Strategic Industry Research Articles

THE DEVELOPMENT OF THE INDONESIAN DEFENSE INDUSTRY BY USING SYSTEMS THINKING APPROACH

<div><p class="Els-history-head">The independence of the national defense industry is crucial in supporting the national defense system to ensure the survival and existence of the nation and state through its impact on defense capability, and national economic, and technological development. But until now there are still phenomena that show the weaknesses of the national defense industry, both in concept and practice. This study aims to explain and analyze the weaknesses of the national defense industry and propose recommendations for solutions to overcome these problems. This study uses a qualitative approach, a methodology that involves interpretation to understand and explain certain phenomena. The analytical tool used is systems thinking, which can see this phenomenon in a bigger, dynamic, and interrelated picture through a system model. The results of this study indicate that the problem we are facing includes a small defense industry’s budget, lacking resources and technology, the need for raw materials, and pseudo-practices by the domestic defense industry. The proposed solution system model demonstrates how to develop the national defense industry by implementing the mandate of (Law of the Republic of Indonesia Number 16 of 2012 Concerning the Defense Industry), introducing defense product innovation through national and international defense industry exhibitions to increase investment opportunities, and implementing (Law of the Republic of Indonesia Number 11 of 2020 Concerning Job Creation) to involve private industry in the development of a strategic defense industry. Finally, the independence of the national defense industry will realize operational readiness into real operational capabilities, so that the independence of national defense will be achieved and the integrity of the sovereignty of the Republic of Indonesia will be maintained. This condition will immediately build the spirit of nationalism of Indonesian citizens. </p></div>

PENDEKATAN MODEL STRATEGI KOMUNIKASI BENCANA GEMPABUMI DAN TSUNAMI DI KOTA CILEGON

Cilegon City has tourist resources, international trade, and strategic vital industries, adjacent to the Sunda Strait as an international trade route, but has the potential for earthquake and tsunami disasters from the South Java Megathrust, magnitude 8.7 and tsunami due to the eruption of Mount Anak Krakatau (GAK). In maintaining the existence of resources and reducing the impact of disasters, mitigation, and preparedness efforts are needed, including disaster communication. This research aims to identify and determine the model of disaster communication policy in Cilegeon city with a qualitative research method approach case study, data from in-depth interviews and document searches, and data validation triangulation. The results of the research on the communication model before, during, and after a disaster fulfill the minimum elements of communication (communicator, message, media, and communicant), a two-stage communication model, namely first, communicator, message, media, communicant (opinion leader), and feedback. Secondly, with the second stage of communication, Opinion Leader stage I as a communicator in stage II communication. Stage I communication is more likely to be mass communication while stage II communication tends to be group communication and cross-cultural communication. The results of this study also found the proposition that the performance of Cilegon City disaster communication still needs the commitment of regional leaders, coordination and socialisation, more focus on customers, completeness of communication facilities and infrastructure, media partnerships and inter-regional and situational awareness.

Human Resources of Research and Innovation in Indonesia: Reality, Policy Strategy, and Roadmap

This article reveals the reality, policy strategies, and roadmap plans for human resource development in Indonesia's research and innovation field. The result of human resources in a lot of research and innovation is an important one, especially after the government's commitment through the issuance of Presidential Regulation Number 18 of 2020 concerning the National Medium-Term Development Plan (RPJMN) for 2020-2024 and also the Presidential Decree of the Republic of Indonesia Number 21 of the Year 2021 concerning the National Talent Management Task Force, where research and innovation are one of the sectors developed in national talent management. This study uses a qualitative method with a descriptive approach. The investigation resulted in four aspects of concern, namely the existing conditions and the Indonesian government's experience in developing human resources in the field of research and innovation, which had been initiated since the era of President Soekarno, then the presence of a scholarship program created by Prof. Eng. BJ Habibie, who at that time served as Minister of State for Research and Technology by providing scholarships to more than 1,500 people during 1982-1996 to study in several countries which would later become talents for the national strategic industry and research and development institutions in Indonesia. The results of talent management policy mapping in the research and innovation sector are discussed in the next section. To enrich understanding, a comparative study of talent management and policy was carried out in Japan, the Philippines, and Malaysia. In the end, a proposed strategy and roadmap for implementing research talent and innovation in Indonesia are presented.

