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The Chinese Government has proposed the ‘Belt and Road Initiative’ (BRI) in order to increase trade flows and economic prosperity among the Belt and Road (BR) member countries. The BRI may call for enlargement of economic cooperation as manifested by forming an economic or monetary union in the long term. It is therefore essential to choose a subset of member countries that fulfils the criteria for joining the potential economic or monetary union. The validity of purchasing power parity (PPP) implies well-integrated goods markets and is a pre-condition for further economic convergence. While the presence of transaction costs causes nonlinearities in the adjustment mechanism, our empirical study applies a three-regime threshold autoregressive (TAR) cointegration method for analysis. Our results support the existence of a PPP relationship with China for 12 sampled Asian member countries. Chinese policymakers can prioritize these BR countries for closer economic cooperation. Also, this TAR cointegration method can estimate the unobservable proportional transaction costs from the thresholds. The results reveal BR countries with large thresholds as targets to curtail transaction costs of trading in order to enhance the efficiency in international goods arbitrage and the degree of trade integration along the BR routes.

Purpose The purpose of this paper is to propose an outcome-based process optimization model which can be deployed in companies to enhance their business operations, strengthening their competitiveness in the current industrial environment. To validate the approach, a case example has been included to assess the practicality and validity of this approach to be applied in actual environment. Design/methodology/approach This model embraces two approaches including: fuzzy logic for mimicking the human thinking and decision making mechanism; and data mining association rules approach for optimizing the analyzed knowledge for future decision-making as well as providing a mechanism to apply the obtained knowledge to support the improvement of different types of processes. Findings The new methodology of the proposed algorithm has been evaluated in a case study and the algorithm shows its potential to determine the primary factors that have a great effect upon the final result of the entire operation comprising a number of processes. In this case example, relevant process parameters have been identified as the important factors causing significant impact on the result of final outcome. Research limitations/implications The proposed methodology requires the dependence on human knowledge and personal experience to determine the various fuzzy regions of the processes. This can be fairly subjective and even biased. As such, it is advisable that the development of artificial intelligence techniques to support automatic machine learning to derive the fuzzy sets should be promoted to provide more reliable results. Originality/value Recent study on the relevant topics indicates that an intelligent process optimization approach, which is able to interact seamlessly with the knowledge-based system and extract useful information for process improvement, is still seen as an area that requires more study and investigation. In this research, the process optimization system with an effective process mining algorithm embedded for supporting knowledge discovery is proposed for use to achieve better quality control.

This article examines the price convergence of beverage products within Australia in order to assess the efficacy of intranational cross-border movements of products under the Australia’s Mutual Recognition Agreement. Since the cointegrating relationship between product prices may not be exact or linear, we adopt the rank tests for analysis which do not require prior knowledge and specification of the linear or nonlinear functional form. Our results validate the price convergence of all beverage products within Australia, with the exception of a few regions in the milk market. Furthermore, a subset of the cointegration relationships exhibits nonlinear long-run price co-movements.

High market concentration in the Hong Kong grocery industry has been prevalent over many years with the domination of a few large supermarket chains. However, no research has been conducted on the price dynamics between the supermarket and non-supermarket sectors to investigate whether the non-supermarket sector can impose competitive discipline on the dominating supermarket chains. We argue that standard cointegration tests cannot allow for transaction costs and distinguish whether the price co-movement is attributable to price competition or collusion. Our study therefore fills this research gap by adopting the threshold cointegration tests in a three-regime threshold vector error-correction model to account for the asymmetric price adjustment dynamics between supermarket and non-supermarket sectors of Hong Kong and evaluate the market power of the supermarket sectors in the presence of transaction costs. Our results favour the presence of cointegration between the supermarket and non-supermarke...

Manufacturers and wholesalers are increasingly cost conscious in response to today’s hyper-competitive environment. Lateral transshipment (LT) has been proposed as a viable solution to drive total inventory costs down whilst increasing customer service level. Our study proposes five LT decision rules with a case-based roadmap to guide professional inventory management. Results of this large fast moving consumer goods case study company demonstrate superior inventory management performance with implementing a combined reactive and proactive LT strategy to determine whether to transship emergency stock from other warehouse or to backorder from suppliers, size of transshipment, favorite wholesaler, preferred supplier, and extra quantity for preventive LT, which are the key LT decision points among the professional supply chain management practitioners.

Purpose The purpose of this paper is to understand the impact of transformational leadership (TL) on follower emotional intelligence (EI) and examine the potential mediation role played by follower EI in the relationship between TL and follower outcomes (i.e. growth satisfaction in the job and job stress (JS)). Design/methodology/approach Data were obtained through survey using questionnaire collected from 908 employees who worked across six different sectors, i.e. manufacturing, IT, healthcare, hospitality, educational and public services in Southern India. The mediation model proposed in this study was tested using structural equation modelling and bootstrapping method. Findings The relationship between TL and Follower EI was significant. Follower EI was found to partially mediate the relationship between TL and followers’ growth satisfaction in job. Contrary to expectations, the follower EI did not significantly predict JS in this study and hence the follower EI did not mediate in the proposed model. However, follower EI and growth satisfaction in the job jointly mediated the relationship between TL and follower JS fully. Research limitations/implications Self-report bias about supervisors’ TL behaviours and followers’ own EI assessment and collection of data from the mono-source (subordinate self-report) might have impacted the results of this study. Moreover, some items were negatively worded and reverse coded as cognitive speed bumps to restrain the respondent’s tendency to rush through answering the survey questionnaire. Practical implications This study established a partial and joint mediation of follower EI on the relationship between TL and follower outcomes. Basing on these findings, this study highlights the need for the practitioners to better understand the importance of EI training for the leaders in the organisations for obtaining better outcomes in the followers. Social implications The study establishes the fact that the attunement of transformational leaders’ EI and follower EI help leaders as well as followers to guide their behaviour towards positive outcomes. Originality/value This study is among the first to examine the impact of TL on follower EI and the potential mediation of follower EI between TL and follower outcomes. From a theoretical perspective, this study is one step closer to fully understand the intervening process between TL and follower outcomes.

Sourcing organic food products from global green supply chains (GGSCs) spreads across country borders and interacting among a wide spectrum of intermediary stakeholders, which adds complexity and incentivises profit-seeking stakeholders to engage in food adulteration. This phenomenon is frequently observed among green and organic products with credence attributes that are difficult to authenticate in both the prior- and post-purchase stages in both developed and developing countries. The case study that we investigate is a small-sized supermarket chain operator in Hong Kong, with an increasingly expanding range of organic food products. Whilst there is a proven set of hybrid multi-criterion decision making (MCDM) methods and model that have been implemented successfully in Australia, unfortunately, unable to assure total success in optimizing the selection of organic food suppliers when applying to this supermarket chain in Hong Kong. Even the obvious solution of certification and product labeling is not sufficient to solve this organic food credibility problem. Our study proposes a newly discovered criterion as postulated by the game theoretic framework, offering a more optimal and authentic solution to the organic food authentication problem. Apart from adopting the mixed strategy of random monitoring, fines should be imposed to penalise dishonest suppliers, instead of awarding bonuses to suppliers operating with integrity. An even better solution is to institutionalise these control mechanisms by the governing authorities with continuous monitoring and imposition of penalties.