Competitive Industry Research Articles

Managerial myopia and corporate credit spreads

Using bond issuance data from listed companies, we demonstrate that firms with myopic management face substantially higher credit spreads, a pattern with both strong statistical and economic significance across multiple robustness checks. Myopic management tends to imprudently allocate longer-term funds to short-term projects, potentially prompting investors to demand higher credit premiums. The rise in credit spreads observed only in long-term bond issuances further reinforces our argument. Inefficient investment decisions made by myopic management, characterized by excessive short-term investments and insufficient long-term investments, may also account for elevated credit spreads. While effective corporate governance and enhanced external monitoring can help alleviate the adverse impacts of managerial myopia on corporate credit spreads, intensified industry competition and increased uncertainty may exacerbate these challenges. Encouragingly, the elevated credit spreads could prompt myopic management to adjust their business strategies, thereby mitigating the worsening economic consequences for the corporate.

Does the application of industrial robots promote export green transformation? Evidence from Chinese manufacturing enterprises

Green exports are key in propelling China's foreign trade toward high-quality development. Based on rigorous theoretical analysis, this article employs comprehensive data from the International Federation of Robotics (IFR) from 2006 to 2014, along with data from the China Customs and industrial enterprise databases, to evaluate the impact of industrial robot utilization on fostering the green transformation of exports. The results reveal that the application of industrial robots unequivocally contributes to advancing the eco-friendly transformation of exports. This conclusion withstands endogeneity and robustness tests. In particular, industrial robots directly promote the green transformation of exports and exert an indirect influence through technological and scale effects. Technological effects can be divided into technological progress and green production, while scale effects relate to enterprise size and industry competitiveness. In terms of heterogeneity, the promoting effect of industrial robot utilization on the green transformation of exports is more pronounced in foreign-funded enterprises, technology-intensive enterprises, and enterprises in the eastern region. To efficiently leverage policy effects and facilitate the green transformation of exports, this article suggests strengthening policy guidance, providing special funds, tax incentives, and rewards, enhancing enterprise research and development capabilities, and encouraging domestic and non-technology-intensive enterprises, and enterprises in the eastern region to utilize industrial robots.

The moderating role of corporate governance mechanism on the relationship between product market competition and earnings management: evidence from Bangladesh

ABSTRACT This article evaluates the moderating effects of corporate governance mechanisms on the relationship between earnings management and product market competition. Market concentration, as measured by the HHI has shown significantly negative association with accrual and real earnings management. In contrast, product market power, as measured by the industry size, demonstrates a significant positive association. The result further illustrates that the cost of industry entry significantly impacts accrual earnings management. The corporate governance mechanism (CGI) significantly decreases earnings manipulation. Moreover, the corporate governance mechanism (CGI) considerably moderates the association between market concentration, industry entry cost, and earnings management. Compared to high and low-competitive industries, the impact of market competition on earnings management in moderately competitive industries is more significant. After establishing the Bangladesh Competition Commission, product market competition has shown more impact on earnings management. This research is the initial attempt to examine the moderating effect of corporate governance mechanisms on the relationship between product market competition and earnings management from the perspective of Bangladesh.

Assessing the Impact of Talent Management Practices on Employee Retention in Aligarh's IT Industry

Talent management has become increasingly critical for organizations to attract and retain high-performing employees, especially in competitive industries such as information technology (IT). This study aims to assess the impact of talent management practices on employee retention in the IT industry in Aligarh, India. A quantitative research approach was employed, with data collected through a survey of 342 IT professionals working in Aligarh. Factor analysis and multiple regression were used to analyze the data. The findings reveal that talent management practices such as employee development, career management, compensation and rewards, and work-life balance have a significant positive impact on employee retention. Performance management was not found to have a significant relationship with retention. The results suggest that IT companies in Aligarh should focus on implementing effective talent management strategies to improve employee retention and gain a competitive advantage. This research contributes to the literature by providing empirical evidence on the role of talent management in retaining employees in the IT domain in an Indian context.

