Supplier change, market competition and enterprise innovation

PurposeThe purpose of this paper is to study enterprise innovation in the perspective of external supplier relationship. On this purpose, this paper examines the impact of supplier change on enterprise innovation with the moderating role of market competition.Design/methodology/approachUsing 2012–2020 empirical data of Chinese listed manufacturing enterprises, this paper investigates the relationship among supplier change, market competition and enterprise innovation through a two-way interaction model.FindingsThe results show that supplier change has a negative impact on enterprise innovation. And market competition intensifies the negative relationship between supplier change and enterprise innovation. Additional analyses indicate that the main effect and the moderating effect are more significant when the enterprise is non-state-owned or has lower ownership concentration.Originality/valueThis paper studies enterprise innovation from the perspective of external stakeholders. It focuses on supplier relationship in a dynamic variation view, instead of the traditional static ones. Moreover, this paper explores the contingency effect of market competition and gives practical implications for managers to adjust innovation strategy flexibly.

Models of capitalism in Central and Eastern Europe in comparison with Western Europe in the area of product market competition

The article compares 11 Central and Eastern European (CEE) countries, which are new EU members, with 7 countries of Western Europe representing 4 Western European models of capitalism (continental, Mediterranean, Nordic, and Anglo-Saxon) in the area of product market competition. The analysis covers the 2010-2020 period. One of the goals of the study is to determine the degree of similarity of the institutional architecture of the CEE countries in relation to the reference models in the last year before the coronavirus pandemic outbreak and to analyze the changes in these results over the last decade. Particular emphasis was placed on changes in the degree of similarity between two snapshots: 2010 and 2019. The study includes 26 variables characterizing the product market competition. These variables describe both the institutional architecture of the product market competition (the so-called input variables) and the effects of a given institutional order (output variables). The comparison of countries is based on our own concept of the similarity coefficient. One of the elements of novelty and originality is the analysis of robustness in terms of various Western European countries, which are a reference point, as well as alternative methods of calculating the similarity coefficient. The study shows that the results are robust to the assumptions made. The CEE countries are closest to the Mediterranean model of capitalism (both Spain and Italy). The Nordic model ranks last. The classification of Western European models of capitalism in terms of institutional proximity to the CEE countries is also robust to the exact method of calculating the similarity coefficient. © 2022 Authors. All rights reserved.

Economic policy uncertainty and corporate donation: evidence from private firms in Korea

This study examines the association between economic policy uncertainty (EPU) and private firms' corporate donations. Based on resource constraints and the conservation of resources (COR) theory, we argue that private firms are constantly facing resource constraints and their resource conservation motive becomes apparent when EPU is heightened. Therefore, we expect that corporate donations are negatively related to EPU. Using audited corporate donations from 48,903 private firms in Korea during 2002–2019, we find that private firms' donations are negatively related to EPU. We find that private firms operating in more competitive conditions increase their donations, but this positive association between market competition and donations is moderated by EPU. We find that private firms' donations increased when the progressive party is in power, but this positive relationship is also moderated by EPU. Our results suggest that firms reduce their level of corporate giving to conserve resources as a precautionary saving motive when they face higher EPU. Our paper contributes to the strand of literature on corporate donations and EPU by providing evidence that EPU significantly affects private firms' donations. We also find that firms' strategic motives and political pressure to engage in corporate donations are moderated by EPU.

The discipline vs complement role of product market competition and market power: Evidence from real earnings management in an emerging market

We empirically study the role of product market competition and market power, discipline vs complement role, on real earnings management (REM) in Indonesia. Using 1800 firm-year observations from 2012 to 2020, we discover that the competition has an inverse association with REM, implying that product market competition plays a role in disciplining managers from engaging REM. Despite the negative association observed, we do not have evidence of any significant relationship between market power and REM. These findings hold for a set of robustness tests. We also evidenced that the discipline role of competition in REM will be more pronounced after the Economic ASEAN Community (EAC) period and pre-COVID-19 as well as in small firms and income-increasing firms. Although we cannot include corporate governance variable in our model due to data constrain, to the best of our knowledge, the current study will be the first study examining the role of market competition and market power on REM by considering the external shock, EAC period and COVID19, in emerging market such as Indonesia. This study implies that government and capital market regulators need to design and issue new laws or regulations that can encourage the internal governance structure to maximize the potential role of market power to mitigate REM. © 2023 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.

