Entry Of Enterprises Research Articles

Entry of Trans-Baikal Enterprises into Chinese Markets: the Problem of Formulating an Effective Marketing Strategy

In terms of science, entry of an enterprise into a foreign market is a problem of internationalization. Investigation of this issue over the past decades has allowed us to form a scientific base, which represents the process of internationalization of a national company as a complex process that includes both organizational and marketing aspects. In particular, success of an entry is ensured by taking into account the needs of foreign customers, as well as passing through a number of stages, accompanied by the identification of peculiarities of the foreign market and the accumulation of experience necessary for promotion on the international market. The entry of Trans-Baikal Territory into the Far Eastern Federal District and the opportunity to use additional benefits for business that has arisen opens up great opportunities for entrepreneurs to create new products, introduce new technologies, reduce costs and, thus, open up prospects for promotion on foreign markets. From the point of view of international business theories, the start of operation in foreign markets should be connected with the markets of neighboring countries. For the manufacturers of Trans-Baikal Territory, China is such a market. At the same time, its attractiveness is determined by a number of market factors. Consideration of these factors makes it necessary to develop an international marketing complex for each exporter. The problem is that most of the exporting enterprises representing small and medium-sized businesses lack experience and financial capabilities to develop an international marketing mix. The article shows the possibilities of solving the problem, taking into account the characteristics of the Chinese market. The most promising areas for the development of international business are the production of agricultural and food products. The national project «International Cooperation and Export» allows using the competitive advantages of the Trans-Baikal producers and provides them with a sufficiently strong position in the future.

Can the National Green Industrial Policy Improve Production Efficiency of Enterprises?—Evidence from China

This paper examines whether the national green industrial policy (GIP) can effectively optimize the enterprises’ structural transformation and upgrading, and improve production efficiency of enterprises. Using China’s firm-level data from 1998 to 2007, we take the 2003 “Cleaner Production Promotion Law of PRC” as the turning point of GIP implementation, and employ the difference-in-differences (DID) method to explore the policy effect on total factor productivity (TFP) of enterprises. The analysis shows that GIP can enhance the enterprise’s resource allocation capability and TFP growth. The implementation path of policy mainly relies on the compensation mechanism to incentivize innovation and the elimination mechanism of market selection. Specifically, GIP enhances TFP growth by accelerating the dynamic replacement (enterprise entry and exit) and elimination mechanism of the market, and by promoting innovative production to enhance the enterprise’s production efficiency. Further heterogeneity analysis reveals that state-owned enterprises are more susceptible to the influence of GIP, and GIP exerts more restrictive impact on high-pollution industries. Also, GIP has more significant net spillover effect on technology-intensive enterprises. The study provides a reliable factual basis for the market effect of GIP and the direction for green industry development.

The Effect of Micro Entrants on Generalists' Performance

Resource partitioning theory and market entry research provide tremendous clarity on specialists, generalists and entrant-incumbent dynamics, but such scholarship overlooks micro enterprises—a distinct strategic group of firms who are very small in terms of scale, scope, and/or capability yet they are often seen as specialists. This is a serious oversight because unlike specialists who erode incumbent positions one at a time, micro entrants not only act differently, they often ride on top of multisided platforms (e.g., Airbnb, Uber, Etsy, Facebook, etc.) and gain market access almost overnight. In addition, while extant research focuses on adversarial entrant- incumbent relations, our study redirects attention to why and how the entry of micro enterprises augment the performance of generalists. Using panel data on entrants who provide dwelling capacity via the Airbnb platform from 2010 to 2015, we show that micro entrants enhance the performance of large incumbents (i.e., four-star hotels). We also find that an influx of micro entrants has even a stronger positive effect on generalists’ performance when the generalists’ market is more concentrated, and the activity of the multisided platforms is regulated. All in all, we show that when resource partitioning theory recognizes micro enterprises it provides new and greater clarity on entrant-incumbent relations.

