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Book part
Publication date: 11 December 2023

David J. Teece and Henry J. Kahwaty

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is…

Abstract

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is critical to assess their impacts on individual markets, the digital sector, and the overall European economy. The European Commission (EC) released an Impact Assessment in support of the DMA that purports to evaluate it using cost/benefit analysis.

An economic evaluation of the DMA should consider its full impacts on dynamic competition. The Impact Assessment neither assesses the DMA's impact on dynamic competition in the digital economy nor evaluates the impacts of specific DMA prohibitions and obligations. Instead, it considers benefits in general and largely ignores costs. We study its benefit assessments and find they are based on highly inappropriate methodologies and assumptions. A cost/benefit study using inappropriate methodologies and largely ignoring costs cannot provide a sound policy assessment.

Instead of promoting dynamic competition between platforms, the DMA will likely reinforce existing market structures, ossify market boundaries, and stunt European innovation. The DMA is likely to chill R&D by encouraging free riding on the investments of others, which discourages making those investments. Avoiding harm to innovation is critical because innovation delivers large, positive spillover benefits, driving increases in productivity, employment, wages, and prosperity.

The DMA prioritizes static over dynamic competition, with the potential to harm the European economy. Given this, the Impact Assessment does not demonstrate that the DMA will be beneficial overall, and its implementation must be carefully tailored to alleviate or lessen its potential to harm Europe’s economic performance.

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Open Access
Article
Publication date: 5 July 2023

Javad Rajabalizadeh

While existing research explores the impact of audit market competition on audit fees and audit quality, there is limited investigation into how competition in the audit market…

1484

Abstract

Purpose

While existing research explores the impact of audit market competition on audit fees and audit quality, there is limited investigation into how competition in the audit market influences auditors' writing style. This study examines the relationship between audit market competition and the readability of audit reports in Iran, where competition is particularly intense, especially among private audit firms.

Design/methodology/approach

The sample comprises 1,050 firm-year observations in Iran from 2012 to 2018. Readability measures, including the Fog index, Flesch-Reading-Ease (FRE) and Simple Measure of Gobbledygook (SMOG), are employed to assess the readability of auditors' reports. The Herfindahl–Hirschman Index (HHI) is utilized to measure audit market competition, with lower index values indicating higher auditor competition. The concentration measure is multiplied by −1 to obtain the competition measure (AudComp). Alternative readability measures, such as the Flesch–Kincaid (FK) and Automated Readability Index (ARI) are used in additional robustness tests. Data on textual features of audit reports, auditor characteristics and other control variables are manually collected from annual reports of firms listed on the Tehran Stock Exchange (TSE).

Findings

The regression analysis results indicate a significant and positive association between audit market competition and audit report readability. Furthermore, a stronger positive and significant association is observed among private audit firms, where competition is more intense compared to state audit firms. These findings remain robust when using alternative readability measures and other sensitivity checks. Additional analysis reveals that the positive effect of competition on audit report readability is more pronounced in situations where the auditor remains unchanged and the audit market size is small.

Originality/value

This paper expands the existing literature by examining the impact of audit market competition on audit report readability. It focuses on a unique audit market (Iran), where competition among audit firms is more intense than in developed countries due to the liberalization of the Iranian audit market in 2001 and the establishment of numerous private audit firms.

Details

Asian Review of Accounting, vol. 32 no. 1
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 14 March 2023

Liubin Lai and Yunsheng Zhang

The purpose of this study is to investigate whether repeated alliances between two members of a patent pool boost enterprise innovation. Furthermore, this paper intends to…

Abstract

Purpose

The purpose of this study is to investigate whether repeated alliances between two members of a patent pool boost enterprise innovation. Furthermore, this paper intends to determine whether the innovation performance becomes higher or lower based on the partnership characteristics.

Design/methodology/approach

In this empirical study, hierarchical regression is used to analyze the longitudinal data obtained from 12 patent pools managed by MPEG LA during a time period ranging from 2006 to 2018. The members of patent pools comprise research institutions, firms and universities. Research analyses are performed based on a sample of 68,400 member pairs who had established repeated alliances. The information regarding such pairs is gathered from public databases.

Findings

Repeated alliances positively correlate with enterprise innovation performance in patent pools; this performance is higher when the two enterprises have exploratory collaborations. Conversely, the performance is lower when the partners have a similar technology base and are engaged in a technological competition (competitive learning and patent litigation). Moreover, the performance is lower when one partner demonstrates higher network centrality and richer structural holes than the other partner.

Originality/value

Patent pools play an instrumental role in eliminating patent-licensing barriers, thereby allowing mutual acquisition of complementary technologies, and cooperatively strengthening technology development. From the perspective of theories of coopetition, knowledge management and social network, this study explores the impact of patent pools on enterprise innovation performance and ascertains the moderating roles of technology coopetition, technology similarity and network position, thereby expanding the scope of innovation effect in the context of patent pools.

