Inter-industry Competition Research Articles

COMPETITION AS A KEY PROPERTY OF THE AGRICULTURAL PRODUCTS MARKET

Competition in the agricultural sector results from the unity of conflicting factors: the maximum freedom of activity of market forces and the significant influence of the state on the processes taking place in the industry, which ensures the overall efficiency of social production. Regulation of competition in the agricultural market in developed countries is a developed and expensive system. Currently, it is impossible to provide the same robust support to the agricultural sector in the country, but the principles and methods used for this can be taken into account. Different types of competition are developing in the agri-food market. Intra-industry competition is possible only if production and sales costs are reduced and weak, technically backward enterprises are pushed out of the market. Interindustry competition leads to the redistribution of capital and other resources between industries, taking into account the rate of return. Participation in agriculture in this competition is only possible with state support due to the low speed of capital turnover and high capital intensity in this field. Intra-industry competition initiates technical progress, and inter-industry competition contributes to the structural development of the agricultural industry. To a certain extent, agricultural product markets are characterized by perfect competition, and food markets are characterized by monopolistic competition. It is emphasized that competition covers all spheres of commodity production, distribution, market exchange, and consumption. It manifests differently in each branch of the economy, which is determined by the specifics of their activity. Conducted studies of competition in the market of agricultural raw materials and food indicate the need to strengthen the competitiveness of domestic agricultural products and ensure consumer, quality, and price characteristics of agricultural products, raw materials, and food that are comparable to the world level, regardless of orientation to domestic or foreign markets. It is noted that competition in agriculture is characterized by many competitors on the market and obstacles in the production and sale of agricultural products.

Research on predicting the driving forces of digital transformation in Chinese media companies based on machine learning

Chinese media companies are facing opportunities and challenges brought about by digital transformation. Media economics takes the evaluation of the business results of media companies as the main research topic. However, overcoming the internal differences in the industry and comprehensively predicting the digital transformation of Chinese media companies from multiple dimensions has become an important issue to be understood. Based on the “TOE-I” theoretical framework, this study innovatively uses machine learning methods to predict the digital transformation of Chinese media companies and to analyze specific modes of the main driving factors affecting the digital transformation, using data from China’s A-share-listed media companies from 2010 to 2020. The study found that environmental drivers can most effectively and accurately predict the digital transformation of Chinese media companies. Therefore, under sustained and stable economic and financial policies, guiding inter-industry competition and providing balanced digital infrastructure conditions are keys to bridging internal barriers in the media industry and promoting digital transformation. In the process of transformation from traditional content to digital production, media companies should focus on policy changes, economic benefits, the decision-making role of core managers, and the training and preservation of digital technology talent.

Does Industrial Policy Reduce Corporate Investment Efficiency? Evidence from China

We investigate the impact and mechanism of industrial policy on corporate investment and investment efficiency. Using the micro-level data of A-share listed firms on China’s stock market from 2001–2020, we examine whether industrial policies have different effects on China’s state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). Moreover, we identify specific policy followers to further illustrate the impact of industrial policy on investment efficiency. The empirical results show that industrial policies promote investments among non-SOEs at the cost of reducing their investment efficiency, but have no effect on the investment and efficiency of SOEs. Government subsidy and inter-industry competition are the main mechanisms for the negative impact of industrial policy on investment efficiency. Moreover, target industrial policies reduce the investment efficiency of both SOE and non-SOE policy followers. Therefore, to achieve the goal of improving corporate investment efficiency and promoting sustainable economic development, policy-makers should pay more attention to the consequence of unnecessary government subsidy and excessive inter-industry competition.

Implementasi Algoritma K-Nearest Neighbour dalam Memprediksi Stok Sepeda Motor

PT. Dasatama Cemerlang Motor is a company engaged in the automotive sector. With the increasingly fierce competition among the automotive industry, companies are required to be able to handle inter-industry competition. Sales system PT. Dasatama Cemerlang Motor uses a cash or credit system. For every motorcycle sale, the admin inputs sales data using Ms.Excel. Even though Ms.Excel has many features and functions that are used to process numbers, it cannot predict annual motorcycle sales for the future as a reference in marketing strategy. Because of that, forecasting is needed which will help the company to find out the trend in the number of motorcycle sales for the coming year. The KNN algorithm is one of the methods used for classification analysis, but in the last few decades the KNN method has also been used for prediction. KNN looks for the shortest distance between the data to be evaluated and its K closest neighbors. The results achieved in this study resulted in the number of motorcycles for each brand that will be sold in 2022 obtained from the addition of 5 motorcycles for each sale of each motorcycle brand. Based on the research results, the prediction accuracy rate using the KNN method is 97%.

