ABSTRACT
Disruptive business environment such as the Covid-19 pandemic and the recent high volatility in commodity prices has changed the way businesses were conducted. The heavy equipment industry is one of many industries affected by such an environment, especially those who are related to the mining industry where the volatility of the commodity prices has a significant impact on their business performance. Alliances are commonly formed by heavy equipment distributors and their customers to create a mutual benefit to sustain their performance. Strategic alliances have attracted substantial attention from industry as well as academia as a way to stay competitive. They mostly focus on the partner-to-partner alliances in serving their customers. Consumer behaviour has changed due to changes in the environment that make firms' strategic focus more on human-centric business approaches. This study looks at the roles of the partner-to-customer alliances, innovation capability, and cost reduction toward customer loyalty and competitive advantage. Data was collected from 335 respondents from the firms that have entered into alliances. This study finds strategic alliances have the highest association with cost reduction, followed by their association with innovation capability. They enhance customer loyalty through innovation capability. Cost reduction is not a lever to develop customer loyalty in the partner-to-customer relationship. The study also confirms that operational efficiencies are necessarily the source of competitive advantage, but strategic alliances are. © 2022, Academic Conferences and Publishing International Limited. All right reserved.
ABSTRACT
Bu çalışmanın amacı, en büyük uluslararası stratejik havayolu işbirliği olarak kabul edilen Star Alliance grubuna üye olan 15 havayolu işletmesinin 2016-2019 dönemine ait finansal etkinlik ve verimlilik analizinin Malmquist Total Factor Productivity yöntemi ile incelenmesidir. Bunun yanı sıra Star Alliance grubuna üye olan havayolu işletmelerinin Covid-19 salgını öncesi son dönem finansal etkinlik ve verimliliklerinin değerlendirilmesidir. Analiz sonucunda söz konusu havayolu işletmelerinin 2016-2017 döneminde TPEC ve TFP değerlerinin arttığı, TEC değerlerinin ise azaldığı tespit edilmiştir. 2017-2018 döneminde ise tam tersi bir durumun yaşandığı görülmüştür. 2018-2019 döneminde ilgili havayolu işletmelerinin tümünün TEC, TPEC ve TFP değerlerinde azalışların olduğu tespit edilmiştir. Havayolu işletmelerinin ilgili dönemde ortalama TEC, TPEC ve TFP değerlerinin tüm dönem boyunca azaldığı görülmüştür. Air Canada ve Turkish Airlines işletmelerinin tüm dönem boyunca etkinlik ve verimlilik değerlerini arttırdığı tespit edilirken Air New Zealand'ın TFP değerlerinin ve Asiana Airlines'ın ise TPEC değerlerinin tüm dönem boyunca azaldığı tespit edilmiştir.Alternate abstract: The purpose of this study is to analyze the financial efficiency of 15 airlines that are members of the Star Alliance which is considered the largest international strategic airline network for the period 2016-2019 using the Malmquist Total Factor Efficiency method. In addition, other purposes include the comparison of the change in technical efficiency (TE), technological change (TD) and total factor productivity (TFP) values of airlines that are members of the Star Alliance As a result of the analysis, it was found that the average technological change and total factor productivity values of the airlines in question increased in the period 2016-2017, and the average technical efficiency values decreased. On the other hand, in the period 2017-2018, the opposite situation was observed. In the period 2018-2019, technical efficiency, technological change and total factor productivity values decreased. It was found that the technical efficiency values of the Air Canada and Turkish Airlines increased during the entire period, while the average technical efficiency, technological change and total factor productivity values of the Air New Zealand, Asiana Airlines, Avianca, Lufthansa and Thai Airways decreased.
