Search results for: Decision Theory
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 2886

Search results for: Decision Theory

2166 Data Envelopment Analysis under Uncertainty and Risk

Authors: P. Beraldi, M. E. Bruni

Abstract:

Data Envelopment Analysis (DEA) is one of the most widely used technique for evaluating the relative efficiency of a set of homogeneous decision making units. Traditionally, it assumes that input and output variables are known in advance, ignoring the critical issue of data uncertainty. In this paper, we deal with the problem of efficiency evaluation under uncertain conditions by adopting the general framework of the stochastic programming. We assume that output parameters are represented by discretely distributed random variables and we propose two different models defined according to a neutral and risk-averse perspective. The models have been validated by considering a real case study concerning the evaluation of the technical efficiency of a sample of individual firms operating in the Italian leather manufacturing industry. Our findings show the validity of the proposed approach as ex-ante evaluation technique by providing the decision maker with useful insights depending on his risk aversion degree.

Keywords: DEA, Stochastic Programming, Ex-ante evaluation technique, Conditional Value at Risk.

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2165 Mapping SOA and Outsourcing on NEBIC: A Dynamic Capabilities Perspective Approach

Authors: Benazeer Md. Shahzada, Verelst Jan, Van Grembergen Wim, Mannaert Herwig

Abstract:

This article is an extension and a practical application approach of Wheeler-s NEBIC theory (Net Enabled Business Innovation Cycle). NEBIC theory is a new approach in IS research and can be used for dynamic environment related to new technology. Firms can follow the market changes rapidly with support of the IT resources. Flexible firms adapt their market strategies, and respond more quickly to customers changing behaviors. When every leading firm in an industry has access to the same IT resources, the way that these IT resources are managed will determine the competitive advantages or disadvantages of firm. From Dynamic Capabilities Perspective and from newly introduced NEBIC theory by Wheeler, we know that only IT resources cannot deliver customer value but good configuration of those resources can guarantee customer value by choosing the right emerging technology, grasping the economic opportunities through business innovation and growth. We found evidences in literature that SOA (Service Oriented Architecture) is a promising emerging technology which can deliver the desired economic opportunity through modularity, flexibility and loosecoupling. SOA can also help firms to connect in network which can open a new window of opportunity to collaborate in innovation and right kind of outsourcing

Keywords: Absorptive capacity, Dynamic Capability, Netenabled business innovation cycle, Service oriented architecture.

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2164 Parallel-Distributed Software Implementation of Buchberger Algorithm

Authors: Praloy Kumar Biswas, Prof. Dipanwita Roy Chowdhury

Abstract:

Grobner basis calculation forms a key part of computational commutative algebra and many other areas. One important ramification of the theory of Grobner basis provides a means to solve a system of non-linear equations. This is why it has become very important in the areas where the solution of non-linear equations is needed, for instance in algebraic cryptanalysis and coding theory. This paper explores on a parallel-distributed implementation for Grobner basis calculation over GF(2). For doing so Buchberger algorithm is used. OpenMP and MPI-C language constructs have been used to implement the scheme. Some relevant results have been furnished to compare the performances between the standalone and hybrid (parallel-distributed) implementation.

Keywords: Grobner basis, Buchberger Algorithm, Distributed- Parallel Computation, OpenMP, MPI.

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2163 Simulation Aided Life Cycle Sustainability Assessment Framework for Manufacturing Design and Management

Authors: Mijoh A. Gbededo, Kapila Liyanage, Ilias Oraifige

Abstract:

Decision making for sustainable manufacturing design and management requires critical considerations due to the complexity and partly conflicting issues of economic, social and environmental factors. Although there are tools capable of assessing the combination of one or two of the sustainability factors, the frameworks have not adequately integrated all the three factors. Case study and review of existing simulation applications also shows the approach lacks integration of the sustainability factors. In this paper we discussed the development of a simulation based framework for support of a holistic assessment of sustainable manufacturing design and management. To achieve this, a strategic approach is introduced to investigate the strengths and weaknesses of the existing decision supporting tools. Investigation reveals that Discrete Event Simulation (DES) can serve as a rock base for other Life Cycle Analysis frameworks. Simio-DES application optimizes systems for both economic and competitive advantage, Granta CES EduPack and SimaPro collate data for Material Flow Analysis and environmental Life Cycle Assessment, while social and stakeholders’ analysis is supported by Analytical Hierarchy Process, a Multi-Criteria Decision Analysis method. Such a common and integrated framework creates a platform for companies to build a computer simulation model of a real system and assess the impact of alternative solutions before implementing a chosen solution.

