Industrial Policy Research Articles

Studying strategic behaviour of small industrial enterprises in the context of the organizational and industry life cycle concepts

Unlike large corporations whose business patterns have been extensively studied and categorized, there is a lack of research on small business strategies, leaving them largely unexplored. The article explores the strategic behaviour of small industrial enterprises in Russia within the organizational and industry life cycle concept. The research methodology is based on strategic management theory and the concept of the life cycle. The research methods include panel data analysis, the Beta coef f icient calculation, and the matrix method. The information base is the reporting data of 134 small enterprises from industries at different stages of the life cycle: metal casting (growth) and newspaper printing (maturity). Statistics for analysis were obtained from the SPARK Interfax database for the period of 1999–2021. We identified three types of strategic behaviour (‘aggressive’, ‘de fender’, and ‘counterstrategy’) and assessed their prevalence among small enterprises in the two industries under consideration. The results showed that mature small enterprises with an ‘aggressive’ intuitively strategic behaviour are the predominant type of business in a mature industry, while for small enterprises in a growing industry ‘defender’ and ‘counterstrategy’ are the prevalent strategies at all the life cycle stages. This paradox additionally proves the validity of our idea of the intuitively strategic behaviour of small businesses. Our findings contribute to the development of the SME life cycle theory and strategic management, can be used to adjust industry policy and government support measures, and can also be of interest to managers of small enterprises.

The Dilemma and Breakthrough of Gaming Dream: A Study on the Survival Status and Career Path of Semi-Professional Gaming Youths

With the rapid development of the e-sports industry, semi-professional e-sports youth, as an important but relatively disadvantaged group in the e-sports career ecology, face many difficulties such as economic pressure, narrow career paths, and insufficient social cognition. This study focuses on the survival status and career path of semi-professional e-sports youth, and proposes countermeasures at the macro, meso and micro levels by analyzing the problems they face. That is, at the macro level, to improve industry policies and career protection, and to promote the standardized development of the e-sports industry; at the meso level, to improve the social perception of e-sports, and to strengthen the support of families and communities; and at the micro level, to provide players with guidance on career planning, comprehensive skills training, and mental health support, and to help them achieve sustainable development. The study shows that solving the plight of semi-professional e-sports youth not only helps to improve the career development of this group, but also has important significance for the healthy development of the e-sports industry and the diversification of the social career ecology.

Research on the Impact of Fiscal Subsidies on High-Quality Development of New Energy Vehicle Companies Based on Threshold Effects

In recent years, China has made significant strides in developing the new energy vehicle industry, providing substantial financial support to this sector. The production and sales of new energy vehicles have experienced explosive growth, accompanied by notable improvements in technology and product quality. However, as the industry evolved, the effectiveness of financial subsidies in enhancing the production and technological capabilities of enterprises has gradually diminished. To foster the rapid development of new energy vehicle enterprises and facilitate the rational planning of relevant government financial subsidies, this study utilizes data from listed Chinese new energy vehicle companies spanning from 2017 to 2022 to investigate the intrinsic relationship between financial subsidies and the quality development of enterprises. The study reveals several key findings. First, when fiscal subsidies are maintained within a reasonable range, they significantly enhance the quality development of state-owned enterprises (SOEs). However, once this threshold is surpassed, further increases in fiscal subsidies do not promote quality development of enterprises, a phenomenon that does not apply to non-state enterprises. Second, the threshold effect of financial subsidies on quality development is particularly pronounced between newly listed companies and those listed for more than three years. Third, for SOEs, financial subsidies play a critical role in fostering high-quality development by boosting R&D investment; this relationship is not observed in non-SOEs. Consequently, this study advocates the establishment of differentiated financial support policies for the new energy vehicle industry to maximize their effectiveness.

