Local Rivals Research Articles

Rivalry, Market Structure and Innovation: The Case of Mobile Banking

This paper focuses on a novel phenomenon—mobile banking diffusion—to illuminate unresolved questions: whether and how rivalry adoption and market structure affect the diffusion of a new technology. Using a unique, hand-collected dataset from the iTunes Store for 2008–2012, this study provides evidence that the adoptions of mobile banking apps by local rivals spur future adoptions. This effect is particularly strong in concentrated markets, where banks compete on non-price attributes. These results are robust to the application of instrumental variables that address the possibility that adoptions are merely simultaneous reactions to the same common forces.

Home Versus Away Competition: Effect on Psychophysiological Variables in Elite Rugby Union

This study evaluated the effect of game venue and starting status on precompetitive psychophysiological measures in elite rugby union. Saliva samples were taken from players (starting XV, n = 15, and nonstarters, n = 9) on a control day and 90 min before 4 games played consecutively at home and away venues against local rivals and league leaders. Precompetition psychological states were assessed using the Competitive State Anxiety Inventory-2. The squad recorded 2 wins (home) and 2 losses (away) over the study period. Calculated effect sizes (ESs) showed higher pregame cortisol- (C) and testosterone- (T) difference values before all games than on a baseline control day (ES 0.7-1.5). Similar findings were observed for cognitive and somatic anxiety. Small between-venues C differences were observed in starting XV players (ES 0.2-0.25). Conversely, lower home T- (ES 0.95) and higher away C- (ES 0.6) difference values were observed in nonstarters. Lower T-difference values were apparent in nonstarters (vs starting XV) before home games, providing evidence of a between-groups effect (ES 0.92). Findings show an anticipatory rise in psychophysiological variables before competition. Knowledge of starting status appears a moderating factor in the magnitude of player endocrine response between home and away games.

Spillovers of Cross-Border Strategic Alliances on Rivals’ Values in Emerging Economies

While there are many studies on the impact of cross-border strategic alliances (SAs) on market values of focal firms, studies on the impacts of cross-border SAs on market values of local rivals in foreign countries are limited. We start filling this gap by examining how local rivals’ stock prices respond to SA announcements between US firms and foreign partners in emerging economies. We employ signaling theory and test our hypotheses by using event study analysis of cross-border SAs between US firms and foreign partners in China, India, and South Korea in the pharmaceutical industry during 2004-2013. Our findings show that the higher the institutional distances between alliance partners are, the greater the positive spillovers on local rivals’ value would be. We also find that R&D alliances generate more positive spillovers than marketing alliances do. However, the results reveal that the positive spillovers of cross-border SAs between partners with high institutional distances are attenuated with R&D alliances. This study provides insights on how institutional contexts play an important role on the spillovers of cross-border SAs in emerging economies.

Local Politics and Corruption in Indonesia’s Outer Islands

Prosecution of local corruption cases in Indonesia often occurs in a seemingly arbitrary manner. This article analyses some of the patterns behind this seeming arbitrariness. It will be argued that local corruption cases often follow similar patterns whereby prosecution is not a result of the work of anti-corruption activists, but rather the consequence of intra-elite rivalries. Thus, the growing number of cases being exposed is not a sign of societal accountability, but should rather be seen as a reflection of the competitiveness of local politics and the need for local elites to continuously find new strategies to weaken local rivals.

Compact organizational space and technological catch-up: Comparison of China's three leading automotive groups

This study examines why compact organizational space may matter for technological catch-up, through a comparison of China's leading automotive groups. The comparative analysis demonstrates that the Shanghai Automotive Industry Corporation (SAIC) surpasses its two local rivals in terms of technological capabilities partly because the firm has managed its organizational space in close connection with intensive growth strategies at the group level. SAIC has greatly benefited from compact organizational space in building technological capabilities, as it encourages the mobilization and integration of internal resources and promotes group-wide synergy for an effective internalization of acquired assets.

The Impact of Local Knowledge on Banking

We use firm-level data to study how local knowledge impacts the wage and profitability of commercial banks. Using a novel regulatory and competitive environment as a natural experiment, we find that restrictions on the mobility of local knowledge negatively impact the incidence of new bank charters. Also consistent with expected theory, we also find no impact on banks formed through mergers or acquisition where the acquiring bank can simply purchase the local knowledge available. We also find that restrictions on the mobility of local knowledge decrease labor expenses. This supports the hypothesis that such mobility restrictions enable employers to extract rents from workers who lack bargaining power arising from a potential job change to a local rival. We also find that increases in labor restrictions are positively correlated with profitability, benefiting established banks because it restricts competitive with potential new banks that could potentially exploit local knowledge more effectively.

India's Stabilizing Segment States

The post-independence history of India contradicts the segmental-institutions thesis. Non-ethnic federalism was met with popular resistance and segmental institutions emerged because of nationalist mobilization. These institutions stabilized India, which has remained intact. Central violations of segment-state arrangements have been the impetus for violent nation-state crises. The Gorkhaland movement in the Darjeeling area of West Bengal in India is used to explain the disconnection between India's experience and the segmental-institutions thesis. As the thesis predicts, progressively more-generous autonomy arrangements have helped regional elites to repress political competition in Darjeeling. However, limited political competition in Darjeeling curbs demands on the centre because regional elites' primary incentive to mobilize ethnic grievances is to outflank local political rivals.