Keywords: Discrete event simulation, life cycle sustainability analysis, manufacturing, sustainability.

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2162 Evaluation of Electronic Payment Systems Using Fuzzy Multi-Criteria Decision Making Approach

Authors: Gülfem Alptekin, S. Emre Alptekin

Abstract:

Global competitiveness has recently become the biggest concern of both manufacturing and service companies. Electronic commerce, as a key technology enables the firms to reach all the potential consumers from all over the world. In this study, we have presented commonly used electronic payment systems, and then we have shown the evaluation of these systems in respect to different criteria. The payment systems which are included in this research are the credit card, the virtual credit card, the electronic money, the mobile payment, the credit transfer and the debit instruments. We have realized a systematic comparison of these systems in respect to three main criteria: Technical, economical and social. We have conducted a fuzzy multi-criteria decision making procedure to deal with the multi-attribute nature of the problem. The subjectiveness and imprecision of the evaluation process are modeled using triangular fuzzy numbers.

Keywords: Electronic payment systems, fuzzy multi-criteriadecision making, analytical hierarchy process.

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2161 Presidential Interactions with Faculty Senates: Expectations and Practices

Authors: Michael T. Miller, G. David Gearhart

Abstract:

Shared governance is an important element in higher education decision making. Through the joint decision making process, faculty members are provided an opportunity to help shape the future of an institution while increasing support for decisions that are made. Presidents, those leaders who are legally bound to guide their institutions, must find ways to collaborate effectively with faculty members in making decisions, and the first step in this process is understanding when and how presidents and faculty leaders interact. In the current study, a national sample of college presidents reported their preparation for the presidency, their perceptions of the functions of a faculty senate, and ultimately, the locations for important interactions between presidents and faculty senates. Results indicated that presidents, regardless of their preparation, found official functions to be the most important for communicating, although, those presidents with academic backgrounds were more likely to perceive faculty senates as having a role in all aspects of an institutions management.

Keywords: College faculty, college president, faculty senate, leadership.

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2160 Identification of the Key Sustainability Issues to Develop New Decision Support Tools in the Spanish Furniture Sector

Authors: P.Cordero, R.Poler, R.Sanchis

Abstract:

The environmental impacts caused by the current production and consumption models, together with the impact that the current economic crisis, bring necessary changes in the European industry toward new business models based on sustainability issues that could allow them to innovate and improve their competitiveness. This paper analyzes the key environmental issues and the current and future market trends in one of the most important industrial sectors in Spain, the furniture sector. It also proposes new decision support tools -diagnostic kit, roadmap and guidelines- to guide companies to implement sustainability criteria into their organizations, including eco-design strategies and other economical and social strategies in accordance with the sustainability definition, and other available tools such as eco-labels, environmental management systems, etc., and to use and combine them to obtain the results the company expects to help improve its competitiveness.

Keywords: Furniture sector, eco-design, sustainability, economical crisis, market trends, roadmap

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2159 Evaluation of Environmental, Technical, and Economic Indicators of a Fused Deposition Modeling Process

Authors: M. Yosofi, S. Ezeddini, A. Ollivier, V. Lavaste, C. Mayousse

Abstract:

Additive manufacturing processes have changed significantly in a wide range of industries and their application progressed from rapid prototyping to production of end-use products. However, their environmental impact is still a rather open question. In order to support the growth of this technology in the industrial sector, environmental aspects should be considered and predictive models may help monitor and reduce the environmental footprint of the processes. This work presents predictive models based on a previously developed methodology for the environmental impact evaluation combined with a technical and economical assessment. Here we applied the methodology to the Fused Deposition Modeling process. First, we present the predictive models relative to different types of machines. Then, we present a decision-making tool designed to identify the optimum manufacturing strategy regarding technical, economic, and environmental criteria.

Keywords: Additive manufacturing, decision-makings, environmental impact, predictive models.

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2158 Landscape Visual Classification Using Land use and Contour Data for Tourism and Planning Decision Making in Cameron Highlands District

Authors: Hosni, N., Shinozaki, M.

