Specific Market Conditions Research Articles

Economic viability of technological innovations in functional spreads: a cost-benefit analysis of plant fat additives

The burgeoning interest in functional foods has significantly influenced various sectors, most notably the food industry. The transition from traditional spreads to functional spreads fortified with plant-based fat additives signifies an essential progression in this realm. While these innovations offer substantial health benefits, they also pose economic implications that have yet to be fully analyzed. Therefore, this research focuses on the economic viability of incorporating technological innovations in functional spreads, using Kazakhstan as a case study for the application of plant fat additives. By employing cost-benefit analysis (CBA) from 2015 to 2022 coupled with a sensitivity analysis, the study critically assesses the economic ramifications of this technological shift. The research employs a mixed-methods approach, amalgamating qualitative interviews with industry stakeholders and a quantitative assessment of production costs, market prices, and expected returns. Further, mathematical models and statistical tools, such as regression analyses and Monte Carlo simulations, are applied to offer a comprehensive understanding. The study demonstrates that the introduction of plant fat additives into functional spreads can be economically viable under specific market conditions. It also identifies potential externalities and subsidies that could influence economic outcomes. Importantly, the research uncovers that, despite initial high costs, the long-term benefits, both monetary and societal, tend to outweigh the economic constraints. The paper concludes with policy recommendations that aim to create a conducive environment for fostering innovation while maintaining economic sustainability. This research fills a significant gap in the current literature by providing a multi-dimensional view of the economic factors influencing the adoption of technological innovations in functional spreads, thereby serving as a cornerstone for future research and policy implications.

Spillovers of underground gas storage facilities and their role in the sustainable energy markets: assessment and policy recommendations

PurposeThe purpose of this study is to investigate the impact of the construction and operation of underground gas storage (UGS) facilities, under the prism of the recent rise in energy prices. The focus is on developing energy markets interconnected with gas producers through pipelines and has access to liquefied natural gas (LNG) facilities in parallel.Design/methodology/approachThrough a focal market in Europe, the authors estimate the economic value for both stakeholders and consumers by introducing a methodology, appropriately adjusted to the specificities of the domestic energy market. The Transmission System Operator, the Energy Market Regulator, the Energy Exchange and Eurostat are the main data sources for our calculations and conclusions.FindingsThe authors investigate the perspectives of UGS facilities, identifying financial challenges considering specific energy market conditions which are barriers to new storage facilities. Nevertheless, the energy price rocketing coupled with the security of gas supply issues, which arose in autumn 2021 and were continuing in 2022 due to the Russia–Ukraine crisis, highlight that gas storage remains, at least for the midterm, at the core of European priorities.Originality/valueThe paper emphasizes on developing markets toward green transition, proposing tangible policy recommendations regarding gas storage. A new methodological approach is proposed, appropriate to quantify the economic value of UGSs in such markets. Last, a mix of energy policy options is suggested which include regulatory reforms, support schemes and new energy infrastructures that could make the gas storage investments economically viable.

Developing Artificial Intelligence-Based Content Creation: Are EU Copyright and Antitrust Law Fit for Purpose?

Artificial intelligence offers promising applications for content production. However, their development faces significant copyright issues because it involves reproduction of protected subject matter and requires datasets so large that obtaining licences from all rightholders is unfeasible. These issues potentially hinder technological development and content production. On the other hand, some AI applications can threaten the interests and incentives of those who create works and subject matter that are protected by related rights. This article examines whether EU copyright and antitrust law are capable of addressing these challenges. It identifies possibilities and obstacles in applying exceptions for text and data mining (TDM) and temporary copying to the development of artificial creativity (AC) applications. The article also examines mechanisms by which EU antitrust law facilitates access to copyright-protected training materials and licences – an important complement to the copyright exceptions. While copyright and antitrust law enable the development of AC in certain situations, their tools are limited to particular types of AI applications, certain categories of subject matter and specific market conditions, and are subject to requirements concerning the development process as well as considerable legal uncertainty. Copyright and antitrust law also remain largely toothless against contractual and technological restraints, while recent EU initiatives dealing with data access also provide little relief in this regard.