Simulation of Cooperation Scenarios of BRI-Related Countries Based on a GVC Network

The inter-country input–output table is appropriate for presenting sophisticated inter-industry dependencies from a global perspective. Using the above table one can perceive the amount of production resources that sectors obtain from their upstream ones, as well as the number of productive capacities that sectors provide for their downstream ones. In other words, competition/collaboration occurs when sectors share the same providers/consumers because all sectors’ products and services outputted to downstream ones are limited. Thus, inter-industry competition for inputs from upstream sectors, or collaboration on outputs to downstream sectors, may be quantified with input–output matrix transformation. In this paper, a novel analytical framework of inter-industry collaborative relations is established based on the bipartite graph theory and the resource allocation process. The Collaborative Opportunity Index and Collaborative Threat index are designed to quantitatively measure the industrial influence hidden in the topological structure of the global value chain (GVC) network. Scenario simulations are carried out to forecast the potential and trends of international capacity cooperation within Asian, European, and African nations related to the Belt and Road Initiative, respectively.

The strategic advantage of mature-stage firms: Digitalization and the diversification of professional sport into esports

Digital innovations provide mature organizations with opportunities to grow beyond their core industry and thereby compete with formerly tangentially related firms. In this research, we examine how mature organizations generate a competitive advantage when diversifying beyond their native industry. We address this question, withing the context of mature professional sport organizations that are affiliating with esports – organized video game competitions. Esports exemplify the growing number of digital innovations influencing the way organizations operate. Our study adds to existing knowledge by demonstrating how resources initially developed to compete with intra-industry organizations may transform into sources of competitive advantage when entering inter-industry competition. Drawing on strategic management perspectives based on the resource-based view (RBV) and knowledge-based view (KBV), we found that the experience-based tacit knowledge embedded in a firm (and its human capital) generates competitive advantage in these new industries. However, this knowledge is only as valuable as the versatility of the resources guiding its use. Our findings indicate that a firm’s versatile resources, when coupled with its knowledge, are the basis for generating a competitive advantage. Thus, as mature organizations diversify, they stand to benefit from identifying the versatile resources developed in their native competitive environment that represent strategic resources when challenging new competitors and using said resources in tandem with their knowledge-based competencies.

Research on the Risk of the Fourth Party Logistics Enterprise Based on the Tripartite Cooperation Model under the Background of Made in China 2025: A Case Study of XCompany

Under the background of "made in China 2025", China's logistics development ushered in new opportunities, which put forward newer and higher requirements for the transformation and upgrading of the logistics industry.The fourth party logistics enterprise is a supply chain integrator.At present, there is a kind of fourth party logistics enterprise based on tripartite cooperation and operation mode in China. That is, fourth party logistics enterprises combine transportation enterprises withinsurance companies, and meanwhile rely on logistics information platform to carry out safety management of freight vehicles. In fact,in the process of tripartite cooperation, there are many uncertain factors, which bring multiple risks to the fourth party logistics enterprises. This paper studies and analyzes the risks faced by the fourth party logistics enterprises, in order to determine the important risk factors, so as to provide decision-making reference for the fourth party logistics enterprises to avoid risks. Firstly, this paper identifies the specific risks in the environment, cooperation, finance and management of the tripartite cooperation model from the internal, external and partnership dimensions, and reveals the mechanism of the risks. Secondly, the analytic hie-rarchy process (AHP) is used to calculate the comprehensive weight of each risk index, and the fuzzy synthetic evaluation method is used to determine the probability of risk. Finally, the overall risk level of X Company is ob-tained by establishing an evaluation matrix and weighting calculation according to the membership relationship between the evaluation matrix and the index weight. The results show that: from the perspective of the dimension of risk importance, cooperation risk and financial risk have the highest risk weight in the second-level index; in the third-level index, the behavioral risk of transportation enterprise, working capital risk and insurance company have the highest risk weight, while the weight of natural risk and political risk is lower. In the dimension of risk generation probability, inter-industry competition risk, transportation enterprise behavior risk, insurance company behavior risk and working capital risk are in the higher probability.