Abstract:

Cameron Highlands is known for upland tourism area with vast natural wealth, mountainous landscape endowed with rich diverse species as well as people traditions and cultures. With these various resources, CH possesses an interesting visual and panorama that can be offered to the tourist. However this benefit may not be utilized without obtaining the understanding of existing landscape structure and visual. Given a limited data, this paper attempts to classify landscape visual of Cameron Highlands using land use and contour data. Visual points of view were determined from the given tourist attraction points in the CH Local Plan 2003-2015. The result shows landscape visual and structure categories offered in the study area. The result can be used for further analysis to determine the best alternative tourist trails for tourism planning and decision making using readily available data.

Keywords: Visibility, landscape visual, urban planning, GIS

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2157 The Pragmatist Basis of Material Hermeneutics

Authors: Juho Lindholm

Abstract:

Practical hermeneutics explores the emergence of meaning in scientific practice. Visual hermeneutics is its subclass which explores the emergence of meaning in instrumentally mediated interactions with scientific objects. There remains to be explained, upon what theory of meaning their discussions are based. Linguistic theories of meaning seem utterly inappropriate for the analysis of the non-linguistic meanings that such hermeneutics invoke. In this article, it will be shown by conceptual analysis that the so-called “pragmatic maxim” provides sufficient resources for the philosophical analysis of such meanings. The “pragmatic maxim” states that the meaning of a thing consists in the potential practical effects of that thing. Because this notion is not confined to language, it can be broadly applied to anything meaningful, including practices and the instruments which are part of practices.

Keywords: Hermeneutics, philosophy of science, pragmatism, theory of meaning.

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2156 A Study of Priority Evaluation and Resource Allocation for Revitalization of Cultural Heritages in the Urban Development

Authors: Wann-Ming Wey, Yi-Chih Huang

Abstract:

Proper maintenance and preservation of significant cultural heritages or historic buildings is necessary. It can not only enhance environmental benefits and a sense of community, but also preserve a city's history and people’s memory. It allows the next generation to be able to get a glimpse of our past, and achieve the goal of sustainable preserved cultural assets. However, the management of maintenance work has not been appropriate for many designated heritages or historic buildings so far. The planning and implementation of the reuse has yet to have a breakthrough specification. It leads the heritages to a mere formality of being “reserved”, instead of the real meaning of “conservation”. For the restoration and preservation of cultural heritages study issues, it is very important due to the consideration of historical significance, symbolism, and economic benefits effects. However, the decision makers such as the officials from public sector they often encounter which heritage should be prioritized to be restored first under the available limited budgets. Only very few techniques are available today to determine the appropriately restoration priorities for the diverse historical heritages, perhaps because of a lack of systematized decision-making aids been proposed before. In the past, the discussions of management and maintenance towards cultural assets were limited to the selection of reuse alternatives instead of the allocation of resources. In view of this, this research will adopt some integrated research methods to solve the existing problems that decision-makers might encounter when allocating resources in the management and maintenance of heritages and historic buildings.

The purpose of this study is to develop a sustainable decision making model for local governments to resolve these problems. We propose an alternative decision support model to prioritize restoration needs within the limited budgets. The model is constructed based on fuzzy Delphi, fuzzy analysis network process (FANP) and goal programming (GP) methods. In order to avoid misallocate resources; this research proposes a precise procedure that can take multi-stakeholders views, limited costs and resources into consideration. Also, the combination of many factors and goals has been taken into account to find the highest priority and feasible solution results. To illustrate the approach we propose in this research, seven cultural heritages in Taipei city as one example has been used as an empirical study, and the results are in depth analyzed to explain the application of our proposed approach.

Keywords: Cultural Heritage, Historic Buildings, Priority Evaluation, Multi-Criteria Decision Making, Goal Programming, Fuzzy Analytic Network Process, Resource Allocation.

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2155 Information Support for Emergency Staff Processes and Effective Decisions

Authors: Tomáš Ludík, Josef Navrátil

Abstract:

Managing the emergency situations at the Emergency Staff requires a high co-operation between its members and their fast decision making. For these purpose it is necessary to prepare Emergency Staff members adequately. The aim of this paper is to describe the development of information support that focuses to emergency staff processes and effective decisions. The information support is based on the principles of process management, and Process Framework for Emergency Management was used during the development. The output is the information system that allows users to simulate an emergency situation, including effective decision making. The system also evaluates the progress of the emergency processes solving by quantitative and qualitative indicators. By using the simulator, a higher quality education of specialists can be achieved. Therefore, negative impacts resulting from arising emergency situations can be directly reduced.

