• 35 Years of studies on business failure: an overview of the classic statistical methodologies and their related problems

      Balcaen, Sofie; Ooghe, Hubert (Vlerick Business School, 2004)
      Over the last 35 years, the topic of business failure prediction has developed to a major research domain in corporate finance. A gigantic number of academic researchers from all over the world have been developing corporate failure prediction models, based on various modelling techniques. The ‘classic cross-sectional statistical' methods have appeared to be most popular. Numerous ‘single-period' or ‘static' models have been developed, especially multivariate discriminant models and logit models. As to date, a clear overview and discussion of the application of the classic cross-sectional statistical methods in corporate failure prediction is still lacking, this paper extensively elaborates on the application of (1) univariate analysis, (2) risk index models, (3) multivariate discriminant analysis, and (4) conditional probability models, such as logit, probit and linear probability models. It discusses the main features of these methods and their specific assumptions, advantages and disadvantages and it gives an overview of a large number of academically developed corporate failure prediction models. Despite the popularity of the classic statistical methods, there have appeared to be several problems related to the application of these methods to the topic of corporate failure prediction. However, in the existing literature there is no clear and comprehensive analysis of the diverse problems. Therefore, this paper brings together all criticisms and problems and extensively enlarges upon each of these issues. So as to give a clear overview, the diverse problems are categorized into a number of broad topics: problems related to (1) the dichotomous dependent variable, (2) the sampling method, (3) non-stationarity and data instability, (4) the use of annual account information, (5) the selection of the independent variables, and (6) the time dimension. This paper contributes towards a thorough understanding of the features of the classic statistical business failure prediction models and their related problems.
    • A Bi-Population Based Genetic Algorithm for the Resource-Constrained Project Scheduling Problem

      Debels, Dieter; Vanhoucke, Mario (2005)
      The resource-constrained project scheduling problem (RCPSP) is one of the most challenging problems in project scheduling. During the last couple of years many heuristic procedures have been developed for this problem, but still these procedures often fail in finding near-optimal solutions for more challenging problem instances. In this paper, we present a new genetic algorithm (GA) that, in contrast of a conventional GA, makes use of two separate populations. This bi-population genetic algorithm (BPGA) operates on both a population of left-justified schedules and a population of right-justified schedules in order to fully exploit the features of the iterative forward/backward local search scheduling technique. Comparative computational results reveal that this procedure can be considered as today's best performing RCPSP heuristic.
    • A classification of programmes and its managerial impact

      Vereecke, Ann; Stevens, Marleen; Pandelaere, Els; Deschoolmeester, Dirk (Vlerick Business School, 2003)
      The paper describes the results of an exploratory research study on the application of programme management in six companies. A classification of programmes is developed that may help in understanding the differences between programmes and the managerial impact of these differences. The research shows that the formalised and rigorous approach as described in most programme management handbooks is not widely adopted. The cases show less centralisation, less formalisation and less management of the interdependencies between the projects in the programme than one would expect on the basis of the programme management literature. This is especially the case in programmes that originate as a grouping of a set of existing projects. Yet, formalisation is mentioned as the main success factor in managing programmes. Keywords: Programme management, project management, management of change
    • A comparison of different project duration forecasting methods using earned value metrics

      Vandevoorde, Stephan; Vanhoucke, Mario (2005)
      Earned value project management is a well-known management system that integrates cost, schedule and technical performance. It allows the calculation of cost and schedule variances and performance indices and forecasts of project cost and schedule duration. The earned value method provides early indications of project performance to highlight the need for eventual corrective action. Earned value management was originally developed for cost management and has not widely been used for forecasting project duration. However, recent research trends show an increase of interest to use performance indicators for predicting total project duration. In this paper, we give an overview of the state-of-the-art knowledge for this new research trend to bring clarity in the often confusing terminology. The purpose of this paper is three-fold. First, we compare the classic earned value performance indicators SV & SPI with the newly developed earned schedule performance indicators SV(t) & SPI(t). Next, we present a generic schedule forecasting formula applicable in different project situations and compare the three methods from literature to forecast total project duration. Finally, we illustrate the use of each method on a simple one activity example project and on real-life project data. Keywords: Earned value, earned duration, earned schedule, project duration forecasting
    • A comparison of venture capitalist governance and value-added in the U.S. and Western Europe