Social Welfare Analysis of China’s High-Speed Rail Industry: Based on the Perspective of Enterprises’ Entry in Upstream Market

Based on the analysis of the high-speed rail industry chain, first, this paper divides the high-speed rail industry chain into infrastructure construction market and manufacturing market of mobile equipment and, second, this paper uses the empirical method of new experience industry organization to measure the market power premium of the high-speed rail upstream market. The study shows that the market power premium of the high-speed rail upstream market is 0.551, and the scale elasticity is 0.314, indicating that there is no systematic market power in the high-speed rail upstream market and there is significant scale diseconomy. The vertical market structure where “private enterprises dominate the upstream competition market and state-owned enterprises dominate the downstream oligopoly market” is further established. Based on the perspective of enterprises’ entry in upstream markets, the social welfare of the high-speed rail industry market structure is analyzed. It is found in the study that the upstream market of the high-speed rail industry has a tendency of insufficient enterprise entry, and the total social welfare increases with the increase in the number of upstream enterprises entry. What is more, the profit of enterprises in the upstream market of high-speed rail decreases with the increase in the number of enterprises in the upstream. This paper believes that policies such as stimulating upstream high-speed rail enterprises entry, providing subsidies to upstream enterprises, reducing upstream enterprises’ entry barriers, and expanding international markets can effectively improve the overall social welfare of the high-speed railway industry.

СТРУКТУРНО-ДИНАМІЧНИЙ АНАЛІЗ РОЗВИТКУ ПІДПРИЄМСТВ ПРОМИСЛОВОГО СЕКТОРА ЕКОНОМІКИ УКРАЇНИ

The problem of substantiation of Ukraine economy industrial sector structural transformations has been actualized in the work. It has been noted that this sector enterprises in each country are the main producers of added value and filling the budget – if only they produce competitive products. The paper relied on the thesis that the products competitiveness is a reflection of its consumer value generated in the innovation activities process. As the global market under the pandemic influence has suffered significant losses from violations of consumer value chains, it has been made an assumption that domestic enterprises may enter them. To substantiate these, the structural and dynamic analysis of the industrial sector enterprises activities has been conducted, distinguishing among them machine-building as the basis for the reproduction of production systems of other industries. Attention has been focused on comparing the investment processes dynamics, the innovation activities results and products sales volumes, including exports. According to the results of the study, it has been concluded that there is an insufficient connection between the investment volumes to the machine-building sector and its innovation and technological renewal, which leads to the machine-building products competitiveness decrease in foreign markets. It has been marked a low part of investment in intangible assets and the software cost predominance in their structure, which indicates the priority of management processes digital transformation, rather than the creation of intellectual property. The consequence of this imbalance is the innovative products part in total sales decrease. It has been emphasized that the priorities in industrial enterprises investing development should be investing to the innovations implementation with sufficient market potential, which can form the basis of innovation monopoly and promote the enterprises's entry into global value chains with a favorable negotiating position. In machine-building sphere, these can accelerate the transition of enterprises to the high-tech sector, increasing the efficiency of structural transformations of the national economy.