Keywords: Information Support for Emergency Staff, Effective Decisions, Process Framework, Simulation of Emergency Processes, System Development.

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2154 A Deterministic Dynamic Programming Approach for Optimization Problem with Quadratic Objective Function and Linear Constraints

Authors: S. Kavitha, Nirmala P. Ratchagar

Abstract:

This paper presents the novel deterministic dynamic programming approach for solving optimization problem with quadratic objective function with linear equality and inequality constraints. The proposed method employs backward recursion in which computations proceeds from last stage to first stage in a multi-stage decision problem. A generalized recursive equation which gives the exact solution of an optimization problem is derived in this paper. The method is purely analytical and avoids the usage of initial solution. The feasibility of the proposed method is demonstrated with a practical example. The numerical results show that the proposed method provides global optimum solution with negligible computation time.

Keywords: Backward recursion, Dynamic programming, Multi-stage decision problem, Quadratic objective function.

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2153 Employee Assessment Systems in the Structures of Corporate Groups

Authors: D. Bąk-Grabowska, K. Grzesik, A. Iwanicka, A. Jagoda

Abstract:

The process of human resources management in the structures of corporate groups demonstrates certain specificity, resulting from the division of decision-making and executive competencies, which occurs within these structures between a parent company and its subsidiaries. The subprocess of employee assessment is considered crucial, since it provides information for the implementation of personnel function. The empirical studies conducted in corporate groups, within which at least one company is located in Poland, confirmed the critical significance of employee assessment systems in the process of human resources management in corporate groups. Parent companies, most often, retain their decision-making authority within the framework of the discussed process and introduce uniform employee assessment and personnel controlling systems to subsidiary companies. However, the instruments for employee assessment applied in corporate groups do not present such specificity.

Keywords: Corporate groups, employee periodical assessment system, holding, human resources management.

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2152 Knowledge Discovery and Data Mining Techniques in Textile Industry

Authors: Filiz Ersoz, Taner Ersoz, Erkin Guler

Abstract:

This paper addresses the issues and technique for textile industry using data mining techniques. Data mining has been applied to the stitching of garments products that were obtained from a textile company. Data mining techniques were applied to the data obtained from the CHAID algorithm, CART algorithm, Regression Analysis and, Artificial Neural Networks. Classification technique based analyses were used while data mining and decision model about the production per person and variables affecting about production were found by this method. In the study, the results show that as the daily working time increases, the production per person also decreases. In addition, the relationship between total daily working and production per person shows a negative result and the production per person show the highest and negative relationship.

Keywords: Data mining, textile production, decision trees, classification.

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2151 Modeling Bessel Beams and Their Discrete Superpositions from the Generalized Lorenz-Mie Theory to Calculate Optical Forces over Spherical Dielectric Particles

Authors: Leonardo A. Ambrosio, Carlos. H. Silva Santos, Ivan E. L. Rodrigues, Ayumi K. de Campos, Leandro A. Machado

Abstract:

In this work, we propose an algorithm developed under Python language for the modeling of ordinary scalar Bessel beams and their discrete superpositions and subsequent calculation of optical forces exerted over dielectric spherical particles. The mathematical formalism, based on the generalized Lorenz-Mie theory, is implemented in Python for its large number of free mathematical (as SciPy and NumPy), data visualization (Matplotlib and PyJamas) and multiprocessing libraries. We also propose an approach, provided by a synchronized Software as Service (SaaS) in cloud computing, to develop a user interface embedded on a mobile application, thus providing users with the necessary means to easily introduce desired unknowns and parameters and see the graphical outcomes of the simulations right at their mobile devices. Initially proposed as a free Android-based application, such an App enables data post-processing in cloud-based architectures and visualization of results, figures and numerical tables.

Keywords: Bessel Beams and Frozen Waves, Generalized Lorenz-Mie Theory, Numerical Methods, Optical Forces.

