Standard Industrial Classification Research Articles

A university in a small city: Discovering which sectors benefit

Orientation: A university, and equally so a university campus, has the ability to influence the economy through its sectoral links. This raises the question as to what sectors benefit as a result of expenditure made by a university campus that is situated within a small city in South Africa.Research purpose: This paper identified the university-sector links by applying a bill-of-goods approach to identify which sectors benefit as a result of an operational university campus.Motivation for the study: The findings of this study will be used in refining provincial or local social accounting matrix (SAM) models to improve the measurement of an economic impact assessment for the university campus, especially as SAM models are not readily available on such a micro-level within South Africa.Research design, approach and method: The bill-of-goods is a detailed representation of the purchases of goods and services for the campus. The goods and services are grouped into the corresponding sector according to the Standard Industrial Classification to identify and quantify university-sector linkages.Main findings: The results indicated a significant benefit for tertiary sectors of the economy, which receive approximately 85% of university expenditure. On a sectoral level, there is an increased benefit to the utility, retail and personal services sectors, whereas manufacturing and construction turn out to be less significant. Growth prospects for sectors within the tertiary sectors are higher compared to sectors in the primary and secondary sectors.Practical and managerial implications: Understanding this link enables strategic spatial planning on the part of local government and will enable proactive land-use planning, based on the strength and growth prospects of each individual sector that benefits from university expenditure.Contribution or value-add: This approach provided exceptional value in identifying the sectors that benefit and provide important trend analyses that will be combined with input–output models to improve the accuracy of measuring university impact assessment on a local level.

A step-by-step approach to improve data quality when using commercial business lists to characterize retail food environments

BackgroundFood environment characterization in health studies often requires data on the location of food stores and restaurants. While commercial business lists are commonly used as data sources for such studies, current literature provides little guidance on how to use validation study results to make decisions on which commercial business list to use and how to maximize the accuracy of those lists. Using data from a retrospective cohort study [Weight And Veterans’ Environments Study (WAVES)], we (a) explain how validity and bias information from existing validation studies (count accuracy, classification accuracy, locational accuracy, as well as potential bias by neighborhood racial/ethnic composition, economic characteristics, and urbanicity) were used to determine which commercial business listing to purchase for retail food outlet data and (b) describe the methods used to maximize the quality of the data and results of this approach.MethodsWe developed data improvement methods based on existing validation studies. These methods included purchasing records from commercial business lists (InfoUSA and Dun and Bradstreet) based on store/restaurant names as well as standard industrial classification (SIC) codes, reclassifying records by store type, improving geographic accuracy of records, and deduplicating records. We examined the impact of these procedures on food outlet counts in US census tracts.ResultsAfter cleaning and deduplicating, our strategy resulted in a 17.5% reduction in the count of food stores that were valid from those purchased from InfoUSA and 5.6% reduction in valid counts of restaurants purchased from Dun and Bradstreet. Locational accuracy was improved for 7.5% of records by applying street addresses of subsequent years to records with post-office (PO) box addresses. In total, up to 83% of US census tracts annually experienced a change (either positive or negative) in the count of retail food outlets between the initial purchase and the final dataset.DiscussionOur study provides a step-by-step approach to purchase and process business list data obtained from commercial vendors. The approach can be followed by studies of any size, including those with datasets too large to process each record by hand and will promote consistency in characterization of the retail food environment across studies.

Choice of Diversification Strategies in an Emerging Market: Evidence from Indian Manufacturing Industries

ABSTRACTThe study seeks to measure the strategic choice of industries over different dynamic phases in the Indian economic environment. The total sample of 536 companies has been divided into 14 industries as per Standard Industrial Classification (SIC) codes. The paper also categorizes companies as per the cyclical changes in the economy, that is, growth, cyclical, and defensive industries. Evidence suggests that choice of diversification is industry specific and concurrently affected by the environmental conditions prevailing in the emerging economy. Food and beverages, plastic/rubber, and electrical equipment industries follow higher categories of diversification than other industries.