국가첨단전략산업 기술보호를 위한 전담조직 설립 필요성 연구

연구목적 본 연구는 국가첨단전략산업법 재정에 따른 기술보호 강화를 위한 전담조직 설립 필요성에 대해 연구하는데 주된 목적이 있다. 연구방법 이 연구방법은 질적연구방법(Qualitative research)으로 정성적 연구를 하였다. 특히 고찰방법 중 체계적 문헌고찰(Sysematic reviews) 방법을 적용하여 논문의 목적에 충실하였다. 결과 본 연구의 결과는 국가첨단전략산업 기술보호를 전담할 수 있는 전담기관 지정 또는 설립이 필요하다는 것이다. 결론 신 경제안보시대에 국가 경쟁력 강화 및 국민 이익 증대를 위해 국가첨단전략산업 기술보호를 위한 전담기관 지정 및 설립이 필요하다는 것이다.

The Impact of Audit Committee Composition and Performance on Financial Reporting Quality in Kurdistan’s Industrial Companies

Given the high prevalence of corporate fraud and misconduct worldwide, the demand for financial reporting quality has also been on a high rise.  Among the suggested courses of action is audit committee composition and performance. Consequently, the study examines the impact of audit committee composition and performance on financial reporting quality using 277 responses collected from 140 internal audit managers, 120 audit committee members and 17 financial managers of five strategic industries in Erbil, Kurdistan. The responses were regressed using two single regression analysis models with the aid of SPSS version 24. The findings of the study indicated that improvements in both audit committee composition and performance have significant positive effects on financial reporting quality. The study’s theoretical underpinnings are engraved in suggesting that the principal-agent theory’s propositions can be improved by having sound audit committees capable of performing exceptionally well so as to improve financial reporting quality. The study’s practical contributions are linked to its capacity in highlighting that industrial companies must be cautious when selecting audit committee members

Reflexiones filosóficas sobre la relación turismo, crecimiento económico y desarrollo sostenible en el siglo XXI

The purpose of the editorial was to present Volume 40, Number 75 of the December 2022 edition of Cuestiones Políticas. Macroeconomic indicators from international organizations such as the UN, the International Monetary Fund and the World Bank show that tourism is a strategic industry for the integral development of nations with a formidable capacity to generate sources of employment and sustainable development, as long as the necessary policies are implemented. In this sense, the objective of this work was to reflect philosophically on the relationship between tourism, economic growth and sustainable development in the 21st century. In order to achieve the stated objective, a combination of the phenomenological and hermeneutic method was used, which describe and interpret reality in a rigorous way, through the examination of documentary sources in digital format, such as: scientific articles, press releases and reports of international organizations. It is concluded that sustainable tourism is definitely that which combines in equal conditions economic growth with the requirements of social justice, equity, human rights and environmental balance, in tune with the objectives of sustainable development promoted by the United Nations agenda 2023 and that, in addition, philosophy has much to contribute on the subject.

The Road towards a Resilient Base Petrochemical Industry in Indonesia: A Transformative Scenario Planning Approach

Petrochemical industry is a strategic industry for a nation because it has a big impact on society at large. Petrochemical derivative products are an inseparable part of our modern life. With the development of technology, humans can synthesize innumerable combinations of petrochemical molecular structures to obtain materials with certain properties suitable for the final products to be made, from clothing, packaging, pharmaceutical, households, etc. All these products are mostly produced based on six building blocks of petrochemical, which are ethylene, propylene, butylene, benzene, toluene, and xylene. They, collectively, are called base petrochemical. However, the chemical sector and its derivatives contributed to the Indonesian Current Account Deficit. In 2019, The Indonesian Central Bureau of Statistics reported that imports of chemicals and goods derived from chemicals reached USD 21.51 billion. Meanwhile, the export activity of this sector was only USD 12.65 billion. Thus, The Government of Indonesia through the Ministry of Industry (MoI) pays special attention to the industry as stipulated in the National Industrial Development Master Plan (Rencana Induk Pengembangan Industri Nasional – RIPIN). RIPIN 2015, which is spanned between the years 2015 to 2035, is a guideline for the government and industry players in planning and developing the national industry. Considering the importance of the base petrochemical industry, this research was conducted to find plausible scenarios for the industry in Indonesia. The time horizon in this research is the year 2035 which is in line with RIPIN document. In obtaining possible scenarios, a literature review was carried out and followed by interviews with several relevant and competent sources. This research produced four scenarios namely “The Ruptured SBR”, “The Abandoned ABS”, “The Aromatic Painkillers”, and “The Flying Polyester”. The approach employed is a Transformative Scenario Planning (TSP) according to Adam Kahane’s work. This research does not focus on one particular entity or institution, but on the national basic petrochemical industry as a whole which consists of various stakeholders with different interests. So that in implementing the results of this research, it is important to realize that all parties need to contribute to achieve the desired future.