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2150 Architectural Thinking in a Time of Climate Emergency

Authors: Manoj Parmar

Abstract:

The article uses reflexivity as a research method to investigate and propose an architectural theory plan for climate change. It hypothecates that to discuss or formulate discourse on "architectural paradigm and climate change," firstly, we need to understand the modes of integration that enable architectural thinking with climate change. The research intends to study the various integration modes that have evolved historically and situate them in time. Subsequently, it analyzes the integration pattern, challenges the existing model, and finds a way towards climate change as central to architectural thinking. The study is fundamental on-premises that ecology and climate change scholarship has consistently out lashed the asymmetrical and nonlinear knowledge and needs approaches for architecture that are less burden to climate change to people and minimize its impact on ecology.

Keywords: Climate change, architectural theory, reflexivity, modernity.

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2149 Development of a Simulator for Explaining Organic Chemical Reactions Based on Qualitative Process Theory

Authors: Alicia Y. C. Tang, Rukaini Hj. Abdullah, Sharifuddin M. Zain

Abstract:

This paper discusses the development of a qualitative simulator (abbreviated QRiOM) for predicting the behaviour of organic chemical reactions. The simulation technique is based on the qualitative process theory (QPT) ontology. The modelling constructs of QPT embody notions of causality which can be used to explain the behaviour of a chemical system. The major theme of this work is that, in a qualitative simulation environment, students are able to articulate his/her knowledge through the inspection of explanations generated by software. The implementation languages are Java and Prolog. The software produces explanation in various forms that stresses on the causal theories in the chemical system which can be effectively used to support learning.

Keywords: Chemical reactions, explanation, qualitative processtheory, simulation

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2148 Mechanical Buckling of Functionally Graded Engesser-Timoshenko Beams Located on a Continuous Elastic Foundation

Authors: M. Karami Khorramabadi, A. R. Nezamabadi

Abstract:

This paper studies mechanical buckling of functionally graded beams subjected to axial compressive load that is simply supported at both ends lies on a continuous elastic foundation. The displacement field of beam is assumed based on Engesser-Timoshenko beam theory. Applying the Hamilton's principle, the equilibrium equation is established. The influences of dimensionless geometrical parameter, functionally graded index and foundation coefficient on the critical buckling load of beam are presented. To investigate the accuracy of the present analysis, a compression study is carried out with a known data.

Keywords: Mechanical Buckling, Functionally graded beam- Engesser-Timoshenko beam theory

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2147 Role of Customers in Stakeholders- Approach in Company Corporate Governance

Authors: Kolis Karel, Kubicek Ales

Abstract:

The purpose of this paper is to explore the relationship between the customers- issues in company corporate governance and the financial performance. At the beginning theoretical background consisting stakeholder theory and corporate governance is presented. On this theoretical background, the empirical research is built, collecting data of 60 Czech joint stock companies- boards considering their relationships with customers. Correlation analysis and multivariate regression analysis were employed to test the sample on two hypotheses. The weak positive correlation between stakeholder approach and the company size was identified. But both hypotheses were not supported, because there was no significant relation of independent variables to financial performance.

Keywords: customers, stakeholder theory, corporate governance, financial performance

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2146 Teaching Method in Situational Crisis Communication Theory: A Literature Review

Authors: Proud Arunrangsiwed

Abstract:

Crisis management strategies could be found in various curriculums, not only in schools of business, but also schools of communication. Young students, such as freshmen and sophomores of undergraduate schools, may not care about learning crisis management strategies. Moreover, crisis management strategies are not a topic art students are familiar with. The current paper discusses a way to adapt entertainment media into a crisis management lesson, and the importance of learning crisis management strategies in the school of animation. Students could learn crisis management strategies by watching movies with content about a crisis and responding to crisis responding. The students should then participate in follow up discussions related to the strategies that were used to address the crisis, as well as their success in solving the crisis.

Keywords: Situational crisis communication theory, crisis response strategies, media effect, unintentional effect.

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2145 Sensitizing Rules for Fuzzy Control Charts

Authors: N. Pekin Alakoç, A. Apaydın

Abstract:

Quality control charts indicate out of control conditions if any nonrandom pattern of the points is observed or any point is plotted beyond the control limits. Nonrandom patterns of Shewhart control charts are tested with sensitizing rules. When the processes are defined with fuzzy set theory, traditional sensitizing rules are insufficient for defining all out of control conditions. This is due to the fact that fuzzy numbers increase the number of out of control conditions. The purpose of the study is to develop a set of fuzzy sensitizing rules, which increase the flexibility and sensitivity of fuzzy control charts. Fuzzy sensitizing rules simplify the identification of out of control situations that results in a decrease in the calculation time and number of evaluations in fuzzy control chart approach.