Interindustry Competition in Russia’s Economy

The article presents an approach to analyzing the role of interindustry competition in the formation of the sectoral composition of the national economy. The approach is original in its emphasis on competitive mechanisms of interindustry interactions, taking into account redistribution of national economic resources between sectors of the national economy. Three key channels of such interactions are considered: foreign trade, the labor market, and the financial market. Testing the proposed approach on the example of Russia reveals that interindustry competition plays a major role in changes in the sectoral composition of its economy. Considering the channels of interindustry interaction leads to a deeper understanding of processes that cause such changes.

ELABORATION OF CUSTOMER LOYALTY PROGRAMMES ON THE MARKET OF TRAVEL SERVICES WITHIN THE CONTEXT OF TOTAL QUALITY MANAGEMENT

Goal. The paper is aimed to disclose the nature of customer loyalty programms as a component of managerial technologies. It defines the conceptual principles for the construction of a more balanced customer loyalty programme on the travel services market within the context of total quality management. Methodology. The methodological basis for the scientific study of the customer loyalty system’s construction on the market of travel services within the context of total quality management is compiled from scientific works by foreign authors, statistical data of the State Statistics Service of Ukraine, as well as the information available on the official websites of transportation companies. The author considers new scientific research on the formation of customer loyalty programmes within the context of total quality management to be of great importance. That fact causes the need to analyse existing customer loyalty programmes of the participants on the travel transportation market, taking into account various impact factors, in particular, intra-industry and inter-industry competition. In order to study customer loyalty programmes on the market of travel services carrying out the transportation of tourists, some of them were analysed, including the representatives of the JSC "Ukrzaliznytsya"/ Ukrainian Railway, bus and air traffic service operators. Results. As a result of the study, the author identifies some high-risk situations in which companies could lose customers’ loyalty on the travel service market. The article provides general conceptual principles for implementation in order to increase the loyalty level of customers while their transportation by the aforementioned companies. The author introduces a pilot project for issuing a trial batch of the "Tourist Card of JSC" Ukrzaliznytsya, a fundamentally new for the JSC "Ukrzaliznytsya"/ Ukrainian Railway and previously not introduced service. The implementation of the pilot project and the study of consumers' demand for the "Tourist Card" JSC "Ukrzaliznytsia", as well as other gained conclusions, will create new opportunities to balance more effectively the mutual goals of all participants on the travel rail transport market. Consequently, the project will provide a higher individualisation level of the relations between the JSC "Ukrzaliznytsia" and its customers, and that will definitely increase the customers’ level of loyalty. Scientific novelty. The conceptual tools and framework proposed for all participants on the travel transportation market will contribute to more effective development of the customer loyalty programmes within the context of total quality management. The introduction of special personalised offers like the "Tourist Card" JSC "Ukrzaliznytsya" will provide a new level of relationships, a higher level of the JSC "Ukrzaliznytsya" efficiency and other advantages. Besides, the mentioned means will create more profitable economic platform to unite different participants on the travel services market, including transportation companies, reduce risks and provide a new stage of development for the JSC "Ukrzaliznytsya"/ Ukrainian Railway. Practical importance. In the long term, the implementation of the "Tourist cards of JSC “Ukrzaliznytsya” and the “Consumer Loyalty Programmess” personalised cards, as well as clear definition of conditions for their purchase and use, will provide an innovative level for the development of interrelations between the customers of the JSC "Ukrzaliznytsya" services.

Research on the improvement of the core competitiveness of tea industry in famous tea town: A case study of Huangshan City, Anhui Province

Huangshan City, Anhui Province, is one of the most suitable tea producing areas in China, with a long history of tea making. There are many varieties of tea in Huangshan, such as Maofeng, Taiping Houkui, Qimen black tea and so on. Tea industry is an important economic pillar of Huangshan City. However, statistics in recent years show that there are obvious shortcomings in the quantity and quality of tea production in Huangshan City, and the development in domestic sales and export is slow. In this paper, the diamond model proposed by Professor Michael Porter is used to analyze the competitiveness of tea industry in Huangshan City from six aspects: production factors, demand situation, related and supporting industries, enterprise strategy and structure, as well as inter-industry competition, government and opportunity. It is suggested to try to promote the operation mode of "Leading Enterprises + Production Cooperatives + Farmers + Traditional Channels + Internet +", so as to form a more complete local tea industry chain and help more local tea farmers to increase income and become rich. Furthermore, relying on the rich tourism and cultural resources in the region, this paper tries to explore a unique development path that combines tea garden experience, tea culture and local tourism, highlights local characteristics and advantages, and seeks an optimized model suitable for the development of local tea industry.