Core Voters or Local Allies? Presidential Discretionary Spending in Centralized and Decentralized Systems in Latin America

Starting in the late 1990s, traditional opposition parties in Latin America started to capture presidencies. Some of these parties have dramatically shifted resources to core voters as promised, while others have been slower to realize their campaign agendas. I argue this difference depends on presidents' incentives which differ between centralized and decentralized systems. All presidents want their parties to be re-elected, but when local officials are powerful and often opposed to the president, presidents worry that local rivals will steal credit for the provision of goods. This mechanism deters presidents from targeting their voters directly. Instead, presidents in decentralized systems compensate by delivering more goods where local officials are co-partisans, even if the plurality of voters did not support the president there. Resource allocation should thus depend on partisan control of local office in decentralized systems. In centralized systems it should depend on voters' support for the president, even if the local mayor opposed the president. I demonstrate this pattern across 12 years and 100,000 municipalities in Argentina, Brazil, Mexico, and Venezuela. My analysis draws on observational data, as well as on in-depth interviews with current or former presidents, governors, and several mayors.

Financial Implications of Local and Nonlocal Rival Isomorphism

We develop an isomorphism-signaling framework to explain the likelihood of isomorphic behavior (and nonconformity) by a focal firm toward local rivals and nonlocal rivals and then predict financial performance associated with the action. In the presence of asymmetric information, we predict a causal relationship between rival isomorphism and financial performance that reveals a paradox—that is, we theorize and show conditions in which “conforming” reflected by rival isomorphic behavior is a signal that “separates” high-quality from low-quality firms. We consider a firm’s costs and benefits of local and nonlocal rival isomorphism and assert that a firm can signal its quality, which affects financial performance of the equity offering. We test and find support for our hypotheses using a sample of firms raising capital abroad from 1994 to 2005.

International Corporate Governance Spillovers: Evidence from Cross-Border Mergers and Acquisitions

We develop and test the hypothesis that foreign direct investment promotes corporate governance spillovers in the host country. Using firm-level data on cross-border mergers and acquisitions (M&A) and corporate governance in 22 countries, we find that cross-border M&As are associated with subsequent improvements in the governance, valuation, and productivity of the target firms’ local rivals. This positive spillover effect is stronger when the acquirer is from a country with stronger shareholder protection and if the target’s industry is more competitive. We conclude that the international market for corporate control promotes the adoption of better corporate governance practices around the world.

Business as usual? An exploration of the determinants of success in the multinational transfer of corporate responsibility initiatives

Scholars have shown that corporate responsibility (CR) initiatives can create intangible assets that help MNCs reduce their liability of foreignness and even gain competitive advantage over local rivals. But scholars have not addressed the ability of MNCs to transfer CR initiatives to subsidiaries. This study builds theory about the conditions that influence success and failure in the transfer of CR practices from headquarters to overseas subsidiaries. We analyze CR transfers from the headquarters of an Indian multinational to its subsidiaries in China and the U.K. Our findings suggest that CR transfer differs in substantial ways from operational practice transfer. In particular, the ambiguity of the CR initiative, the social competency of the business unit transferring the CR initiative, and the active involvement of local stakeholders play significant roles in CR transfer success.

The Paternal Obligation to Provide: Political Familialism in Early-Nineteenth-Century Chile

In the short term, Carrera and his family controlled “the bayonets,” but for decades separatists battled both royalists and each other to control these multiple presidencies. The Chilean elite, which had proven remarkably cohesive throughout the eighteenth century owing in part to intermarriage, split into factions in the early nineteenth. Across the socioeconomic scale, moreover, families broke apart as armies mobilized husbands, sons, and fathers for military service and relocated civilians from the south to prevent their aiding occupying troops. Throughout the country, both Spanish and Chilean authorities confiscated properties of suspected enemies, depriving households of their livelihoods. When any faction of separatists gained the upper hand, they arrested, exiled, or executed their local rivals, this last a fate suffered by Carrera and his two brothers. Only after wielding their bayonets against external enemies, Peru and Bolivia from 1836 to 1839, did Chilean elites begin to reunite under a more stable government. In 1841, independence war hero Jose Ignacio Zenteno wrote with relief to a former comrade in exile that Chile had held its

Reading Carlos Tevez: Football, Geography, and Contested Identities in Manchester

Carlos Tevez is an Argentinean football player who plays for Manchester City in the English Premier League. Having previously played for City’s fierce local rivals, Manchester United, he has forged an interesting identity in the city. This study analyzes the various meanings allotted to him, with emphasis on his presence surrounding the construction of alternative (re)presentations of Argentina in the local (Manchester) and national (England) media. A host of newspaper articles surrounding his transfer to Manchester City and the first derby match of the season was used as the base for this study. The conceptual approach incorporates imaginative geographies of sport, relating to how individuals create contested identities of place.