Evolution characteristics and invulnerability simulation analysis of global zirconium ore trade network

The burgeoning demand for zirconium, driven by the rapid development of smart devices, low-carbon energy technologies, and other emerging industries, underscores the importance of understanding the dynamics of its global trade network. However, the evolutionary patterns of the international zircon ore trade network and its resilience to disruptions remain unclear. This study constructs the international zircon ore trade network from 2013 to 2022, analyzes its structural evolution at both the network and node levels, and evaluates its robustness in 2022 using five attack strategies: random node removal, random edge removal, edge degradation, targeted removal based on node degree, and targeted removal based on node betweenness centrality. Our findings reveal that: (1) the international zircon ore trade network exhibits a shift in the import market towards Asia, with the export market dominated by Spain, the United States, and Brazil. China plays a crucial role as a bridge connecting various countries, while Japan exerts significant influence within the network; (2) the network is particularly vulnerable to targeted attacks based on node degree and betweenness centrality, highlighting the potential for significant disruption following the removal of key nodes. This study provides valuable insights for ensuring the stable and sustainable supply and consumption of zirconium resources, informing the development of targeted policies for countries and relevant industries.

Assessment of the effectiveness of scenarios for the adaptation of the regional economy to external economic constraints

Purpose: is to evaluate the effectiveness of adaptation scenarios to the external economic constraints of the regional economy, taking into account changes in the structural characteristics of the industrial sector.Methods: to determine the "sufficient" and "necessary" conditions for effective adaptation of regions to foreign economic constraints, the study used qualitative comparative analysis using fuzzy sets (fsQCA) and the Quine-McCluskey algorithm. 27 combinations of qualitative characteristics of regional adaptation have been identified, taking into account changes in the sectoral structure of production, the degree of openness of the economy, the level of manufacturability and innovation of products. Simplification of logical expressions made it possible to identify 6 scenarios and evaluate their effectiveness as the dynamism of industrial production growth.Results: the generalization of scientific publications on the research topic and the analysis of the practice of adapting regions to foreign economic constraints in 2008, 2014-2015 made it possible to identify three basic scenarios: "conservation", "reconstruction" and "restructuring" of the industrial profile of the region. Equifinality has been established when adaptation results similar in terms of industrial production dynamics are observed in regions with different combinations of structural changes in the industrial profile. Refined adaptation scenarios have been identified that contribute to the dynamization of recovery growth and subsequent economic development of the regions.Conclusions and Relevance: it has been established that foreign economic constraints produce structural changes in the industrial profile of the regions. The response of regions to external shocks is specific in terms of the scale and directions of structural changes. Effective adaptation scenarios have been identified, and recommendations have been formulated to improve the structural and industrial policies of the regions for the period of restrictions in 2022.

The Impact of Policy Quantification on Rural Spatial Development in Suburbs: A Case Study of Dalian’s Main Urban Area

Under China’s rural revitalization strategy, peri-urban villages function as pivotal nodes in urban–rural integration. Existing policy research predominantly emphasizes macro-level land and industrial policies, neglecting their spatial development effects on peri-urban villages. This study addresses the gap by constructing a policy quantification framework and employing a Vector Autoregression (VAR) model to analyze policy impacts on rural spatial development, focusing on peri-urban villages in Dalian’s main districts from 2004 to 2023. The results indicate a fluctuating yet upward trend in policy effectiveness. Initial supply-side policies prioritized infrastructure development, whereas subsequent demand-side policies significantly enhanced living conditions, underscoring the necessity of adaptive policy strategies. The rural revitalization construction index exhibited notable spatial heterogeneity, evolving from clusters near industrial zones to expansion into areas like the Jinzhou District, aligned with urban growth patterns. Granger causality analysis confirmed the strong influence of policy interventions, with the first-order lag VAR model offering reliable predictions of short- and long-term policy effects. Initially, the construction index was entirely self-driven (100%), but its reliance on self-influence waned to 69.8% over time, highlighting a transition toward greater policy-driven development.