Strategic cooperation of high tech companies of China and Russia

The sanctions imposed on the Russian economics in 2022 by a number of countries created an external shock for many industries in Russia with the strongest impact on the enterprises of high tech industries. At the same time, there is an emerging potential for cooperation between Russian and Chinese manufacturers which is forming new strategies of development of Russian high tech enterprises. In order to evaluate the prospects and trends of development of Chinese high tech industry in this context, the authors applied methods of economic analysis including the correlation analysis. Factors, determining potential of cooperation between Russia and China in this sphere, were systematized on the basis of the methodology of strategizing by Professor Vladimir L. Kvint.It has been stated that Chinese manufacturers are able to replace either partially or completely European and American suppliers in a number of high tech industries: innovative components and equipment for engineering, semiconductors and chips, telecommunications equipment and components. It has been discovered that the number of registered patents and the number of researchers involved in RD in China have a significant correlation with the growth of export of high tech products of China. Further growth will be able to ensure the expansion of technology and knowledge exports from China to Russia.Thus, it can be stated for sure that there are perspective industries and fields of Russia-China cooperation in high tech industry. The sphere of cooperation which can become the basis for the strategy of development of Russian high tech manufacturers is scientific and patent cooperation with Chinese organizations. The authors have also discovered limitations in this cooperation: there is a threat of imposing international sanctions on Chinese manufacturers; Chinese enterprises are working at a high level of workload in the context of the global economic recovery after the coronavirus pandemic; decrease of competitiveness of Russian high tech industry has a negative impact on the expected benefits from the cooperation between the countries. These strategic threats can be overcome with the help of a well-grounded foreign economic strategy developed by Russian and Chinese authorities.

The Moderated Mediation of Product Innovation and New Product Development in Relationship Between Organizational Learning and Marketing Capability, in Community Enterprise Management of Khid Clothing: Upper Northeastern of Thailand

Objective: The purpose of this research was to analyze the impact of the organizational learning (OL) on marketing capability (MC), the mediating of product innovation on the relationship between OL and MC, and the moderated mediation of product innovation and new product development in the relationship between OL and MC in community enterprise of Khid clothing in Thailand. Theoretical Framework: The theoretical framework for this research provides a comprehensive understanding of the interplay between organizational learning, product innovation, new product development and marketing capability within the context of community enterprises. Method: This report is a part of a larger exploratory study. Information was gathered from 389 people involved in silk-weaving cooperatives in the provinces of UdonThani and Nong Bua Lamphu through the use of questionnaires. Results and Discussion: The data demonstrates a link between strategic organizational learning and competitive advantage. Product innovation and the knowledge gained by an organization about how the market works go hand in hand. Lastly, the impact of product innovation on the link between organizational learning and market capability was tempered by the introduction of a new product. Research Implications: For Khid Clothing, integrating these theoretical perspectives can provide a comprehensive strategy for sustained growth and competitive advantage. The interplay between organizational learning, product innovation, new product development, and marketing capabilities creates a robust framework for the company to thrive in the competitive fashion industry. Originality/Value: The theoretical contributions of organizational learning, product innovation, new product development, and marketing capabilities provide Khid Clothing with a comprehensive approach to enhance its competitive edge, adapt to market changes, and achieve long-term success. By leveraging these theories, Khid Clothing can strategically position itself in the fashion industry, meet evolving customer demands, and drive sustainable growth.

Dynamic competition in the digital darwinism: focal firms responding to competitors’ digital transformation

ABSTRACT The fierce dynamic competition in the digital age has led to digital Darwinism. Under pressure from the digital transformation of their competitors, focal firms must adjust their situation to cope with digital Darwinism. Based on the awareness-motivation-capability (AMC) framework, this study uses Chinese high-tech enterprises listed from 2012 to 2022 as the research sample. Results show that the digital transformation of the competitors and the motivation of the focal firms (competitive industry environment) significantly promote the digital transformation of the focal firms, whereas the awareness (relative scale) and ability (financing constraints) of the focal firms have the opposite effect. This research contributes to investigations on the mechanisms of the digital transformation of counter pairs within the industry by using the AMC framework.

Technical Note: Dynamic Duopolistic Competition with Sticky Prices

Steven Heston of the R.H. Smith School of Business at the University of Maryland, College Park, and Bo Hu of the Costello College of Business, George Mason University, resolve a puzzle about industrial competition in “Dynamic Duopolistic Competition with Sticky Prices.” Previous papers analyze the effect of frictions on competition in continuous time, such as sticky prices or transactions costs. Those papers conclude that miniscule frictions have a large impact on market prices and quantities. However, Heston and Hu show that these conclusions are an artifact of the continuous-time math. Heston and Hu use discrete-time models to analyze the effect of frictions that are small per unit of time. These models show the effect of small frictions is small.

