{"title":"Motivating Supplier Performance: Financial Constraints, Information Delay, and Smart Contracts","authors":"Qiangqiang Wang","doi":"10.1109/TEM.2025.3565282","DOIUrl":"https://doi.org/10.1109/TEM.2025.3565282","url":null,"abstract":"Few studies have investigated the delivery performance of suppliers in guarantor-intermediated trade finance with information delay in a multistage environment. This article examines a model of dynamic guarantee finance (DGF) where guarantee institutions can adjust guarantee rates as an order progresses through different stages in the trade process, and compare it with the uniform guarantee financing model (the guarantee rate remains constant over the process, UGF). In addition, we analyze the impact of information delay on the supplier's optimal delivery performance. The aim of this article is to provide a foundational understanding of the potential benefits associated with transitioning from uniform-rate pricing to dynamic-rate pricing in guarantor-intermediated trade finance. The results indicate that DGF can incentivize suppliers to enhance their delivery performance, with the incentive value increasing as the trade process becomes lengthier. However, information delay has a negative effect on the incentive value of DGF. Smart contracts can complement DGF by accelerating the process of information verification. These findings provide guidance for the effective implementation of contract innovations (such as DGF) in guarantor-intermediated trade finance and highlight how the dynamic trade process and information delay impact the supplier's delivery performance.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1862-1876"},"PeriodicalIF":4.6,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144131663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Quintin P. McGrath;Alan R. Hevner;Gert-Jan de Vreede
{"title":"Designing an Enhanced Enterprise Risk Management System to Mitigate Ethical Risks of Artificial Intelligence Applications","authors":"Quintin P. McGrath;Alan R. Hevner;Gert-Jan de Vreede","doi":"10.1109/TEM.2025.3565221","DOIUrl":"https://doi.org/10.1109/TEM.2025.3565221","url":null,"abstract":"The introduction of artificial intelligence (AI) capabilities in business applications provides substantial benefits but requires organizations to manage critical AI ethical risks. We survey a range of large organizations on their use of enterprise risk management (ERM) systems to predict and mitigate the ethical risks of AI. Four serious gaps in current ERM systems are identified: AI ethical principles do not translate effectively to ethical practices; real-time monitoring of AI ethical risks is needed; ERM systems emphasize economic, not ethical risks; and when ethical risks are identified, no ready solutions are available for remedy. To address these gaps, we propose a proactive approach to managing ethical risks by extending the capabilities of current ERM systems. An enhanced ERM system framework is designed and evaluated by subject matter expert focus groups. We conclude with observations and future research directions on the need for more aggressive proethical management oversight as organizations move to ubiquitous use of AI-driven business applications.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1813-1830"},"PeriodicalIF":4.6,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144090777","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Foreign Venture Capital as Channels of Cross-Border Knowledge Flows: Empirical Evidence From U.S. Critical Industries","authors":"Roberto S. Santos;Yi Yang","doi":"10.1109/TEM.2025.3565475","DOIUrl":"https://doi.org/10.1109/TEM.2025.3565475","url":null,"abstract":"Cross-border knowledge flows may adversely affect nations’ competitive advantage and national security. This presents a dilemma not only for policymakers, but also for managers of high-tech startups looking to raise capital from foreign investors. Applying an organizational ecology lens, we empirically examine whether foreign venture capital (VC) investments in a technologically advanced host country represent a channel through which knowledge may flow back to their home country. We create a unique dataset of 1148 country-year observations of foreign VC investments made in 27 industries deemed to be “critical infrastructure” by the U.S. government. We find evidence that increased foreign VC investment is associated with an inverse U-shaped relationship with knowledge flows. This relationship is moderated by institutional and macroeconomic conditions such as the home country's intellectual property rights regime and the technology gap between the home and host countries. As an important resource for financing the development of advanced technologies, our results suggest that managers should carefully weigh the benefits of accepting foreign VC capital with the potential for cross-border knowledge flows.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1799-1812"},"PeriodicalIF":4.6,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144073413","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Minghao Li;Muhammad Usman Ahmed;Sandun C. Perera;Yong Wang
{"title":"Can Fintech Development Contribute to Mitigating the Greenhouse Effect? A Global Perspective","authors":"Minghao Li;Muhammad Usman Ahmed;Sandun C. Perera;Yong Wang","doi":"10.1109/TEM.2025.3564950","DOIUrl":"https://doi.org/10.1109/TEM.2025.3564950","url":null,"abstract":"Fintech leverages blockchain and smart contracts for decentralized economic coordination. Its emerging applications in green finance and supply chain transparency hold promise for mitigating greenhouse gas (GHG) emissions. This article evaluates the global impact of Fintech development on GHG emissions (GHGE). Based on cross-sectional regressions using data from 124 countries (2014–2018), the article finds that Fintech development significantly reduces GHGEs—with each 1% increase in the Fintech development level, GHGEs are reduced by 0.546%. This reduction is significant in low-, lower-middle-, and high-income countries, but not in upper-middle-income countries. Furthermore, the article finds that three components of Fintech activity—equity investments in Fintech companies, usage of Fintech credit, and digital payments—significantly reduce GHGEs, with digital payments proving the most effective. This article broadens our understanding of Fintech's role in achieving global climate goals, demonstrating its substantial potential for sustainable development. Subgroup analyses further validate Fintech's key function within the Environmental Kuznets Curve (EKC) framework, highlighting how EKC moderates Fintech's emission reduction effects. Overall, these findings provide valuable insights for policymakers, financial institutions, and technology entrepreneurs aiming to mitigate the greenhouse effect through enhanced Fintech development.