December 10, 2018

Supply Chain Management Under Industry 4.0 - Paper Summaries



What does industry 4.0 mean to supply chain?



Introduction: This paper presents a preliminary analysis of the impact of Industry 4.0 on SCM and aims to provide a thought towards Supply Chain 4.0. The scope of the analysis has been intentionally limited to include only four functions within a supply chain, i.e. procurement, transport logistics, warehouse and order fulfilment. This is presented with respect to the Key Performance Indicators (KPIs) of the SCM. It is hoped that the current output will open up future pathways to draw the bigger picture and thus conduct a fuller analysis of these impacts.

Research Method: The research method for this paper is based on review of researcg papers with SCM focus. SCM components and KPIs for each of the components were identified for better understanding of SCM and then the impacts of the changes in technology on each KPI were analysed. The opportunities and threats exhibited in each of the technologies for each of the KPIs were then discussed by linking them with each area of the SCM under study. KPIs are defined in order to obtain quantifiable measures to compare if there are changes over time. The identification of these KPIs is, however, rather complicated because there are no clear boundaries between the levers (buy, storage, sell, move).

 “Buy” lever :  The performance parameters are, for instance: quality standard for the raw materials, reject rate, service level, order accuracy etc.

“Store”:  The performance parameters selected are for instance truck time at the dock, accurate receipts received, time from receiving to pick location, labor hours consumed per order, time from picked order to departure, etc.

“Move” : The KPIs to be analyzed are for instance: truckload capacity, turnaround time, shipment visibility, on-time pickups, on-time delivery, etc.

“Sell”: The KPIs selected are for instance: product availability, customer experience, response time, time to market, etc.

Results and Discussion: The results were created for technologies affecting each KPI, if a technology is affecting KPI then reason behind it is mentioned in form of template. Technology affecting KPIs in warehouse and transportation logistics were presented in form of template. The opportunities and threats with respect to industry 4.0 technologies were also presented in form of template. The aim of this paper is to fill the gap in the implementation of technologies involved in Industry 4.0 within the supply chain, particularly the warehouse, transport logistics, procurement and fulfilment functions. Through the analysis performed, the results showed that the areas which will be most affected by the introduction of Industry 4.0 are the order fulfilment and transport logistics.   Finally, within the procurement function, Industry 4.0 shows 71.43% of opportunities, the remainder being opportunities or threats.

Conclusion: From the analysis performed, it can be seen that the implementation of certain technologies, such as virtual and augmented realities, 3D-Printing and simulation, results will all result in opportunities. On the other hand, big data analytics, cloud technology, cyber security, the IoT, miniaturization of electronics, AIDC, RFID, robotics, drones and nanotechnology, M2M and BI could be opportunities or threats for the organizations. The fact that some technologies can result in both of opportunities and threats is because all the different areas are interconnected, with no clear boundaries between them, depending on where it was analyzed, it could have a positive or negative connotation. The most relevant benefits are increased flexibility, quality standards, efficiency and productivity. This will enable mass customization, allowing companies to meet customers’ demands, creating value through constantly introducing new products and services to the market.

Limitation and future scope: Author calls for empirical research in this area. Due to the fact that the implementation of these technologies will be accompanied by a new environment where people work with machines, he believes that legal aspects, liabilities, insurance and ethics should be considered. The work should be continued with some empirical work and assessment of how companies should digitally integrate their supply chain with real implementation and data.


Summarised  by Kirti Nayal, 1806007 Fellow Research Scholar  2018 Batch

December 1, 2018

Industry 4.0 Bibliographies - Smart Products, Processes, Organizations and Management Areas - Bibliographies


An attempt is being to develop a bibliography network that will provide references to 100,000 articles, books, blog posts, consultant reports and surveys,  white papers, research theses and papers.