Pengaruh Brand Ambassador dan Kualitas Produk Terhadap Niat Beli Produk Scarlett di Shopee

In the modern era, human needs for health and beauty continue to rise rapidly, driving fierce market competition in the beauty industry. Marketers must also innovate and deliver creative and exciting products to compete with local and foreign products. The first step in caring for the skin's health and appearance is to use skin care products. Scarlett Whitening has become a popular choice among consumers with its good reputation. This research and data on the number of customers of Scarlett whitening at Shopee suggests that brand ambassadors play a crucial role in increasing product sales and consumer confidence. In addition, the brand embassy positively affects consumer interest in purchasing Scarlett products at Shopee. Beauty product sellers preferably apply this strategy to increase sales and their market share.

Optimalisasi Waktu Produksi Jamur Tiram Melalui Implementasi Sistem Penyiraman Berbasis IoT di UD Zaida Jamur Tiram

The optimization of oyster mushroom production time through the implementation of an Internet of Things (IoT)-based irrigation system at UD Zaida Jamur Tiram aims to enhance efficiency and production quality. This program integrates IoT technology to automate the irrigation process, allowing real-time control and monitoring of environmental conditions. Methods include the design and installation of an automatic irrigation system, technical training for operators, and performance evaluation through production data analysis. Results show a significant increase in time efficiency and consistency in oyster mushroom quality. The implementation of this IoT system is expected to support the sustainability and competitiveness of the oyster mushroom industry at UD Zaida.

Analisis Implementasi Pendidikan dan Pelatihan Human Capital di Industri Kreatif

Creative industries play an important role in the global economy, and the development of high-quality human resources is essential to drive innovation and productivity. The purpose of this study is to analyze the status of the implementation of human resource development and training in the creative industry. Using a qualitative approach, data was collected through in-depth interviews with industry players, academics, and policy makers, as well as analysis of related documents. The results showed that the combination of formal and non-formal education, cooperation between industry and educational institutions, and the use of modern technology play an important role in the development of human resources. Although formal education provides a solid theoretical foundation, non-formal education and technologies such as e-learning and VR can help improve certain practical skills according to market needs. . Collaboration between industry and educational institutions ensures relevant curricula and valuable practical experience for learners. Despite challenges such as limited resources and rapid technological change, effective education and training can enhance the competitiveness and growth of creative industries.

Strengthening the supply chain of bamboo resources in Bukidnon, Philippines

This research note focuses on strengthening the supply chain of bamboo resources in Bukidnon, emphasizing the identified key players and their respective roles. Bamboo is a valuable and sustainable resource with significant economic, social, and environmental benefits. However, the existing supply chain in Bukidnon faces challenges such as inadequate infrastructure, limited value addition, and a lack of market linkages. This study outlines key strategies and interventions to address these challenges and promote a vibrant bamboo industry. The methods involve a comprehensive analysis of the current state of the bamboo supply chain in Bukidnon, including a review of existing literature, consultations with industry experts, and case studies from successful bamboo industries in other provinces. The study recommends several strategies for strengthening the bamboo supply chain. First, enhancing bamboo production through sustainable cultivation practices, providing technical assistance to farmers, and adopting modern techniques are crucial. Second, promoting responsible harvesting practices and regrowth management through training programs can ensure the long-term sustainability of bamboo resources. Third, improving processing and value addition by investing in modern facilities and equipment can enhance competitiveness and quality. Lastly, establishing effective market linkages through trade fairs, networking events, and online marketplaces will connect producers with buyers, foster collaboration, and open up new market opportunities. The study concludes that a strengthened supply chain will contribute to economic growth, enhance the competitiveness of Bukidnon's bamboo industry, and generate higher economic returns. Moreover, establishing effective market linkages will facilitate knowledge sharing and collaboration, leading to domestic and international market expansion.

The impact of media coverage on the ESG performance of heavily polluting enterprises in China

Based on panel data from 2011 to 2021 encompassing 390 listed enterprises in China, we investigate the potential influence of media coverage on the Environmental, Social, and Governance (ESG) performance of heavy-polluting enterprises. The study discerns that positive media coverage significantly contributes to an enhanced ESG performance among heavy-polluting enterprises, particularly those in eastern and western China and those entrenched within highly competitive industries. Positive media coverage predominantly amplifies these enterprises’ environmental and social performance dimensions, while intriguingly, negative media coverage unexpectedly positively impacts their environmental performance. Green total factor productivity and green innovation emerge as crucial facilitators in bolstering the relationship between positive media coverage and the ESG performance of these enterprises. Our research findings provide valuable insights into understanding enterprise ESG behavior and the role of media coverage.

INVESTIGATING THE KEY LIMITATIONS AND IMPROVEMENTS INFLUENCING THE COMPETITIVE SUCCESS OF SOUTH AFRICA’S ORANGER EXPORTERS.