Incessant Conceptual/Industrial Transformation of Automobiles

In order to comprehend the prospect of a future automobile industry, the development path of the automobile industry is reviewed. It is found that the industry has experienced an incessant conceptual transformation, dominant design, emission control, fuel efficiency, product integrity, modularization, and hybridization. An industrial transformation is also identified, comprised of inter-firm competition, inter-industry competition, and inter-industry collaboration. It is concluded that in the coming age of self-driving, global partnering including IT companies will forge a new path for industrial development. Additionally, the pattern of innovation will involve business model creation rather than simple product/process innovations, such as the PC industry experienced after its stand-alone innovation had been accomplished.

ELABORATION OF CUSTOMER LOYALTY PROGRAMMES ON THE MARKET OF TRAVEL SERVICES WITHIN THE CONTEXT OF TOTAL QUALITY MANAGEMENT

Goal. The paper is aimed to disclose the nature of customer loyalty programms as a component of managerial technologies. It defines the conceptual principles for the construction of a more balanced customer loyalty programme on the travel services market within the context of total quality management. Methodology. The methodological basis for the scientific study of the customer loyalty system’s construction on the market of travel services within the context of total quality management is compiled from scientific works by foreign authors, statistical data of the State Statistics Service of Ukraine, as well as the information available on the official websites of transportation companies. The author considers new scientific research on the formation of customer loyalty programmes within the context of total quality management to be of great importance. That fact causes the need to analyse existing customer loyalty programmes of the participants on the travel transportation market, taking into account various impact factors, in particular, intra-industry and inter-industry competition. In order to study customer loyalty programmes on the market of travel services carrying out the transportation of tourists, some of them were analysed, including the representatives of the JSC "Ukrzaliznytsya"/ Ukrainian Railway, bus and air traffic service operators. Results. As a result of the study, the author identifies some high-risk situations in which companies could lose customers’ loyalty on the travel service market. The article provides general conceptual principles for implementation in order to increase the loyalty level of customers while their transportation by the aforementioned companies. The author introduces a pilot project for issuing a trial batch of the "Tourist Card of JSC" Ukrzaliznytsya, a fundamentally new for the JSC "Ukrzaliznytsya"/ Ukrainian Railway and previously not introduced service. The implementation of the pilot project and the study of consumers' demand for the "Tourist Card" JSC "Ukrzaliznytsia", as well as other gained conclusions, will create new opportunities to balance more effectively the mutual goals of all participants on the travel rail transport market. Consequently, the project will provide a higher individualisation level of the relations between the JSC "Ukrzaliznytsia" and its customers, and that will definitely increase the customers’ level of loyalty. Scientific novelty. The conceptual tools and framework proposed for all participants on the travel transportation market will contribute to more effective development of the customer loyalty programmes within the context of total quality management. The introduction of special personalised offers like the "Tourist Card" JSC "Ukrzaliznytsya" will provide a new level of relationships, a higher level of the JSC "Ukrzaliznytsya" efficiency and other advantages. Besides, the mentioned means will create more profitable economic platform to unite different participants on the travel services market, including transportation companies, reduce risks and provide a new stage of development for the JSC "Ukrzaliznytsya"/ Ukrainian Railway. Practical importance. In the long term, the implementation of the "Tourist cards of JSC “Ukrzaliznytsya” and the “Consumer Loyalty Programmess” personalised cards, as well as clear definition of conditions for their purchase and use, will provide an innovative level for the development of interrelations between the customers of the JSC "Ukrzaliznytsya" services.