The Impact of Labor Mobility on Bank Performance

We use firm-level data to study how local knowledge impacts the wage and profitability of commercial banks. Using a novel regulatory and competitive environment as a natural experiment, we find that restrictions on the mobility of local knowledge negatively impact the incidence of new bank charters. Also consistent with expected theory, we also find no impact on banks formed through mergers or acquisition where the acquiring bank can simply purchase the local knowledge available.We also find that restrictions on the mobility of local knowledge decrease labor expenses. This supports the hypothesis that such mobility restrictions enable employers to extract rents from workers who lack bargaining power arising from a potential job change to a local rival. We also find that increases in labor restrictions are positively correlated with profitability, benefiting established banks because it restricts competitive with potential new banks that could potentially exploit local knowledge more effectively.

Research on Corporate Citizenship Engaging in Social Welfare Activities

Great expectations are being placed on firms to act with increasing social responsibility, which is adding a new dimension to the role of management and the vision of companies. Meanwhile, society is looking more closely at the impact of business on the public. Thus, the notion of the corporate citizenship is a significant transition in corporate consciousness as organizations look beyond their own definition and experience to see the broader issues. We argue that social welfare activities are strategic investments for firm. They can create intangible assets that help companies overcome entry barriers, facilitate globalization, and outcompete local rivals. Therefore, recognizing six major areas of social welfare activities, we propose four strategies of corporate citizenship engaging in them. They are simple contribution, topic contribution, collaboration with non-profit organizations or government organizations, and establishment of corporation charity fund. Future research on corporate citizenship would be strengthened in philanthropic strategy and management.

Tariffs, Horizontal Regulatory Standards and Protection against Foreign Competitors

This paper focuses on a regulator's choice between setting a pure, horizontal technical barrier to trade (HTBT) or a tariff in a linear, Cournot duopoly, where a foreign firm competes with a local rival. Where a country is free to impose a tariff, it will not impose a HTBT. Only under a limited set of circumstances will the profit-shifting effect be sufficient to lead to total exclusion of the foreign firm: in other conditions, the country will set a tariff yielding some revenue. By contrast, if tariffs are constrained by international agreement, then the importing country will set an HTBT to exclude the foreign firm if and only if tariffs are reduced below a threshold level. Trade liberalisation agreements which only cover tariffs can reduce, rather than increase global welfare.

‘This is Our City’: branding football and local embeddedness

AbstractIn 2005, with a view to cultivating the loyalties of local supporters rather than attracting new support, Manchester City Football Club launched its Our City branding campaign. The campaign suggests that ‘real’ Mancunians support City and not local rivals like Manchester United, which it implicitly conceives of as a global, non‐local, corporate entity. By building on established fan culture and the myths surrounding the local and the global, City is portrayed as ‘authentic’, ‘cool’ and rooted in a traditional ‘working‐class community’. Contending that football is a revealing field in which to explore contemporary formations of identity, in this article we critically explore the relationship between branding, place and identity. We describe the campaign, explore the myths with which the Our City campaign is aligned and discuss the embedded contexts that constrain the global branding of football.

Naujai apie įmonių veiklos analizę

Nowadays, under intensive and dynamic conditions of economy it is not easy not only to create a business but also to retain it and develop. Lithuania’s integration into the common market of the European Union, its active participation in the international markets as well as competitiveness growth on the domestic market amongst local rivals entails actually to markedly strengthen analysis and realistically assess own financial state and that of the rivals as well as to foresee further development of the business and its perspectives. Accordingly. to sort out the problems mentioned above it is necessary to accomplish an analysis of businesses (enterprises).Prof. J. Mackevicius monograph “Analysis of the business” contains issues like analysis of the business (its activity), collection of information, its processing and assessment. Analysis of the business activity is accomplished through research of dynamics and structure of different indicators, their interrelationship and dependence as well as factors that prompt the changes of indicators are discovered. Thus, the said monograph is particularly helpful for business (enterprise) managers, accountants, auditors and other specialists within the remit of analysis of the business problems.

Multinational firms, exclusivity, and backward linkages

How does the nature of contractual relationships between a multinational and its local suppliers affect backward linkages and welfare in the local industry? We address this question in a two-tier oligopoly model where a multinational transfers technology to its suppliers if they accept an exclusive contract that precludes them from serving its local rivals. Invited suppliers balance the benefits of gaining access to new technology and the derived demand of the multinational against the opportunity of selling to other local firms. Exclusivity reduces competition among local suppliers and can lower backward linkages and local welfare relative to autarky.

Corporate Citizenship: Creating Intangible Assets Across Institutional Environments

We argue that citizenship programs are strategic investments comparable to R&D and advertising. They can create intangible assets that help companies overcome nationalistic barriers, facilitate globalization, and outcompete local rivals. Program content selection reflects a balance between legitimation and differentiation, and choices are influenced both by local institutional environments that shape expectations of corporate commitment to citizenship and by the degree of customization required because of institutional distance. Citizenship profiles therefore enable the sociocognitive integration that global companies require to operate effectively across diverse local markets.