Keywords: Fuzzy set theory, Quality control charts, Run Rules, Unnatural patterns.

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2144 Exciting Voltage Control for Efficiency Maximization for 2-D Omni-Directional Wireless Power Transfer Systems

Authors: Masato Sasaki, Masayoshi Yamamoto

Abstract:

The majority of wireless power transfer (WPT) systems transfer power in a directional manner. This paper describes a discrete exciting voltage control technique for WPT via magnetic resonant coupling with two orthogonal transmitter coils (2D omni-directional WPT system) which can maximize the power transfer efficiency in response to the change of coupling status. The theory allows the equations of the efficiency of the system to be determined at all the rate of the mutual inductance. The calculated results are included to confirm the advantage to one directional WPT system and the validity of the theory and the equations.

Keywords: Wireless power transfer, orthogonal, omni-directional, efficiency.

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2143 Corporate Governance Networks and Interlocking Directorates in the Czech Republic

Authors: Ondřej Nowak

Abstract:

This paper presents an exploration into the structure of the corporate governance network and interlocking directorates in the Czech Republic. First a literature overview and a basic terminology of the network theory is presented. Further in the text, statistics and other calculations relevant to corporate governance networks are presented. For this purpose an empirical data set consisting of 2 906 joint stock companies in the Czech Republic was examined. Industries with the highest average number of interlocks per company were healthcare, and energy and utilities. There is no observable link between the financial performance of the company and the number of its interlocks. Also interlocks with financial companies are very rare.

Keywords: Corporate Governance, Interlocking Directorates, Network Theory, Czech Republic.

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2142 The Imaging Methods for Classifying Crispiness of Freeze-Dried Durian using Fuzzy Logic

Authors: Sitthichon Kanitthakun, Pinit Kumhom, Kosin Chamnongthai

Abstract:

In quality control of freeze-dried durian, crispiness is a key quality index of the product. Generally, crispy testing has to be done by a destructive method. A nondestructive testing of the crispiness is required because the samples can be reused for other kinds of testing. This paper proposed a crispiness classification method of freeze-dried durians using fuzzy logic for decision making. The physical changes of a freeze-dried durian include the pores appearing in the images. Three physical features including (1) the diameters of pores, (2) the ratio of the pore area and the remaining area, and (3) the distribution of the pores are considered to contribute to the crispiness. The fuzzy logic is applied for making the decision. The experimental results comparing with food expert opinion showed that the accuracy of the proposed classification method is 83.33 percent.

Keywords: Durian, crispiness, freeze drying, pore, fuzzy logic.

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2141 Analysis of a Population of Diabetic Patients Databases with Classifiers

Authors: Murat Koklu, Yavuz Unal

Abstract:

Data mining can be called as a technique to extract information from data. It is the process of obtaining hidden information and then turning it into qualified knowledge by statistical and artificial intelligence technique. One of its application areas is medical area to form decision support systems for diagnosis just by inventing meaningful information from given medical data. In this study a decision support system for diagnosis of illness that make use of data mining and three different artificial intelligence classifier algorithms namely Multilayer Perceptron, Naive Bayes Classifier and J.48. Pima Indian dataset of UCI Machine Learning Repository was used. This dataset includes urinary and blood test results of 768 patients. These test results consist of 8 different feature vectors. Obtained classifying results were compared with the previous studies. The suggestions for future studies were presented.

Keywords: Artificial Intelligence, Classifiers, Data Mining, Diabetic Patients.

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2140 The Impact of Corporate Governance on Risk Taking in European Insurance Industry

Authors: Francesco Venuti, Simona Alfiero

Abstract:

The aim of this paper is to develop an empirical research on the nature and consequences of corporate governance on Eurozone Insurance Industry risk taking attitude. More particularly, we analyzed the effect of public ownership on risk taking with respect to privately held Insurance Companies. We also analyzed the effects on risk taking attitude of different degrees of ownership concentration, directors compensation, and the dimension/diversity of the Board of Directors. Our results provide quite strong evidence that, coherently with the Agency Theory, publicly traded insurance companies with more concentrated ownership are less risky than the corresponding privately held.