Statism and state activism in response to China’s belt and Road Initiative: Indonesia and Malaysia’s approaches to developing the EV sector

How have the Belt and Road Initiative (BRI)’s host countries employed state capitalism to pursue global value chain (GVC) integration? This article answers this question by analyzing cases of electric vehicle GVCs in Indonesia and Malaysia. Employing qualitative and quantitative data, the discussion unpacks how the BRI generates opportunities for activist states to channel new capital and technologies toward national strategic economic outcomes. In Indonesia, President Widodo’s state capitalism efforts employed Chinese investments to bring new smelting and refining technologies to restructure and industrialize the country’s mineral sector. As a result, Indonesia has become a leading nickel-processing destination for stainless steel production and, more recently, for electric vehicle batteries. Meanwhile, the Malaysian government has directed investments toward green energy and smart manufacturing, which resulted in the brokerage of a pivotal car manufacturing joint venture. Both countries employed a mix of statism and state activism to partake in the emerging GVCs connected to the electric vehicle sector, with Indonesia preferring the former by primarily employing industrial policy interventions to prioritize private sector investments, while Malaysia predilected hybrid forms of state and private sector coordination. Overall, the results show that industrial policies and Chinese investments have brought opportunities but also unintended development outcomes.

Study of cyclic price volatility for fish products in Russia

The purpose of the work: to test the hypothesis about the existence of periodically changing price volatility over time and to determine the key characteristics of this process.Methods used: decomposition of price dynamics for the main types of fish products in Russia with the allocation and analysis of its components; to construct a model describing the trajectory of price changes, the provisions of the spider web theory were used, in particular, the Kagan model, transformed into the harmonic oscillator model.Results: it was found that prices for fish products in the Russian Federation, in addition to the general upward trend, also have cyclical volatility and are subject to shock changes from time to time; the parameters of price fluctuations were determined.Scientific novelty: A nonlinear model has been developed that reflects in aggregate form the influence of endogenous and exogenous factors on prices for fish products. The model describes cyclical price changes in the form of relaxation fluctuations.Practical significance: The study of the recessive characteristics of price volatility made it possible to identify the key parameters of possible measures of industry policy. These measures can become part of the socioeconomic policy.

Integrated assessment of digital transformation of key sectors of the fisheries economy

The purpose: to perform an integrated assessment of the digital transformation of the fisheries complex, to evaluate the capabilities and contribution of the main sectors of the industry economy and fisheries basins in this process. Methods used: the information base of the study consisted of statistical materials and reports of enterprises on the use of digital technologies. The main methods of the study were the indicator assessment based on the calculations of original subindices and the consolidated index of digital transformation; comparative analysis and comparison with the indicators and indices calculated for the economy as a whole.Novelty: based on the developed methodology, an analysis of significant areas of digital transformation of the industry was carried out: competence support; infrastructure and financing of digitalization; use of end-to-end technologies of the digital economy; the level of digitalization of production and business processes for the fisheries complex as a whole, as well as for 1) its three sectors: fisheries, fish farming and processing of aquatic biological resources, and 2) fisheries basins. Result: an integrated assessment of the digital transformation of the fisheries complex, its level in comparison with the general economic one, was obtained. The degree of digitalization and the possibilities of digital transformation for the main sectors of the fisheries economy and each fisheries basin were determined. Brief recommendations for the formation of industry policy and further research were given. Practical significance: the possibility of wide application of the integrated index of digital transformation for the development of imperatives and adjustment of the industry strategy for digital transformation, as well as subindices and indicators in the analysis of the activities of enterprises in the main sectors of the fisheries economy, taking into account the territorial specifics. The methodology is applicable to any level of the organizational and economic structure of the fisheries complex.