The objective of identifying constraining factors is to reveal that the key obstacles affecting the competitiveness of South Africa's domestic orange industry include issues such as the "quality of unskilled labor," "trust in the honesty of politicians," "electricity suppliers," "health," "South Africa’s land reform policy," "South Africa’s BEE policy," and "crime." Additionally, challenges related to the lack of quality infrastructure, bilateral agreements with trading countries, and poor performance of ports relative to their global counterparts have been identified. The constraining factors were ranked, with the top issues aligning closely with the industry's current challenges. In contrast, enhancing factors play a crucial role in boosting industry competitiveness in both domestic and international markets. The key elements contributing positively include the availability of unskilled labor, local input suppliers, scientific research institutions, technological quality, the cost of unskilled labor, soil conditions, and the sustainability of local input suppliers. Attention to maintaining and improving these factors is crucial for the sustained competitiveness of the South African orange sector.

The impact of industrial zones on regional attractiveness and competitiveness in Algeria

Abstract Subject and purpose of work Industrial zones in Algeria play a crucial role in shaping the attractiveness and competitiveness of the country’s regions. The impact of these zones extends beyond economic factors, influencing the overall appeal and competitive edge of different regions. Understanding the dynamics of industrial zones is essential for comprehending Algeria’s economic landscape and its efforts to enhance regional development. The primary objective of this article is to shed light on industrial zones and their impacts on regional industrial attractiveness and competitiveness in Algeria. Firstly, it involves clarifying the concept of regional attractiveness and competitiveness in relation to their economic, environmental, and social dimensions. This leads us, secondly, to examine non-institutional actors, specifically companies, and their interactions with their regions, based on an understanding of the local area, including the effect of industrial zones on the attractiveness and competitiveness of local companies. Materials and methods This study relies on the results of research conducted through a quantitative statistical survey among a sample of 110 companies (SMEs) located in various industrial zones in the Blida Province, allowing us to specify the impact of these industrial zones on local attractiveness and competitiveness. Results The results of our survey show that the industrial zones in Blida Province are highly conducive to the establishment of businesses, attracting project initiators effectively. The large number of businesses located in industrial zones and activity areas demonstrates that these zones remain attractive and present certain competitive advantages. Conclusions Industrial zones can play a key role in local industrial attractiveness and dynamics. When well-planned and managed, they can stimulate economic growth, promote employment, encourage innovation, and support local and sustainable development.

A Company Analysis of Apple Inc. Based on its Internal and External Environment

The company analysis of Apple Inc. underscores its dominant position within the technology industry. The research found that the company has a strong brand reputation, innovative products, and customer loyalty. Despite encountering challenges such as market saturation and increased regulatory scrutiny, Apple's strategic initiatives, notably its emphasis on product differentiation and seamless ecosystem integration, coupled with its formidable financial standing, are poised to sustain its upward trajectory and profitability. The findings of this paper portend a bright future for the company, with promising prospects in emerging technologies and untapped market segments. In addition, Apple's unwavering commitment to environmental sustainability not only enhances its operational resilience but also mitigates potential business risks in the long run. Armed with its existing capabilities and resources, Apple is well-positioned to cater to evolving consumer preferences and market dynamics, fortifying its leadership position amidst fierce industry competition and driving continued success. Apple can harness its strengths to solidify its market leadership and navigate the ever-changing landscape of the technology sector with confidence.

Fervo Showed Fractured Geothermal Works, Now Must Do It Bigger, Cheaper, and Soon