Sicherstellung der Arzneimittelversorgung durch den pharmazeutischen Großhandel

The analysis of competition policy shows that the full-service pharmaceutical wholesale trade operates in an extremely competitive market environment. In particular, this competition focuses on the parameter of price and sometimes takes on ruinous features. Due to specific market conditions on the supply and demand side (so-called market failure), pharmaceutical wholesalers cannot effectively free themselves from this competitive dilemma on their own. As a result, the companies could foreseeably no longer be able to ensure the viability of their business operations in the way required by the statutory mandate to ensure and provide supply. In this respect, there is a high public interest in shaping the economic framework conditions in such a way that functional competition can develop. In this way, efficient and sustainable structures can ultimately be guaranteed to ensure a nationwide supply of medicines via and through the full-service pharmaceutical wholesale trade. A need for action in health and economic policy can therefore be derived directly from the analysis carried out.

ЗАСАДИ ФОРМУВАННЯ МАРКЕТИНГОВОЇ СТРАТЕГІЇ В ПРОЦЕСІ УПРАВЛІННЯ ТУРИСТИЧНОГО ПІДПРИЄМСТВА

The article considers the specifics of developing a marketing strategy as a means of ensuring sustainable economic development of a tourism enterprise. The principles of marketing strategy formation are presented. The problem of proper formation of the marketing strategy is raised, which requires setting appropriate goals and objectives, the implementation of which in specific market conditions will lead to the achievement of the general corporate goals. Attention is drawn to the importance of harmonizing the interests of three stakeholders - the tourism enterprise, consumers and the public. Thus, when building an effective marketing strategy, a tourism company should rely on its own goals, available resource potential, the specifics of the tourism market, consumer needs and public interests. Great importance is attached to setting marketing goals of a tourism enterprise as a mandatory element of marketing management. Attention is drawn to the subordinate position of marketing goals in relation to the general goals of a tourism enterprise, which are the means of achieving them. The goals that form the basis of the marketing strategy relate to two aspects of the enterprise, namely products and markets, and also include the goals of product policy, pricing policy, distribution policy and communication policy. The specifics of forming a marketing strategy are considered, taking into account the product-market matrix of a tourism enterprise. The essence and importance of the marketing strategy, as well as its components, are revealed. An important role is assigned to market segmentation, identification of target markets, positioning of the tourism product, determination of competitive advantages of the tourism enterprise. The principles and requirements for the formation of a marketing strategy of a tourism enterprise are considered, compliance with which should ensure the effective implementation of marketing functions and tasks. Attention is drawn to the complexity and multifacetedness of the process of developing a marketing strategy, which requires taking into account the general goals of a tourism enterprise, the state of the external marketing environment, the capabilities of the enterprise, and the degree of risk.

КОНКУРЕНТНЕ СЕРЕДОВИЩЕ МІЖНАРОДНОГО БІЗНЕСУ

The article examines the peculiarities of the competitive environment of international business. It was determined that the important tools of the modern mechanism of the open economy are the means of economic competition. It was analyzed that the frequency and depth of changes in the strategies of enterprises in international business depend on market success or failure, and the duration of competitive confrontation depends on the extent to which the strategy is suitable for specific market conditions. The competitiveness of enterprises makes it possible to obtain specific indicators for comparing the position of the enterprise. Each company follows its own competitive strategy to gain a better position and benefit from a competitive advantage. It has been determined that the competitive strategies that rival firms can devise and the ways they can determine to implement these strategies are different. The general direction of improving the competitive environment of international business is to improve conditions for international trade and investment, create more favourable rules and ensure a level playing field for all participants of the global market. the competitive environment of international business is a complex of factors, conditions and entities that influence the activities of enterprises in international markets and competition between them. Improving the competitive environment of international business is an important goal for the development of the global economy. The competitiveness of international enterprises is manifested in the achievement of competitive advantages in international competition. The objective necessity, which in practice is a consequence of the economic competition of commodity producers, is the constant acceleration of the processes of renewal of production and products. Carrying out a competitive struggle, the company seeks to find and implement a way to profitably compete in its industry. There are no single and universal competitive strategies for a significant number of competing companies and their competitive advantages. Only strategies that match the conditions of a competitive industry, the skills and capital possessed by a particular enterprise can bring success.

