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Article
Publication date: 28 October 2022

Astha Sharma, Dinesh Kumar and Navneet Arora

The purpose of the present work is to improve the industry performance by identifying and quantifying the risks faced by the Indian pharmaceutical industry (IPI). The risk values…

Abstract

Purpose

The purpose of the present work is to improve the industry performance by identifying and quantifying the risks faced by the Indian pharmaceutical industry (IPI). The risk values for the prominent risks and overall industry are determined based on the four risk parameters, which would help determine the most contributive risks for mitigation.

Design/methodology/approach

An extensive literature survey was done to identify the risks, which were also validated by industry experts. The finalized risks were then evaluated using the fuzzy synthetic evaluation (FSE) method, which is the most suitable approach for the risk assessment with parameters having a set of different risk levels.

Findings

The three most contributive sub-risks are counterfeit drugs, demand fluctuations and loss of customers due to partners' poor service performance, while the main risks obtained are demand, financial and logistics. Also, the overall risk value indicates that the industry faces medium to high risk.

Practical implications

The study identifies the critical risks which need to be mitigated for an efficient industry. The industry is most vulnerable to the demand risk category. Therefore, the managers should minimize this risk by mitigating its sub-risks, like demand fluctuations, bullwhip effect, etc. Another critical sub-risk, the counterfeit risk, should be managed by adopting advanced technologies like blockchain, artificial intelligence, etc.

Originality/value

There is insufficient literature focusing on risk quantification. Therefore, this work addresses this gap and obtains the industry's most critical risks. It also discusses suitable mitigation strategies for better industry performance.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 19 March 2024

Jie Wu, Nan Guo, Zhixin Chen and Xiang Ji

The purpose of this paper is to analyze manufacturers' production decisions and governments' low-carbon policies in the context of influencer spillover effects.

Abstract

Purpose

The purpose of this paper is to analyze manufacturers' production decisions and governments' low-carbon policies in the context of influencer spillover effects.

Design/methodology/approach

This paper investigates the impact of the social influencer spillover effect on manufacturers' production decisions when they collaborate with intermediary platforms to sell products through marketplace or reseller modes. Game theory and static numerical comparison are used to analyze our models.

Findings

Firstly, under low-carbon policies, the spillover effect does not always benefit manufacturer profits and changes non-monotonically with an increasing spillover effect. Secondly, in cases where there are both a carbon emission constraint and a spillover effect present, if either the manufacturer or intermediary platform holds a strong position, then marketplace mode benefits manufacturer profits. Thirdly, regardless of business mode used when environmental damage coefficient is high for products; government should implement cap-and-trade regulation to optimize social welfare while reducing manufacturers’ carbon emissions.

Practical implications

This study offers theoretical and practical research support to assist manufacturers in optimizing production decisions for compliance with carbon emission limits, enhancing profits through the development of effective influencer marketing strategies, and providing strategies to mitigate carbon emissions and enhance social welfare while sustaining manufacturing activities.

Originality/value

This paper addresses the limitations of prior research by examining how the social influencer spillover effect influences manufacturers' business mode choices under government low-carbon policies and analyzing the social welfare of different carbon emission restrictions when such spillovers occur. Our findings provide valuable insights for manufacturers in selecting optimal marketing strategies and business modes and decision-makers in implementing effective regulations.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 21 April 2023

Abaid Ullah Yousaf, Matloub Hussain and Tobias Schoenherr

With refineries contributing 68% of CO2 emissions from stationary combustion sources alone, smart technologies and the circular economy (CE) model for resource loop optimization…

Abstract

Purpose

With refineries contributing 68% of CO2 emissions from stationary combustion sources alone, smart technologies and the circular economy (CE) model for resource loop optimization can be a solution for carbon neutrality, especially within petroleum. Thus, this study aims to explore energy conservation by green technology improvement as a CE strategy for resource loop optimization and digital incorporation to maximize reprocessing lead ability rate and carbon-neutral benefits.

Design/methodology/approach

A game theory approach with Stackelberg equilibrium is considered under government cap-and-trade regulation to stimulate green technology improvement. The refinery acts as a Stackelberg leader and invests in green technology and the retailer as the Stackelberg follower, collects end-of-life lubricants against refund price and offers a two-part-tariff contract to the manufacturer having a significant role in smart technologies.