Compensation for Asbestos-Related Diseases in Japan: Utilization of Standard Classifications of Industry and Occupations

Background:Asbestos-related diseases (ARD) are occupational hazards with high mortality rates. To identify asbestos exposure by previous occupation is the main issue for ARD compensation for workers. This study aimed to identify risk groups by applying standard classifications of industries and occupations to a national database of compensated ARD victims in Japan.Methods:We identified occupations that carry a risk of asbestos exposure according to the International Standard Industrial Classification of All Economic Activities (ISIC). ARD compensation data from Japan between 2006 and 2013 were retrieved. Each compensated worker was classified by job section and group according to the ISIC code. Risk ratios for compensation were calculated according to the percentage of workers compensated because of ARD in each ISIC category.Results:In total, there were 6,916 workers with ARD who received compensation in Japan between 2008 and 2013. ISIC classification section F (construction) had the highest compensated risk ratio of 6.3. Section C (manufacturing) and section F (construction) had the largest number of compensated workers (2,868 and 3,463, respectively). In the manufacturing section C, 9 out of 13 divisions had a risk ratio of more than 1. For ISIC divisions in the construction section, construction of buildings (division 41) had the highest number of workers registering claims (2,504).Conclusion:ISIC classification of occupations that are at risk of developing ARD can be used to identify the actual risk of workers’ compensation at the national level.

Determinants of restaurant internationalization: an upper echelons theory perspective

PurposeThe purpose of this research is to account for the internationalization of restaurants. The conceptual framework of upper echelons theory is applied to identify the demographic determinants of internationalization among chief executive officers (CEOs).Design/methodology/approachData from 30 restaurant firms for the period 1999-2013 were collected from a variety of sources, primarily Compustat and Execucomp, based on Standard Industrial Classification (SIC) code 5812, the annual 10-K and public information. A panel feasible generalized least squares model was used as the main instrument of analysis.FindingsThe findings indicate that the CEO gender and share ownership negatively affect the internationalization of restaurant companies, whereas size, the extent of franchising, the type of restaurant and stock options positively affect the degree of internationalization. Additionally, an inverted U-shaped relation exists between CEO tenure and the degree of internationalization.Practical implicationsThe presented information may provide shareholders and boards of directors with valuable guidelines regarding the assignment of appropriate managers depending on the extent to which their companies are pursuing internationalization strategies.Originality/valueMost studies in hospitality sectors have focused only on accounting-based measures to explain strategic decision-making, although proponents of upper echelons theory have argued that CEO attributes influence strategic decisions/changes. This study contributes to the literature on hospitality by identifying the effects of CEO characteristics on internationalization decisions.

An Examination of Luxury Suite Ownership in Professional Sports

This exploratory study in professional sports luxury suite ownership was conducted to provide professionals in suite sales and facility management an increased understanding of the characteristics of corporate luxury suite owners. The business portion of suite client lists were collected and analyzed through a collaborative effort between the Center for Sports Administration at Ohio University, the Association of Luxury Suite Directors, Full House Entertainment Database Marketing, and Turnkey Sports and Entertainment. Strategically selected professional sports franchises and venues within the top 50 media markets nationwide were invited to participate in the research by submitting their luxury suite client lists. Ultimately, 25 markets were represented in the study. The sample of suite owners (n = 2,154) was then analyzed using the master business database from infoUSA to determine the Standard Industrial Classification (SIC)/industry code, sales volume/asset size, business status, and year established of each suite client. Three hundred and forty-three SIC codes were represented by the 1,956 client matches. Overall, 39.4% of all suite owners were represented within the top 10 SIC codes with an additional 11.2% in positions 11-21. The top industry owning luxury suites was banks/ bank holding companies and the second largest SIC was attorneys/legal services. The collaborative effort between academia and industry has provided luxury suite sales professionals and facility managers important information on types and sizes of companies owning luxury suites and has given venues and franchises the ability to assess their own penetration into the top industry and size segments of suite ownership.

Spatial-temporal characteristics of PM2.5 in China: A city-level perspective analysis

Haze pollution has become a severe environmental problem in the daily life of the people in China. PM2.5 makes a significant contribution to poor air quality. The spatio-temporal features of China’s PM2.5 concentrations should be investigated. This paper, based on observed data from 945 newly located monitoring sites in 2014 and industrial working population data obtained from International Standard Industrial Classification (ISIC), reveals the spatio-temporal variations of PM2.5 concentrations in China and the correlations among different industries. We tested the spatial autocorrelation of PM2.5 concentrations in the cities of China with the spatial autocorrelation model. A correlation coefficient to examine the correlativity of PM2.5 concentrations and 23 characteristic variables for 190 cities in China in 2014, from which the most important ones were chosen, and then a regression model was built to further reveal the social and economic factors affecting PM2.5 concentrations. Results: (1) The Hu Huanyong Line and the Yangtze River were the E-W divide and S-N divide between high and low values of China. (2) The PM2.5 concentrations shows great seasonal variation, which is high in autumn and winter but low in spring and summer. The monthly average shows a U-shaped pattern, and daily average presents a periodic and impulse-shaped change. (3) PM2.5 concentrations had a distinct characteristic of spatial agglomeration. The North China Plain was the predominant region of agglomeration, and the southeastern coastal area had stable good air quality.

