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1 – 10 of 51
Open Access
Article
Publication date: 23 May 2023

Alexandre Teixeira Dias, Henrique Cordeiro Martins, Valdeci Ferreira Santos, Pedro Verga Matos and Greiciele Macedo Morais

This research aims to identify the optimal configuration of investment which leads firms to their best competitive positions, considering the degree of concentration in the market.

Abstract

Purpose

This research aims to identify the optimal configuration of investment which leads firms to their best competitive positions, considering the degree of concentration in the market.

Design/methodology/approach

The methodology was quantitative and based on secondary data with samples of 124, 106 and 90 firms from competitive environment classified as perfect competition, monopolistic competition and oligopoly, respectively. Proposed models' parameters were estimated by means of genetic algorithms.

Findings

Adjustments on firm's investment are contingent on the degree of competition they face. Results are in line with existing academic research affirmation that the purpose of investments is to create and exploit opportunities for positive economic rents and that investments allow firms to protect from rivals' competitive actions and reinforce the need for investment decision makers to consider the environment in which the firm is competing, when defining the amount of investment that must be done to achieve and maintain a favorable competitive advantage position.

Originality/value

This research brings two main original contributions. The first one is the identification of the optimal amount of capital and R&D investments which leads firms to their best competitive positions, contingent to the degree of concentration of the competitive environment in which they operate, and the size of the firm. The second one is related to the use of genetic algorithms to estimate optimization models that considers the three competitive environments studied (perfect competition, monopolistic competition and oligopoly) and the investment variables in the linear and quadratic forms.

Details

European Journal of Management and Business Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 4 September 2017

Baowen Sun, Wenjun Jing, Xuankai Zhao and Yi He

This paper aims to clear whether the monopoly structure of the internet industry has produced market power and discussed the welfare change of the internet industry monopoly.

15348

Abstract

Purpose

This paper aims to clear whether the monopoly structure of the internet industry has produced market power and discussed the welfare change of the internet industry monopoly.

Design/methodology/approach

By using new empirical industrial organization methods and taking the e-commerce market as an example, the authors measured market power and economies of scale of the internet platform companies.

Findings

Internet platform enterprises have formed scale economy, but it has not had market power, and the industry still maintains high levels of competition; also, the emergence of large enterprises may increase the welfare of consumers.

Originality/value

The conclusion of this paper clarified actual competition status of internet industry and provided a new foothold for regulation and ideas for the traditional industry to crack the Marshall Conflict.

Details

International Journal of Crowd Science, vol. 1 no. 3
Type: Research Article
ISSN: 2398-7294

Keywords

Open Access
Book part
Publication date: 17 August 2021

Mike Hynes

Abstract

Details

The Social, Cultural and Environmental Costs of Hyper-Connectivity: Sleeping Through the Revolution
Type: Book
ISBN: 978-1-83909-976-2

Open Access
Article
Publication date: 27 March 2023

Massimo Ruberti

This study explores the motivations underlying the European Super League (SL) breakaway attempt. While institutional settings bind football to tradition, investors conceive…

2363

Abstract

Purpose

This study explores the motivations underlying the European Super League (SL) breakaway attempt. While institutional settings bind football to tradition, investors conceive football companies as an opportunity to diversify their investments in a fast-growing technological industry. The study investigates the market structure and identifies the reasons behind the European football crisis, proposing to modify the role of Union of European Football Associations (UEFA) in the European football market.

Design/methodology/approach

After summarizing the unusual features of the European football market, the article displays the agents involved and their interrelations. Modeling the market facilitates picturing the misalignment of targets of regulatory bodies and football clubs. It also helps visualize the potential consequences of the SL coup on the market.

Findings

The market does not allow football companies to monetize their business and compete with other entertainment sectors. Only a radical change in the balance of power between clubs and self-interested institutional settings can settle this situation. Indeed, this relation leads to market inefficiency because the two most critical clubs' financial problems (the high dependence on broadcasting revenues and the uncontrolled expenditures on players' salaries) are linked to the same issue: the governing bodies strongly influence the profit equation by holding control of media rights and incentivizing clubs to overspend to win both on-field and off-field.

Originality/value

This study is the first to assess the football business market using an evolutionary approach to address its problems. It offers a visualizing tool to understand the market and proposes an alternative solution for solving the football market crisis.