Market Competition, Balanced Scorecard, and Their Effects on Hotel Organizational Performance and Manager's Satisfaction

This study examines the effect of market competition as a determinant of the balanced scorecard (BSC) system and the two consequences of organizational performance and managers' satisfaction. Four hypotheses are tested using partial least squares structural equation modeling. The data were collected from 145 valid responses from four- and five-star hotels in Turkey and focused on the pandemic period. The results revealed that market competition does not affect the use of BSC. Nevertheless, the BSC leads to better organizational performance and system satisfaction for managers. Managers' satisfaction with the BSC was also positively related to the performance of hotel organizations.

Competitiveness of southeast Sulawesi, Indonesia's leading export commodity cocoa in the international market

One of Indonesia's cocoa bean production centers is Southeast Sulawesi Province with a production value of 115,023 tons, with a total export value of US$ 1.5 billion in 2019. The export value of this cocoa commodity is still quite high during the Covid-19 pandemic. According to Trademap data, the value of Indonesia's cocoa exports in 2021 will reach US$1.2 billion, only down 2.9% from the previous year. The problems faced in cocoa development are the quality of the product is still low, the development of upstream and downstream cocoa products has not been optimal, and the continuity of cocoa supply has not been fulfilled. This study aims to analyze the development of cocoa commodity exports and measure the level of competitiveness of Southeast Sulawesi cocoa in the international market. The analytical method used to see the development of cocoa exports is quantitative descriptive using library research and to analyze the competitiveness of Southeast Sulawesi cocoa using the Revealed Comparative Advantage (RCA) formula. The data used in this study is time series data from 2011-2021. Based on the results of research conducted, it shows that the development of Indonesia's cocoa exports in 2011-2021 fluctuated wherein the decline and increase occurred during the last 10 years, while the development of Southeast Sulawesi cocoa exports could be seen in 2015-2021 with fluctuating increases and decreases. Meanwhile, the results of the competitiveness analysis using the RCA method on cocoa in Southeast Sulawesi during the 2011-2021 period showed a fluctuating RCA value with an average of 4.8. With a value of more than 1, it means that Southeast Sulawesi cocoa commodities have strong competitiveness or it can be said that they also have a comparative advantage.

Problems and strategies in the process of network marketing towards precision in the context of big data

The sudden outbreak of COVID-19 has greatly affected the development of all industries, and the development of many enterprises has been severely impacted. In the context of epidemic prevention and control, the Internet has brought new development space for enterprise marketing, so more and more enterprises begin to enter the field of online marketing. With the continuous progress of Internet technology and the deepening of informatization, China's big data industry has made qualitative progress. The traditional marketing model cannot meet the needs of the increasingly fierce market competition. By applying big data technology to network marketing, enterprises can dig deeply into user information and formulate corresponding marketing strategies based on users' preferences, behavior patterns and shopping habits, so as to realize precise marketing and improve their economic benefits by mining potential customers. However, there are also some problems in the process of using big data technology to move towards precision, such as serious homogenization, low application level, and privacy security issues. Only by solving these problems can enterprises use big data to achieve higher quality development. © 2022 IEEE.

Emotional approach to fitness club brand design. (Special Edition: Contemporary issues on management, engineering and economics - CIMEE.)

Public demand in recent decades for healthy lifestyles, improving its quality and preservation of active longevity has found an echo in the form of the dynamic development of the global fitness industry. Our country is no exception and since the 1990's, domestic fitness has made a rapid spurt from zero position: according to the national community of professional participants of sport and fitness industry, fitness in Russia engages regularly up to 7 million people. The paper presents the author's statement of possible scenarios for the development of the fitness industry highlighting the factors that can transform consumer demands in post-covid economy. The hypothesis is put forward that the competitiveness and economic stability of fitness clubs in the medium term will be determined by the level of customer retention rate and by increasing their loyalty, the effective formation of which is possible by stimulating through marketing communications a positive mental and emotional response in target audiences to the potential and actual satisfaction of certain primary biological needs through fitness services. To prove the hypothesis the corresponding methodology of fitness club brand design based on the emotional approach of M. Lindstrom and K. Roberts was developed. Its verification and testing was carried out. The results obtained testify to the correctness of the author's statements and actualize the continuation of research in the field of emotional branding.