Investor trading behavior and asset prices: Evidence from quantile regression analysis

AbstractConsidering the behavior anomaly under both rising and falling market conditions, this paper aims to address whether the investor trading behavior is sensitive to a different quantile of stock return dispersions by using quantile regression model. Results show that investor trading behavior has significant impacts on different quantiles of stock return dispersions, and reveal the smile slope of investor trading behavior effect which is stronger at the extreme quantile distributions than the median distribution. Moreover, results evidence that the investor trading behavior effect with optimistic investor sentiment should be stronger than the investor trading behavior effect with pessimistic investor sentiment. Finally, this paper sheds light on the anchoring effect of investor trading behavior, and demonstrates that the anchor of investor trading behavior has a positive and significant impact on stock returns. These patterns hold when accounting for stock specific characteristics, various factors and market conditions.

IMPACT OF WORKING FROM HOME ON PRODUCTIVITY & PERFORMANCE, EVIDENCE FROM NORTH AMERICAN LOGISTICS INDUSTRY DURING COVID-19 PANDEMIC

This paper analyzes the impact of shifting all employees from office-based working to working from home (WFH) on productivity and performance. Before the COVID-19 Pandemic, there were no instances of companies moving all of their employees to WFH indefinitely. This is one of the first case studies analyzing this new phenomenon supported by hard criteria for productivity and performance measures. We define productivity as the quantity and performance as the quality of the output. We collected our data from a North American 3rd Party Logistics company and employed a multimethod approach to examine the effects of this organizational change forced by the COVID-19 Pandemic. We gathered data from the employees through video interviews and online surveys. We compiled the performance metrics from the corporate database and received commentary from top management. We also used national statistics databases to delineate the specific market conditions. Figures indicate evident improvements in revenues, profits, and labor productivity after the shift to WFH. We also examined other potential moderating factors, such as changes in market conditions, improvements in business processes, and/or management approaches, to distinguish the effect of remote working. Overall results show that when accompanied by solid leadership strategies and proper communications, and with investment in IT technologies, working from home improves productivity with little or no effect on performance. Our findings offer valuable insights for managers who need to make strategic decisions about WFH arrangements for their companies, especially brokerage-type businesses, more specifically those in the logistics industry. The study is based on data from a case study involving one company, preventing the authors from generalizing their findings.

Can Twitter-based economic uncertainty predict safe-haven assets under all market conditions and investment horizons?

This paper examines the Granger causality from Twitter-based economic uncertainty (TEU) to three safe-haven assets – Bitcoin, gold, and US10 year Treasury notes. Using daily data (June 1, 2011–August 30, 2021) and causality-in-quantiles and wavelets methods, the results indicate variability in the causality between the mean and variance, as well as the market conditions. TEU Granger-causes the returns and volatility of Treasuries, the volatility but not returns of Bitcoin, and neither the volatility nor the returns of gold for the raw series, and the causality is mostly significant at low and middle quantiles for Bitcoin and Treasuries. We include other risk factors and confirm the variability in the causality. Considering the possibility of a hidden causality over various frequency domains due to investors' heterogeneous expectations and perceptions of risk, the wavelet transforms-based causality tests reveal an increase in the predictability of risk indicators under specific investment horizons and market conditions. During the pandemic, TEU strongly predicts future volatility of Treasury and Bitcoin returns, reflecting the importance of social-media posts for safe-haven pricing. These findings highlight the benefits of applying the causality-in-quantiles test to decomposed series to determine the contribution of each scale to the causality over various market conditions.

