Previous research has demonstrated that the production of information services can be characterized at the aggregate economy-wide level by the Cobb-Douglas production function. However, the underlying production process at the firm level has not yet been ascertained. The objective of this paper is to determine the form of the production process for information systems services at the firm level...

Purpose Recent OECD (2010, 2011) reports argue that eco-innovation is the key to realising growth. The purpose of this paper is to analyse the drivers of eco-innovation and to compare the impact of eco-innovation and non-eco-innovation on firm performance. The paper provides insights into the role government regulation can play in directing and stimulating eco-innovation. Design/methodology/app...

This paper addresses the problem of allocating resources in a divisionalized firm. The firm consists of II distinct divisions. Inputs have to be allocated across the divisions and the profit function of each division may in general depend on the whole allocation of inputs. The manager of the firm does not know the divisional profit functions and yet would like to allocate resources in a profit-...

In this paper we consider the problem of a firm the that builds inventory of identical items that it acquires by participating in auctions in order to satisfy its own market demand. The objective of the firm is to have a procurement strategy that maximizes the expected present value of the profit, both for finite and infinite planning horizons. We present an MDP formulation of the problem. Unde...

This paper reports the progress of an attempt to examine how and why complex integrated IT infrastructures, such as ERP systems, impact firm performance. Based on emerging literature on agility, IT management and organizational theories, a conceptual model that describes a nomological network linking IT infrastructure characteristics, organizational culture, agility and firm performance is pres...

A risk-averse price-setting firm which knows the quantity demanded at the status quo price but has imperfect information otherwise may choose not to change it although an otherwise identical risk-neutral firm would do so, provided the variance of the firm's subjective probability distribution over quantities demanded as a function of price displays a kink at the status quo. This is equivalent t...

An extensive finance literature has suggested that independent (outside) directors monitor firm management and thereby increase firm value. Monitoring by a firm’s independent directors is, however, costly and the level of board monitoring should be endogenously determined as a function of firm characteristics. We show that a negative relationship between board monitoring and uncertainty is a di...

A firm issues a convertible bond. At each subsequent time, the bondholder must decide whether to continue to hold the bond, thereby collecting coupons, or to convert it to stock. The firm may at any time call the bond. Because calls and conversions often occur far from maturity, it is not unreasonable to model this situation with a perpetual convertible bond, i.e., a convertible coupon-paying b...

It is assumed that in an n-firm single-product oligopoly without product differentiation the firms face an uncertain price function, which is considered random by the firms. At each time period each firm simultaneously maximizes its expected profit and minimizes the variance of the profit since it wants to receive as high as possible profit with the least possible uncertainty. It is assumed tha...

This study examines the implications of the separation theorems in finance to shed light on how these theorems can be refined to accommodate real life financial applications and decision makings. We also generalize the financial theory of the firm by incorporating real options in the production function to accommodate the complexity of real world issues. This modified financial theory of the fi...