Industry 4.0 Bibliographies - Smart Products and Processes Bibliographies



Agriculture 4.0

Animal Husbandry


Business

Courts

Engineering 4.0


  • Architecture
  • Automobile Engineering
  • Biotechnology
  • Civil Engineering
  • Communications Engineering
  • Computer Engineering
  • Construction Engineering
  • Diary Engineering
  • Electrical Engineering
  • Electronics Engineering
  • Industrial Engineering
  • Information Technology
  • Mechanical Engineering
  • Mining Engineering
  • Production Engineering
  • Sound Engineering
  • Textile Engineering

Education

Entertainment

Factory

Films

Government


Industry 4.0


  • Industry 4.0 - Adoption

  • Industry 4.0 - Consultant Reports

  • Industry 4.0 - Employment Issues

  • Industry 4.0 - Government Regulations

  • Industry 4.0 - Implementation Road Map

  • Industry 4.0 - Productivity

  • Industry 4.0 - SMEs

  • Industry 4.0 - Use Cases and Applications


Logistics


Management Areas

Construction Management
Cost
Information Systems
Logistics
Maintenance
Manufacturing
Marketing
Operations
Quality
Sales
Strategy
Supply Chain
Warehousing

Retailing

Services

Smart Products - Design, Manufacturing, Marketing

Smart Products - Various Products

Smart Cities


Technologies for Industry 4.0


  • a) Autonomous Robots,
  • b) Simulations and Forecasting Techniques
  • c) Vertical/Horizontal Software Integration
  • d) Industrial Internet of Things – IoT
  • e) Direct communication between machines
  • f) Internet of Services
  • g) Big data and analytics
  • h) Innovative methods of collecting and processing large amounts of data, including
  • the use of potential activities in the cloud (Clouds)
  • i) Additive Manufacturing
  • j) Augmented Reality – AR
  • k) Virtual Reality – VR
  • l) Cyber-Physical Systems – CPS
  • m) Digital Twin
  • n) Artificial Intelligence,
  • o) Neural Networks
  • p) Cybersecurity
  • q) Mass Customization
Transport

University 4.0

November 18, 2018

Servant Leadership and Other Leadership Philosophy Models

Interesting Article

'Servant Leadership' and How Its 6 Main Principles Can Boost the Success of Your Startup

Thomas Smale
Founder of FE International
January 24, 2018

Robert Greenleaf's influential 1970 essay "The Servant As Leader" in 1970.
Adam Grant, professor at the Wharton School of Business, wrote in his  book Give and Take that research shows servant leaders are more productive and more highly regarded by employees. Servant leadership has also been implemented by incredibly successful companies like Whole Foods, UPS and Ritz Carlton.

What are servant leadership's main principles?
Six, identified by author-writer Larry Spears (who established a center on servant leadership),

1. Empathy
2. Awareness
3. Building community
Leader or the organization as a community builder.
Leader (say CEO) builds a community where both employees and customers can thrive (generalized into all stakeholders).
4. Persuasion
5. Conceptualization
6. Growth

https://www.entrepreneur.com/article/307923


Spears' (1998) 10 characteristics of servant leadership are (a) listening, (b) empathy, (c) healing, (d) awareness, (e) persuasion, (f) conceptualization, (g) foresight, (h) stewardship, (i) commitment, and (j) community building. Spears (1998) argued that servant leadership is tied to the character exhibited by leaders in their essential traits.

 Laub (1999), did a Delphi study. In the Delphi process, 60 characteristics of servant leaders were identified and eventually clustered into six key areas: (a) valuing people, (b) developing people, (c) building community, (d) displaying authenticity, (e) providing leadership, and (f) sharing leadership. For Laub (1999), these are the essential behaviors that characterize what servant leaders do and they answer to how servant leaders place the good of those led over their own self-interest.

Patterson's (2003) model of servant leadership includes the following dimensions as the essential characteristics of servant leadership: (a) agapáo love, (b) humility, (c) altruism, (d) vision, (e) trust, (f) empowerment, and (g) service.

Thus Spears' (1998) model of servant leadership focuses primarily on the character exhibited by servant leaders and Laub's (1999) model focuses primarily on the behaviors of servant leaders, Patterson's (2003) model provides includes both the dimensions of character and behavior.