The battle over employers’ demand for “more flexibility”

PurposeThe purpose of this paper is to place empirical research on New Zealand employers’ attitudes to collective bargaining and legislative change within the context of the long running debate of flexibility.Design/methodology/approachA cross-sectional survey design using a self-administered postal questionnaire, covering private sector employers with ten or more staff and including employers within all 17 standard industry classification. To explore particular issues, an additional in-depth interviews were conducted of 25 employers participating in the survey.FindingsIt is found that employers support overwhelmingly recent legislative changes though there are variations across industries and firm sizes. There is also considerable variation in terms of which legislative changes are applied in the workplace. Despite fewer constraints on employer-determined flexibility, there was a rather puzzling finding that most employers still think that employment legislation is even balanced or favouring employees.Originality/valueCross-sectional survey findings of New Zealand employer attitudes to legislative changes are few and provide valuable data for policy makers, unions, employers and employment relations researchers. The paper also contributes to a more comprehensive understanding of pressures to increase employer-determined flexibility in many western countries.

Developing Asbestos Job Exposure Matrix Using Occupation and Industry Specific Exposure Data (1984-2008) in Republic of Korea.

BackgroundThe goal of this study is to develop a general population job-exposure matrix (GPJEM) on asbestos to estimate occupational asbestos exposure levels in the Republic of Korea.MethodsThree Korean domestic quantitative exposure datasets collected from 1984 to 2008 were used to build the GPJEM. Exposure groups in collected data were reclassified based on the current Korean Standard Industrial Classification (9th edition) and the Korean Standard Classification of Occupations code (6th edition) that is in accordance to international standards. All of the exposure levels were expressed by weighted arithmetic mean (WAM) and minimum and maximum concentrations.ResultsBased on the established GPJEM, the 112 exposure groups could be reclassified into 86 industries and 74 occupations. In the 1980s, the highest exposure levels were estimated in “knitting and weaving machine operators” with a WAM concentration of 7.48 fibers/mL (f/mL); in the 1990s, “plastic products production machine operators” with 5.12 f/mL, and in the 2000s “detergents production machine operators” handling talc containing asbestos with 2.45 f/mL. Of the 112 exposure groups, 44 groups had higher WAM concentrations than the Korean occupational exposure limit of 0.1 f/mL.ConclusionThe newly constructed GPJEM which is generated from actual domestic quantitative exposure data could be useful in evaluating historical exposure levels to asbestos and could contribute to improved prediction of asbestos-related diseases among Koreans.

Study for selection of industrial areas suitable to small and medium-sized enterprises (SMEs) in Korea

In this study, the investigation into basic methodology for selecting the industrial areas suitable to the small and medium-sized enterprises (SMEs) in Korea was performed by using the statistical data about the corporations (2010 ~ 2012) as the quantitative evidences containing the number of companies, the number of workers, the annual sales, and the indices of market concentration and growth potential. From the Statistics Korea and the KISTI Market Analysis and Prediction System (K-MAPS), the statistical data organized by the Korean Standard Industrial Classification (KSIC) were obtained to conduct this research through the following procedure. First of all, the numbers of enterprises and employees and the annual sales of all industries were investigated and the largest number of workers and the highest annual sales were found in the sector of manufacturing among all sectors of KSIC. Secondly, the top three divisions with the highest annual sales in all divisions of manufacturing sector were selected. Thirdly, the subclasses having high values of annual sales and SMEs proportions among all subclasses in the top three divisions of the previous step were chosen as the candidates of SMEs-recommendable fields. Fourthly, the degree of market concentration was analyzed by using three-firm concentration ratio (CR3) and Herfindahl-Hirschman index (HHI) of the selected subclasses. Finally, the study for growth potential of chosen subclasses was performed through the analysis of compound annual growth rate (CAGR). After the overall process of this study was carried out with the synthetic consideration of the above-mentioned factors, the three subclasses of KSIC as industrial areas suitable to the SMEs could be found: (1) Manufacture of printed circuit boards, (2) Manufacture of parts and accessories for motor engines, and (3) Manufacture of parts and accessories for motor vehicle body. From this result, it was found that the values of annual sales, CR3, HHI, and CAGR can be very useful factors to discover the recommendable industry fields to the SMEs.

