . . . . . . . . . . . . 159 Pietro Romano and Marco Formentini 9 Learning on the Shop Floor: The Behavioural Roots of Organisational Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 John D. Hanson 10 Behavioral Decision-Making and Network Dynamics: A Political Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Francesco Zirpoli, Luisa Errichiello and Josh Whitford 11 Markets of Logistics Services: The Role of Actors’ Behavior to Enhance Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Nicola Bellantuono, Gregory E. Kersten and Pierpaolo Pontrandolfo About the Authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 Introduction Behavioural Operations Management (BOM) has been identified in the last years as one of the most promising emerging fields in Operations Management (OM) (Bendolyetal.2006;GinoandPisano2008;LochandWu2007).BOMexplicitly studies the effects of human behaviour on the performances of operating systems and analyses strategies to improve them (Gino and Pisano 2008; Loch and Wu 2007). In particular, BOM explores deviations from rationality of the decision makers involved in the management of operating systems including factors affectingtheirbehavior(Siemsen2009),withtheaimsfirstlyofprovidingabetter understanding of how operating systems work and perform, and secondly of developing effective implications for the design, management, and improvement of operating systems (Gino and Pisano 2008). TwomainaspectscharacterizeBOMresearch:oneisreferringtothechoiceof the appropriate research methodology and concerns the unresolved tension between modelling and empirical studies; the other regards its multi-disciplinary nature, encompassing many different disciplines among which organizational behavior, decision science, behavioral decision making, psychology, and man- agement. Thebookisorganizedtoaccountforthesetwoaspectswiththetwo-foldaimto frame the state of the art of the field and to offer innovative contributions and inspirationsformovingbeyondthetraditionalissues.Therefore,thebookhasbeen thoughttoprovideanupdateontheestablishedresearchmethodologiesaswellas somesuggestionsfortheapplicationofnewmethodologiesparticularlypromising for the topic. Furthermore, I have collected studies in various fields authored by leadingscholarscomingfromdifferentareassoastoofferanextendedviewofthe behavioral factors influencing OM. The book comprises 11 chapters. The first two chapters explicitly address the methodological aspect. In the chapter ‘‘Behavioural OM Experiments: Critical Inquiry Reawakening Practical issues in Research’’, Bendoly and Eckerd outline the opportunities made available in the OM literature through experimental ix x Introduction behaviors.Theyanalyzethedifferentoptionsavailabletoexperimentaldesign,i.e., vignette, process simulation, and experimental design, and discuss the main fea- tures,thebenefits,andthelimitationsofeachmethod.Theyconcludedealingwith the most interesting contributions resulting from experimentation and suggesting future research directions. In the chapter ‘‘Complex Systems Methodologies for Behavioural Research in Operations Management: NK Fitness Landscape’’, Giannoccaro expands the tra- ditional set of research methodologies used in BOM by including a complexity science tool, i.e., NK fitness landscape. She first discusses the opportunities for doing successful BOM research made available by adopting complexity science andthenexplainshowNKfitnesslandscapemaybeemployedtosimulatedifferent OM contexts and which research questions may be addressed. The subsequent contributors examine how specific behavioral factors (trust, cognitivecapacity,andmotivation)affectthedesignandmanagementofcomplex operating systems at the various dimensional levels, i.e., shopfloor, firm, and networkoffirm.HowthesefactorsaffectdecisionmakinginmultipleOMcontexts are also investigated, including logistics, supply chain management, purchasing, and human resource management. In particular, two papers analyze the role of trust. In the chapter ‘‘Trust in Face-To-Face and Electronic Negotiation in Buyer–Supplier Relationships: A Laboratory Study’’, Moramarco, Stevens, and Pontrandolfo investigate whether havingtrustingrelationshipswiththesupplierscanpositivelyaffectoutcomesand strengthen the relationship even when electronic mechanisms are used for pur- chasing. They conduct a laboratory study which compares three negotiation mechanisms (i.e., face-to-face negotiation, e-mail negotiation, and e-reverse auc- tion). In