The value of the sales function: A multilevel examination of the effect of strategic marketing ambidexterity and industry contingencies

This paper investigates the effect of firm strategic marketing ambidexterity (SMA) and industry contingencies on the sales function’s relative compensation level within organizations. It draws on longitudinal secondary panel data from two different sources, based on a sample of all business-to-business manufacturing firms with more than 100 salespeople in France across several years, and perform a hierarchical linear model (HLM) analysis. The model, tested on multilevel data, shows that SMA and its interaction with industry munificence and dynamism are significant determinants of the relative compensation of the sales function (RCSF). Results show that innovativeness and marketing resource endowment (two dimensions of SMA) have opposite effects on RCSF. Additionally, different industry contingencies—industry munificence, dynamism, and competitiveness—interact differently with SMA when explaining RCSF. This study highlights the relevance of the sales function in firms’ pay practices and advances the understanding of variations in RCSF.

The National Interests and Sustainability of State-Owned Banks in Indonesia

State-owned Banks in Indonesia carry out supportive business activities based on economic democracy. Economic democracy is related to Pancasila Economics as enshrined under Article 33 of the 1945 Constitution. Article 33 defines the parameter of national interests in the banking sector to be consistent with the overall national interests of Indonesia. This paper examines and evaluates how State-owned Banks may sustain and play a distinctive role in protecting national interests in the banking sector. For this purpose, this paper analyses and considers some provisions that improve ordinary people’s welfare under the relevant laws as part of the strategic industry and conduct their activities according to the democratic principle of economics. The discussion employs a doctrinal approach. However, a historical analysis applies to studying past facts, events, and institutions. The paper finds that against the backdrop of open competition, State-owned Banks sustain by playing a strategic role in Indonesia’s banking sector, especially in terms of the dominance of the asset, mobilising public funds and channelling them back to the public. The success model of State-owned Banks underscores SDG 8, which promotes sustained, inclusive and sustainable economic growth, productive employment and decent work for Indonesians. At the same time, it epitomises the Indonesian way to achieve SDG 16, which promotes just, peaceful and inclusive societies based on the Constitution of Indonesia.

Discussion on Construction Framework and Key Content of Integrated Medical Internet of Things

Since the internet of things was listed as a national emerging strategic industry, its development in China has received unprecedented attention. This study takes the lead in proposing the concept and construction framework of the integrated medical internet of things, analyses and discusses the integrated medical internet of things from four aspects: the integrated internet of things infrastructure, the internet of things security management application construction, the internet of things big data application construction, and the integrated management platform. The integrated medical internet of things starts from medical management, based on the hospital's existing information construction foundation, and uses internet of things related technologies to build an internet of things integrated service platform for medical quality and safety.

The economy-security conundrum in American grand strategy: foreign economic policy toward China from Obama to Biden

This article argues that in a Janus-faced Liberal International Order, American grand strategy faces an economy-security conundrum. Tensions between transnational economic networks and national security concerns require different administrations to square a balance between important yet competing interests. This conundrum is especially challenging for Washington, D.C., when dealing with China. Indeed, while the Chinese and the American economies are interdependent, China continues to rise, with revisionist demands, and outside of the US-led system of alliances. The economy-security conundrum is managed by different presidents who pursue similar long-term objectives but through different approaches, leading to both strategic continuity and policy changes between one administration and the next. Former US President Barack Obama’s Trans-Pacific Partnership, subsequent President Donald Trump’s trade war, and President Joe Biden’s Build Back Better World (B3W)—most recently rebranded as Partnership for Global Infrastructure and Investment (PGII)—are indeed different policies, but all are aimed at either compelling China to abide the free-market rule of law or to separate from the West, especially regarding strategic and future industries.

The transformation of supply chain collaboration and design through Industry 4.0

ABSTRACT This paper analyzes how Industry 4.0 transforms supply chain collaboration and design. Therefore, we identify and analyze 151 academic articles. The study uncovers holistic strategic changes Industry 4.0 and associated technologies imply for cross-company collaboration in supply chains. These include changes in the initiation of buyer-supplier transactions, information exchange and handling, and how Industry 4.0 transforms relationships and cooperation. Subsequently, implications for aspects concerning supply chain design, such as ecosystem development are given. The systematic literature review is the first to analyze the body of literature on supply chains in Industry 4.0 to synthesise how cross-company collaboration is transformed in detail. The paper provides a comprehensive overview of the current state of research and develops several suggestions for future research and managerial practice, such as the role of risk-benefit sharing and information sharing, allowing to develop new forms of collaborative value creation in Industry 4.0.