Findings

First, green technology improvement is directly influenced by the reprocessing capability and refund price and digital technologies are significant to consider. Second, a two-part-tariff contract coordinates the supply chain for limited reprocessing capability by the retailer. Lastly, the government can effectively manipulate the development of green technology by changing the permit price depending on the intentions.

Research limitations/implications

The primary limitation is this study has focused on the petroleum sector and data was referenced from the oil refineries of a single country.

Practical implications

Overall, this study provides empirical guidance for policymakers on how to leverage energy-efficient smart technologies for lubricant reprocessing, enabling resource optimization as part of a CE strategy in the petroleum industry and advancing sustainable development goals.

Originality/value

The suggested model responds to the contemporary literature related to CO2 emissions and CE initiatives across the petroleum sector with the extended role of smart technologies and government cap-and-trade regulations.

Details

Industrial Management & Data Systems, vol. 123 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 10 October 2023

Kellen Murungi, Abdul Latif Alhassan and Bomikazi Zeka

The agricultural sector remains the backbone of several emerging economies, including Kenya, where it contributes 34% to its gross domestic product (GDP). However, access to…

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Abstract

Purpose

The agricultural sector remains the backbone of several emerging economies, including Kenya, where it contributes 34% to its gross domestic product (GDP). However, access to financing for agricultural activities appears to be very low compared to developed economies. Following this, governments in a number of countries have sought to introduce banking sector regulations to facilitate increased funding to the agricultural sector. Taking motivation of the interest rate capping regulations by the Central Bank of Kenya (CBK) in 2016, this paper examined the effect of these interest rate ceiling regulations on agri-lending in Kenya.

Design/methodology/approach

The paper employs random effects technique to estimate a panel data of 26 commercial banks in Kenya from 2014 to 2018 using the ratio of loans to agricultural sector to gross loans and the natural logarithm of loans to agricultural sector as proxies for agri-lending. Bank size, equity, asset quality, liquidity, revenue concentration and bank concentration are employed as control variables.

Findings

The results of the panel regression estimations show that the introduction of the interest cap resulted in increases in the proportion and growth in agri-lending compared with the pre-interest cap period. In addition, large banks and highly capitalised banks were found to be associated with lower agri-lending, with differences in the effects across pre-cap and post-cap periods.

Practical implications

From a policy perspective, the findings highlight the effectiveness of interest rate capping in meeting this objective and supports the calls for strengthening cooperation between the government and key stakeholders in the financial sector. This will allow for the effective enforcement of policies by the regulatory powers in a manner that guarantees sound and dynamic financial systems, particularly within the agricultural sector.

Originality/value

As far as the authors are aware, this the first paper to examine the effect of the interest rate cap regulation on agri-lending in Kenya.

Details

Agricultural Finance Review, vol. 83 no. 4/5
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 19 October 2023

Roya Tat, Jafar Heydari and Tanja Mlinar

Within a framework of supply chain (SC) coordination, this paper analyzes a green SC consisting of a retailer and a manufacturer, under government incentives and legislations and…

Abstract

Purpose

Within a framework of supply chain (SC) coordination, this paper analyzes a green SC consisting of a retailer and a manufacturer, under government incentives and legislations and the consumer environmental awareness. To mitigate carbon emissions and promote the sustainability of the SC, a customized carbon emission trading mechanism is developed.

Design/methodology/approach

A game-theoretical decision model formulated determines the optimal sustainability level and the optimal quota of carbon credit from the ceiling capacity set by the government. In order to coordinate the SC and optimize environmental decisions, a novel combination of consignment and zero wholesale price contracts is proposed.

Findings

Analytical and numerical analyses conducted highlight that the proposed contract generates a Pareto improvement for both channel members, boosts the profit of the green SC, enhances the sustainability level of the channel and contributes to a reduction in the requested carbon emission credit by the manufacturer.

Social implications

With the proposed mechanism, governments can protect their industries and, more importantly, comply with European Union (EU) rules on annually reducing emission ceilings allocated to industries.