ОЦЕНКА ВОЗМОЖНОСТИ ВСТУПЛЕНИЯ ПРЕДПРИЯТИЙ В СОЦИАЛЬНО-ЭКОНОМИЧЕСКИЙ КЛАСТЕР В СФЕРЕ ЖИЛИЩНО-КОММУНАЛЬНОГО ХОЗЯЙСТВА

The article discusses various methodological approaches to assess the possibility for enterprises to join into the socio-economic cluster in the housing and communal services. A brief description of such approaches as the assessment of the propensity indicator is given; difference in differences and fixed effects; synthetic control; fuzzy sets and regression gap techniques. The advantages and disadvantages of each of the considered methods are revealed. The regression gap technique is discussed more in details in this article. According to the authors of the article, this approach is the most appropriate. To assess the entry into the socio-economic cluster, large management companies (MC) were selected serving more than 300 houses, and large construction companies of the city specializing in the construction of large residential areas in the city of Yekaterinburg. In total, there are 884 MCs in the city, and 1771 MCs in the Sverdlovsk Region. Therefore, for a possible entry into the housing and communal services cluster, 10 large construction companies providing housing services and 10 management companies operating in the field of public utilities were chosen. The gross revenue indicator of the companies was the main criterion. The motivation for the entrance into the cluster of housing and communal services for enterprises was to be a subsidy from the Ministry of Housing in the amount of 500 million rubles for the implementation of the national project "Housing and Urban Environment". Additional financing is possible only in case, if the enterprise joins the socio-economic cluster of the housing and communal services, as well as in the case of the social responsibility of this enterprise, since all housing and communal services enterprises have social responsibility and social orientation. As a result of the study, it was revealed that the proposed approaches are possible for application in areas operating in conditions of perfect market competition or in the social sphere. However, from the point of view of the entry of enterprises into the socio-economic cluster in the housing sector, when a number of enterprises, for example, construction companies, management companies that operate and live according to market laws in a competitive environment, while others are monopolists, for example, resource supplying organizations in the sphere of Housing and communal services, it is not possible to unequivocally assess the positive impact on the activities of enterprises with their participation in the socio-economic cluster. Still, in Russia the housing and communal services stands apart, it is unique, since the laws of the market and perfect competition do not work in it. And who will be a participant or beneficiary of the socio-economic cluster, which means that it will receive budgetary funding, is decided only by regional government bodies represented by the Ministry of Housing and Utilities.

한·중·일의 스마트시티 해외진출 전략 비교 연구 (An Analysis of Strategies for Overseas Advancement of Smart Cities in Korea, China, and Japan)

한·중·일의 스마트시티 해외진출 전략 비교 연구 (An Analysis of Strategies for Overseas Advancement of Smart Cities in Korea, China, and Japan)

Regional competitiveness for attracting and retaining foreign direct investment: a configurational analysis of Chinese provinces

ABSTRACT This study examines the entry and exit of multinational enterprises (MNEs) across regions in China. It analyses the strategic entry and exit of MNEs in 31 Chinese provinces during the period 2001–07. The fuzzy-set qualitative comparative analysis (fsQCA) reveals multiple regional competitiveness profiles, as configurations of economic and institutional conditions, which are associated with a large scale of MNE entries and/or exits. It is found that while MNEs tend to exit regions with deficiencies in economic conditions, they are attracted to regions with favourable economic conditions and low state intervention, which also results in heightened market competition leading to the restructuring of foreign investors.

Impacts of deregulation reform on PM2.5 concentrations: A case study of business registration reform in China

In contrast to the surge of attention to China's business registration reform per se, the environmental externalities of the reform have been somewhat neglected by mainstream academics. Adopting the difference-in-differences method alongside propensity-score matching, and utilizing the panel data of 283 cities in China from 2000 to 2013, this paper investigates the impacts of the deregulation reform on PM2.5 concentrations. The results indicate that the business registration reform has contributed to PM2.5 air pollution, with above-average impacts in central areas, but insignificant effects in western China. Furthermore, the treatment effects are stronger in cities with larger entry of small and medium enterprises and greater pressure to achieve targets for local GDP growth. Aiming to draw public attention to the problems arising from the reform, our study advocates necessary environmental regulations on business registration, which lends support to the theoretical view of “public interest” rather than “public choice”.