Green Total Factor Productivity and Its Saving Effect on the Green Factor in China's Strategic Minerals Industry from 1998-2017.

Improving green total factor productivity (GTFP) is a fundamental solution to help the strategic mineral industry to achieve green and sustainable development. This study incorporates the dual negative externalities of resource depletion and environmental pollution into the GTFP measurement to capture the 'green' elements. By employing a truncated third-order (TTO) translog cost function and the feasible generalized least squares (FGLS) approach, we evaluate the GTFP growth performance and its components in China's strategic minerals industry from 1998 to 2017. Moreover, we explore the bias of technological progress toward the resource and environmental factors to grasp the green factor saving effects. The results show that: (1) during the sample period, the average GTFP growth rate of China's strategic minerals industry was 0.46%, but there were variances between mineral sectors. Nevertheless, after 2012, the GTFP of all mineral sectors experienced different degrees of decrease. (2) The main driver of adjustments in GTFP growth shifted from technological progress to changes in scale efficiency, with technological progress contributing less to GTFP growth. This is particularly evident in the metal and energy minerals sectors. (3) Green technological progress is biased toward saving environmental factor input but enhancing resource extraction. Therefore, the current development of China's strategic minerals industry falls into a non-sustainable mode of being environmentally friendly but not resource-saving.

Foreign State-Owned Enterprises in the World’s Largest Economies – Comparative and Sectoral Analysis

Theoretical background: In the last 20–30 years, particularly after the financial crisis of the end of the first decade of the 21st century, state-owned enterprises (SOEs), historically associated with local markets, have increasingly expanded internationally. As a result, foreign state-owned enterprises (FSOEs) have emerged in many countries, particularly in strategic industries. The internationalisation of SOEs is a new, important and relatively under-researched phenomenon in today’s global economy. The literature on the subject so far lacks extensive, comparable figures on FSOEs on a global scale, which is a prerequisite for qualitative research. Purpose of the article: The purpose of this article is to determine – based on original empirical research – the status, significance and sectors of FSOEs in the groups of the largest non-financial enterprises (Top 100, by operating revenues) of the 32 world’s largest economies, as well as the changes that have occurred in this respect between 2009 and 2018. The analysis of FSOEs was carried out with the enterprises divided according to their origins (“green-field FSOEs” and “M&A FSOEs”), industries and home countries. Listed FSOEs were analysed separately. Research methods: The research used the original author’s method of distinguishing (finding) FSOEs, based on the criterion of actual corporate control rather than on the criterion of formal state ownership. The source data, derived mainly from the Orbis database, has been thoroughly supplemented and verified. Special indicators were created for the comparative analysis of FSOEs across the 32 economies under review. Main findings: The results of the analysis determined the status of FSOEs in the group of the 32 world’s largest economies, as well as in distinguished subgroups: developed economies (19) and emerging economies (13). The analysis of the changes in the shares of FSOEs in the studied economies between 2009 and 2018 led to the conclusion that the shares, and therefore the economic importance of FSOEs, increased during the studied period. The sectoral distribution of FSOEs shows that the largest number of them operate in Oil & Gas and Energy sectors.

ASSESSMENT OF ADVANTAGES OF USING A DIFFUSION PULSATING APPARATUS FOR RECONSTRUCTION OF THE DIFFUSION SECTION OF A SUGAR FACTORY

The sugar industry in Russia plays a huge role in ensuring the country’s food security and is a strategic industry. Of the 90 sugar factories in Russia today, a third of the factories are closed due to unprofitability associated with the high cost of sugar production due to low feed capacity. The raw material for sugar production is sugar beet, mainly domestically produced. The locations of most sugar factories are small municipalities, for which they are the town-forming enterprises. For the revival of closed sugar factories, it is necessary to increase their capacity, which is difficult to do due to the fact that in the diffusion section of each sugar factory there is one large-sized imported diffusion apparatus of a mechanical type, which does not allow increasing capacity in any other way than purchasing a new, more high-performance expensive imported diffusion apparatus of a mechanical type. In the current conditions of uncertainty and disruption of trade relations with other countries, new suppliers of high-performance diffusion apparatus are needed in Russia itself, the apparatus of which would at least not be inferior to the Western apparatus. The Russian company Ingehim has developed a diffusion pulsating apparatus (DPA) without mechanical movable transporting devices, which reduces energy consumption, operating costs and lowers quality requirements for sugar beet chips. The test results obtained using an experimental unit showed a higher quality of the diffusion juice. The lightness of the juice was found to be much higher compared to juices produced in conventional diffusion apparatus, and the juice purity was found to be 5% higher at a comparable solids content, resulting in an additional amount of sugar produced per year, allowing for a faster return on investment.