Details

Accounting, Auditing & Accountability Journal, vol. 37 no. 2
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 3 November 2022

Wenlong Han

To realise the shared development of the digital economy, people need to transcend the capital logic and advocate the logic of cooperative development, i.e. “co-construction…

Abstract

Purpose

To realise the shared development of the digital economy, people need to transcend the capital logic and advocate the logic of cooperative development, i.e. “co-construction, benefit-sharing and co-governance”. This study aims to discuss the aforementioned statement.

Design/methodology/approach

Platform economy is a new economic form produced by the transformation of the social production patterns in the era of digital capitalism. In the neo-imperialist stage, a new stage of capitalist development, capital logic promotes the global expansion of the platform economy and influences its development process, organisational form, contradictions and dilemmas and internal transcendence. Having the spatiotemporal chain of capital circulation repaired, the globalisation of the platform economy is reshaping how the means of production are combined with labour, affecting the local changes in the general relations of production and “international relations of production”.

Findings

In the accumulation of digital capitalism, the social contradictions and fundamental contradictions in the capitalist world have been further intensified, making exploitation, income distribution gap, monopoly and other problems increasingly severe. The imbalance and inequality in the global development of the digital economy are increasingly prominent.

Originality/value

Regarding the global governance of the digital economy, China, as a major responsible country, will strive to encourage all countries to co-build a community with a shared future in cyberspace. In the new international development pattern of digital economy globalisation, China must take effective measures to actively safeguard its national security and development interests to meet specific challenges.

Details

China Political Economy, vol. 5 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 28 December 2020

Roberto Grandinetti

Variation, replication and selection processes are acknowledged as key constructs in studies on how industries evolve, but no theoretical and empirical contributions have applied…

Abstract

Purpose

Variation, replication and selection processes are acknowledged as key constructs in studies on how industries evolve, but no theoretical and empirical contributions have applied these key constructs to analyzing industries in specific stages of their history. This paper aims to fill this gap, taking for reference the firm and its strategic action in particular.

Design/methodology/approach

After delineating and discussing the three processes of interest – variation, replication and selection – this paper analyzes three very different evolutionary contexts: “red” industries, that reached maturity maintaining a polypolistic structure, and that continue to evolve in this phase; the oligopolistic transformation undergone by certain industries; and the emergence of new market spaces around new products developed by firms.

Findings

Variations are mainly reactions to the competitive environment in the evolution of red industries or environment-modifying in the case of industries evolving toward an oligopoly, and in the creation of new market spaces. Horizontal replication through employee mobility prevails in red industries, while in the other two contexts firms driving the evolution raise barriers to replication, inhibiting both horizontal and vertical replication. While selection does not come about in a new market space as long as the barriers erected by the first comer remain in place, it occurs in the form of subset selection in the other two settings.

Originality/value

This paper takes an entirely novel approach and proposes a pluralist framing of how industries evolve, interpreting the different evolutionary situations on the strength of the key variables of variation, replication and selection.

Details

International Journal of Organizational Analysis, vol. 29 no. 5
Type: Research Article
ISSN: 1934-8835

Keywords

Open Access
Article
Publication date: 10 October 2022

Wenjun Jing, Xuan Liu, Linlin Wang and Yi He

Aiming at the lack of explanatory power of traditional industrial organization theory in cross-border competition, by introducing the idea of ecological niche, the authors aim to…

Abstract

Purpose

Aiming at the lack of explanatory power of traditional industrial organization theory in cross-border competition, by introducing the idea of ecological niche, the authors aim to explore the competitive situation of platform-based enterprises when they operate in multiple fields.

Design/methodology/approach

With the help of ecological niche theory, construct the niche width and niche overlap index of typical enterprises in the platform economy, and find out the advantages and the intensity of competition through comparative analysis.

Findings

In an environment of cross-border competition, large enterprises have significant competitive advantages, and the fierce competition is concentrated among medium-sized enterprises.

Originality/value

The conclusions of this paper not only provide new insights for explaining the phenomenon of cross-border competition in the platform economy, but also provide theoretical reference for the anti-trust enforcement practice in the platform economy.

