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This study aims to investigate earnings management practice of classification shifting of revenues in Chinese-listed firms.

The study employs a dataset of 2,920 A-listed firms from Chinese stock exchanges of Shanghai and Shenzhen for the period of 2003–2019. We apply both univariate and panel regression analysis by using fixed effect estimation with robust standard errors.

Our findings reveal that firms misclassify revenues by taking advantage of the flexibility provided by applicable financial reporting standards. The empirical evidence obtained through regression analysis suggest that managers reclassify non-operating revenues as operating revenue to alter the economic reality while seeking the advantage of financial reports users’ vulnerability for valuing the upper half of income statement items more as compared to lower part. The results further indicate that international financial reporting standards adoption inhibits the earnings management practices using classification shifting of revenues. It is also concluded that firms, which are suffering losses or having low growth, are more persistently involved in misclassification of revenues.

The study is unique from the point of view that it investigates earnings management from the prospective of revenue’s classification in an emerging market characterized by various market imperfections such as lower investor protection and higher information asymmetry.

Due to the cross-network effect, two-sided users communicate with each other, producing a coupling network. To study the spread of platform self-operation in two-sided users' marketing and purchasing tactics, this paper considers the differences in reputation acquired by platform-owned and third-party operating channels.

This study proposes a two-layer network with cross-network links: one layer represents the social network of consumers, while the other layer represents the competitive network of buyers. A closed system of differential equations, based on the binary dynamics of the stochastic network, is developed to study the trend and stability points of the platform self-operation dissemination. Then the overall benefits of platform are analyzed to unify the platform diffusion and pricing strategies.

The degree of difference in social influence and cross-network effects affect diffusion synergistically. Cross-network effects hinder diffusion when there is a significant difference of social influence between consumers and sellers but promote diffusion when there is little difference of social influence between consumers and sellers. Additionally, the network weights and reputation gap exhibit a nonlinear correlation with diffusion. For pricing strategy of the platform, it can achieve maximum profit when the pricing of self-operated goods and third-party-operated goods is equal.

This study considers the complex network architecture created by bilateral markets and the dynamic influence of group interactions on product. Additionally, this study takes reputation into account when considering the price and dissemination tactics of various operating channels, offering guidelines for platforms to control merchants and mediate disputes between various operating channels.

In 2007, Best Buy was the leading electronics retailer in the United States with more than 941 stores, revenue totaling $31 billion, and a market cap of $21 billion. In 2005, Best Buy had adopted a new business model, culture, and customer-segmentation template called Customer Centricity. This move created volatility in the price of Best Buy stock because of the higher-than-expected employee costs that went with this new way of doing business and the difficulty of executing the old and the new business models simultaneously while the new model was rolled out. Best Buy responded to Wall Street's short-term focus in a myriad of ways. It first asked for investor patience, and stressed the strong operating results achieved in Best Buy stores operating under the new model. But in June 2007, after the stock dropped again, the CEO knew he had to decide whether to open more Best Buy stores, increase the company's dividend, or increase the stock-repurchase program.

The paper aims to provide empirical evidence of the impact of IFRS adoption on the value relevance of accounting information in the emerging market of Saudi Arabia.

The sample consists of 98 non-financial listed firms operating in Saudi Arabia from 2014 to 2019, representing the years before and after IFRS adoption. The authors apply basic and extended price models to examine the value relevance of select accounting figures.

The authors findings provide evidence that accounting information is, generally, value relevant to the Saudi Arabian capital market. However, mixed results exist for particular accounting variables. Both earnings and cash flows are value-relevant in the period before and after IFRS adoption; equity is only relevant in the post-adoption period. Furthermore, IFRS adoption also increases the explanatory power of earnings. An increase in the value relevance of earnings and equity hurts the value relevance of cash flows. The effects are moderated by leverage and dividend policy.

The authors contribute to the ongoing discussion of the economic effects of IFRS adoption in emerging markets. The empirical findings show that initial concerns about IFRS adoption, as reflected by the negative coefficient within the regression analysis, are mitigated once the usefulness of the individual accounting variables published in financial statements is investigated.

The purpose of this study is to match appropriate friction coefficients for subway operational vehicles, considering the dynamic variations of wheel profile wear.

This study combines experimental testing and numerical simulation to investigate the influence of wheel profile wear coupled with the friction coefficient on the vehicle dynamic response.