Originality/value

Different from previous studies on cap-and-trade strategies, the proposed mechanism enables companies to select lower emission quota/allowances than the maximum amount set by the government, and in return, companies can benefit from several incentive strategies of the government.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 9/10
Type: Research Article
ISSN: 0959-0552

Keywords

Book part
Publication date: 11 December 2023

Elvira Caterina Parisi and Francesco Parisi

Social media networks make their services freely available to all users. Users pay for the service received with the time and attention taken by the advertisements. This chapter…

Abstract

Social media networks make their services freely available to all users. Users pay for the service received with the time and attention taken by the advertisements. This chapter argues that social media platforms are a unique form of monopoly driven by “the more the merrier” effect (i.e., network effects) in users' consumption. These monopolies exercise market power, not by charging higher prices to users but by “tying” larger amounts of advertising to their content. Traditional antitrust instruments designed to address excessive pricing and reduced output by monopolies need to be reframed to tame the attention economy problems in the social media industry. This chapter discusses five antitrust instruments grouped in three categories: structural, behavioral, and market-based remedies. Market-based solutions are the least explored in the literature, despite being the most promising instruments to lower the attention costs imposed on users, while preserving the economies of scope in production and the network effects in consumption, and possibly maintaining free access to social media, as we know it today.

Details

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

Keywords

Article
Publication date: 24 October 2023

Hassan Bruneo, Emanuela Giacomini, Giuliano Iannotta, Anant Murthy and Julien Patris

Biotech companies stand as key actors in pharmaceutical innovation. The high risk and long timelines inherent with their R&D investments might hinder their access to funding…

Abstract

Purpose

Biotech companies stand as key actors in pharmaceutical innovation. The high risk and long timelines inherent with their R&D investments might hinder their access to funding, potentially stifling innovation. This study aims to explore into the appeal of biotech companies to capital market investors, whose financial backing could bolster the growth of the biotechnology sector.

Design/methodology/approach

This paper uses a dataset of 774 US publicly listed biotech firms to investigate their risk and return characteristics by comparing them to pharmaceutical firms and a sample of matched non-biotech R&D-intensive firms over the sample period 1980–2021. Tests show that the conclusions remain consistent across diverse methodological approaches.

Findings

The paper shows that biotech companies are riskier than the average firm in the market index but outperform on a risk-adjusted basis both the market and a matched group of R&D-intensive firms. This is particularly true for large capitalization biotech, which is also shown to provide a diversification benefit by reducing the downside risk in past crisis periods.

Originality/value

This paper provides insight relevant to the current debate about the overall performance of the biotech industry in terms of policy changes and their impact on small, early-stage biotech firms. While small and early-stage biotech firms are playing an increasing role in scientific innovation, this study confirms their greater vulnerability to financial risks and the importance of access to capital markets in enabling those companies to survive and evolve into larger biotech.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 5 April 2023

Chunqiu Xu, Fengzhi Liu, Yanjie Zhou, Runliang Dou, Xuehao Feng and Bo Shen

This paper aims to find optimal emission reduction investment strategies for the manufacturer and examine the effects of carbon cap-and-trade policy and uncertain low-carbon…

Abstract

Purpose

This paper aims to find optimal emission reduction investment strategies for the manufacturer and examine the effects of carbon cap-and-trade policy and uncertain low-carbon preferences on emission reduction investment strategies.

Design/methodology/approach

This paper studied a supply chain consisting of one manufacturer and one retailer, in which the manufacturer is responsible for emission reduction investment. The manufacturer has two emission reduction investment strategies: (1) invest in traditional emission reduction technologies only in the production process and (2) increase investment in smart supply chain technologies in the use process. Then, three different Stackelberg game models are developed to explore the benefits of the manufacturer in different cases. Finally, this paper coordinates between the manufacturer and the retailer by developing a revenue-sharing contract.

Findings

The manufacturer's optimal emission reduction strategy is dynamic. When consumers' low-carbon preferences are low and the government implements a carbon cap-and-trade policy, the manufacturer can obtain the highest profit by increasing the emission reduction investment in the use process. The carbon cap-and-trade policy can encourage the manufacturer to reduce emissions only when the initial carbon emission is low. The emission reduction, order quantity and the manufacturer's profit increase with the consumers' low-carbon preferences. And the manufacturer can adjust the emission reduction investment according to the emission reduction cost coefficient in two processes.

