 Operations–finance interface models: A literature review and frameworkLima Zhao and Arnd Huchzermeier European Journal of Operational Research, 2015, vol. 244, issue 3, 905-917 Abstract: Operations management aims to match the supply with demand of material flows, whereas corporate finance seeks to match the supply with demand of monetary flows. These two supply–demand matching processes are connected by real investment and revenue management in a “closed-loop” of resources. We propose a risk management framework for multidimensional integration of operations–finance interface models. Ten aspects are examined to specify conditions under which firms should integrate operations and finance. We present categorizations of operational hedging and financial flexibility. By linking relationship analysis (complements or substitutes) and approach choice (centralization or decentralization) of integrated risk management, we find that: (i) Zero interaction effects between operations and finance lead to decentralization. (ii) Operations and finance should be centralized even if they are partial substitutes. Keywords: Operations–finance interface; Supply chain management; Operational hedging; Financial flexibility; Risk management (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:244:y:2015:i:3:p:905-917 DOI: 10.1016/j.ejor.2015.02.015 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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