For the test route in this paper, it is recommended to control the friction coefficient on straight sections between 0.25 and 0.3, and on curved sections between 0.2 and 0.3. This satisfies the required adhesion coefficient for normal train traction and braking, while also ensuring the straight running performance and curve negotiation performance of the vehicle.

Reasonable friction coefficient ranges are proposed for straight and curved track lines to improve the operational safety and economy of the vehicles. Moreover, this study can provide a theoretical basis and reference direction for developing anti-wear measures for rail vehicles operating on fixed routes.

Considering the wear characteristics of operating vehicles and the dynamic changes in the wear profile, this paper explores the adaptability of different degrees of wheel wear profiles to different friction coefficients. Based on the response characteristics of vehicle dynamics, reasonable lubrication recommendations are proposed for this operating vehicle.

The logistics industry has undergone a tremendous transformation. This transformation is necessary to cope with the fundamental changes in customer expectations and the need for digitalization imposed by the pandemic, changes in the socioeconomic world, and innovative technology solutions. This paper aims to present digital transformation as an integrated framework for transforming the operating model and applying advanced solutions to the ecosystem of a quintile logistics (5PL) company. 5PL operators are typically an ecosystem. Loosely coupled or self-organized entities that collaborate in a symbiotic relationship represent this ecosystem. They aim to jointly develop capabilities, create innovative services or solutions, share knowledge, facilitate transactions, and leverage network synergies in a logistics environment to provide optimized or novel customer- or partner-centric solutions (Lamberjohann and Otto, 2020).

Currently, there is no single definition of an integrated logistics operations model in 5PL practice, so the qualitative method used in this paper allows for investigation from an exploratory perspective. The paper follows a qualitative research methodology, collecting and analyzing data/facts through interviews and visits to subject matter experts, industry practitioners, and academic researchers, combined with an extensive review of academic publications, industry reports, and written and media content from established organizations in the marketplace. This paper follows a qualitative research methodology, as it is an inquiry rather than a statistical study. The qualitative method allows the study of the concepts of phenomena and definitions, their characteristics, and the defining features that serve as the basis (Berg, 2007). It emphasizes generalized interpretation and deeper understanding of concepts, which would be more difficult in quantitative, statistically based research. Fact-finding was conducted in two ways: in-depth interviews with experts from academia, information and communication technology organizations, and key players in the logistics industry; and academic publications, industry reports, and written and media content from established national and international organizations in the market.

The operations model introduced considers six aspects: persons, processes, platforms, partners, protection and preservation. A virtual team approach can support the personal side of the 5PL ecosystem’s digital transformation. Managing a 5PL ecosystem should be based on collaborative planning, forecasting, and replenishment methods (Parsa et al., 2020). A digital platform can support trust among the stakeholders in the ecosystem. A blockchain solution can powerfully support the 5PL ecosystem from partner relationships’ points of view. The implementation of a cybersecurity reference model is important for protection (Bandari, 2023). Reverse logistics and an integrated approach support the preservation of the ecosystem.

While the author has experience applying the different components of the operations model presented, it would be interesting to find a 5PL that would use all the components presented in an integrated way. The operations model presented applies to any similar ecosystem with minor adaptations.

This paper addresses operations models and digital transformation challenges for optimizing 5PL operators. It provides several opportunities and considerations for 5PL operators interested in improving their management and operations to cope with the growing challenges of today’s world.

The competitiveness and long-term performance of 5PL operators depend on selecting and carefully implementing their operations models. This paper emphasizes the importance of using advanced operations models.

The operations model derives from the author’s personal experiences in research and the innovative application of these models to logistics operators (DHL, UPS, Poste Italiane and others). This paper brings together academic and industry perspectives and operations models in an integrated business digital transformation. This paper defines an original optimal operations model for a 5PL operator and can add sustainable value to organizations and society. In doing so, it outlines different solution requirements, the critical success factors and the challenges for solutions and brings logistical performance objectives when implementing a digital business transformation.

The question of whether and how communication departments contribute to organizational value creation has rarely been addressed in research. Such evidence is crucial, however, as communications compete internally with other functions (e.g. marketing and human resources (HR)) for budgets and staff. This article fills the gap by applying the business model concept, an established approach from management theory and practice, to communication units.

Based on an interdisciplinary literature review, the authors propose the Communication Business Model (CBM) as a new management approach for communications. To this end, pertinent definitions, frameworks and typologies of business models are analyzed and combined with insights from corporate communications literature.