Current Status and Improvement Direction for the Korean Standard Industrial Special Classification of Disaster and Safety Industry

Current Status and Improvement Direction for the Korean Standard Industrial Special Classification of Disaster and Safety Industry

The effect of industry classification on analyst following and the properties of their earnings forecasts

ABSTRACTUsing a comprehensive data set, we compare four broadly available industry classification schemes (Standard Industrial Classification (SIC), North American Industry Classification System (NAICS), Fama–French classification (FF) and Global Industry Classification Standard (GICS)) in their effectiveness to group analysts and their earnings forecast properties. We demonstrate the advantage of the GICS to be consistent across different forecasting properties and across different groups of firms. Our results suggest that GICS should be utilized in research designs, either in the primary analysis or as a necessary corroboration.

Dampak Liberalisasi Perdagangan Terhadap Kinerja Industri Manufaktur di Indonesia (Pendekatan Structure-Conduct-Performance)

<em>The influx of imported goods in the domestic market will pressure domestic producers to be more efficient. The more effiecient the domestic firm, the more competitive it becomes. This competitive firm is expected to have opportunities to expand to a larger market. This study analyzed the effect of trade liberalization to industrial performance in Indonesia. This study exploited data at the industry level, ie: 38 industries of three digits International Standard Industrial Classification (ISIC) during 2000-2009. The analysis was conducted within Structure Conduct Performance (SCP) framework. Industrial performance was measured by price-costmargin and trade liberalization was measured by export share and a dummy indicating implementation of Asean Free Trade Area (AFTA). Using the fixed effect model, the result showed weak evidence of the effect of trade liberalization to industrial performance in Indonesia. Dummy AFTA was negative and significant to industrial performance while export share was insignificant. The results might indicate that the adoption of AFTA endangered domestic firms’ performance.</em>

An Algorithmic Links with Probabilitiess Crosswalk for USPC and CPC Patent Classifications with an Application Towards Industrial Technology Composition

Patents are a useful proxy for innovation, technological change, and diffusion. However, fully exploiting patent data for economic analyses requires patents be tied to measures of economic activity, which has proven to be difficult. Recently, Lybbert and Zolas (2014) have constructed an International Patent Classification (IPC) to industry classification crosswalk using an ‘Algorithmic Links with Probabilities’ approach. In this paper, we utilize a similar approach and apply it to new patent classification schemes, the U.S. Patent Classification (USPC) system and Cooperative Patent Classification (CPC) system. The resulting USPC-Industry and CPC-Industry concordances link both U.S. and global patents to multiple vintages of the North American Industrial Classification System (NAICS), International Standard Industrial Classification (ISIC), Harmonized System (HS) and Standard International Trade Classification (SITC). We then use the crosswalk to highlight changes to industrial technology composition over time. We find suggestive evidence of strong persistence in the association between technologies and industries over time.

Methodologies to estimate industrial waste heat potential by transferring key figures: A case study for Spain

In the current European energy context, the use of recovered industrial waste heat provides an attractive opportunity to substitute primary energy consumption by a low-emission and low-cost energy carrier. In the case of industrial waste heat, this potential is currently not only largely untapped, but also unaccounted for. In order to achieve a widespread use of recovered industrial waste heat, assessments with a large scope and high spatial resolution are needed. Three methods published in the period 2002–2010 have been found in the literature, which are potentially transferable to other regions. These three methods are based on either the energy consumption of each manufacturing sector or the individual site CO2 emissions. The scope of this analysis is, first, to investigate in how far a transfer of the figures to different countries or regions is sensible in comparison to former studies in the literature. In the process, some uncertainties when transferring methods were identified (different definitions of industry, different standard industrial activities classifications or no standard at all, etc.). The second goal is, once the methodology is accepted, to apply it to a case study, in this case the industrial sector in Spain and two of its counties (Catalonia and the Basque Country) for the years 2001, 2009, 2010 and 2013. In this period, and based on the different approaches employed, the Spanish annual industrial waste heat potential ranges from 54.3 to 151.1 PJ, Catalonia from 8.6 to 29.7 PJ, and from 7.2 to 11.9 PJ for the Basque Country. The methods are considered highly transferable but uncertainties inevitably arise in the case that the source and destination industrial sectors are very different.

