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1 – 10 of 409Shu Wang, Dun Liu and Jiajia Nie
It is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to…
Abstract
Purpose
It is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to pursue market share, which is counterintuitive in practice. To explore the theoretical foundations behind this rare phenomenon, this paper focuses on discussing the impact of the market expansion entry strategy on the entrant firm and the incumbent firm.
Design/methodology/approach
Using a game theory model of a supply chain with an incumbent and an entrant, this paper explores the mathematical conditions for the entrant to adopt either the traditional or the market expansion entry strategy and investigates the incumbent’s benefits and losses under different entry strategies.
Findings
The results show that when the market-expansion effect and the selling price ceiling are moderate, the entrant firm always adopts the market expansion entry strategy, and the incumbent firm obtains a free ride from the entrant firm and benefits from it. The entire industry profits and the industry consumer surplus are increased. In particular, we further investigate the cases in which the incumbent firm has a first-mover advantage or there is a troublesome cost, and the results confirm the aforementioned conclusions.
Originality/value
By considering market share as the entrant’s goal, this paper contributes to the dual-purpose literature. Moreover, based on the model’s mathematical results, this paper offers relevant management insights for the entrant and its stakeholders in the e-commerce platform.
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Despite much attention being devoted to shared leadership, the negotiation of such arrangements remains underexplored. In parallel, the revival of interest in matrix structures…
Abstract
Purpose
Despite much attention being devoted to shared leadership, the negotiation of such arrangements remains underexplored. In parallel, the revival of interest in matrix structures reveals their challenges but neglects the dynamics of shared leadership. In this case study, the author analyzes the tensions experienced by senior managers of a healthcare organization transitioning from a hierarchical to matrix structure as they negotiate their leadership roles in this new arrangement.
Design/methodology/approach
The author interviewed 16 senior managers, observed their meetings and analyzed documents. These data were combined with secondary data including previous interviews and observations of this top leadership team. The author then conducted an inductive data analysis.
Findings
The author's analysis reveals that the tensions experienced by senior managers as they negotiate their roles reflect the co-existence of leadership surpluses (too much leadership) and deficits (too little leadership) in matrix organizations. The author argues that surpluses and deficits are not mutually exclusive but are interrelated and shows how leadership surpluses can create leadership deficits.
Practical implications
The author’s findings suggest that in contexts of leader abundance, actors should explore leadership voids. Particular attention should be paid to incidents of intrusion and exclusion, moments of transition and intense role negotiation, as those contexts are particularly conducive to leadership deficits.
Originality/value
While previous work on matrix structures focuses on leadership surpluses, the author discusses leadership deficits. The author explores how more leaders do not necessarily mean more leadership, but instead how more leaders may result in leadership voids.
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BRAZIL: Primary surplus target may be reduced in 2025
Sarin Raju, Rofin T.M., Pavan Kumar S. and Jagan Jacob
In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand…
Abstract
Purpose
In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand disruption and another positive, EWP can create extra pressure on the disadvantageous supply chain partner, which faces negative disruption. The purpose of this study is to analyse the impact of EWP and the scope of the discriminatory wholesale price (DWP) during disruptions.
Design/methodology/approach
For the study, the authors used a dual-channel supply chain consisting of a manufacturer, online retailer (OR) and traditional brick-and-mortar (BM) retailer. Stackelberg game is used to model the interaction between the upstream and downstream channel partners, and the horizontal Nash game to analyse the interaction within downstream channel partners. For modelling asymmetric disruption, the authors took instances from the lock-down and post-lock-down periods of the COVID-19 pandemic, where consumers flow from BM retailer to OR store.