Servant versus Self-Sacrificial Leadership: A Behavioral Comparison of Two Follower-Oriented Leadership Theories

Jeffrey A. Matteson
Regent University

Justin A. Irving
Bethel University

International Journal of Leadership Studies, Volume 2, Issue 1
An online refereed journal sponsored by
Regent University, School of Business & Leadership
1333 Regent University Drive, Virginia Beach, VA 23464

https://www.regent.edu/acad/global/publications/ijls/new/vol2iss1/matteson/mair.htm






Servant Leadership and Other Models of Leadership  (Adopted essay) - Reference needs to be given


There are measures in place to assess servant leadership. It  is important first to  to understand how it differs from other models.


There have been a multitude of other leadership philosophies, ideas and theories.



Dirk van Dierendonck (2011) noted that servant leadership could be compared to seven other leadership theories: transformational leadership, authentic leadership, ethical leadership, Level 5 leadership, empowering leadership, spiritual leadership, and self-sacrificing leadership.




Transformational Leadership.

Components of a transformational leader are idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration (Varol & Varol, 2012). The transformational leader shows concern for the follower, but does not place an emphasis on serving the follower (Stone, Russell, and Patterson, 2003). In a study conducted by Parolini, Patterson, and Winston (2009), over 500 people in various organizations ranging  from churches and non-profits to corporations and academic institutions. The  study revealed  that the perceived difference between  transformational leaders and servant leaders was the focus on the needs of the individuals instead of the organization. 

Authentic Leadership.

Authentic leadership  grew in popularity with Bob George’s book, Authentic Leadership (2003). Both servant leadership and authentic leadership place a strong value in serving and empowering others. These philosophies focus on establishing relationships with people and rely on follower’s strengths instead of weaknesses (Nayab, 2010; Ladkin & Taylor, 2010; Politis, 2013). The difference between the two styles is the approach. Servant leaders want to do what is right, while authentic leaders are more concerned with being real (Nayab, 2010f; Avolio &Gardener, 2005). There are lists of characteristics for servant leadership that mold the leader in his journey. Authentic leadership does not have a set of attributes specified so far. There are two attributes that Van Dierendock (2011) discussed as an overlap in these philosophies: authenticity and humility.



Ethical Leadership.

Ethical leadership is a normative approach to leading others. The philosophy, according to Brown, Trevino, and Harrison (2005), stresses a standardized viewpoint of appropriate behavior in both actions and relationships. Servant leadership shares many attributes with ethical leadership such as caring for people, trust, integrity, and serving others (Dierendonck, 2011), but they differ from a developmental aspect. Ethical leadership focuses on the correct actions and directives of the leader within the organization, not so much how individuals can meet their goals personally (Brown, et al, 2005). There are three characteristics that these two styles do not share: authenticity, interpersonal acceptance, and providing direction (Dierendonck, 2011).


Level 5 Leadership.

In Jim Collins’ seminal work, Good to Great, he outlined his five levels in his hierarchy of leadership capabilities (2001). The levels are Executive, Effective Leader, Competent Manager, Contributing Team Member, and Highly Capable Individual. The highest level in the hierarchy identifies a leader who represents a balance of humility and professional will, which incorporates sound business results and vision for the future. The lowest level leader uses his talent, knowledge, and skills to make contributions to the organization (2001). The qualities at level 5 overlap with two servant leadership characteristics: humility and providing direction (Dierendonck, 2011). A major factor is the creation on the Level 5 Leadership model was shareholder value in terms of stock value, which is a major difference between this style and servant leadership. Three attributes missing from Level 5 that are seen in servant leadership are authenticity, interpersonal acceptance, and stewardship.

Empowering Leadership.