Dependence structure between the international crude oil market and the European markets of biodiesel and rapeseed oil

Being an environmentally friendly fuel obtained from rapeseed oil, biodiesel is used extensively in Europe. However, the dependence structure between global crude oil prices and the European prices of biodiesel and rapeseed oil is understudied and unclear. In this paper, we address this gap by utilizing asymmetric copulas and cross-quantilogram approaches on daily data. The results of the DCC-Student-t copula indicate that during bearish periods the conditional connectedness between crude oil prices and biodiesel (rapeseed oil) prices are stronger than during bullish periods, indicating increased co-movement with a decline in crude oil prices. The application of cross-quantilogram indicates that an increase in crude oil price positively influences biodiesel prices reflecting an asymmetric dependence structure among the assets. There is evidence of shifts in the dynamics of quantile dependency during periods of financial and economic turmoil. Overall, the results show a significant dependence between the global crude oil market and the European markets of biodiesel and rapeseed oil in specific periods and under specific market conditions, which have important implications for policymakers and investors.

Predikční schopnost Altmanova Z-skóre evropských soukromých společností

The paper investigates the relationship between the financial distress of European private companies identified by the Altman Z-score and real bankruptcy. We extend the traditional Z-score with the asymmetric effect of economic activity. Our results show higher forecasting performance of the Altman Z-score of large companies in a three-year projection. We argue that our results differ from Altman (1968) because of specific market conditions in Europe that enable prolongation of activity after financial distress is identified. We also emphasize the role of liquidity, size, performance and indebtedness in increasing financial distress forecasting performance. Finally, we extend our prediction model with selected indicators of quality and development of the institutional environment.

Does Liquidity Matter When Crisis Is Brewing? Equity Returns and Intraday Liquidity in DAX Futures Market

Inspired by Mishkin (2011), we study a sample of high-frequency Eurex trading data from the peak of economic expansion preceding the global financial crisis of 2007-2009. Trading volume measures and bid￾ask spread in DAX futures market explain DAX equity returns. Advanced variable selection and multinomial model with survey analysis identify most important explanatory variables under specific market conditions. The index futures trading volume, along with bid-ask spread, identify extreme values of the underlying equity index returns. Further, the Markov Chain Monte Carlo (MCMC) model uncovers change points in the non-monotonic relationship between futures liquidity and the equity index returns, and identifies conditions leading to expected negative returns.

The Efficiency Analysis of Large Banks Using the Bootstrap and Fuzzy DEA: A Case of an Emerging Market

In this study, banks’ business performance efficiency was analysed using data envelopment analysis (DEA), with expense categories as inputs and income categories as outputs. By incorporating a bootstrap method and a fuzzy data approach into a DEA model, additional insights and sensitivity analysis of the results were obtained. This study shows how fuzzy and bootstrap DEA can be used for investigating real market problems with uncertain data in an uncertain sample. The empirical analysis was based on the period of 2009–2018 for a sample of seven of Croatia’s largest private banks. The aim of the study was also to interpret the DEA results with regards to the specific market, legal, and macroeconomic conditions, caused by the changes introduced in the last decade. The results, and the changes in the inputs and outputs over time, revealed that the market processes occurring in the observed period had a significant impact on banks’ business performance, but led to a more efficient banking system. Two banks were found to be dominant over the others regardless of the changes in the sample and data fuzziness. DEA results were additionally compared to the most important financial indicators and accounting ratios, as an alternative or additional measure of banks’ efficiency and profitability.

