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Engaging Supply Chains in Climate Change

Manufacturing and Service Operations Management 2013 15(4), 559-577
Suppliers are increasingly being asked to share information about their vulnerability to climate change and their strategies to reduce greenhouse gas emissions. Their responses vary widely. We theorize and empirically identify several factors associated with suppliers being especially willing to share this information with buyers, focusing on attributes of the buyers seeking this information and of the suppliers being asked to provide it. We test our hypotheses using data from the Carbon Disclosure Project's Supply Chain Program, a collaboration of multinational corporations requesting such information from thousands of suppliers in 49 countries. We find evidence that suppliers are more likely to share this information when requests from buyers are more prevalent, when buyers appear committed to using the information, when suppliers belong to more profitable industries, and when suppliers are located in countries with greenhouse gas regulations. We find evidence that these factors also influence the comprehensiveness of the information suppliers share and their willingness to share the information publicly.

Stock Market Reaction to Supply Chain Disruptions from the 2011 Great East Japan Earthquake

Manufacturing and Service Operations Management 2020 22(4), 683-699
Problem definition: This paper provides empirical evidence on the effect of the 2011 Great East Japan Earthquake (GEJE) on the financial performance of firms. Academic/practical relevance: The GEJE was characterized as the most significant disruption ever for global supply chains. In its aftermath, there was a great deal of debate about the risks and vulnerabilities of global supply chains, and there were calls to redesign and restructure supply chains. Methodology: We empirically estimate the effect of the GEJE on the stock prices of firms. Our analyses are based on a global sample of 470 firms collected from articles and announcements in the business press that identify affected firms, as well as 382 firms that are not mentioned in the business press but are in industries potentially subject to contagion or competitive effects. Results: We estimate that firms experiencing supply chain disruptions as a result of the GEJE lost on average 5.21% of their shareholder value during the one-month period after the GEJE. For Japanese firms, the effect was much more severe with an average 9.32% loss in shareholder value. Non-Japanese firms averaged a 3.73% loss in shareholder value. We also find that upstream and downstream supply chain propagation effects from the GEJE are negative, and the contagion effect on firms related to the nuclear industry is very negative. For firms in the rebuilding industries or competitors to firms affected by the GEJE, the competitive effect from the GEJE is positive. Managerial implications: The loss suffered by both Japanese firms and non-Japanese firms experiencing supply chain disruptions as a result of the GEJE is economically significant. Although the loss is more severe for firms whose operations were directly affected by the GEJE, it is also significant for firms who experienced indirect effects from their upstream and downstream supply chain partners, further confirming the importance of supply chain risk mitigation strategies.

Does What Happens in the ED Stay in the ED? The Effects of Emergency Department Physician Workload on Post-ED Care Use

Manufacturing and Service Operations Management 2022 24(6), 3079-3098
Problem definition: We study the effects of emergency department (ED) physician workload on healthcare system utilization after the patient leaves the ED. Further, we explore the mediating effects of care intensity in the ED on post-ED care use. Academic/practical relevance: ED crowding has been a pressing concern in healthcare systems in the United States and other developed countries. As such, many researchers have studied its effects on outcomes within the ED. In contrast, we present novel results regarding the impacts of ED crowding on system performance outside the ED—specifically, on post-ED care utilization. Methodology: We utilize a data set assembled from more than four years of microdata from a large U.S. hospital and exhaustive billing data in an integrated health system. We use count models and instrumental variable analyses to answer the proposed research questions. Results: We find that there is an increasing concave relationship between ED physician workload and post-ED care use. When ED workload increases from its fifth percentile to the median, the number of post-discharge care events (i.e., medical services) for patients who are discharged home from the ED increases by 5%, and it is stable afterward. Further, we identify physician test-ordering behavior as a mechanism for this effect; when the physician is busier, she responds by ordering more tests for less severe patients. We document that this “extra” testing generates “extra” post-ED care utilization for these patients. Managerial implications: This paper contributes new insights on how physician and patient behaviors under ED crowding impact a previously unstudied system performance measure: post-ED care utilization. Our findings suggest that prior studies estimating the cost of ED crowding underestimate the true effect, as they do not consider the “extra” post-ED care utilization. Funding: Support for this research was provided by the University of Alberta Endowment Fund for the Future: Support for the Advancement of Scholarship, Canadian Utilities Faculty Fellowship, and the University of Wisconsin–Madison Office of the Vice Chancellor for Research and Graduate Education with funding from the Wisconsin Alumni Research Foundation. Brian Patterson’s contribution to this research was supported by funding from the Agency for Healthcare Research and Quality (AHRQ) [Grant K08HS024558]. The content is solely the responsibility of the authors and does not necessarily represent the official views of the AHRQ. Supplemental Material: The online appendix is available at https://doi.org/10.1287/msom.2022.1110 .