Findings
By analysing the disruption period, the authors found that this asymmetric disruption is detrimental to the BM channel, favourable to OR and has no impact on the manufacturer. But with DWP, the authors found that the profit of the BM channel and manufacturer can be increased during disruption. Though the profit of the OR decreased, it was found to be higher than in the pre-disruption period. Under DWP, the consumer surplus increased during disruption, making it favourable for the customers also. Thus, DWP can aid in creating a win-win strategy for all the supply chain partners during asymmetric disruption. Later as an extension to the study, the authors analysed the impact of the consumer transfer factor and found that it plays a crucial role in the optimal decisions of the channel partner during DWP.
Originality/value
Very scant literature analyses the intersection of DWP and disruptions. To the best of the authors’ knowledge, this study, for the first time uses DWP as a tool to help the disadvantageous supply chain partner during asymmetric disruptions. The study findings will assist the government, market regulators and manufacturers in revamping the wholesale pricing policies and strategies to help the disadvantageous supply chain partner during asymmetric disruption.
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This article analyzes the moderating role of investment opportunities, business risk and agency costs in shaping the nexus between excess cash and corporate performance.
Abstract
Purpose
This article analyzes the moderating role of investment opportunities, business risk and agency costs in shaping the nexus between excess cash and corporate performance.
Design/methodology/approach
This research uses dynamic regression models (two-step system generalized method of moments) to analyze the data related to 200 Turkish companies listed on Borsa Istanbul (BIST) for the years between 2009 and 2020.
Findings
The findings indicate that when excess cash increases, the financial performance deteriorates only for firms with lower investments compared to firms with more investments. In addition, investment contributes to better financial performance for firms that hold cash surplus, whereas the influence of investment is insignificant for firms that have insufficient cash. Agency costs of equity exacerbate the adverse impact of excess cash on financial performance while agency costs of debt mitigate this effect. Excess cash reduces the financial performance of highly leveraged firms. However, this impact becomes insignificant when debt ratio decreases. The findings also show that investment has more significant role than business risk in building the precautionary motive to hold cash.
Research limitations/implications
The findings of this article are limited to the Turkish market. Future research is still needed in other emerging markets to compare the results and reveal more about the effect of excess cash on firm performance, and how other factors can change this effect.
Practical implications
The findings verify the increased significance of excess cash in the presence of investment opportunities and difficulties in accessing external funds. Nevertheless, the role of the equity related agency problem in reducing the benefits of cash surplus confirms the necessity of policies that support corporate governance, especially in emerging markets.
Originality/value
This article, according to the knowledge of author, is the first to examine the role of agency costs associated with debt and equity, and the compound effect of investment opportunities and business risk on the nexus between excess internal funds and corporate financial performance in emerging markets.
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Hongyu Hou, Feng Wu and Xin Huang
The development of the digital age has made data and information more transparent, enhancing the strategic perspectives of both buyers (strategic waiting) and sellers (price…
Abstract
Purpose
The development of the digital age has made data and information more transparent, enhancing the strategic perspectives of both buyers (strategic waiting) and sellers (price fluctuations) in their decision-making. This research investigates the optimal dynamic pricing strategy of the content product developer in relation to their consideration of consumer fairness concerns to elucidate the impact of consumer fairness concerns on the dynamic pricing strategy of the developer.
Design/methodology/approach
This paper assumes that monopolistic content developers implement a dynamic pricing strategy for the content product. Through constructing a two-period dynamic pricing game model, this research investigates the optimal decisions of the content developer, contingent upon their consideration or disregard of consumer fairness concerns. In the extension section, the authors additionally account for the influence of myopic consumers on these optimal decisions.
Findings
Our findings reveal that the degree of consumer fairness concerns significantly influences the developer’s optimal dynamic pricing decision. When a developer offers content products with lower depth, there is a propensity for the developer to refrain from incorporating consumer fairness concerns into a dynamic pricing strategy. Conversely, in cases where the developer offers a high-depth content product, consumer fairness concerns benefit the developer. Furthermore, our analysis reveals a consistent benefit for the developer from the inclusion of myopic consumers.