Southern Yakutia coal complex as an instrument of the regional industrial policy

The coal industry occupies a significant place in the economy of the Sakha Republic (Yakutia). Currently, there is a slowdown in activity on the world coal markets, which is the result of many factors, including global competition, the growing share of renewable energy sources, and sanctions between countries. The last five years have been a stage of stable growth and development for the Russian coal industry, including the republic. The more than twofold increase in coal production in the Sakha Republic (Yakutia), as well as the implementation of key projects such as the development of the Elga coal complex, projects of Kolmar Group and AnthraciteInvestProject LLC create prerequisites for sustainable development of the coal industry in the long term. The main coal deposits under development are located in Neryungri District in the south of the republic. Neryungri District is one of the important centers of coal mining, thanks to which Yakutia holds a stable position among the largest coal-mining regions of Russia. The article considers the current state of the coal industry on the example of Neryungri District, including the characterization of coal reserves by major subsoil users. The forecast of coal production by the main coal-mining enterprises of Neryungri District up to 2030 shows optimistic trends, taking into account global trends in demand for coal. The research materials are the data of the territorial body of the Federal State Statistics Service of the Sakha Republic (Yakutia).

China's industrial policy and its implications for international business

China's industrial policy and its implications for international business

Can urban low-carbon transformation affect the prices of its industrial land? An empirical study based on spatial regression discontinuity

Although the effects of the low-carbon city pilot policy (LCCP) have been extensively studied in recent years, there is a paucity of literature discussing its impact on industrial land prices. To support China's pursuit of dual carbon goals and accelerate the construction of low-carbon cities, this study utilizes micro-level land transaction data and employs spatial regression discontinuity to elucidate the micro-mechanisms underlying LCCP's influence on local industrial land prices. Our findings reveal that LCCP significantly elevates industrial land prices in pilot cities. Specifically, under a local linear benchmark regression with a 10 km bandwidth, the average treatment effect of LCCP on industrial land prices amounts to 15.1 %, translating into an annual growth rate of up to 2.16 %. This phenomenon arises because LCCP restricts the leeway of local governments in enforcing environmental regulations, particularly when environmental indicators are integral to official performance evaluations. Consequently, local officials are incentivized to pursue political advancement by tightening industrial land transfer policies, thereby raising prices and mitigating pollution consequences associated with the 'land-driven development' paradigm. This study offers a novel perspective on the nexus between environmental regulation and government land transfer behavior, while also serving as a valuable reference for integrating low-carbon development principles into land use policy reforms and advancing China's dual carbon goals.

Analysis of Prediction Characteristics of GRP Change by the SCGE Model for the Linkage of Road Development and Regional Industrial Policy

Analysis of Prediction Characteristics of GRP Change by the SCGE Model for the Linkage of Road Development and Regional Industrial Policy

Analysis of the relation between multicriteria decision-making methods and human decision strategies

Purpose This paper aims to investigate the relation between multiple criteria decision-making (MCDM) methods and the decision strategies used by the individual in the process of choosing in a specific context. Design/methodology/approach The method involves an experiment in an automobile-selling shop with 61 individuals performing the task of choosing a used vehicle independently: with and without the use of a decision support systems (DSSs) also using the Think Aloud verbal protocol. The paper used the descriptive statistics and signals test to test hypotheses. Findings The results prove the relation between two of the four analyzed decision-making (DM) strategies: additive difference and elimination by aspect. These two strategies exhibited significant differences for the TransparentChoice and M-MACBETH systems, being similar only for Visual PROMETHEE, and this system being the one that best facilitated the choice process for consumer goods, in this case, used vehicles. Research limitations/implications This study enhances understanding of decision strategies and multicriteria methods in used vehicle selection. Identifying Visual PROMETHEE as highly effective, it suggests that design and usability features play a pivotal role. However, limitations, such as the temporal cutoff and exclusion of electric vehicles, hinder a comprehensive grasp of DM processes in contemporary vehicle choices. Nonetheless, applying these insights to future contexts broadens theoretical contributions, highlighting a key potential of this study. Practical implications The study provides valuable insights into the factors influencing consumer decisions, potentially impacting purchasing patterns and, consequently, the used vehicle market. In addition, it underscores the need to tailor the design and functionalities of DSS to better align with users’ DM approaches, aiming to maximize the effectiveness and acceptance of these systems. Social implications The social contribution of this research lies in its ability to raise awareness among consumers about effective DM strategies, particularly those related to DSSs. This can be achieved through educational initiatives that inform consumers about the benefits of these systems when facing complex decisions, such as purchasing used vehicles. Furthermore, the study’s results have the potential to influence public policies in the automotive industry by allowing regulatory adjustments that promote practices aligned with consumer preferences and needs. This consumer-centric approach may lead to policies more tailored to market dynamics, fostering competitiveness and consumer satisfaction. Originality/value The innovative approach tested three types of DSS in an experiment, exploring their relationship with decision strategies in the specific context of used vehicle selection. This unique methodology contributes to the understanding of DM dynamics, particularly in the automotive scenario, providing a valuable perspective for literature and relevant professionals.