      Manigart, Sophie; Sapienza, Harry J.; Vermeir, Wim (UGent, Fac. Economie & Bedrijfskunde, 1995)
    • A composite index of the creative economy with application to regional best practices

      Bowen, Harry; Moesen, Wim; Sleuwaegen, Leo (2006)
      This paper develops a “Composite Index of the Creative Economy” (CICE) for the purpose of benchmarking an entity's (e.g., country or region) creative capacity as reflected by it's achievement in three dimensions: Innovation, Entrepreneurship and Openness. To determine the weight each sub-dimension should contribute to the total value of the CICE, we introduce a novel method - endogenous weighting - that allows each entity to have its own unique set of “best” weights. This method addresses the issue of whether an entity's CICE score value reflects underlying capabilities (or lack thereof) or an “inappropriate” weighting of the underlying dimensions. Our endogenous weight method isolates achievement on the underlying dimensions as the source of a higher or lower CICE score value. In this paper we construct a value of the CICE for each of nine regions: Baden-Württemberg, Catalonia, Flanders, Lombardy, Maryland, Nord-Pas-De-Calais, Quebec, Rhône-Alpes, Scotland. A region's CICE value indicates its distance from “best practice” and can therefore be used to benchmark a region's creative capacity relative to other regions. In this respect, a focus of our analysis is the relative creative capacity of Flanders. We also examine the absolute and relative achievement of each region on each of the three underlying dimensions to identify specific areas of strength or weakness. The results indicate that Baden-Württemberg ranks highest in terms of creative capacity while Nord-Pas-De-Calais ranks lowest among the nine regions. Flanders ranks 3rd behind 2nd ranked Maryland. However, Flanders' rank masks that its CICE score value is 25% below that of Baden-Württemberg and 11% below that of Maryland, indicating a non-trivial gap in creative capacity between Flanders and “best practice.” On the three dimensions underlying creative capacity, Flanders ranks 2nd behind Baden-Württemberg on Innovation and Openness, but ranks 7th on Entrepreneurship (only ahead of Rhône-Alpes and Nord-Pas-De-Calais). Flanders' relatively poor ranking on Entrepreneurship reflects it's below average level of achievement on each of the three sub-dimensions of Entrepreneurship (ratio of newly established to existing firms, absence of a fear of failure, and venture capital as a share of GDP). This indicates that fostering and improving conditions for Entrepreneurship remains a challenge for Flanders compared to the other top ranked regions.
    • A contingency approach to innovation management: a cross-case comparison

      Van De Woestyne, Mieke; Devos, Geert; Van den Broeck, Herman (2007)
    • A finite capacity production scheduling procedure for a belgian steel company

      Debels, Dieter; Vanhoucke, Mario (2006)
      We present a finite capacity production scheduling algorithm for an integrated steel company located in Belgium. This multiple-objective optimization model takes various case-specific constraints into account and consists of two steps. A machine assignment step determines the routing of an individual order through the network while a scheduling step makes a detailed timetable for each operation for all orders. The procedure has been tested on randomly generated data instances that reflect the characteristics of the steel company. We report promising computational results and illustrate the flexibility of the optimization model with respect to the various input parameters. Keywords. Master production scheduling, manufacturing planning and control, scheduling/sequencing.
    • A framework for assessing commitment to change. Process and context variables of organizational change

      Devos, Geert; Van den Broeck, Herman; Vanderheyden, Karlien (Vlerick Business School, 2002)
      Major organizational changes yield limited success. Failure of change is frequently due to a lack of commitment and motivation of the employees who have to implement the change. In this paper a framework is developed in which employees' emotional involvement and their commitment to change is explained by change process variables and internal context variables. The process variables refer to the different aspects organizations have to follow in implementing fundamental changes. The internal context variables are located at the organizational, work unit and individual level. We found that emotional involvement is an important mediating variable between change process and context variables and commitment to change. To explore the merits of this framework, we studied the perceptions of employees involved in major changes of different organizations. Results indicated that the organization's change history, jobsatisfaction, participation in the change process, availability of time and emotional involvement are important variables in understanding commitment to change. Study findings are discussed and implications for research and theory-building are suggested. Key words: organizational change, commitment, emotional involvement
    • A Hybrid Scatter Search / Electromagnetism Meta-Heuristic for Project Scheduling