Empowering leadership is a leadership style grounded in social cognitive theory (Bandura, 1986) and the core attribute is the employee’s perspective and the leader’s actions (Dierendonck, 2011) to involve others. Self-direction and self-motivation are also key concepts for this philosophy according to Pearce and Sims (2002). There are obvious overlapping traits between servant leadership and empowering leadership. Servant leadership can be thought of  as an elaboration of empowering leadership. When addressing the additional five servant leadership characteristics of Dierendonck’s research of humility, authenticity, interpersonal acceptance, providing direction and stewardship, there is not an overt connection but an indirect expansion of all the traits (2011). The philosophy of servant leadership goes beyond the foundational ideas of this leadership type and encompasses a larger set of traits.

Spiritual Leadership.

Spiritual leadership and servant leadership share the goal to make one’s work meaningful and maximize followers’ strengths (Dierendonck, 2011). The framework of spiritual leadership combines the employee’s experiences with self-transcendence, community, and meaning in a workplace. The leadership style recognizes the experiences can be found in the employee’s organization (Pawar, 2008). The issue is a lack of behaviors associated with this philosophy because most of the research is built around the organization and not the leader (Dierendonck, 2011). There are similarities with the viewpoint of both types of leadership. Both encourage followers to find a sense of self through work and creating a community in the workplace (Fry, 2003). There is a more structured framework, which separates servant leadership from spiritual leadership (Fry et al, 2005).

Self-Sacrificing Leadership.

Charisma, legitimacy, and reciprocity are characteristics of a leader who subscribes to the self-sacrificing model (Choi & Mai-Dalton, 1999). Studies (De Cremer, 2006; De Cremer, Mayer, Schouten, & Bardes, 2009; Van Knippenberg & Van Knippenberg, 2005) reveal that these traits are indeed apparent with these types leaders. The followers of a self-sacrificing leader have a strong willingness to work together, motivated for pro-social behavior, and rate their leaders as effective (2005). Self-sacrificing leadership derives from transformational leadership and has a more organizational focus than a person focus (Matteson & Irving, 2005). The connection this style has with servant leadership is found with Greenleaf’s best test to make sure that those being lead also become servant-leaders themselves. Attributes they share are compassionate goals and supportive environment, but none of the six characteristics mentioned above are overlapping in this style.



All of the leadership models listed above have some similarities with servant leadership, but servant leadership also has unique attributes that allow it to stand on its own as a philosophy. We have to  understand the practical use of the characteristics and themes by studying organizations and situation. where servant leadership has been implemented.




Practice of  Servant Leadership

TD Industries is one of the first companies to actually practice servant leadership within a corporation (Spears, 2005). TD is based in Dallas, Texas and provides heating and plumbing contracts. The founder, Jack Lowe, Sr. read Greenleaf’s writings on the servant as leader and implemented managerial training in servant leadership as a result. Thirty years later, any employee at TD who supervises someone else must attend servant leader training. The fruit of the implementation for TD Industries has been a consistent spot on the Fortune magazine’s 100 Best Companies to Work for in America list (2005). From a corporate standpoint, TD does not stand alone in capitalizing on the benefit of servant leadership. Other large companies such as Synovus Financial, Southwest Airlines, and Popeye’s Louisiana Kitchen hold employee trainings and center their culture on servant leadership (2005).

Many companies that have been influenced in some way by servant leadership chose to focus more on the people that work for them as opposed to the “bottom line”.  These are corporations that make a concerted effort to be really good at what they do with an emphasis on relationship building, which is a characteristic of servant leadership.



Measurement of Servant leadership

Servant leadership has grown in popularity in the past five decades, but researchers have only been able to actually measure the term since around 2006. Measurement instruments such as Page and Wong’s Servant Leadership Profile (2000), Laub’s Organizational Leadership Assessment (2000), and Dennis and Bocarnea’s assessment instrument (2005) proved to be reliable in measuring different characteristics of a servant leader. These tools provide validity to the philosophy and established a foundation of reliability for future research. In an effort to conceptualize and measure the construct of servant leadership, Barbuto and Wheeler (2006) tested 11 dimensions of servant leadership to test “internal consistency, confirm factor structure, and assess convergent, divergent, and predictive validity” (p. 300). Many practical implications were derived from this study. It found a positive relationship between positive outcomes such as employee satisfaction and extra effort on their part. Additionally, the research showed a great infusion of emotional health, wisdom, and service-oriented attitudes (2006).