산업연관분석을 이용한 라스트마일 배송산업 공급사슬구조의 탐색적 연구

The purpose of the study is to identify the degree of production induction effects and industrial synergy effects of the last mile delivery service industry. It also connects the industrial linkage structure of the last mile delivery industry with the concept of the supply chain. Ultimately, it identifies the structure of the service supply chain centered on the last mile delivery. It approaches research problems from a service science perspective. The philosophical basis of the study is the concept of service dominant logic. In addition, the research methodology is an inter-industry analysis of economics, and WIOD is used for analysis data. Petroleum product manufacturing and warehousing are the backward industries of the last mile delivery industry. And it seems clear that wholesale and retail industry are forward industries. Therefore, the last mile delivery industry plays a role in connecting the relationship between the supply industry, the manufacturing industry, and the distribution industry on the supply chain. In addition, the supply chain architecture of the last mile delivery service is significantly different from the existing manufacturing-oriented supply chain structure. Academically, the concept of a traditional manufacturing-oriented supply chain has been expanded to the service sector. And it identified the supply chain structure of the last mile delivery service. In practice, if a strategic industry is selected with limited resources, it will be an important indicator for determining investment priorities.

TURKIYE 'S INDUSTRIAL POLICY IN THE CONTEXT OF EU INTEGRATION: A SUCCESSFUL EXPERIENCE FOR GEORGIA

Eka Lekashvili
 Ivane Javakhishvili Tbilisi State University,
 Georgia
 https://orcid.org/0000-0001-9781-7620
 Giorgi Kraveishvili,
 Ivane Javakhishvili Tbilisi State University,
 Georgia
 
 Research goal: Within the framework of the grant competition of the Faculty of Economics and Business at Ivane Javakhishvili Tbilisi State University, was developed the research project "Formation of industrial policy coordinated with the requirements of EU integration and the possibilities of its implementation in Georgia". The application was developed by the repres­en­ta­tives of the Department of Economic Policy. The actuality of the research problem is determined by the goals of implementation of the requirements of Georgia’s Association Agreement with the Eu­ro­pean Union. The purpose of the mentioned grant project is to analyze the possibilities of the for­ma­tion of the coordinated industrial policy with the requirements of the European Union and its imp­lementation in Georgia. To achieve this goal, it is important to analyze the successful and un­successful experiences of industrial policy development, coordination and implementation of EU member, candidate and potential candidate countries.
 The purpose of this scientific paper is to analyze the experience of development, coordination and implementation the industrial policy of Turkiye, as an associate member of the Eu­ro­pean Union in order to offer recommendations for the development of the industrial policy of Ge­orgia.
 
 Methodology/approach. The research is based on using the analysis, synthesis, induction, deduction, chronological and comparison, case study methods, as well as expert assessments, theo­re­tical and applied studies of international organizations and scientific-economists. 
 Fou­nding. The paper discusses the strategic directions and reforms of the industrial policy of Tur­kiye, as an associated country of the European Union, that contributed to the country's economic str­engthening, development and entry into the European Union market. The experience of Turkiye 's ind­ustrial policy clearly shows that without the stimulating policy of national strategic industries, the country would not be able to participate in the competitive struggle in the EU market. By imp­lem­enting industry-supporting measures from the state, appropriate environmental conditions were cre­ated for the strengthening of domestic industry, which reflected the development of Turkiye, as a country.
 
 Originality/scientific innovation. The scientific novelty of the paper is analyzed and pro­ce­ssed valid information and scientific conclusions about the evolution of modern Turkish industrial po­licy, that is provided to the Georgian scientific community, policy makers and interested parties in a syst­ematized format with scientific objectivity and impartiality.
 Pra­c­tical value/consequences. Studying the successful experience of Turkiye, as the neighbor, the main trade-economic and strategic partner of Georgia, recommendations formed for creation and imp­lementation of industrial policy, that will support the process of integrating Georgia into the Eu­ropean Union, taking into account not only the sovereign, but also the regional context.
 
 Key words: Georgia, Turkiye, industrial policy.