Mежотраслевая конкуренция и образование средней нормы прибыли как предпосылка реиндустриализации

Inter-industry Competition and Formation of Average Profit Rate as a Precondition for Reindustrialization

Generic and Brand Advertising Strategies Under Inter-Industry Competition

Industries invest in over billion dollars annually to drive up the primary demand and to fence off competing new industries’ threat to their customer bases. Companies in addition to contributing to industry generic campaign also heavily rely on brand advertising in order to capture a greater market share. Using a game-theoretic approach, we study generic and brand advertising competition under such an inter-industry competitive framework. We built an analytical model to study two competing industries each simultaneously making generic advertising decisions followed by firms within each industry simultaneously conducting brand advertising. We found that the mere presence of a rival industry can act as an impetus for an industry to invest in generic advertising. Model analyses and numerical studies suggest that there is a clear interactive nature between the two types of advertising decisions under inter-industry competitive framework. The generic advertising spending of an industry increases as the firms within that industry are more asymmetric. While a firm’s brand advertising spending increases as the generic advertising of its associated industry becomes more effective and that of the rival industry becomes less effective. Extensions of the main model suggest that there is a first-mover advantage in generic advertising under inter-industry competition.

What are the driving forces of bank competition across different income groups of countries?

This paper rigorously investigates the determinants of bank competition for 146 countries over the sample period 1999–2011. The results employing both the Lerner index and the Boone indicator, reveal the distinctive characteristics of the competition drivers across different income groups of countries. Amongst other things, a concentrated banking system jeopardises competitiveness in developing economies, however, such a causal nexus is absent for advanced and emerging economies. Contestability and institutional development seem to boost competition in less-developed banking systems, whereas inter-industry competition and financial freedom are beneficial to advanced banking systems. These findings survive robustness tests.

Competitive Dynamics across Industries: An Analysis of Inter-Industry Competition in German Passenger Transportation

We explore and analyze competition between actors that stem from different industries. Using an inter-industry focus, we explore competitive parameters between rivals that differ substantially in their resource endowments, organizational structures, practices, and cognitive schemes. The inter-industry focus is also important because many industries are converging and thus instil competitive interaction between actors that were traditionally separated by industry boundaries. The empirical context for this study is the competitive interaction between airlines and railways in Germany. Based on expert interviews and grounded theory analysis, we elucidate the role of awareness, motivation and capability as drivers of competitive actions.

Competing Paradigms of Competition

This study aims at the empirical investigation of the different conceptualizations of competition with the data available for Turkish manufacturing from 1980 to 2001. The analysis specifically takes into account the classical/Marxian view of competition, which rigorously recognizes the dynamic and turbulent nature of capitalist competition and is based on the concept of “regulating capital.” Time series analysis is conducted in order to test for the persistence of profit rate differentials among 3-digit classification of the manufacturing industries. The analysis, by differentiating between the intra- and inter-industry competition, addresses the classical/Marxian emphasis on the inter-industry trends of equalization. For this purpose, industry-based data instead of firm-based data are used. Lastly, the incremental rate of profit as the return to regulating capital is taken as the basis for establishing what is actually equalized in the course of competitive process. The analysis is conducted both for the average and incremental rates of return for a comparative view. The results show that while the average rate of profit shows significant persistence in most of the industries, the incremental rate does not. These results are in accordance with the classical/Marxian long-run center of gravity dynamics. JEL Classifications: B12, B51, D41, D49, L10, L60

GROWTH, INTER-INDUSTRY AND INTRA-INDUSTRY COMPETITION AND WELFARE*

In this paper we introduce strategic interaction between firms in an R&D growth model which captures both the intra-industry competition between firms operating within an industry and the inter-industry competition between firms in different industries. We show that the more substitutable the goods produced within each industry (across industries) are, that is, the more intense the intra-industry (inter-industry) competition, the higher is the growth rate. In the comparison between social optimum and a decentralized economy, it is shown that the market outcome is characterized by inefficiently high entry of firms within each industry and insufficient productivity growth.

Banking Competition and Capital Ratios

We use data for more than 2,600 European banks to test whether increased competition causes banks to hold higher capital ratios. Employing panel data techniques, and distinguishing between the competitive conduct of small and large banks, we show that banks tend to hold higher capital ratios when operating in a more competitive environment. This result holds when controlling for the degree of concentration in banking systems, inter-industry competition, characteristics of the wider financial system, and the regulatory and institutional environment.

Banking Competition and Capital Ratios

We use data for more than 2,600 European banks to test whether increased competition causes banks to hold higher capital ratios. Employing panel data techniques, and distinguishing between the competitive conduct of small and large banks, we show that banks tend to hold higher capital ratios when operating in a more competitive environment. This result holds when controlling for the degree of concentration in banking systems, inter-industry competition, characteristics of the wider financial system, and the regulatory and institutional environment.