ABSTRACT
Purpose>This study aims to propose that, in business-to-business (B2B) industries, number of strategic alliances firms established before a "black swan” event enhances their chances to survive the black swan, and the enhancements take place through moderation effects. Changes in firms' core structures – their stated goals, authority structure, core technologies and marketing strategies – to adapt to business jolts have adverse effects on firm performance. Firms' existing B2B strategic alliances moderate the effects negatively by outsourcing different goals, authority structures, core technologies and marketing strategies to partners who fit the changed environment.Design/methodology/approach>This study collected quantitative data and analyzed the data with the regression method.Findings>Using data from Chinese firms in five technology industries during the 2007–2009 economic crisis, this study finds that firms' internal adaptation is negatively correlated with their performance during economic crises, and B2B strategic alliances negatively moderate this relationship.Research limitations/implications>First, this study focuses on B2B strategic alliances, and it is not clear whether the findings apply to B2C industries, where strategic alliances may not be common. Perhaps firms can use other means of survival in addition to strategic alliances in B2C industries. Second, this study does not differentiate between fast-moving and slow-moving industries, and it is not clear whether strategic alliances play the same role in both industries. Third, this study does not differentiate firm ages and sizes. It remains unclear how large, established and small, young firms differ when facing crises. Finally, this study is based on the Chinese setting, and it is not clear whether the findings apply to other markets as well. These issues should be explored in future studies.Practical implications>Changing firms' core structures harms their performance during black swan crises because such crises are unpredictable, and planned changes may not adapt firms to crises. Managers should not attempt to change their core structures during crises. B2B strategic alliances provide an effective means for firms to survive crises.Originality/value>This paper makes two contributions to the existing literature: First, this paper demonstrates that changes of one of the four core structures of a firm to cope with black swan events have negative impacts on firm performance. Second, this paper identifies the importance of holding a variety of strategic alliances previously to the black swan events to reduce the negative impacts of changing core structures.
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Purpose: Biotechnology has gained such prominence in the past years that approximately 50% of new drugs developed worldwide are of biotechnological origin. Some of the Covid-19 vaccines are a good example of this development. However, biotechnology R&D projects are characterized by high costs, prolonged development times, and a high degree of uncertainty and failure. Only few types of financial agents undertake such risky investments, among which are venture capital firms. In this paper, we analyse the signals that influence suchlike venture capital investment decisions. The very high level of risk, which differentiates biotechnology firms from other technology companies, justifies an analysis focused solely on biotechnology firms.Design/methodology: Hypotheses about the effectiveness of these signals are validated by means of a probit regression with panel data on a sample of 210 biotechnology companies established in Spain over a ten-year period.Findings: A positive and negative signalling effect has been found for some of the phenomena analysed, which validate the proposed model.Research limitations/implications: A convenience sample has been used for methodological reasons. Some phenomena that could have some effect on the venture capital investment decisions have not been possible to observe.Practical implications: It can be crucial for biotechnology firms for their managers to know which characteristics make these firms attractive to venture capital firms. Additionally, it is important to be aware of signals that, instead of favouring investment decisions, deter them.Originality/value: This is the first study conducted for the Spanish industry to focus on the first venture capital investment - rather than the typical focus on the amount invested-as an event that mitigates the information asymmetry level, and which includes also a distinction between four types of strategic alliance, the use of a probit regression with panel data, and a quantitative analysis on the biotech industry.As the Spanish biotechnology and venture capital industries differ from those established in other European countries, this work offers new elements of analysis, description, and comparison of these industries. In addition, the construction of a database on a sample of 210 Spanish biotechnology firms is unprecedented and can be used for future research.
ABSTRACT
Purpose>This conceptual paper examines the need for viable theoretical models of international learning alliances in the light of cooperative games and complexity in two distinguished educational settings. Game theory is used to demonstrate the need for the top managerial executives to acquire a detailed understanding of decision makers' behaviours and trigger the deployment of complex analytical methods. The paper scrutinizes Russia's pursued aggressive approach using shock therapy, also suggest the critical need to reform policy.Design/methodology/approach>Combining the critical analysis of (1) cooperative games and (2) adaptive systems structures, a dependable model is derived, which sets the baseline for determining the role of costs and gains. The analysis is supported using a real-world example of an alliance between British University (the X and Y alliance) and Russian University. It also emphasizes the importance of both internal and external pressure variables closely connected with the cooperative games, adaptive system and shock therapy.Findings>Two features of alliances have been emphasized. The first is the importance of informal relationships in the evolution of partnerships and of cooperation. This is a well-known factor in the success of any relationship. Especially in international partnerships, empathy at the individual level is perhaps necessary to bypass the influence of historical and cultural differences that are barriers at the macro level, preconditions rather than consequences of successful policies and contractual arrangements at the level of organizations and governments. The second feature is interdependence at the cost–benefit level and in the domain of decisions. The cooperation of both partners is required to realize payoffs.Practical implications>The implication of this paper is a guideline for regulators and policymakers designing worldwide alliances in higher education. In addition, this paper covers an interesting domain that could be of interest to organizations involved in forming strategic alliances, developing and re-engineering policies for strategic coalitions and setting future profitable payoff relationships within the contextual limitations of X and Y.Originality/value>This paper creates new knowledge by concisely examining the meaning of strategic alliances in the context of the global education industry.