State financial regulation of the competitive environment: assessment for the agricultural sector of Ukraine. (Special Edition: Integration system of education, science and production.)

The article reveals the importance of state financial regulation as one of the most important tools for economic growth and ensuring the competitiveness of industries and the economy of Ukraine. The studies of domestic and foreign scientists on the subject of research are analyzed in detail. The state of enterprises of the agricultural sector of Ukraine for the period 2013- 2020 has been determined. The study was carried out on the factors of providing agricultural producers with financial resources in terms of the size of the forms of management. The share of unprofitable enterprises in the industry for the same period is also analyzed. The achievements of the agricultural sector are described according to the statistical analysis of the state of socio-economic development of the regions in the period 2020-2021. The methodology for monitoring and evaluating the effectiveness of the implementation of the state regional policy in accordance with legislative regulations is described. This made it possible to establish that at the present stage, the financial regulation of the agricultural sector of Ukraine is carried out without proper scientific justification and, as a rule, responds slowly to the requirements of economic practice, especially in the context of deepening the penetration of global processes into the national economy. Approaches to the assessment of the competitive environment of the agrarian sector of Ukraine and the direction of its state regulation are proposed. Theoretical, methodological, and practical aspects of assessing the competitiveness of the sector are disclosed. The necessity and possibility of forming a competitive environment by fiscal policy measures, primarily budgetary regulation, is proved. The problems of forming a competitive environment in the context of the current crisis caused by the COVID-19 pandemic, the place of Ukraine in the world competitiveness ranking are identified, and methodological approaches to the development strategy are proposed. It is proved that the competitive strategy is based on the existing resources of the industry (material, financial and intellectual), the level of development of various forms of management, the structure of production, marketing, processing, the formation of value chains and a bilateral state-market regulator. The directions for improving the quality of the competitive environment, arising from the paradigm of innovative development of the agricultural sector, are summarized and provide for the stimulation of small business in niche and organic production and large-scale industrial production in terms of the main indicators of food security, as well as the development of land, financial, credit and resource markets and the formation of equal access to them all agricultural producers.

The Effects of Technological Progress in Innovative Regions on the Labor Markets of Lagging Regions: A Theoretical Perspective

The technological effects of innovative regions on lagging regions’ labor markets have not been yet well understood, especially in the urban–rural context. I introduce a theoretical model that yields insight into the interactions between high-technology and lagging regions. While, through knowledge spillovers, urban technology can increase rural jobs, it can also reduce rural employment by raising the competitive advantage of urban firms over rural firms in product market competition. Progress in urban technology also exerts an ambiguous effect of a brain drain on the rural labor market.

Poultry industry during COVID-19 pandemic, HPAI, and challenges to sector sustainability and competitiveness in the context of the farm to fork EU strategy and biodiversity

In the years between the two poultry symposia, the European and Croatian poultry industry has been faced With additional challenges caused by COVID-19 pandemic and highly pathogenic avian influenza (HPAI) epidemic. These years were characterised by considerable production and market disorders, which influenced the level of production and pricing deviations in primary production, as well as in processing industry, poultry meat and poultry product market.

Ricing management in milk production

Pricing management is part of farm management with the purpose of increasing profitability and competitiveness. It is based on the production cost and purchase price which difference affects to the financial result. The aim of this research is to identify milk price volatility at the Croatian and EU level, international trade, as well as to identify trends for the period from 2016 to 2020 and to simulate changes for the next period from 2021 to 2025. The analyzed data were taken from the Eurostat and processed using time and harmonized index. Milk production in the EU-27 for 2020 is 23 mil. tons of milk and averages 65 kilograms milk consumption per capita. The lowest average production price of milk in the analyzed period at the EU-27 level was in 2016 (28 per 100 kg of milk) and in following years it is up to 35 per 100 kg. The market situation reflects the consequence of the abolition of quotas in the dairy industry (2015) and the impact of the COVID-19 pandemic. In period from 2021 to 2025, a slight growth and slowdown in milk production of 2.83% compared to 2020 and an increase in the average producer milk prices in 2025 by 9.6% compared to 2020 are projected. This research contributes to identifying the sources of difficulties in managing prices. The guidelines have been developed for more efficient price management in order to improve the competitiveness and market positioning.