The Effect of Labor Input, Construction Cost, and Building Permits on Production Construction With Structural Equation Modeling, Evidence from Europe

Purpose : This study examines the impact of labor input, construction costs, and building permits on production construction. Theoritical Framework : Nowadays, construction projects are growing. Construction projects require serious management because the larger the project, the more complex the dependence on one job to another in order to achieve the desired results. Design/Methodology/Approach : The secondary data explore from European data obtained from Eurostat from 2016 to 2019. Analyzing and proving hypotheses using Smart PLS software. Findings : The labor input has impact on production construction. The Construction Cost and Building Permits are not impcat to the Production Construction. Efforts to increase business creation should be a development priority in Europe. This is not only related to efforts to achieve the demographic bonus, but also efforts to achieve increased welfare for the Europe community. Research implication : Regional revenue is money that goes into the regional treasury. In implementation of decentralization, regional revenues consist of revenue and financing. Regional income is a recognized right of local government as in the period concerned, while regional financing is all revenues that need to be paid back and/or expenses that will be received back, either in the relevant fiscal year as well as in other fiscal years next. Practical implication : There is potential for the development and energy sources, increasing mastery of technology and quality of human resources, development of strategic industries, increasing sector between European and non-European countries. Social implication : The construction sector is one sector that can create jobs and encourage the transfer of technology that is useful for social aspects. Originality/Value : Enhancement productivity and quality of human resources to be important factor in the effort to reach the potential bonus demographics in Europe. In an effort to achieve demographic bonus opportunities, then in European countries it is expected focus on improving job creation and business for the population young age due to the number of young people which is relatively less. If this population group has the ability increase revenue and productivity, then the country's economy can be improved which in turn can promote growth economy in achieving the demographic bonus in future.

Dynamic capabilities and FDI in conflict zones: the role of diversification and stock management capabilities

PurposeDespite the increased level of national conflict around the world, outward foreign direct investment (FDI) targeting these areas has increased. This study aims to adopt a dynamic capability lens to examine the relationship between firm capabilities and the level of conflict in their FDI portfolio. The paper argues that conflict zones may be an attractive destination for a subset of firms, given their capability profile.Design/methodology/approachThe authors draw from a sample of US Fortune 500 firms (2019) to examine their FDI destinations; specifically, they collected data on the locations of their foreign subsidiaries, which resulted into a final sample of 118 diversified US firms. The model was analyzed using ordinary least squares multiple regression to predict the extent to which their FDI portfolios have ongoing domestic and international conflict and the impact of expansion in such conflict-stricken markets on firm financial performance (ROA).FindingsThe authors find that firms with greater international geographical diversification capabilities, as depicted by their geographic spread, and those with greater local stock management capability, as depicted by their initial public offering maturity, are more likely to launch subsidiaries in high ongoing conflict zones. Furthermore, the authors find that while it may be unprofitable for firms to seek FDI in high-conflict zones, firms that operate in strategic industries (manufacturing, infrastructure, natural resource extraction) experienced positive performance. This can be attributed to the fact that firms operating in these sectors are more likely to directly profit in the reconstruction/rebuilding of such conflict-stricken markets.Originality/valueWhile previous literature focused on macro-level factors, this study sought to highlight firm-level factors that determine FDI decision in conflict zones. The authors capture different dimensions/sources of firms’ dynamic capability, one resulting from foreign experience (i.e. geographic diversification) and the other from local experience (i.e. domestic stock management) to assess how each correlate with multinational corporations’ level of conflict in their FDI portfolio. Furthermore, the authors contribute to the understanding of the relationship between expansion in conflict zones and firm performance and highlight that industry does matter. Implications from this study highlight the importance of building risk management capabilities to handle not just expansion in conflict zones but also during challenging times like those brought about by pandemics.

Analysis on The Licensing of Standard Essential Patents and Its Anti-trust Regulation for Intelligent Connected Vehicle

Intelligent Connected Vehicle (ICV) is one of the most important strategic industries in China, which with both technology and standard intensive characteristics. Standard Essential Patents (SEPs) have become the focus of competition globally in the automotive industry. Even though resources are invested heavily in research and development by automotive related companies, almost all the major automotive companies are facing the licensing and litigation problems caused by SEPs. In comparison with the patent law and other private laws, it is more applicable to regulate the abuse of SEPs from the perspective of anti-trust in China. Topics like how to deal with the “patent hold-up”, how to deal with the potential anti-trust violations, how to apply FRAND principles and anti-trust regulations to SEPs licensing, and how to build a rate calculation framework in the automotive industry, should be analyzed seriously.