Renowned Operations Management Professors Speak on Responsible Research in Operations Management

Written by Chengcheng Zhai, Vinit Tipnis, and Donggyu Jeon

Socially and Environmentally Responsible Operations Management
Jay Swaminathan, Kenan-Flagler Business School, University of North Carolina at Chapel Hill

In 2015, The United Nations adopted the Sustainable Development Goals (SDGs) to bring awareness to the economic, socio-political, and environmental issues around the world. Professor Swaminathan highlights the importance of conducting both academically rigorous and practically relevant research. He discussed several operations management research opportunities where academics can contribute to achieving the SDGs: research on carbon tax and carbon footprint reduction, renewable energy, energy distribution, and smart grid technology can reduce carbon emissions. Research on food and agriculture that covers innovative models around collaboration and sharing equipment, farming subsidies, and financial incentives can reduce food disparity in emerging countries. Healthcare research, including vaccine development and nutrition programs for malnourished children, can help achieve an inclusive healthcare system. Professor Swaminathan further highlighted the tremendous opportunity of research in business process innovation, such as community solar system, and online marketplace for social good and new technologies, such as blockchain and telemedicine.

Sustainable Energy at the Bottom of the Pyramid
Serguei Netessine, Wharton School, University of Pennsylvania

An estimated 1.5 billion people in the world live without electricity. Professor Serguei Netessine discussed three research projects that aim to bring electricity to those living without consistent light in developing countries. Professor Netessine emphasized that there is no ‘one’ bottom of the pyramid. Professor Netessine discussed three different solutions that are suitable in three tiers of the bottom of the pyramid: the very poor, the poor, and the not-so-poor. For the very poor countries, such as Rwanda, in collaboration with Nuru Energy, he conducted a large-scale field experiment to study the effectiveness of different service models that provide rechargeable lamps to households. For the poor countries such as Ghana, he discussed an ongoing field experiment that provides solar panels to households, and the associated economic and environmental impact. For the not-so-poor countries, he focused on off-grid firms who face intermittent energy production from solar panels. He studied the joint decision of investing in both solar and storage capacity. Professor Netessine ended his presentation with a discussion of the hard-to-measure benefits of having access to light such as improving health, education, crime rate, and gender equality.

Environmental Sustainability Research in Africa
Jamal El Baz, Ibn Zohr University, Morocco

While climate change affects all countries economically, it has a much more significant impact on African countries. It is estimated that by 2050, climate change will cost Africa 4.7% of its GDP. In contrast, it will cost North America only 1.1% of its GDP. Professor El Baz discussed the challenges of conducting Africa-related research such as lack of data, lack of government transparency and regulation, and the strong institutional and cultural distances. Despite these challenges, according to Professor El Baz’s literature review, environmental sustainability research has been gaining more and more attention over the years in countries such as Morocco, South Africa, and Egypt. These countries have also developed policies to encourage transition from traditional business models to more sustainable business models, which leads to more research opportunities for academics worldwide. Professor El Baz further suggested that researchers from the western countries should collaborate with scholars from African countries to alleviate the aforementioned challenges, and to develop mutually beneficial relationships that can lead to high societal impact.

Circular Economy Models
Beril Toktay, Scheller College of Business, Georgia Institute of Technology

Circular economy is an ongoing area of interest for operation management (OM) scholars. Historically, the OM community has looked at traditional economic activities which tend to be very linear-forward supply chains. We have focused our attention on making such processes as effective and efficient as possible. Now, as we delve deeper into developing sustainable businesses, the key question is, are there business models that make a dent in the problem of how resource-intensive our economy is and how much waste we’re creating at every level? Professor Beril Toktay suggests that OM scholars can study and push forward the business models that can creatively and competitively use new and more innovative technologies that would bring feasible sustainable practices and expand the business model to be inclusive of circular economy practices. She also suggests three opportunities in unlocking circular economy values: (i) opportunities for incumbents to be more proactive in the space, (ii) opportunities for disruptors coming in and creating some serious competition for incumbents, and (iii) opportunities for platform and service providers. Underlying these three, there is also an opportunity for policy enablers. Based on these opportunities, Professor Toktay illustrates some of the examples that were addressed in past OM papers or could be addressed in future research: proactive channel and price optimization; align salesforce and other divisional incentives; align the business model; extend product life through non-profit partnerships; collaborate to build infrastructure and create markets; and respond to evolving regulations, among others.

 

Chengcheng Zhai, Vinit Tipnis, and Donggyu Jeon are doctoral students at the Kelley School of Business.