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1831-1842"},"PeriodicalIF":4.6,"publicationDate":"2025-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144090692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Enabling System Flexibility in Smart Grid Architecture","authors":"Abdelrahman Ayad;François Bouffard","doi":"10.1109/TEM.2025.3563779","DOIUrl":"https://doi.org/10.1109/TEM.2025.3563779","url":null,"abstract":"Electric power grids are witnessing fundamental transformations in their planning and operation paradigms, driven by the ambitious targets of sustainable and decarbonized smart grids (SGs). Grid modernization efforts have added several layers of complexity and uncertainty to the grid infrastructure and have affected the fundamental power systems planning and management models. This work adopts a systems engineering (SE) methodology to manage and optimize the grid architecture and maximize its structure flexibility to manage the increasing complexity and uncertainty of modern power grids. We develop a numerical framework that leverages the design structure matrix (DSM) tool to quantify the system-wide impacts of adopting promising emerging technologies based on their readiness levels and grid modernization efforts and evaluate their system integration risks. Using the delta DSM, we propose a technology infusion index metric to assess the risk-importance trade-off for SG upgrades on the overall grid structure. The results demonstrate that the impacts on the system differ significantly from the maturity assessments of individual technologies, which often overlook the necessity of function coordination. The developed SE approach offers valuable insights for power system planners and policymakers, equipping them with a strategic and quantifiable framework to prioritize grid investments and optimize overall grid benefits.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1892-1908"},"PeriodicalIF":4.6,"publicationDate":"2025-04-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144131664","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Enhancing Retail Inventory Replenishment Amid Product Life Cycle Shifts: A System Dynamics Approach","authors":"Ankit Rohilla;Tanmoy Kundu;Rohit Kapoor;Jiuh-Biing Sheu","doi":"10.1109/TEM.2025.3564210","DOIUrl":"https://doi.org/10.1109/TEM.2025.3564210","url":null,"abstract":"Introducing a new product into a retail assortment presents significant challenges for inventory planning, particularly when an existing product is nearing the end of its life cycle. These challenges are amplified by fluctuating daily demand and the need for optimal replenishment strategies. Our study addresses these challenges through a system dynamics modeling approach that simulates the impact of new product demand patterns on inventory decisions. By examining the interplay between new and existing product demands, the model highlights the critical importance of setting a minimum demand threshold to prevent premature phase-out and mitigate stockouts. The analysis also emphasizes the need to incorporate substitution effects into inventory planning frameworks to enhance decision-making and develop robust management systems. Additionally, our research explores how demand patterns for newly introduced competing products can determine whether an existing product is phased out early or retained for an extended period. The study reveals that assortment choices are more intricate for competing products characterized by fluctuating demand patterns. The study also highlights the role of safety stock adjustments, review periods, and demand forecasting time windows to mitigate stockouts and reduce lost sales. Using empirical data from a fashion retailer, the simulations yield actionable insights, emphasizing the need for accurate demand forecasting and effective replenishment strategies. More importantly, this work offers practical guidance for retail operations managers to optimize product assortment timelines and manage safety stock levels to reduce lost sales and improve inventory management systems.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1939-1953"},"PeriodicalIF":4.6,"publicationDate":"2025-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144130790","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Optimal Control for Unreliable Manufacturing and Remanufacturing System Under Environmental Subsidy and Overrun Penalty Mechanism","authors":"Sadok Turki;Mahdi Jemmali;Lotfi Hidri","doi":"10.1109/TEM.2025.3563834","DOIUrl":"https://doi.org/10.1109/TEM.2025.3563834","url":null,"abstract":"Because of environmental concerns, remanufacturing has become an integral process for many production companies. Most published papers dealing with manufacturing and remanufacturing systems (MRSs) overlook some industrial features. These include machine unreliability, the distinction between newly manufactured and remanufactured products, and uncertainty about the returned used products (RUPs). As a result, these models do not reflect the reality of industrial systems. This study aims to bridge the gap in research on MRSs by elaborating an optimal and dynamic control of manufacturing, remanufacturing, and recovery of RUPs. The goal is to develop a model based on manufacturing remanufacturing emissions hedging point control policy (MREHP) to adjust the production of new and remanufactured products, and recovery of RUPs according to economic and environmental thresholds. To reduce carbon emissions, a new method is proposed based on the environmental subsidy and overrun penalty mechanism (ESOPM), and that is combined with MREHP to control in parallel the MRS and generated emissions. A robust optimization algorithm is developed to determine the optimal economic and environmental thresholds in MREHP and ESOPM. A comparative study is provided to evaluate our proposed ESOPM in comparison with traditional reduction policies: carbon cap and trade (CCT) and carbon tax regulation (CTR). The obtained results reveal that machines' reliability, rate of RUPs, emissions subsidy, and carbon emissions limit have notable impacts on economic and environmental thresholds. In addition, results show that the proposed ESOPM performs higher profit than CTR and CCT while reducing emissions when the carbon price is below a certain value.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1983-2002"},"PeriodicalIF":4.6,"publicationDate":"2025-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144139950","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Aman Kumar;Amit Shankar;Abhishek Behl;Samuel Fosso Wamba