An Economic Model to Assess Profitable Scenarios of EAF-Based Steelmaking Plants under Uncertain Conditions

The steelmaking processes are considered extremely energy-intensive and carbon-dependent processes. In 2018, it was estimated that the emissions from global steel production represented 7–9% of direct emissions generated by fossil fuels. It was estimated that a specific emissions value of 1.8 tCO2 per ton of steel was produced due to the carbon-dependent nature of the traditional blast furnace and basic oxygen furnace (BF-BOF) route. Therefore, it is necessary to find an alternative solution to the BF-BOF route for steel production to counteract this negative trend, resulting in being sustainable from an environmental and economic point of view. To this concern, the objective of this work consists of developing a total cost function to assess the economic convenience of steelmaking processes considering the variability of specific market conditions (i.e., iron ore price, scraps price, energy cost, etc.). To this purpose, a direct reduction (DR) process fueled with natural gas (NG) to feed an electric arc furnace (EAF) using recycled steel scrap was considered. The approach introduced is totally new; it enables practitioners, managers, and experts to conduct a preliminary economic assessment of innovative steelmaking solutions under market uncertainty. A numerical simulation has been conducted to evaluate the profitability of the investment considering the economic and environmental costs. It emerged that the investment is profitable in any case from an economic perspective. On the contrary, considering the environmental costs, the profitability of the investment is not guaranteed under certain circumstances.

Cost-based subsidy and performance-based subsidy in a manufacturing-recycling system considering product eco-design

Using the Stackelberg game theory, this paper evaluates the effectiveness of four subsidy schemes on the product eco-design and recycling rate in a manufacturing–recycling system that comprises a government, a manufacturer and a recycler. The principal results are: 1) For the cost-based subsidies, a fixed-cost subsidy to recyclers always yields higher recycling rate and social welfare. For the performance-based subsidies, the effects are closely related to market demand and the fixed cost coefficients of eco-design and recycling. Governments should select subsidy schemes according to the specific goals and market conditions. 2) Four subsidy schemes are the effective forces to promote product eco-design and recycling. Higher subsidy intensity brings better supply chain profits and better environment performance, but it does not always bring better social welfare. 3) Eco-design can increase waste recycling rates effectively, and recycling rates are more sensitive to eco-design when the government subsidizes the fixed costs of recyclers.

Risk and Opportunity Assessment Model for CSR Initiatives in the Face of Coronavirus

This paper concerns an important and current problem of taking Corporate Social Responsibility (CSR) initiatives in the specific market conditions of the COVID-19 pandemic. CSR activities, aimed at combating COVID-19, contribute to creating favorable conditions for the sustainable development of enterprises and the entire society. In this work, analysis of the survey results, interviews with the initiatives’ beneficiaries, and brainstorm sessions with CSR specialists and companies’ employees allowed us to identify risk and opportunity categories, factors, and develop scales for their probability and consequences assessment. Survey results revealed that socially responsible actions are important in the fight against the coronavirus pandemic, and social expectations, in this regard, are growing. Two-parametric risk/opportunity matrix was used to calculate risk/opportunity level. The aim of this work is to present a new model of risk and opportunity assessment dedicated to organizations carrying out of CSR ventures in the pandemic era. The proposed risk and opportunity assessment model is an effective tool to identify the CSR initiative advantages and drawbacks, as well as a starting point for managing them, to maximize chances and minimize threats. Three examples of practical applications of the proposed model confirm that it can be successfully used in practice. The developed model is based on universal assumptions and criteria, so that it can be used in any country struggling with the pandemic.

The supporting role of business models in the promotion of sustainable innovations in the energy sector: an explorative study in the Italian SMEs

Purpose of the paper: This paper aims to analyze how small-medium enterprises (SMEs) contribute to the development of a sustainable innovations in the energy sector such as geothermal heat pumps (GHPs) by implementing effective sustainable business models. Methodology: The study carried out an exploratory multiple case study with 8 SMEs operating in the Italian GHP market on the role of sustainable business models in supporting the development of sustainable innovations. Results: The analysis shows that sustainable business models exert a supporting function between sustainable innovation and sustainable value creation thanks to their ability to overcome the existing barriers to adopt sustainable innovations (i.e. GHP systems). This supporting role thus results from the firms’ capabilities and knowledge to assess and promote the peculiarities of selected sustainable innovation. Moreover, the analyzed business models foresee an ongoing support of customers before and after the adoption of sustainable innovation by communicating potential environmental benefits and providing additional services. Research limits: The main limitation is that the findings derive from a national case study with specific market conditions for GHPs which might influence the development of sustainable business models. Practical implications: The study supports firms aiming to develop and implement business models for boosting sustainable innovations through an effective assessment of selected sustainable innovation and dialogue with policy makers. Originality of the paper: The study opens the black box of unexplored relationships between sustainability innovations and business models by analyzing their main components (value proposition, supply chain and public institutions, customer interface and financial model).

