Getting a handle on manufacturing costs, particularly in large corporations, can be a complex task. Traditional cost systems assume long production runs with static specifications, but this is not as relevant in many of today's dynamic environments where there are smaller lot sizes, a high broad mix and frequent changeovers. New approaches to costing are ... Read More

Advances in information technology have made significant impacts on supply chain management. By making more information available more readily, it has provided suppliers with openings for improving efficiency. But the variety of information formats means that each will have different impacts, and it is useful for suppliers to understand this as they set ... Read More

Arbitrageurs are typically seen to fulfill the role of price correction by exploiting the gap between over- and under-pricing. But new research suggests they have an additional, important role: as suppliers of investment capital to firms. Darwin Choi of HKUST and his co-authors Mila Getmansky, Brian Henderson and Heather Tookes focus on convertible bonds ... Read More

Organizations are faced often with multiple problems to solve at any given time, so how do they decide which problems merit attention first? Bilian Ni Sullivan of HKUST explores this problem in the U.S. Federal Aviation Administration, which tackles both human and non-human (such as aircraft) problems and has to come up with new rules to address each problem ... Read More

There is little doubt that product harm crises can damage a brand, but they do not damage all brands equally. The impact can depend on the actions of the company and also consumer responses. A new model developed by Yi Zhao (former HKUST PhD student, now faculty member at Georgia State University), Ying Zhao and Kristiaan Helsen of HKUST finds a way to gauge ... Read More

Family firms face different conflicts of interest, or "agency problems", compared with non-family firms and this can affect their earnings quality and disclosure practices, according to a study by Tai-Yuan Chen of HKUST, Ashiq Ali and Suresh Radhakrishnan. "Family firms face less severe agency problems that arise from the separation of ownership and ... Read More

Parallel imports have become a topic of intense debate, particularly when it comes to pharmaceuticals. Parallel traders import drugs from cheaper markets, such as those with price controls, and sell them in countries with fewer or no controls. This form of arbitrage has caused concern in the US over prescription drugs from Canada, and in Europe where ... Read More

The debate over whether CEOs add value to firms has come under renewed scrutiny in the wake of the global financial crisis. Arguments have been made that other factors, such as core competence, the quality of a firm's products, other employees and stakeholders and even luck are more important determinants of firm performance. But there has been surprisingly ... Read More

Social networks have been shown to help entrepreneurs acquire the people, capital and knowledge they need for new ventures. But the question remains, how do they form these networks? And what kind of networks offer the best opportunities? Wouter Stam of HKUST considers this issue in the context of the Dutch open source software industry. During his period of ... Read More

Stock options have become a significant feature in employee compensation packages. From 1992-2000, the value of employee stock options in the US grew more than 10-fold, from $11 billion to $119 billion. Their attractions are obvious enough: they provide incentives to employees, help to attract and retain qualified staff, and can be a substitute for cash ... Read More