Details

Chinese Management Studies, vol. 18 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 9 December 2021

Anastasiia Redkina, Mariia Molodchik and Carlos Jardon

The paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is…

Abstract

Purpose

The paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.

Design/methodology/approach

The discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.

Findings

The study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.

Originality/value

The paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 23 October 2023

Max de Zoeten and Thomas Könecke

The social and economic importance esports has gained over the past decades has led to a quickly evolving academic interest in the topic. Yet, current perspectives on esports…

Abstract

Purpose

The social and economic importance esports has gained over the past decades has led to a quickly evolving academic interest in the topic. Yet, current perspectives on esports frequently are not precise enough, too context-specific and/or focus on the question whether esports is sports or not. This means that no precise structural concept has been provided thus far. Such a conceptualization as well as a categorization of esports and related types of video gaming are provided in this paper.

Design/methodology/approach

This paper is based on a narrative review considering academic literature from 2000 to 2021 and publications of relevant esports organizations. The review is conceptually extended by structural parallels to traditional sports.

Findings

The central outcome of this research is conceptualizing esports as a victory-driven, organized performance comparison of exclusively human players playing video games in a competitive setting. This comparison is based solely on the performance achieved during a defined time frame according to fixed rules with comparably equal team (starting) conditions. This conceptualization is embedded in a general categorization of video gaming based on structural similarities with and differences to esports. Moreover, characteristics that were rejected in regards to the conceptualization and the categorization are discussed.

Originality/value

This paper provides a comprehensive categorization of esports and other types of video gaming based on structural similarities and differences. It is thus of high relevance for academia and sport management practice alike and can further the development in both fields.

Details

Sport, Business and Management: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 21 March 2024

Sukarmi Sukarmi, Kukuh Tejomurti and Udin Silalahi

This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In…

Abstract

Purpose

This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In addition, the implications for the development of theories of harm are investigated to explore the necessity of a relevant market definition in assessing infringement and evaluating the adequacy of Indonesian competition law.

Design/methodology/approach

This study is a legal analysis that uses statutory approaches, cases, comparative law and the development of theories of harm in digital mergers. The case approach is conducted by analyzing three cases decided by the Indonesia Business Competition Supervisory Commission. This approach provides insight into the response of Komisi Pengawas Persaingan Usaha concerning the merger and acquisition cases in the digital era as well as the provision of different analyses in conventional markets. However, competition can be potentially damaged in digital markets and a comparative law approach is taken by analyzing digital merger cases decided by authorities in other countries.

Findings

Results reveal that the digital market has created a “relevant market” that is challenging and blurred due to multi-sided network effects and consumer data usage characteristics. Platform-based enterprises’ prices fluctuate due to the digital market’s network effect and consumer data statistics. Smartphone prices depend on the number of apps and consumer data. Neoclassical theory focusing on product markets and location applied in Indonesia must be revised to establish a relevant digital economy market. To evaluate digital mergers, new harm theories are needed. The merger should also protect consumer data. Law Number 27 of 2022 on Personal Data Protection and Government Regulation on the Implementation of Electronic Systems and Transactions protects online consumers, a basic step in due diligence for digital mergers. The Indonesian Government should promptly strengthen the notion of “relevant markets” in the digital economy, which could lead to fair business competition violations like big data control. Notify partners or digital merger participants of the accessibility of sensitive data like transaction history and user location.

Originality/value

The development of digital market characteristics has implications for developing theories of harm in digital markets. Indonesian competition law needs to develop such theories of harm to analyze the potential for anticompetitive digital mergers in the digital economy era.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 9 December 2022

Mohammad Mahdi Vali-Siar and Emad Roghanian

This study addresses resilient mixed supply chain network design (SCND) and aims to minimize the expected total cost of the supply chain (SC) considering disruptions. The capacity…

Abstract

Purpose

This study addresses resilient mixed supply chain network design (SCND) and aims to minimize the expected total cost of the supply chain (SC) considering disruptions. The capacity of facilities is considered uncertain. In order to get closer to real-world situations, competition between SCs is considered.

Design/methodology/approach

A two-stage stochastic programming model is developed for designing the SC network. The location of facilities and selection of suppliers are considered first-stage decisions, and the determination of materials and products flows are second-stage decisions. Some resilience strategies are applied to mitigate the negative impacts of disruptions.

Findings

The results indicate that considering resilience and applying the related strategies are vitally important, and resilience strategies can significantly improve the SC objective and maintain market share. Also, it is confirmed that unrealistic decisions will be made without considering the competition.