Perspectives of participation of Ukrainian border regions’ entrepreneurship entities in the global value chains

The article focuses on the need to reorient the economy of Ukraine to the production of high-quality products that are characterized by innovation and science-intensiveness in order to gain greater benefits from integration into global value chains. The directions of intensification of processes of entrepreneurial activity internationalization in the border regions of Ukraine are offered, in particular: advisory support for the entry of domestic enterprises into foreign markets; transition from production based on toll-free raw materials to full cycle production; design and development of brands; stimulation of attracting foreign investments into the development of domestic promising productions; creation of a favorable climate for the development of entrepreneurship, trade and the opening of branches of transnational corporations. The existing institutions in Ukraine, both state and public, are analyzed, the purpose of which is to support enterprises in the issues of entering foreign markets. The enterprises of the border regions of Ukraine, integrated into international production networks are investigated. The conclusion is made regarding the active participation of enterprises of the border regions in the global chains in the field of mechanical engineering, but their activity is reduced to only one or two parts of the production process associated with the production of goods. A large percentage of enterprises cooperate in terms of exports of manufactured products, as well as import of the necessary raw materials and materials for production with the neighboring countries, in particular Poland, Slovakia, Romania, Belarus, etc. The emphasis is on the need for design, which will allow them to search for new product concepts and innovative solutions and will create brands for entering foreign markets. Comparison of Ukrainian and world practice on the main factors contributing to trade in OECD research is carried out. Special attention is paid to clusters as connecting elements of small and medium-sized enterprises with the network for cooperation with the international market through horizontal communications.

ФІНАНСОВЕ ЗАБЕЗПЕЧЕННЯ АГРАРНОГО СЕКТОРА У КОНТЕКСТІ ПРОСТОРОВОГО РОЗВИТКУ ЕКОНОМІКИмм

The questions that determine the theoretical and empirical aspects of the scientific study of financial support for the agricultural sector have been raised. The necessity to modernize the system of financial security in the conditions of spatial development of the economy has been stated and the vitality of systematic reform of state regulation of the national financial market has been argued. It has been revealed that the regulation of the rights for individuals and legal entites to acquire land for private ownership, registration of land ownership and land use should be revised and filled with new context. The methodology of the study is based on the dialectical, systemic and institutional approach according to which the agricultural sector and the sufficiency of financial support are considered inseparable and causation. The basic theoretical and methodological approaches to justification and clarifying of the essence of financial security in ensuring the spatial development of the economy have been systematized; modern approaches to the financial market’s state regulation have been disclosed in order to prevent price manipulation and speculative transactions with securities and other financial instruments; institutional foundations are defined and modern trends of development of the corporate sector are characterized in the conditions of expansion of dispositiveness and digitalization of the companies. The outlined principles of ensuring internal financial stability assessment procedures will facilitate the entry of agricultural enterprises into the financial market in order to attract or allocate free capital. The development of a financial security system requires improving the productivity of the banking system, the introduction of FinTech, the development of payment infrastructure in accordance with the EU PSDII Directive, the implementation of ISO standards and the guarantee of cybersecurity for market participants. The improvment of the quality of financial services provided by financial institutions through the use of a neural network capable of modeling the ability of human thinking to solve recognition problems with specific precedents are important priorities for the modernization of the agricultural sector's financial security.

Штучний інтелект у процесі праці у цифровій економіці: нові виклики та можливості

Active introduction of digital technologies in all spheres of human life transforms business models, accelerates the process of entry of enterprises into the global market, creates new conditions for hiring personnel, replaces certain types of human labor with algorithms and machines. At the same time, digitization and technological innovation open up opportunities: new jobs, expanding employment, revealing a person's creative potential. This requires new approaches to understanding the processes of transformation of the labor process in the digital economy, identifying the benefits of employee over the machine in the labor field, and developing measures to strengthen the position of the employee in the digital labor market. The article studies the issues of transforming the place and role of artificial intelligence and employee in the labor process in the digital economy. Attention is focused on reducing the share of human labor and reducing demand in some types of activity while increasing its value in other areas. Classification of human labor is proposed, which is based on an assessment of the possibility of replacing an employee with artificial intelligence. The place and role of artificial intelligence and employee in routine, creative, social activities are determined. At the risk of reducing demand for labor until it is completely replaced by technology are jobs that involve routine operations, and vice versa, the value of human labor increases in creative activities. A two-factor model has been developed that classifies labor activity according to a combination of complexity and creativity. On the basis of the proposed matrix, the types of activities subject to artificial intelligence substitution are detailed. Possible trends in the transformation of artificial intelligence from an object of the labor market into a subject are identified: partially or completely, subject to legislative regulation of the legal status of artificial intelligence. It is determined that social labor cannot be replaced by artificial intelligence. The advantages and disadvantages of the following activities were identified: routine, creative, social. It is determined that the main directions of strengthening the position of the employee in the labor market are the formation of a favorable environment for the development of creative potential of the person and the realization of the concept of lifelong learning. These areas require support from national and regional authorities and their engagement with interested and proactive local communities.