The CBM outlines the generic architecture of business models for communication departments. Such models describe the basic principles of how such a unit operates, what services and products it provides, how it creates value for an organization and what revenues and resources are allocated.

The approach stimulates the debate on communication units as objects of observation when researching communication management practices. Further research with appropriate empirical methods is needed to identify and study different types of business models for communications.

The CBM can be used as a management tool to analyze, explain and innovate communication management in organizations. It is a fertile approach for communication practitioners to make the work of their department visible and to position themselves internally and externally.

Transferring a well-known concept from general management to communication management enriches the value creation debate in theory and practice. It allows communication leaders to align their work with organizational goals and make it accessible to top management and other decision-makers in the organization. It also opens up new avenues for research and education.

At the end of the case, a successful learner will be able to:▪ develop sound criteria to guide investors entering into hotel management agreements (HMAs);▪ reconcile principal and agent disputes through the lens of an agency framework; and▪ evaluate the impact of the work environment on employee and organisational outcomes.

Muyiwa, Chairman of Fara Ltd., signed a HMA with Aytello Hotel Group to operate his hotel in Nigeria, the Mélange Abuja. Aytello was an international hotel management company based in the USA. It was a renowned operator with several brands in its portfolio. The Mélange brand was contemporary, upscale and targeted young business guests with an appetite for adventure. It was the first Mélange to have opened in West Africa. A management agreement was signed in August 2016, which meant that Aytello was now responsible for operating the hotel on behalf of its Owner, Muyiwa. On his part, Muyiwa provided the funds needed to run the hotel profitably. However, soon after the opening, the operator and owner showed signs of conflict. Muyiwa began to distrust the operator and intervened directly in operations. The frequent clashes between Muyiwa and the operator soon led to an impasse that made productive dialogue difficult. As relationships soured, Muyiwa needed to make a decision soon. This case study is designed to teach agency relationships in organisational behaviour.

This case study is designed for business leaders on executive programmes and postgraduate students.

Teaching notes are available for educators only.

CSS 12: Tourism and Hospitality.

The rapid development of the Internet has led to an increasingly significant role for E-commerce business. This study examines how the green supply chain (GSC) operates on the E-commerce online channel (resell mode and agency mode) and the traditional offline channel with information sharing under demand uncertainty.

This study builds a multistage game model that considers the manufacturer selling green products through different channels. On the traditional offline channel, the competing retailers decide whether to share demand signals. Regarding the resale mode of E-commerce online channel, just E-tailer 1 determines whether to share information and decides the retail price. In the agency mode, the manufacturer decides the retail price directly, and E-tailer 2 sets the platform rate.

This study reveals that information accuracy is conducive to information value and profits on both channels. Interestingly, the platform fee rate in agency mode will inhibit the effect of a positive demand signal. Information sharing will cause double marginal effects, and price competition behavior will mitigate such effects. Additionally, when the platform fee rate is low, the manufacturer will select the E-commerce online channel for operation, but the retailers' profit is the highest in the traditional channel.

This research explores the interplay between different channel structures and information sharing in a GSC, considering price competition and demand uncertainty. Besides, we also considered what behaviors and factors will amplify or transfer the effect of double marginalization.

Digitalization accelerates the need of tourism and hospitality ecosystems to reframe business models in line with a data-driven orientation that can foster value creation and innovation. Since the question of data-driven business models (DDBMs) in hospitality remains underexplored, this paper aims at (1) revealing the key dimensions of the data-driven redefinition of business models in smart hospitality ecosystems and (2) conceptualizing the key drivers underlying the emergence of innovation in these ecosystems.

The empirical research is based on semi-structured interviews collected from a sample of hospitality managers, employed in three different accommodation services, i.e. hotels, bed and breakfast (B&Bs) and guesthouses, to explore data-driven strategies and practices employed on site.

The findings allow to devise a conceptual framework that classifies the enabling dimensions of DDBMs in smart hospitality ecosystems. Here, the centrality of strategy conducive to the development of data-driven innovation is stressed.

The study thus developed a conceptual framework that will serve as a tool to examine the impact of digitalization in other service industries. This study will also be useful for small and medium-sized enterprises (SMEs) managers, who seek to understand the possibilities data-driven management strategies offer in view of stimulating innovation in the managers' companies.

The paper reinterprets value creation practices in business models through the lens of data-driven approaches. In this way, this paper offers a new (conceptual and empirical) perspective to investigate how the hospitality sector at large can use the massive amounts of data available to foster innovation in the sector.