Originality/value
Few studies have delved into the conjoined influence of consumer fairness concerns and strategic behavior on dynamic pricing strategy. Our findings indicate that consumer fairness concerns can enhance the efficiency of the value chain for content products under specific conditions. This paper not only enriches the existing literature on dynamic pricing by incorporating consumer fairness concerns theoretically but also offers practical insights. The outcomes of this research can guide content product developers in devising optimal dynamic pricing strategies.
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This paper aims to consider the effects of a merger on technology adoption and welfare in the presence of passive cross ownership. Merger increases investments in process…
Abstract
Purpose
This paper aims to consider the effects of a merger on technology adoption and welfare in the presence of passive cross ownership. Merger increases investments in process technology and may increase welfare. The results are important for antitrust policies and suggest that the antitrust authorities may not need to be too concerned about mergers in industries with cross ownership.
Design/methodology/approach
Game-theoretic analysis.
Findings
Merger increases investments in process technology and may increase welfare.
Originality/value
To the best of the author’s knowledge, this study is original.
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Feng Yang, Jingyi Peng and Zihao Zhang
This paper aims to explore the promotion decisions of heterogeneous sellers on a decentralized platform under competitive conditions and analyze how seller behaviors impact…
Abstract
Purpose
This paper aims to explore the promotion decisions of heterogeneous sellers on a decentralized platform under competitive conditions and analyze how seller behaviors impact platform profit, seller revenue, buyer surplus and social welfare.
Design/methodology/approach
This paper considers a Cournot model consisting of a platform charging a commission rate and two sellers with different conversion rates and browsing costs. Promotion efforts by sellers can increase traffic, but they also incur promotion costs for sellers. The sellers decide on promotion effort by weighing these two effects. The authors also explore the equilibrium when the platform charges a fixed usage fee.
Findings
The seller’s profit improves as its conversion rate increases and worsens as browsing costs increase. Also, increasing the commission rate charged by the platform makes the seller invest less in promotional efforts. Therefore, the platform must consider this trade-off to determine an optimal rate. The analysis shows that the seller with a high conversion rate and high browsing cost plays a greater role in generating more overall revenue. When the market favors such a seller, the platform tends to charge less in order not to impair its profitability.
Originality/value
This paper incorporates conversion rate, buyer’s browsing cost, unit promotion cost and the fee charged by the platform into the model to study sellers’ promotion decisions on decentralized platforms.
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The government has posted the first fiscal surplus in years, inflation has declined and foreign currency reserves have risen from USD21.0bn in mid-December to USD28.5bn. However…
Details
DOI: 10.1108/OXAN-DB285892
ISSN: 2633-304X
Keywords
Geographic
Topical
Mohsen Rafiei and Hans Van Dijk
Early research on overqualification suggested that overqualification is primarily associated with negative attitudes and behavior. As a consequence, hiring practitioners were…
Abstract
Purpose
Early research on overqualification suggested that overqualification is primarily associated with negative attitudes and behavior. As a consequence, hiring practitioners were advised against hiring overqualified job applicants. However, recent studies have revealed that there are several potential positive consequences of overqualification. Given this change in perspective on overqualification, we examine how hiring practitioners nowadays look at overqualified job applicants, and what their considerations are for hiring an overqualified job applicant or not.
Design/methodology/approach
We have interviewed 33 hiring practitioners to examine their attitudes and considerations toward hiring overqualified job applicants.
Findings
Results show that hiring practitioners are aware of potential positive as well as negative consequences of overqualification and consider a variety of factors to assess how beneficial hiring an overqualified candidate will be. These factors fall under three categories: Individual considerations, interpersonal considerations and contextual considerations.
Originality/value
We show that overqualification is not a stigma anymore and that the decision to hire an overqualified job applicant or not depends on a mixture of factors that are carefully considered. Two of these three considerations transcend the individual level (i.e. the overqualified person), whereas most research and theories on the consequences of overqualification do not go beyond the individual level. As such, our findings call for more theory and research on interpersonal and contextual factors shaping the consequences of overqualification.
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