Originality/value

This study contributes to the literature by proposing a novel mathematical model for the resilient mixed SCND problem. The other contribution is considering the chain-to-chain competition in collecting returned products and selling recycled products to other SCs in a mixed SC under disruptions. Also, a novel hybrid metaheuristic is developed to cope with the complexity of the model.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Book part
Publication date: 24 October 2023

Ella Mae Matsumura, Tyler Thomas and Dimitri Yatsenko

Organizations desire more accurate cost systems as competition increases, and consequently increase cost system complexity, as cost systems with greater complexity are potentially…

Abstract

Organizations desire more accurate cost systems as competition increases, and consequently increase cost system complexity, as cost systems with greater complexity are potentially more accurate than simpler systems. However, even complex systems are prone to impactful inaccuracies, for example, due to design or calculation issues, that can adversely affect decision-making and firm performance. The authors investigate whether and the extent to which cost system complexity and competition decrease managers’ attribution of cost-system-driven adverse firm effects to the cost system. The authors find greater cost system complexity (by inspiring greater confidence in the cost system) and higher competition (by providing a plausible external cause) decrease managers’ attribution of cost-system-driven adverse firm effects to the cost system. With both greater cost system complexity and higher competition, managers observing signals of material cost inaccuracies are potentially the least likely to attribute cost-system-driven adverse firm effects to the cost system.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-83753-917-8

Keywords

Open Access
Article
Publication date: 28 April 2023

Paolo Landoni, Simone Franzò, Davide Viglialoro, Alessandro Laspia and Roberto Verganti

This paper aims to provide a comprehensive view of the different competition-based approaches that policymakers can exploit to foster external knowledge search and their…

53231

Abstract

Purpose

This paper aims to provide a comprehensive view of the different competition-based approaches that policymakers can exploit to foster external knowledge search and their positioning among innovation policy measures. A growing number of companies have implemented initiatives to access external knowledge to increase their innovativeness, consistently with the open innovation paradigm. Competition-based approaches have received increasing attention by the private sector as a way to access external knowledge. However, despite their potential role as innovation policy measures, a limited attention has been devoted so far to investigate them from the policymakers’ perspective.

Design/methodology/approach

To this aim, a two-stage empirical analysis has been carried out to develop a taxonomy of competition-based approaches. The first stage leveraged a multiple case study methodology including a sample of 20 competition-based approaches, while the second one leveraged interviews with Italian and European key informants.

Findings

This paper proposes a novel taxonomy including eight competition-based approaches, which differ among each other in terms of policy strategy, scope breadth and output required. Moreover, this paper enriches a well-established taxonomy of innovation policy instruments with the identified competition-based approaches.

Originality/value

This study contributes to the current debate on innovation policy by providing a taxonomy that includes eight competition-based approaches that can be exploited by policymakers to foster external knowledge search as well as their positioning among the innovation policy instruments. The taxonomy will hopefully support policymakers in identifying of the most suitable instruments in the light of their policy strategy and objectives.

Details

Journal of Knowledge Management, vol. 27 no. 11
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 5 September 2023

Jingbin Wang, Xinyan Yao and Xuechang Zhu

This study aims to demonstrate the simultaneous effects between inventory leanness and product innovation, with market concentration being a moderator.

Abstract

Purpose

This study aims to demonstrate the simultaneous effects between inventory leanness and product innovation, with market concentration being a moderator.

Design/methodology/approach

Using a large panel data collected from 3071 listed manufacturing enterprises from 2004 to 2021, this research employs a simultaneous system of equations via the three-stage least square method to explore the simultaneous relationship between inventory leanness and product innovation. In addition, the moderating role of market concentration is demonstrated via one four-model system.

Findings

As its core, inventory leanness positively impacts product innovation, while product innovation negatively affects inventory leanness. Moreover, there are differential impacts of the leanness of three inventory types on product innovation. Specifically, the inventory leanness of raw material negatively affects product innovation, while the inventory leanness of work-in-process and finished goods positively affect product innovation. Further, moderation analysis highlights that market concentration is a key moderator of this relationship.

Practical implications

Managers should carefully gauge the tradeoffs between inventory leanness and product innovation. Concretely, managers ought to consider the connections between inventory types and product innovation. In addition, managers are suggested to emphasis on market strategy.

Originality/value

This paper not only contributes to the current understanding of inventory leanness by verifying the impact of inventory leanness on product innovation but also investigates the simultaneous relationship between various inventory types and product innovation. Furthermore, it empirically demonstrates the moderating effect of market concentration on the relationship between inventory leanness and product innovation.

Details

Journal of Manufacturing Technology Management, vol. 34 no. 8
Type: Research Article
ISSN: 1741-038X

Keywords

1 – 10 of over 4000