{"title":"Achieving Competitive Advantage Through Blockchain and Enterprise Metaverse Integration: The Role of Innovation Capabilities and Technostress","authors":"Aman Kumar;Amit Shankar;Abhishek Behl;Samuel Fosso Wamba","doi":"10.1109/TEM.2025.3562159","DOIUrl":"https://doi.org/10.1109/TEM.2025.3562159","url":null,"abstract":"This study examines how technology-organization-environment (TOE) factors influence innovation capability, which drives blockchain and enterprise metaverse adoption, ultimately impacting competitive advantage. This study uses the data from 258 managers to understand blockchain integration and enterprise metaverse to achieve competitive advantage. The findings of this study reveal that blockchain traceability, blockchain transparency, technology readiness, the threat of data ownership, and competitive pressure are significantly associated with innovation capability. Moreover, the findings suggest that innovation capability is positively associated with blockchain integration and enterprise metaverse adoption. Furthermore, blockchain integration is positively associated with a competitive advantage. Finally, the findings of this study reveal that technostress moderates the relationship between innovation capability and enterprise metaverse adoption. This study enriches the existing literature pertaining to blockchain, enterprise metaverse, and technology adoption. The research also enriches the TOE and innovation capability theory. Furthermore, this study will also be helpful to organizations that intend to adopt blockchain and enterprise metaverse in the future.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1760-1771"},"PeriodicalIF":4.6,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143925202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Overconfidence Impede an Innovation Chain? Implications for Investor Operations","authors":"Huamin Wu;Guo Li;Hong Zheng;Haiyong Dong","doi":"10.1109/TEM.2025.3563298","DOIUrl":"https://doi.org/10.1109/TEM.2025.3563298","url":null,"abstract":"Overconfidence is a prevalent cognitive bias and exists practically in innovation investment and operations, while it is widely acknowledged to be detrimental to innovation. This study examines an innovation chain consisting of an investor and an overconfident innovator, wherein the investor is committed to supporting the innovator with capital and resources, and the innovator is responsible for the products’ innovation and production. Specifically, we focus on three types of innovators that exsit in practice, namely, completely rational innovator, probabilistically overconfident innovator, and market-overconfident innovator. We then explore the impact of overconfidence on both the investor and innovator. We find that the innovation effort level of the innovator is not correlated with the degree of probabilistic overconfidence but increases monotonically with the degree of market overconfidence. Counterintuitively, when the degree of market overconfidence is weak, such overconfidence strengthens the incentives for both the investor and the innovator to invest and innovate; our results suggest that appropriate market overconfidence may improve the investor's profit, whereas probabilistic overconfidence consistently reduces it. Both probabilistic overconfidence and market overconfidence are detrimental to the innovator. Overall, overconfidence undermines the performance of the entire innovation chain. Furthermore, our study extends to the analysis where the investor cannot know the innovator's type, and reveals that the main results derived in the basic model still hold.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1772-1786"},"PeriodicalIF":4.6,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143949238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"From Ecosystem Orchestrators to Partners: Unraveling the Diffusion Effect of AI Adoption in Manufacturing Ecosystems","authors":"Qingyue Shi;Lei Shen","doi":"10.1109/TEM.2025.3563242","DOIUrl":"https://doi.org/10.1109/TEM.2025.3563242","url":null,"abstract":"Artificial intelligence (AI) is a key driver of innovation across industries, especially in transforming manufacturing. However, the pathways of AI diffusion in manufacturing ecosystems, especially from central orchestrators to their partners, remain underexplored. To address this gap, our study investigates AI diffusion in manufacturing ecosystems based on diffusion of innovations theory. Using social network analysis and k-means clustering on data from Chinese A-share listed firms (2008–2022), we identify and examine 173 ecosystems. We find that AI adoption by ecosystem orchestrators significantly enhances AI adoption among partners, with robustness ensured through instrumental variables method and propensity score matching. Our investigation also uncovers that financial constraint, innovation capability, and network centrality have moderating effects on AI diffusion. Moreover, AI diffusion is stronger when orchestrator and partners are in the same province and partners are nonstate-owned. This research reveals AI diffusion at ecosystem level, offering valuable insights into technological changes for ecosystem members.","PeriodicalId":55009,"journal":{"name":"IEEE Transactions on Engineering Management","volume":"72 ","pages":"1745-1759"},"PeriodicalIF":4.6,"publicationDate":"2025-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143925062","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}