References

 Leader self-sacrifice and leadership effectiveness


 
Choi, Y., & Mai-Dalton, R. R. 1998. On the leadership function of self-sacrifice. The Leadership Quarterly, 9 (4): 475–501. 
Choi, Y., & Mai-Dalton, R. R. 1999. The model of followers'responses to self-sacrificial leadership: An empirical test. The Leadership Quarterly, 10 (3): 397–421. 
Choi, Y., & Yoon, J. 2005. Effects of leaders’ self-sacrificial behavior and competency on followers’ attribution of charismatic leadership among Americans and Koreans. Current Research in Social Psychology, 11 (5): 51–69.
 
De Cremer, D. 2006. Affective and motivational consequences of leader self-sacrifice: The moderating effect of autocratic leadership. The Leadership Quarterly, 17 (1):79–93. 
De Cremer, D., Mayer, D. M., van Dijke, M., & Schouten, B. C. 2009. When does self-sacrificial leadership motivate prosocial behavior? It depends on followers prevention focus. Journal of Applied Psychology, 94 (4): 887–899. 
De Cremer, D., & van Knippenberg, D. 2002. How do leaders promote cooperation?The effects of charisma and procedural fairness. Journal of Applied Psychology, 87 (5): 858–866. 
De Cremer, D., & van Knippenberg, D. 2004. Leader self-sacrifice and leadership effectiveness: The moderating role of leader self-confidence. Organizational Behavior and Human Decision Processes, 95 (2): 140–155. 
De Cremer, D., & van Knippenberg, D. 2005. Cooperation as a function of leader self-sacrifice, trust, and identification. Leadership and Organization Development Journal, 26 (5): 355–369. 
De Cremer, D., van Knippenberg, D., van Dijke, M., & Bos, A. E. R. 2006. Self-sacrificial leadership and follower self-esteem: When collective identification matters. Group Dynamics: Theory, Research, and Practice, 10 (3): 233–245. 
Den Hartog, D. N. 2015. Ethical leadership. Annual Review of Organizational Psychology and Organizational Behavior, 2: 409–434. 

 
Farh, J. L., Zhong, C. B., & Organ, D. W. 2004. Organizational citizenship behavior in the People's Republic of China. Organization Science, 15 (2): 241–253. 
Gardner, W. L., Avolio, B. J., Luthans, F., May, D. R., & Walumbwa, F. 2005. Can you see the real me? A self-based model of authentic leader and follower development. The Leadership Quarterly, 16 (3): 343–372. 
 
Grant, A. M., & Mayer, D. M. 2009. Good soldiers and good actors: Prosocial and impression management motives as interactive predictors of affiliative citizenship behaviors. Journal of Applied Psychology, 94 (4): 900–912. 
 

 
Judge, T. A., Piccolo, R. F., & Ilies, R. 2004. The forgotten ones? The validity of consideration and initiating structure in leadership research. Journal of Applied Psychology, 89 (1): 36–51. 
Kark, R., & Shamir, B., & Chen, G. 2003. The two faces of transformational leadership: Empowerment and dependency. Journal of Applied Psychology, 88 (2): 246–255. 
Kim, Y. J., Van Dyne, L., Kamdar, D., & Johnson, R. E. 2013. Why and when do motives matter? An integrative model of motives, role cognitions, and social support as predictors of OCB. Organizational Behavior and Human Decision Processes, 121 (2): 231–245. 
 