Keywords: Agency theory, corporate governance, insurance companies, risk taking.

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2139 Impact of Normative Institutional Factors on Sustainability Reporting

Authors: L. Dagilienė

Abstract:

The article explores the impact of normative institutional factors on the development of sustainability reporting. The vast majority of research in the scientific literature focuses on mandatory institutional factors, i.e. how public institutions and market regulators affect sustainability reporting. Meanwhile, there is lack of empirical data for the impact of normative institutional factors. The effect of normative factors in this paper is based on the role of non-governmental organizations (NGO) and institutional theory. The case of Global Compact Local Network in the developing country was examined. The research results revealed that in the absence of regulated factors, companies were not active with regard to social disclosures; they presented non-systemized social information of a descriptive nature. Only 10% of sustainability reports were prepared using the GRI methodology. None of the reports were assured by third parties.

Keywords: Institutional theory, normative, sustainability reporting.

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2138 Tools and Techniques in Risk Assessment in Public Risk Management Organisations

Authors: Atousa Khodadadyan, Gabe Mythen, Hirbod Assa, Beverley Bishop

Abstract:

Risk assessment and the knowledge provided through this process is a crucial part of any decision-making process in the management of risks and uncertainties. Failure in assessment of risks can cause inadequacy in the entire process of risk management, which in turn can lead to failure in achieving organisational objectives as well as having significant damaging consequences on populations affected by the potential risks being assessed. The choice of tools and techniques in risk assessment can influence the degree and scope of decision-making and subsequently the risk response strategy. There are various available qualitative and quantitative tools and techniques that are deployed within the broad process of risk assessment. The sheer diversity of tools and techniques available to practitioners makes it difficult for organisations to consistently employ the most appropriate methods. This tools and techniques adaptation is rendered more difficult in public risk regulation organisations due to the sensitive and complex nature of their activities. This is particularly the case in areas relating to the environment, food, and human health and safety, when organisational goals are tied up with societal, political and individuals’ goals at national and international levels. Hence, recognising, analysing and evaluating different decision support tools and techniques employed in assessing risks in public risk management organisations was considered. This research is part of a mixed method study which aimed to examine the perception of risk assessment and the extent to which organisations practise risk assessment’ tools and techniques. The study adopted a semi-structured questionnaire with qualitative and quantitative data analysis to include a range of public risk regulation organisations from the UK, Germany, France, Belgium and the Netherlands. The results indicated the public risk management organisations mainly use diverse tools and techniques in the risk assessment process. The primary hazard analysis; brainstorming; hazard analysis and critical control points were described as the most practiced risk identification techniques. Within qualitative and quantitative risk analysis, the participants named the expert judgement, risk probability and impact assessment, sensitivity analysis and data gathering and representation as the most practised techniques.

Keywords: Decision-making, public risk management organisations, risk assessment, tools and techniques.

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2137 The Modulation of Self-interest Instruction on the Fair-Proposing Behavior in Ultimatum Game

Authors: N. S. Yen, T. H. Yang, W. H. Huang, Y. F. Fang, H. W. Cho

Abstract:

Ultimatum game is an experimental paradigm to study human decision making. There are two players, a proposer and a responder, to split a fixed amount of money. According to the traditional economic theory on ultimatum game, proposer should propose the selfish offers to responder as much as possible to maximize proposer’s own outcomes. However, most evidences had showed that people chose more fair offers, hence two hypotheses – fairness favoring and strategic concern were proposed. In current study, we induced the motivation in participants to be either selfish or altruistic, and manipulated the task variables, the stake sizes (NT$100, 1000, 10000) and the share sizes (the 40%, 30%, 20%, 10% of the sum as selfish offers, and the 60%, 70%, 80%, 90% of the sum as altruistic offers), to examine the two hypotheses. The results showed that most proposers chose more fair offers with longer reaction times (RTs) no matter in choosing between the fair and selfish offers, or between the fair and altruistic offers. However, the proposers received explicit self-interest instruction chose more selfish offers accompanied with longer RTs in choosing between the fair and selfish offers. Therefore, the results supported the strategic concern hypothesis that previous proposers choosing the fair offers might be resulted from the fear of rejection by responders. Proposers would become more self-interest if the fear of being rejected is eliminated.

Keywords: Ultimatum game, self-interest, altruistic, fear of rejection.

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