      Debels, Dieter; De Reyck, B.; Leus, Roel; Vanhoucke, Mario (UGent, Fac. Economie & Bedrijfskunde, 2004)
    • A hybrid scatter search/electromagnetism meta heuristic for project scheduling

      Debels, Dieter; De Reyck, B.; Leus, Roel; Vanhoucke, Mario (Vlerick Business School, 2003)
      In the last few decades, several effective algorithms for solving the resource-constrained project scheduling problem have been proposed. However, the challenging nature of this problem, summarised in its strongly NP-hard status, restricts the effectiveness of exact optimisation to relatively small instances. In this paper, we present a new meta-heuristic for this problem, able to provide near-optimal heuristic solutions. The procedure combines elements from scatter search, a generic population-based evolutionary search method, and a recently introduced heuristic method for the optimisation of unconstrained continuous functions based on an analogy with electromagnetism theory, hereafter referred to as the electromagnetism meta-heuristic. We present computational experiments on standard benchmark datasets, compare the results with current state-of-the-art heuristics, and show that the procedure is capable of producing consistently good results for challenging instances of the resource-constrained project scheduling problem. We also demonstrate that the algorithm outperforms state-of-the-art existing heuristics. Keywords: project scheduling, heuristics, scatter search, electromagnetism
    • A meta-analysis on how leader behavioral integrity impacts follower outcomes

      Leroy, Hannes; Collewaert, Veroniek; Masschelein, Stijn; Simons, Tony L. (2012)
    • A multi-level approach to program objectives: definitions and managerial implications

      De Hertogh, Steven; Van den broecke, Erik; Vereecke, Ann; Viaene, Stijn; Harpham, A. (2006)
      Projects are recognized as the building blocks of strategy. Outputs, outcomes, benefits and related concepts have been put forward by the program management community to bridge the gap between strategy and projects. Yet, firstly there appears to be some discordance among authors on the exact nature of these concepts. Secondly, these frameworks may not yet fully reflect the specific nature of strategy implementation. Therefore it is hard to accept them as the basis for communication between the project/program organisation and the business management when managing strategy implementation through programs of projects. We will borrow three concepts (resources, competencies and capabilities) from the resource based view of the company (RBV). We shall use them to define three levels of program objectives. We will illustrate these levels through a case of a strategic program in a professional information services company. We conclude with implications on current program management practice and research. Keywords: program management, program objectives, strategy implementation, benefits management
    • A network typology of plants in global manufacturing networks

      Vereecke, Ann; Van Dierdonck, Roland; De Meyer, Arnoud (Vlerick Business School, 2001)
    • A new approach to testing the effects of entrepreneurship education among secondary school pupils

      Lepoutre, Jan; Van den Berghe, Wouter; Tilleuil, Olivier; Crijns, Hans (2010)
    • A note on performance measures for failure prediction models

      Ooghe, Hubert; Spaenjers, Christophe (2006)
      This note briefly describes some important performance measures that can be used in failure prediction research. We do not only give an overview of the measures, but also clarify the connections between them and illustrate their use with numerical examples.
    • A scatter search procedure for maximizing the net present value of a project under renewable resource constraints

      Vanhoucke, Mario (2006)
      In this paper, we present a meta-heuristic algorithm for the well-known resource-constrained project scheduling problem with discounted cash flows. This optimization procedure maximizes the net present value of project subject to the precedence and renewable resource constraints. The problem is known to be NP-hard. We investigate the use of a enhanced bi-directional generation scheme and a recursive forward/backward improvement method and embed them in a meta-heuristic scatter search framework. We generate a large dataset of project instances under a controlled design and report detailed computational results. The solutions and project instances can be downloaded from a website in order to facilitate comparison with future research attempts. Keywords: Resource-constrained project scheduling, Net present value, Scatter search
    • A self-determination model of feedback-seeking behavior in organizations

      De Stobbeleir, Katleen (2006)
      The current paper presents a theoretical framework on feedback-seeking behavior in organizations. Based upon the model, which is derived from self-determination theory, we summarize and systematize two decades of research on feedback-seeking behavior and we identify potentially fruitful avenues for further research.