 
 


Li, S. L., He, W., Yam, K. C., & Long, L. L. 2015. When and why empowering leadership increases followers’ taking charge: A multilevel examination in China. Asia Pacific Journal of Management, 32 (3): 64–670. 
Liang, J., Farh, C. L. C., & Farh, J. L. 2012. Psychological antecedents of promotive and prohibitive voice: A two-wave examination. Academy of Management Journal, 55 (1): 71–92. 
Liu, W., Zhu, R., & Yang, Y. 2010. I warn you because I like you: Voice behavior, employee identifications, and transformational leadership. The Leadership Quarterly, 21 (1): 189–202. 
Lord, R. G., & Brown, D. J. 2001. Leadership, values, and subordinate self-concepts. The Leadership Quarterly, 12 (2): 133–152. 
MacKinnon, D. P., Lockwood, C. M., Hoffman, J. M., West, S. G., & Sheets, V. 2002. A comparison of methods to test mediation and other intervening variable effects. Psychological Methods, 7 (1): 83–104. 
McAllister, D. J., Kamdar, D., Morrison, E. W., & Turban, D. B. 2007. Disentangling role perceptions: How perceived role breadth, discretion, instrumentality, and efficacy relate to helping and taking charge. Journal of Applied Psychology, 92 (5): 1200–1211. 
 
Morrison, E. W., & Phelps, C. C. 1999. Taking charge at work: Extra role efforts to initiate workplace change. Academy of Management Journal, 42 (4): 403–419.
Mulder, L. B., & Nelissen, R. M. A. 2010. When rules really make a difference: The effect of cooperation rules and self-sacrificing leadership on moral norms in social dilemmas. Journal of Business Ethics, 95 (1): 57–72. 
Pierce, J. L., & Gardner, D. G. 2004. Self-esteem within the work and organizational context: A review of the organization-based self-esteem literature. Journal of Management, 30 (5): 591–622. 
Pierce, J. L., Gardner, D. G., Cummings, L. L., & Dunham, R. B. 1989. Organization-based self-esteem: Construct definition measurement and validation. Academy of Management Journal, 32 (3): 622–648.
Podsakoff, P. M., Mackenzie, S. B., Paine, J. B., & Bachrach, D. G. 2000. Organizational citizenship behaviors: A critical review of the theoretical and empirical literature and suggestions for future research. Journal of Management, 26 (3): 513–563. 

Qu, R., Janssen, O., & Shi, K. 2015. Transformational leadership and follower creativity: The mediating role of follower relational identification and the moderating role of leader creativity expectations. Leadership Quarterly, 26 (2): 286–299. 

Schaubroeck, J., Lam, S. S. K., & Cha, S. E. 2007. Embracing transformational leadership: Team values and the impact of leader behavior on team performance. Journal of Applied Psychology, 92 (4): 1020–1030. 
Shamir, B. 1991. The charismatic relationship: Alternative explanations and predictions. Leadership Quarterly, 2 (2): 81–104. 
Shamir, B., House, R. J., & Arthur, M. B. 1993. The motivational effects of charismatic leadership: A self-concept based theory. Organization Science, 4 (4): 577–594. 
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Van Dyne, L., & Pierce, J. L. 2004. Psychological ownership and feelings of possession: Three field studies predicting employee attitudes and organizational citizenship behavior. Journal of Organizational Behavior, 25 (4): 439–459. 
van Knippenberg, D., & Hogg, M. A. 2003. A social identity model of leadership effectiveness in organizations. Research in Organizational Behavior, 25: 243–295. 
van Knippenberg, B., & van Knippenberg, D. 2005. Leader self-sacrifice and leadership effectiveness: The moderating role of leader prototypicality. Journal of Applied Psychology, 90 (1): 25–37. 
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Zhang, S., Chen, G., Chen, X. P., Liu, D., & Johnson, M. D. 2014. Relational versus collective identification within workgroups: Conceptualization, measurement development, and nomological network building. Journal of Management, 40 (6): 1700–1731. 