Financial market efficiency: global and regional financial market perspective

PurposeThis study examines dynamics of global and regional financial market efficiency; and how specific features of the market and other conditions influence variability in such efficiency.Design/methodology/approachThe study employs fixed effects statistical approach in its examination of how specific features of financial markets influence variability in its efficiency.FindingsThis study finds that individual IMF defined economic regions tend to exhibits significantly different financial market efficiency characteristics given specific market features and conditions. In regional level comparative analysis (e.g. Europe, Africa, Asia–Pacific etc.) this study finds that incidence of financial market uncertainty is the dominant condition with significant effect on financial market efficiency across all the IMF regions. In the global level analysis, empirical estimates presented suggest that financial market uncertainty, financial institutional depth and financial institutional efficiency tend to have significant positive influence on global financial market efficiency all things being equal. In the same analysis however, this study finds that financial market and financial institutional access growth has significant negative impact on financial market efficiency.Originality/valueThe uniqueness of this study compared to related ones found in the literature stems from its focus on financial market efficiency at the global, and IMF defined regional block level instead of on a specific economy as often found in the literature. Additionally, in contrast to other related studies, this study further examines the role of global financial market uncertainty in its financial market efficiency analysis. Financial market uncertainty variable may be unique to this study because the variable is derived through an econometric process from a base variable.

How can state governments support healthier housing markets?

Housing affordability has become an increasingly salient political issue across the U.S. in the past several years, reflecting rapid price appreciation in many metropolitan areas. State governments are beginning to push back against the prerogative of “local control” over land use regulation and housing production. In this paper, I examine the potential benefits of more targeted state engagement with housing markets; review the kinds of policy tools through which state governments can influence housing market outcomes; outline broad goals to guide statewide housing policy; and document the contrasting approaches currently taken by five states. Current state approaches vary widely in the intensity of state engagement, policy goals and tools. Housing market outcomes also differ across and within states; statewide policy approaches should be tailored to specific goals and market conditions.

Navigating a performance livelihood: career trajectories and transitions for the classical singer

ABSTRACT Investigations pertaining to career trajectories and vocational identities of professional classical Australian singers are uncharted and lack specific empirical evidence. Rarely do studies explain the professional singers’ experiences and the processes they undertook to reach goals, to comprehend their deep identification with the craft, and acknowledge the specific market conditions which drive their career. This research investigated the careers of Australian classical singers through a qualitative interview-based study and analysis, which outlines the trajectory of the professional singers’ careers as these became evident through their experiences. Extensive interviews were conducted with 13 retired professional singers’ and the subsequent thematic analysis found a trajectory of development and decline. Major career theories and empirical studies from elite dance and sportsperson were interrogated. An analysis of the singers’ experiences of their professional life was undertaken, and implications arising were related to career models from the film industry to discourses from cultural economics and sociology, to music training concepts and entrepreneurial approaches to working in the creative arts. The result was the identification of a distinct career typology comprising several stages: (1) pre career; (2) breaking in; (3) peak stage; (4) denouement; and (5) moving on. The study found there is a critical link between pre- and post-career stages that has implications for training. Other findings include that creativity and identity are tightly intertwined for the professional singers in the study, and when seeking new directions following the denouement stage, the majority of the singers attempted to remain attached to an artistic field. The findings suggest that training for artists’ in career planning, pedagogical practices, entrepreneurship and attention to issues of wellbeing have often been inadequate in this industry and it is only in the consideration of the lifecycle of a creative performance career that the critical link between pre- and post-career stages can be made.