Earlier this year, one of the founders of Fervo Energy announced that the geothermal innovator had reached its “Mitchell moment.” Jack Norbeck, chief technology officer for Fervo, likened a test where it used a pair of fractured wells to create water hot enough to generate electricity to the time when Mitchell Energy adopted slickwater fracturing to economically extract large amounts of gas from the ultratight rock in the Barnett Formation. “We have derisked all those core challenges, we reached the Mitchell Energy moment for geothermal,” Norbeck said. By doing all that and supplying 3.5 MW of electricity to the local grid that powers Google facilities, he announced that the firm’s enhanced geothermal system (EGS), had reached the highest level of technical readiness. Now comes the hard part—proving that technical triumph can be turned into something really big. The Mitchell moment in 1997 is remembered because it led to a series of innovations that allowed hydraulic fracturing and horizontal drilling to add enough oil and gas production to move global markets. What has been learned about fracturing in the decades since allowed oil industry veterans at Fervo to effectively use those tools to do what others had failed to accomplish—create high-volume EGS capable of generating power. One big difference between the moments is that Houston-based Fervo’s next step looks like a leap compared to Mitchell’s. After Mitchell’s moment, no innovation was required to sell shale gas from the Barnett or find the oilfield services needed to develop and produce it. Plus, it could learn from the many other companies working in tight rock plays. Its moment was the culmination of years of innovations by oil and service companies who continued finding ways to build on that advance. The endless arguments over who can claim credit for the innovations behind the Mitchell moment are evidence of the size of that support network. Today, Fervo’s efforts are also supported by the oil industry’s service sector and supply chain. Oil company Devon Energy, drilling contractor Helmerich & Payne, and pressure-pumping specialist Liberty Energy are among its early backers. And Fervo is benefiting from the government-funded research and site-evaluation work at the Utah Frontier Observatory for Research in Geothermal Energy (FORGE) site, which is the key site for geothermal testing funded by the US Department of Energy (DOE). But unlike Mitchell, the path to commercial success will require Fervo and others to show they can create large operations to convert the heat they harvest into a cost-competitive commodity in a fast-changing, highly competitive industry. Sage Geosystems recently was added to the short list of geothermal startups with big projects, signing a deal with Meta to build a 150-MW plant somewhere east of the Rockies. Also high on the list is Eavor whose first commercial project will use its closed-loop heating technology for home heating and electric generation in Germany.

OPERATIONS MANAGEMENT STRUCTURE APPLIED IN PRICING RATE DESIGN IMPLEMENTATION

Companies in competitive industries find themselves in positions of needing to provide quality goods and services in ways that are efficient in terms of both production and cost. Because of this pressure toward efficiency, the Ford Motor Company, among many others, has had to reorganize its operational strategy. We analyze the ten strategic operational areas in which Ford made improvements, and we then go on to apply this framework to other sectors, including the energy sector. In doing so, we give recommendations for ProRate Energy Inc.’s innovative rate design, called ProRate/CLEP, which can benefit and improve operational efficiencies in implementing this innovative time-of-use rate design.

Analyzing the Determinants of Yarn Economics in the Cotton Industry: A Comprehensive Case Analysis

The cotton industry is a cornerstone of the global economy, influencing agricultural practices, trade, and industrial development. This study explores the key determinants shaping the cotton sector, focusing on procurement, price stabilization, export promotion, research and development, and skill enhancement initiatives. The Cotton Corporation of India (CCI) plays a crucial role in this ecosystem by ensuring fair compensation for farmers through minimum support prices, facilitating consistent cotton supply for the textile industry, and promoting exports to enhance market reach. Furthermore, the CCI's investments in research and development aim to improve cotton quality and resilience, addressing the industry's evolving challenges. Amidst these advancements, the cotton industry faces pressures such as price volatility, shifting consumer preferences, and an increasing emphasis on sustainable practices. This paper underscores the need for adaptive strategies and collaborative efforts among stakeholders, including farmers, manufacturers, and policymakers, to enhance the industry's competitiveness and sustainability. Future research should delve into the impacts of global market dynamics and technological innovations to better understand the cotton sector's opportunities and challenges.

Book Review: 「하이테크 강국 이스라엘」

A new book, High-tech powerhouse Israel, explains how it led to growth in the future-oriented high-tech industry. Despite geopolitics, religion, and cultural differences, Israel and Korea have similarities. Due to scarce natural resources, limited space, and unfriendly security, economic growth was rapid. Israel established a hightech ecosystem by swiftly pioneering new disciplines and expanding capabilities, while Korea based its industrial base on manufacturing. “High-Tech Powerhouse Israel” examines Israel's history, culture, and innovative ecosystem elements, analyzes its driving force that has grown into a global leader in the high-tech industry in a barren environment, and examines ways Korea can develop an innovative ecosystem. Han Jung-hwa, the author of “High-Tech Powerhouse Israel,” is a longtime researcher of management strategies and start-ups. He benchmarked Israel's technology start-up incubator policy to design Korea's Tech-Inverator Program for Startup (TIPS), a leading public-private partnership start-up support program. This book is crucial since it examines Israel's science, technology, and industry and includes the newest innovation ecosystem data. By introducing the latest trends in eight innovative sectors, including cybersecurity, climate technology, mobility, and fintech, as well as the possibility and policy of cooperation with Korea, it serves as a key to finding new growth engines in the management and industrial sectors. As a policy sector, it serves as a white paper for the institutional foundation to enhance new industry competitiveness.