A Literature Review of Self-Sacrificial Leadership
https://www.scirp.org/journal/PaperInformation.aspx?PaperID=69604


November 17, 2018

Industry 4.0 - Research Papers and Thesis - Bibliography



2018

Additive Manufacturing in 2040: Powerful Enabler - Disruptive Threat
Rand Corporation Report

Additive Manufacturing in Aerospace and Defence Sector
Prakash Panneerselvam
Journal of Defence Studies, Jan - March 2018, Vol. 12, No. 1, pp. 39-60

Benefits of Mass Customized Products: Moderating Role of Product Involvement and Fashion Inventiveness
Minjung Park, Jungmin Yoo.
Heliyon, 4, 2018

Big Data Challenges in Smart Manufacturing
Big Data Value Association Paper

Business Intelligence in Industry 4.0: State of the art and research opportunities
Fanny-Eve Bordeleau et al.
Proceedings of the 51st Hawaii International Conference on System Sciences 2018
pp. 3944-3953. 

November 12, 2018

4 MILLION PAGE VIEWS OR HITS for Management and Industrial Engineering Blogs




Happy to see that this blog alone is now registering 2.5 million hits.  12 November 2018




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_______________


10 November 2018

Blog    -                                              Hits
Management Theory Review        2,499,258
MTR - Research Perspective            
Industrial Engineering KC                921,235
MBA Knowledge - India Specific 124,080
http://mbaofindia.blogspot.com 
MBA Knowledge Center
http://nraombakc.blogspot.com/       493,021       
Engineering Management KC          



18 September 2015

2 MILLION PAGE VIEWS OR HITS for Management and Industrial Engineering Blogs on 19 April 2015

19-Apr-15
Blog    -                                              Hits
Management Theory Review        1241413
MTR - Research Perspective              6394
Industrial Engineering KC          362083
MBA Knowledge - India Specific    72476
MBA Knowledge Center          318722
Engineering Management KC            20454
Total                                        2021542

Thank you all friends and followers for Likes and Shares



Updated  10 November 2018,   18 Sep 2015, 19 April 2015

October 26, 2018

The Economic Theory of Entrepreneurship - Model - Introduction, Assumptions and Propositions




The Economic Theory of Entrepreneurship - Model - Introduction,  Assumptions and Propositions - Version 1


27 October 2018
Prof. Narayana Rao K.V.S.S.


Introduction


Economic theory is developed on the basis of four factors of production. The four factors are land, labor, capital and entrepreneurship.  The factors are owned by some or other persons in the economy at a given point of time. In every period of production, these four factors participate and the production output of the period is distributed to them according to the contracts that they make at the beginning of the production period.

Land and capital are tangible assets separate from persons and they can be given to others. Labor and entrepreneurship are attached to persons and their use implies participation of persons.

Entrepreneur enters into a contract with the owners or holders of land, capital and labor and acquires the required amount to participate in his plan of production. Entrepreneur distributes the proceeds of rewards after the production period is over and sales takes place and the consumers pay him the exchange value.  The way entrepreneurship is described or modeled in the economic theory, implies that there is an active credit market through which entrepreneurs acquire other factors of production.

All owners of factors of production have to survive till they get returns from production and exchange process. Hence, we need to assume that there is enough consumption goods stock with the owners of production to consume during the production cycle.


Entrepreneur tasks.



1. Should be able to come out with a production and exchange plan that is feasible at expected value level and satisfies the desires of owners of factors of production and consumers.
2. He must create trust in the owners of factors of production so that they provide their goods and services on credit to him.
3. He must have trust in potential customers so that he gives his produce on credit to them.
4. He must have the ability to collect exchange value  from the customers to whom he sold his produce on credit.


What are the questions to be answered by the economic theory of entrepreneurship?


1. Supply of entrepreneurship services.
2. Demand for entrepreneurship services.
3. Reward to entrepreneurship.
4. Growth and decline of entrepreneurship services
5. Role of entrepreneurship in economic growth of society.