Originality/value

This paper considers the investment of emission reduction technologies in different processes and provides theoretical guidance for manufacturers to make a low-carbon transformation. Furthermore, the paper provides suggestions for governments to effectively implement carbon cap-and-trade policy.

Details

Industrial Management & Data Systems, vol. 123 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 23 January 2024

Feng Chen, Suxiu Xu and Yue Zhai

Promoting electric vehicles (EVs) is an effective way to achieve carbon neutrality. If EVs are widely adopted, this will undoubtedly be good for the environment. The purpose of…

Abstract

Purpose

Promoting electric vehicles (EVs) is an effective way to achieve carbon neutrality. If EVs are widely adopted, this will undoubtedly be good for the environment. The purpose of this study is to analyze the impact of network externalities and subsidy on the strategies of manufacturer under a carbon neutrality constraint.

Design/methodology/approach

In this paper, the authors propose a game-theoretic framework in an EVs supply chain consisting of a government, a manufacturer and a group of consumers. The authors examine two subsidy options and explain the choice of optimal strategies for government and manufacturer.

Findings

First, the authors find that the both network externalities of charging stations and government subsidy can promote the EV market. Second, under a relaxed carbon neutrality constraint, even if the government’s purchase subsidy investment is larger than the carbon emission reduction technology subsidy investment, the purchase subsidy policy is still optimal. Third, under a strict carbon neutrality constraint, when the cost coefficient of carbon emission reduction and the effectiveness of carbon emission reduction technology are larger, social welfare will instead decrease with the increase of the effectiveness of emission reduction technology and then, the manufacturer’s investment in carbon emission reduction technology is lower. In the extended model, the authors find the effectiveness of carbon emission reduction technology can also promote the EV market and social welfare (or consumer surplus) is the same whatever the subsidy strategy.

Practical implications

The network externalities of charging stations and the subsidy effect of the government have a superimposition effect on the promotion of EVs. When the network effect of charging stations is relatively strong, government can withdraw from the subsidized market. When the network effect of charging stations is relatively weak, government can intervene appropriately.

Originality/value

Comparing previous studies, this study reveals the impact of government intervention, network effects and carbon neutrality constraints on the EV supply chain. From a sustainability perspective, these insights are compelling for both EV manufacturers and policymakers.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 30 November 2023

Anhang Chen, Huiqin Zhang, Yuxiang Zhang and Junwei Zhao

The digital economy is profoundly transforming the manufacturing industry's fundamental concepts and value creation logic, making digital transformation (DT) strategy a crucial…

Abstract

Purpose

The digital economy is profoundly transforming the manufacturing industry's fundamental concepts and value creation logic, making digital transformation (DT) strategy a crucial decision for manufacturers. And faced with increasingly severe environmental issues, DT may become an important means to achieve sustainable development. This paper mainly discusses the strategic choice of the manufacturer's DT and analyzes the impact of DT on carbon emissions.

Design/methodology/approach

Based on the carbon cap-and-trade mechanism, the authors have constructed two decision models to study the DT strategy of the manufacturer, further exploring the impact of the mechanism on the DT strategy and production strategy of the manufacturer. Finally, the authors discussed the effect of manufacturers' DT on their carbon emissions.

Findings

The authors found that the manufacturer should initiate DT to enhance their competitiveness, regardless of whether they are in a low digital technology scenario or a high digital technology scenario. Notably, DT can enhance the ability of the manufacturer to respond to external emergencies. In a low digital technology market scenario, both carbon emissions per unit of product and carbon price are positively affecting the digitization level of the manufacturer. In a high digital technology market scenario, the manufacturer will initiate a full degree of DT. Moreover, the impact of DT on total carbon emissions varies in markets with different levels of digital technology.

Originality/value

Innovatively, the authors divided the DT of the manufacturer into market scenarios with low digital technology and high digital technology. Provide the manufacturer with DT decisions according to different scenarios. At the same time, it verifies the uncertainty of DT on carbon emission and enriches the related research.

Details

Industrial Management & Data Systems, vol. 124 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

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