the chapter ‘‘Lean Supply Chain: A behavioural Perspective: Examples from Packaging Supply Chains in the FMCG Sector’’, Found highlights the importance of trust, power, and equity in implementing JIT operations and lean relationshipmanagement.Byconductingacasestudyinthepackagingsector,she shows that trust is an important element to sustain high-performance JIT opera- tionsandleanrelationshipsmanagementandthatstrongsupplyrelationshipsbased on mutual trust and equity are a prerequisite for a successful implementation of lean supply chains. A further behavioral factor addressed in the book is related to the cognitive limitations of the decision makers. In the chapter ‘‘Supply Chain Integration: A Behavioural Study Using NK Simulation’’, Giannoccaro investigates the extent towhichthecognitiveabilitiesandtheresistancetochangeofthedecisionmaker influences the effectiveness of an integrated management approach of the supply chain. She conducts a simulationstudyusing the NK fitness landscape and shows thatthecomplexityofthesupplychainisafactorstrengtheningtheimpact ofthe decision maker behavior on the performance. Introduction xi In the chapter ‘‘Cognitive Biases, Heuristics and Overdesign: An Investigation on the Unconscious Mistakes of Industrial Designers and on their Effects on Product Offering’’ by Belvedere, Grando, and Ronen, the effects of diverse cog- nitive biasesof decision makers are investigated inthe context of product design. Thecasualrelationshipbetweencognitivebiasesandoverdesignisthenpostulated and tested. The problem of motivation and of the accurate design of the incentives for stimulating more effective decision maker behavior is investigated by two other papers. In the chapter ‘‘Incentives in Organizations of Operating Systems: Can EconomicsandPsychologyCoexistinHumanResourcesManagement?’’,Merlone highlights that human behavior should be included for designing successful con- tracts. By illustrating how two disciplines, Economics and Psychology, address Human Resource Management, he suggests interesting approaches for building effective contracts also dealing with complexity. In the chapter ‘‘Incentives for Cost Transparency Implementation: A Framework from an Action Research’’, Romano e Formentini conduct an action researchaimedatdevelopingaframeworkusefultoidentifytheappropriateforms of incentives to stimulate suppliers to share cost information. The last three contributions extend the traditional OM contexts in which the effects of the behavioral issues are usually analyzed. In the chapter ‘‘Learning ontheShopFloor:TheBehaviouralRootsofOrganisationalKnowledge’’,Hanson proposesaninterestingbehavioralviewoftheorganizationalknowledge,whichis particularly useful for its implications on knowledge management and learning. Inthechapter‘‘BehaviouralDecision-MakingandNetworkDynamics:APolitical Perspective’’, Zirpoli, Errichiello and Whitford shed light on the mechanisms underlyingthefunctioningofthenetworkasaformofgovernancebyproposinga theoretical model in which the network is view as a political coalition. They underline the central role played by power and politics in shaping the firm’ organizational boundaries. Their model is particularly interesting for its implica- tions on vertical integration and outsourcing. Finally, in the chapter ‘‘Markets of Logistics Services: The Role of Actors’ Behaviour to Enhance Performance’’, Bellantuono, Kersten, and Pontrandolfo develop a simulation model of the decision-making process in a logistic system organized as a market with the aim to identify appropriate strategies to enhance coordination among actors. They show that such strategies recommending to select, enrich, and modify information exchanged by actors need to be designed andimplementedbytakingintoaccountbehavioralissuesrelatedtothesubjective social perceptions and the expectations of the decision makers regarding them- selves, the counterpart, and the context in which the transaction occurs. Ilaria Giannoccaro xii Introduction References E. Bendoly, K. Donohue, K. Schultz, Behavior in operations management: assessing recent findings and revisiting old assumptions. J. Oper. Manag. 24, 737–752 (2006) F.Gino,G.Pisano,Towardatheoryofbehaviouraloperations.Manuf.Serv.Oper. Manag. 10, 676–691 (2008) C.H. Loch, Y. Wu, Behavioral Operations Management (Now Publishers Inc., Hanover, 2007) E. Siemens, That thing called Be-OP’s. POMS Chronicle 16(1), 12–13 (2009)
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