Managerial Tasks of an Entrepreneur



Management theory has application in the economic theory of entrepreneurship.  Entrepreneurs have to undertake managerial tasks to successfully complete the cycle of entrepreneurship. The cycle of entrepreneurship is  -----------  Production and Exchange Plan - Communication of the Plan to  Owners of Factors of Production - Acquisition of Factors of Production - Execution of Production Process - Communication of Product/Service Information in the Market - Selling - Collection of the Exchange Value - Payment to Owners of Factors of Production. 






The Cycle of Entrepreneurship



Production and Exchange Plan - Communication of the Plan to  Owners of Factors of Production - Acquisition of Factors of Production - Execution of Production Process - Communication of Product/Service Information in the Market - Selling - Collection of the Exchange Value - Payment to Owners of Factors of Production.



Bibliography - The Economic Theory of Entrepreneurship


Nash, S. J.,
Thesis title : On entrepreneurship : a critique of the economic theories of entrepreneurship
School of Economics, University of Queensland, 1987-01-01
https://espace.library.uq.edu.au/view/UQ:222083


Formaini, Robert L.
The Engine of Capitalist Process: Entrepreneurs in Economic Theory
Economic and Financial Review, Fourth Quarter 2001, Federal Reserve Bank of Dallas


Khalil, Elias
Entrepreneurship and Economic Theory
Munich Personal Repec Archive
October 2016
https://www.researchgate.net/publication/24114234_Entrepreneurship_and_Economic_Theory/download


Rocha Very Caterina
The Entrepreneur in Economic Theory: From an Invisible Man Toward a New Research Field.
FEP Working Papers, No. 459, May 2012
School of Economics and Management, University of Porto.


Gunter, Frank R.
A Simple Model of Entrepreneurship for Principles of Economics Courses
Expanded version of the article published in the Journal of Economic Education, Vol. 43, No. 4, 2012, pp. 1-11.




Tiryaki, Ahmet
Theories of Entrepreneurship: A Critical Overview
Paper avaiable on Web/Internet


Campagnollo, Gilles, & Vivel, Christel
The Foundations of the Theory of Entrepreneurship in Austrian Economics - Menger, Bohm-Bawerk on entrepreneur




October 19, 2018

Self Motivation - Intrinsic Motivation



Self motivation is included by Daniel Goleman as a component of Emotional Intelligence.

Fred Luthans, the noted author of Organization Behavior, writes that intrinsic motives are internally generated. The motivators are presented in the task or job itself and other extrinsic rewards promised by others are not required for the motivation to do the task. The feeling associated with the completion of the task or doing the task itself such as feeling of responsibility, achievement, accomplishment, learnt something,  and feeling challenged etc.



Bibliography

https://positivepsychologyprogram.com/self-motivation/


https://books.google.co.in/books?id=rnfFFRH6oOsC&pg=PA137#v=onepage&q&f=false


https://books.google.co.in/books?id=ocEm10E0VoQC&pg=PA14#v=onepage&q&f=false


https://www.cambridge.org/core/journals/journal-of-management-and-organization/article/testing-the-links-between-emotional-intelligence-and-motivation/B0BF1FF537ABA86DC6913D1884EAAB2D

https://en.wikiversity.org/wiki/Motivation_and_emotion/Book/2011/Emotional_intelligence

https://www.linkedin.com/pulse/developing-your-eq-part-2-self-motivation-anke-exner



Intrinsic Motivation



A person is intrinsically motivated to engage in behavior if he does it for no apparent reason except the activity itself (Koch 1956, Hunt 1965, Berlyne 1966). Engaging in these behaviors allows him to feel a sense of competence and self-determination (White 1959, de Charms, 1968, Deci 1972a).



Berlyne D.E., Exploration and Curiosity, Science, 1966, 153, 25-33.

Koch, S, "Behavior as "Intrinsically" Regulated: Work Notes toward a Pre-theory of Phenomena called "Motivational."  In M.R. Jones, Nebraska Symposium on Motivation, 1956, 4, 42-86



Books

Edward Deci (1975), Intrinsic Motivation, Plenum Press, New York.
https://books.google.co.in/books?id=_Ut-BgAAQBAJ