E-COMMERCE IN BRICS: SIMILARITIES AND DIFFERENCES

BRICS countries pay great attention to the development of e-commerce and plan to strengthen cooperation in this area. An increase of the e-commerce share in GDP can become an economic growth driver in the countries. The advantages of e-commerce are: increase in a volume and trade growth, increase in the number of cross-border payments, small and medium-sized enterprises entry into the new markets, increased level and efficiency of cooperation between countries, new jobs creation, etc. The aim of the article is to assess the development of e-commerce in BRICS. In order to identify opportunities for cooperation among BRICS countries, it is necessary to consider the current state, development dynamics and characteristics of e-commerce in each participating country.

E-commerce in BRICS: similarities and differences

BRICS countries pay great attention to the development of e-commerce and plan to strengthen cooperation in this area. An increase of the e-commerce share in GDP can become an economic growth driver in the countries. The advantages of e-commerce are: increase in a volume and trade growth, increase in the number of cross-border payments, small and medium-sized enterprises entry into the new markets, increased level and efficiency of cooperation between countries, new jobs creation, etc. The aim of the article is to assess the development of e-commerce in BRICS. In order to identify opportunities for cooperation among BRICS countries, it is necessary to consider the current state, development dynamics and characteristics of e-commerce in each participating country.

New perspectives on the evolution of clusters

ABSTRACTThe literature on clusters is based on the seminal writings of Marshall, followed by Becattini’s rediscovery of the concept of the ‘industrial district’ and the analyses promoted during the 1980s by Porter, who highlighted the importance of geographically interconnected firms and institutions specialized in a particular field and clustered in a limited space. Although the cluster model is often described as being static and locally self-contained, various empirical studies and our analysis have pointed out the increasing involvement of cluster firms in the process of change, renewal and internationalization. In this context, several modalities may be studied within the cluster life cycle – which proceeds from the process of multinational enterprise (MNE) entry to the development of global value chains and to the emergence of homegrown MNEs – in addition to possible alliances between cluster firms and external MNEs. The recent entry of MNEs in clusters, as well as the phenomenon of homegrown MNEs, do not necessarily require a questioning of the cluster model per se, but they do contribute to showing how complex and interwoven the evolution of local economies is. A rich number of empirical cases will be presented in this review.

Home Use Devices and SaMDs in Patient Self-Care: Concept to Develop Excellenct Products in Digital Health

The German healthcare system is characterized by digital change. In recent years, a trend towards the entry of start-ups and medium-sized enterprises into this sector has developed. These types of companies in particular are facing enormous challenges due to the industry and the ongoing digital change. This article presents the fundamental developments and challenges of these companies. Further solutions developed by the Tech4Age research group are presented briefly. Finally, this article describes how these solutions can be integrated into a formal concept for the promotion and further development of SMEs and start-ups in the German health industry in order to enable them quickly and comprehensively for the development of excellent digital health products.