Impacts of the Russia–Ukraine war on the welfare of palm oil producers and consumers in Indonesia

PurposeThis research aims to examine the impacts of the Russia–Ukraine war on the welfare of Indonesian palm oil producers and consumers.Design/methodology/approachThe research uses time-series data from 2000 to 2022 for inferential, simulation and descriptive analyses, coupled with a world vegetable oil trade model in the form of a system of simultaneous equations. The two-stage least squares (2SLS) estimation method with 37 simultaneous equations is used to estimate parameters.FindingsThe research results show that the Russia–Ukraine conflict has led to an increase in the welfare of Indonesian palm oil producers and consumers. A combination of domestic policies (replanting, export tax, mandatory biodiesel and domestic market obligation) has boosted Indonesian palm oil industry players welfare after the Russia–Ukraine conflict. On the other hand, it caused a decline in the welfare of cooking oil and biodiesel producers due to the surge in raw material costs and the decline in selling prices. Therefore, market differentiation for palm oil derivative products into international markets is required.Originality/valueThe results of this research provide empirical evidence to the Indonesian government regarding the importance of policies that regulate the demand and supply of palm oil compared to increasing palm oil production. The results of this research emphasize that the development of policies for the Indonesian palm oil industry needs to pay attention to global vegetable oil market fluctuations as well as the importance of holistic policies from the on-farm to the off-farm level to ensure that producers and consumers experience increased welfare.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2024-0531

THE ROLE OF PT BANK ACEH'S DIGITAL TRANSFORMATION IN SUPPORTING MSMEs DRIVING HALAL TOURISM IN ACEH PROVINCE

The research aims to discuss the role of Bank Aceh's digital transformation in developing halal tourism in Aceh Province. The concept of tourism development that remains in synergy with the cultural values of the Acehnese people who are thick with Islamic values. The people of Aceh have a strong commitment to implementing Islamic law in a kaffah manner and in all activities of life. Bank Aceh's digital transformation is very important to support the development of halal tourism in Aceh Province. Bank Aceh must consider three main factors in carrying out digital transformation as a means of supporting the development of halal tourism. First, halal tourism is developed based on the values of Islamic law, national law and qanun (regional regulations). Second, the importance of halal certification in all types of services. Third, the active involvement of PT Bank Aceh in the feasibility study of capital and MSMEs assistance in managing tourist attractions, tourism marketing, tourism industry, and institutional development. These three factors need to be fully supported by integrative government and financial industry policies. This research is expected to contribute to the development of knowledge about the role of digital transformation of PT Bank Aceh in developing halal tourism in Aceh Province.