Details

Journal of Internet and Digital Economics, vol. 2 no. 2
Type: Research Article
ISSN: 2752-6356

Keywords

Open Access
Article
Publication date: 31 March 2021

Arsalan Ahmed, Qi Jian Hong and Hassan Tahir

The study performs an empirical test to assess the impact of the Pakistan-China Free trade agreement (FTA) on Pakistan, China, and the World's exports under homogenous and…

Abstract

The study performs an empirical test to assess the impact of the Pakistan-China Free trade agreement (FTA) on Pakistan, China, and the World's exports under homogenous and differentiated products. This study employs the modeling with Poisson specification with Poisson Pseudo-Maximum Likelihood method for the estimations. The results of empirical test show that the effect of FTA on the FTA and Non-FTA countries is greater in the differentiated product as compared to the homogenous product. Therefore, one of the most important policy implications provided by this study is that export enterprises need to concentrate on differentiated products as compare to the homogenous products after the implementation of the Pakistan-China FTA. Moreover, the previous literature concluded that Pakistan-China FTA was more beneficial for China as compared to Pakistan. However, according to this study, if Pakistani enterprises focus more on differentiated products as compared to homogenous products, then it will be equally beneficial for both Chinese and Pakistani enterprises. This study will contribute to the literature by considering the Bertrand competition between asymmetric countries and find out the effect of the FTA on these three countries. It considers China, Pakistan, and the Rest of the World as first, second, and third countries.

Details

Journal of International Logistics and Trade, vol. 19 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 9 February 2021

Mathew Abraham and Prabhu Pingali

This paper aims to understand the significant farm and market-level factors that incentivize the adoption and marketing of pulses influencing its supply response to changing…

6138

Abstract

Purpose

This paper aims to understand the significant farm and market-level factors that incentivize the adoption and marketing of pulses influencing its supply response to changing demand.

Design/methodology/approach

The authors first use a modified Nerlovian supply response model using secondary data to identify the major price and non-price factors influencing the supply of pigeon pea, black and green gram in the major pulses growing states in India. Second, using primary qualitative data the authors map the pulses value chain from farm to retail to identify the how proportional and fixed transaction costs (FCTs) influence market participation of pulses growers and limit the transmission of price and quality information.

Findings

The supply response model shows some positive influence of price on area allocation for pigeon pea and black gram and some negative effects of yield and price increase of competing crops on pigeon pea acreage. However, for the most part, the area of Kharif pulses is inelastic to prices in the long run. Irrigation, rainfall and yields in the lag year are shown to have a significant influence on area allocation for pulses. The market study reveals that low yields, low landholding size and geographical disadvantages of high agro-climatic risk and poor connectivity hinder market access of pulses farmers relative to other crops. Market power in favor of buyers and poor price and quality information is a disadvantage to sellers, influencing their ability to participate in markets.

Research limitations/implications

A quantitative study would be required to identify the magnitude of farm and market-level transaction costs.

Originality/value

This study helps to understand the supply response of pulses and gives suggestions to direct policy to rectify this.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 11 no. 4
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 10 June 2020

Javier Solano, Segundo Camino-Mogro and Grace Armijos-Bravo

Banks are institutions that inject money in the economy and help to boost it when there are problems in some markets, especially in productive sectors. In this way, analysing the…

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Abstract

Purpose

Banks are institutions that inject money in the economy and help to boost it when there are problems in some markets, especially in productive sectors. In this way, analysing the competition in this sector is an important tool for policymakers as non-competitive behaviour could affect the financial system and economy. The purpose of this paper is to measure the degree of competition in the Ecuadorian private banking sector divided by size, from 2000 to 2015, using panel data collected by the official regulator institution.

Design/methodology/approach

The authors applied the model proposed by Panzar and Rosse (1987) and its H-statistic using a reduced price and revenue equation estimated by pooled ordinary least squares, fixed effects, random effects, feasible generalised fixed effects and panel correction standard errors (PCSE).

Findings

The authors show that given the presence of some problems in data such as heteroskedasticity and autocorrelation, the most appropriate technique is PCSE. The authors also found robust evidence supporting that large banks compete in a monopolistic market, small and medium-sized banks operate in monopolistic competition, and Ecuadorian small, medium-sized and large banks stay in long-run equilibrium.

Originality/value

This paper contributes to the actual literature of competition degree in two ways. First, different from traditional papers, we do not control by size; so, we divided the analysis by size, because in Ecuador and also in many developing countries, bank’s competition is different for each group of size because the levels of liquidity, risk and other indicators are different from one group to another. Second, we show the robustness of the results using a scaled and unscaled equation, using many controls and using five methods to contrast the competition degree.

Details

Journal of Economics, Finance and Administrative Science, vol. 25 no. 50
Type: Research Article
ISSN: 2077-1886

Keywords

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