Exploring the economic contribution of copyright-intensive industries in Italy

In the last few years, a number of studies documented the economic impact of copyright in different national economies. The purpose of this paper is to contribute to increase these studies based on the assess of the economic impact of copyright-intensive industries in Italy. Consistent with prior studies, this paper attempts to measure the impact of copyright on GDP and employment. In doing so, two different methodologies are applied: (1) WIPO’s guidelines “Wipo Guide on surveying the Economic Contribution of the Copyright-Based Industries” and (2) the Ernest & Young study entitled: “1 er Panorama des Industries Culturelles et Creatives. Au Couer du Rayonnement et de la Competitivite de la France”. The selected year for the survey is 2011. The main source data are collected by statistic databases like Istat, Eurostat and United Nations Statistics Division. The industrial classification starts with the International Standard Industrial Classification suggested in the WIPO Guide and, after the conversion, first in NACE and then in ATECO 2007, we identify the industries and their activities as relevant to copyright-based industries in Italy. The results of our analysis support the thesis that copyright has a great impact on the aspects of economic growth, of the labour market and on the country development. This study compares the classification and the methods used for determination of the economic impact of copyright-intensive industries. By assessing the economic impact of this sector on Italian GDP, this paper raises awareness about the role and importance of such industries to the Italian economy.

Industry classification schemes: An analysis and review

ABSTRACTThis article examines the industry classification schemes used in business research from the Standard Industrial Classification system and the North American Industry Classification System to market-based industry classification schemes like the Global Industry Classification and the Industry Classification Benchmark. The examination answers why there are so many, who developed them, and for what purpose. An assortment of industry classification schemes is reviewed to highlight differentiating characteristics, how companies are assigned industry codes, their use by different user groups, and the coverage of industry codes in well-known business databases. The article also introduces the new Sustainability Industry Classification System from the Sustainable Accounting Standards Board designed to classify companies by sustainability metrics.

The strategic relevance of logistics: new perspectives

We measure the strategic relevance of logistics in multinational corporations (MNCs) using two proxies: 1) the communication of logistics endeavours in annual reports; 2) the employment of logistics competencies on the top management level. We define logistics competencies as the employment of executive board members who are assigned to logistics tasks. We examine 360 MNCs and their annual reports of the years 2000, 2004 and 2008 using content analysis. We show that there are considerable differences in the communication efforts amongst the geographical regions and the associated industries using the standard industrial classification (SIC) scheme. We present evidence that corporations originating in Asia are more likely to employ logistics competencies at the top level than their North American and European counterparts. On the other hand, Asian corporations are much more taciturn in their corporate disclosure policy. On an industrial level the transportation and chemicals subsectors are more likely to employ logistics competencies in their executive boards than other subsectors. Additionally, using partial point-biserial correlations, we demonstrate that the employment of logistics competencies is related to higher financial performance, further substantiating the strategic relevance of logistics for MNCs.

Exploring the Uncharted Export: An Analysis of Tourism-Related Foreign Expenditure with International Spend Data

Tourism is one of the most important economic activities in the world: for many countries it represents the single largest product in their export basket. However, it is a product difficult to chart: exporters of tourism do not ship it abroad, but they welcome importers inside the country. Current research uses social accounting matrices and general equilibrium models, but the standard industry classifications they use make it hard to identify which domestic industries cater to foreign visitors. In this paper, we make use of open source data and of anonymized and aggregated transaction data giving us insights about the spend behavior of foreigners inside two countries, Colombia and the Netherlands, to inform our research. With this data, we are able to describe what constitutes the tourism sector, and to map the most attractive destinations for visitors. In particular, we find that countries might observe different geographical tourists' patterns--concentration versus decentralization--; we show the importance of distance, a country's reported wealth and cultural affinity in informing tourism; and we show the potential of combining open source data and anonymized and aggregated transaction data on foreign spend patterns in gaining insight as to the evolution of tourism from one year to another.

Governance of strategically relevant research in the wholesale and retail sector

This paper reports on a comprehensive survey of priority research needs of the South African wholesale and retail sector, with the objective of providing an overview of the most significant research requirements of this significant economic sector. The survey was conducted across a spectrum of sector stakeholders including corporate, independent and informal traders, in all provinces. Survey methodology encompassed a structured priority-rating questionnaire, complemented by dialogic interviews with thought leaders in the sector, and with government and labour union officials. Considering functional areas and Standard Industry Classification divisions, the multiplicity of research problems perceived by industry stakeholders is analysed and distilled into the ‘Top Ten Research Priorities’ for consideration by the retail industry, government policy makers and academic researchers.