Taiwan’s Industrial Policy as a Factor in the Development of the Semiconductor Sector in Taiwan – the Taiwanese Development Model

This article examines the relationship between Taiwan’s industrial policy and the development of Taiwan’s semiconductor sector. The aim of the article is to answer the question of how Taiwan’s industrial policy and, more broadly, the Taiwanese development model, contributed to the development of the semiconductor sector in Taiwan and the achievement of a dominant position by TSMC in a key sector of the global economy. The author (Polish diplomat in Taiwan in 2016–2022), based on available literature and knowledge acquired while working in Taiwan, describes individual elements of Taiwan’s industrial policy, such as the foundation of the Industrial Technology Research Institute (ITRI), the establishment of a science park in Hsinchu or the setting up of the first companies in the semiconductor sector (UMC, TSMC), which were milestones in the development of the sector. In the article, the author also analyzes other factors that contributed to Taiwan gaining a dominant position in the foundry business and compares the Taiwanese development model with the development model of other Asian countries (Japan, South Korea, Singapore, Malaysia).

Cities under state capitalism

State interventions in urban development and planning are not new to state capitalism, even though intensifying ‘muscular’ state responses to urban challenges can now be observed across the entire geopolitical and urban landscape. This viewpoint explores this intensifying connection between state capitalism, the capitalist state and urban governance. It argues that for strategic geopolitical and economic reasons states increasingly govern, regulate, manage and own parts of the urban built environment. However, regulatory intervention in the city cannot be mistaken for a return to the post-war development state which strongly focused on promoting spatial development and industrial policy and protecting social welfarism and labour conditions. Rather, the new state capitalism is about proactive market intervention so that states and their partners can profit from the growth, wealth and revenue that cities have to offer. As for that, this commentary concludes with four avenues for future research at the boundaries of state capitalism and urban governance. Examples from cities in the Global North, Global South and Global East are given to illustrate the broader argument. Shifting geopolitics are also discussed as a driver of state rescaling and reterritorialisation.

Сутність і зміст кліматичного фінансування

Introduction. The present day is characterized by the destructive consequences of climate change, such as rising temperatures, prolonged droughts, melting glaciers, sea-level rise, catastrophic floods, extreme weather events, and emergencies; biodiversity loss; increasing forest fire risks; declining land productivity; crop failures; reduced eco-friendliness of agricultural products; degradation of fish stocks; increased morbidity and mortality; limited tourism; migration, and humanitarian issues such as loss of property and livelihoods. It can be stated that there is a triple planetary crisis: climate change, biodiversity loss, and environmental pollution. Consequently, the global community's agenda includes counteracting these negative consequences for humanity – not only minimizing the negative impact but also restoring ecosystems. Problem Statement. Achieving these goals is impossible without proper financial support, which is feasible primarily through a clear understanding of the essence, content, and functions of climate financing, identifying its directions and types, and developing a conceptual model for climate financing. Objective. To define the essence and content of climate financing. Methods. A systematic approach, monographic and historical methods, methods of generalization, comparative and expert analysis were used. Results. Approaches to interpreting climate financing have been clarified, its significance, essence, and content have been identified. The authors present definitions of the terms «climate finance» and «climate financing», a classification of its types, and directions of climate financing. Conclusions. Taking into account such components of climate financing as funding for public climate, environmental, industrial, and energy policies that promote the implementation of projects for prevention / mitigation / adaptation to climate change / restoration / transformation; financing public / private / mixed climate investments; and elements of the financial system related to climate finance will enable the effectiveness of measures in combating the negative consequences of climate change.

Study on the Current Situation and Promotion Strategies of Tourism Catering in Zhaoqing

This paper, through questionnaire surveys and interviews, finds that the development of tourism and catering industry in Zhaoqing City faces several issues. These include a lack of prominent local catering characteristics, insufficient promotion of local tourism catering, serious homogenization, a lack of innovation, unstable service quality, strong seasonality in tourism, and inadequate future planning. Based on the analysis of these problems, the development strategies summarized are: firstly, to enhance the quality of tourism catering products and services and create distinctive brands; secondly, to strengthen industry management and policy support to promote healthy industrial development; thirdly, to promote industry integration and innovation to expand development space.