The analysis of entry of Ethiopian enterprises into the export-markets and the associated factors

PurposeThough many studies in the past dealt with the survival and growth of enterprises both in the local- and export-markets, less attention was given to the analysis of the duration of enterprises entry into the export-markets. The aim of this paper is, therefore, to analyze the duration of Ethiopian enterprises entry into the export-markets.Design/methodology/approachThis paper used data collected from 848 enterprises through a cross-sectional survey method conducted by the World Bank in 2015. In order to estimate the average duration – the time that enterprises need to wait before entering into the export-markets and the associated factors – the authors used the mixture of non-parametric (Kaplan-Meier) and parametric (Weibull) models.FindingsThe non-parametric results show that enterprises are required to wait for an average of about eight years before entering into the export-markets after their establishment. In addition, foreign-owned enterprises were found to be faster in entering into the export-markets than their domestically owned counterparts. The parametric results revealed that enterprises’ product innovation, enterprises’ size and age, and custom and trade regulations are factors that curtail the durations of enterprises entry into the export-markets. On the other hand, enterprises’ operational costs, the size of enterprises’ locality, and enterprises’ location are factors that slow the durations of enterprises’ entry into the export-markets.Originality/valueThis study is the first to offer pioneering evidences on the duration (time in years) that Ethiopian enterprises need to wait before entering into the export-markets and the factors that affect the length of their waiting time.

Research on the Impact of Entity’s “Non-Professional Business” on Audit Quality

Driven by the excess return rate, the entity financial trends are becoming more and more intense, which the entity enterprise carrying out financial and real estate business are often advertised as “work outside”. In order to explore whether entity’s “Non-professional Business” can influence the audit quality or not, this paper takes A shares in the two stock markets of Shanghai and Shenzhen between 2007 and 2016 as a sample to find out their relationship. Entity’s “Non-professional Business” can be divided into direct and indirect entry way. Direct entry way means the entity carries out related financial and real estate businesses independently, while indirect entry means the entity buys existing financial assets through the secondary market and other channels. The results show that the direct entry of enterprises into the financial and real estate business will reduce the audit quality. And enterprises in the way of indirect entry into the financial and real estate business will improve the quality of the audit.

Greenfield, merger and acquisition, or export? Regulating the entry of multinational enterprises to a host-country market

How should a welfare-maximizing host government regulate the entry of multinational enterprises (MNEs) that compete with local firms for the host-country market? We demonstrate that the optimal entry regulation depends on the size of the host market: The host government chooses to grant cross-border mergers and acquisitions (M&As) when the host market is sufficiently small; otherwise, it chooses direct export. Greenfield investment, on the other hand, will not be granted. Moreover, we show that for the case of M&A, the MNEs would acquire the most efficient local firm.

融资惯性、控制权收益和民营化效率——基于星美联合的案例分析

Based on the facts of Stellar Megaunion Corporation,this paper finds that after the privatization of state-owned enterprises,the private enterprise that take over the privatized state-owned enterprises still get continuous bank loans with quite low interest rates,and financing inertia resulting from this kind of path-dependence supports the rapid growth of corporate assets through massive debt. At the same time,because privatization has never changed the control right benefits of the controlling shareholders,the controlling shareholders who take over the privatized state-owned enterprises have strong motive for tunneling the accumulated assets resulting from financing inertia by related party transactions,and escape from the constraints of large amounts of bank loans further through making full use of the bankruptcy reorganization and the defects of non-tradable shares reform,thereby resulting in double losses of state-owned assets. It is thus clear that the true motive for privatization is the critical factor affecting privatization efficiency,and the separation between control right and residual claim straightly leads to the tunneling of listed companies by large shareholders. And defects of state-owned capital management,loan management of financial enterprises and the regulation of transactions of listed companies provide a guarantee of double losses of state-owned assets. This paper makes a pioneering research of specific sources of benefits from control right and argues that financing inertia leads to the increase in controlling shareholders' benefits from control right after privatization,which is a concealed channel concerning double tunneling of state-owned assets. Therefore,the perfection of loan mechanisms in financial institutions and the enhancement of the regulation and punishment of tunneling listed companies are the basis of avoiding the expropriation of state-owned assets by financing inertia in the process of state-owned enterprise withdraw and private enterprise entry.