Competitiveness of Indian agricultural exports: a constant market share analysis

The 1991 Indian reforms aimed at economic liberalization, as a part of its economic structural adjustment, and transformed the nation's economy into a more global market-based and service-oriented system, which revolutionized its agricultural trade facet. The new regime paved the way for the self-reliant Indian agriculture to expand its roots into the spheres of global competitiveness and export orientation. India enjoys competitive advantage in the international market and considering the growth in India's exports of major agricultural commodities. This study employed Constant Market Share model to analyze the export performance of its various facets such as diversification, instability, elasticity, competitiveness, etc. The findings revealed that India's growth performance of major agricultural commodities' exports both in terms of quantity and value was found satisfactory (except wheat and cashew nuts, shelled (quantity)) during 1991-2020. During the recent past decade, i.e., 2011-2020, World Demand Effect (WDE) is the main sources of India's agricultural export performance (due to general rise/fall in world demand given a constant market share of the India, unlike Market Distribution Effect (MDE), Commodity Composition Effect (CCE) and the Residual Competitiveness Effect (RCE) due to high inconsistency arising out of changes in external environment). Both MDE and RCE with respect to commodity-wise exports and CCE and RCE with respect to country-wise exports are found negative for majority of commodities and countries (markets) respectively. Consistently negative CCE for exports of agricultural products, total and across major export destinations were found more disheartening and this should deserve special attention. So, it is imperative to boost the export competitiveness of agricultural commodities from India and the future prospects of exports depend on how much the latest surge in COVID-19 infections in India affects its agricultural production and global demand conditions.

Agri-food trade in 2020

The year 2020 marked one of the biggest recessions in global economic activity and world trade. During this period, the EU economy contracted by 6% and its international trade followed a similar downward trend - EU exports of goods decreased by 9% and imports by 12%, compared to 2019. By contrast, EU international trade in agri-food reported a slight growth. Over the course of 2020, the value of EU agri-food exports increased to 184.3 billion (a growth of 1.4% compared to 2019), while the value of imports rose to 122.2 billion (a growth of 0.5%). As a result, the EU further reinforced its leading position among the world's biggest exporters. On the import side, the EU has become the third largest importer after the US and China. The contraction in global trade was accompanied by increasing prices of food, including commodities as evidenced by the increases reflected in the FAO Global Price Index. The EU exports a wide range of products from all parts of the value chain which demonstrates the competitiveness of the EU agri-food sector in a variety of product classes ranging from commodities to highly processed food industry products. EU imports, on the other hand, are clearly dominated by basic agricultural food and feed products, which represent about 75% of all imports. Looking at product categories, exports of pig meat and wheat strongly contributed to the increase in EU overall agri-food exports. Conversely, spirits and liqueurs as well as wine are among the sectors that experienced a difficult period for a number of reasons (e.g. the COVID pandemic, US retaliatory tariffs). The growth in EU agri-food imports was mainly driven by increases in import values for oilseeds, other than soya beans;fatty acids and waxes, palm oil, fruit including tropical fruit, and soya beans. China, Switzerland and the Middle East and North Africa (MENA) region were the major growth destinations for EU agri-food exports in 2020. The value of EU exports fell most to the United States, Turkey, Singapore and Japan. In terms of imports, Canada grew significantly as a source for the EU imports. By contrast, EU imports declined most in value from the United Kingdom, Ukraine and the United States. In 2020, the UK has become the EU's most important partner in agri-food trade, with a share of 23% in total EU agri-food exports and 13% in total imports. With EU exports and imports both decreasing, its trade surplus with the US increased by 2% when compared to 2019, as falls on the imports side were stronger. China became the top destination for US agri-food exports. EU agri-food exports to China were primarily driven by continued record high sales of pig meat which increased by 74%. Pig meat and meat offal - the latter mainly comprised of products originating from pigs - accounted for over 40% of EU exports to China in 2020, demonstrating the importance of this market for the pig meat sector. Brazil's exports to China continued to increase in 2020, absorbing 35% of its total agri-food exports. Combined agri-food exports from Brazil to the EU and the US now account for half of Brazilian exports to China. In 2020, Brazil supplied 50% of extra-EU demand for soya beans and 40% for oilcakes. Wheat continued to be the leading EU export product to Africa with a 23% share of the EU's total export basket, whereas cocoa beans dominate in the EU imports from Africa, with the same share of 23%. Most African countries benefit from duty-free, quota-free access to the EU market under the "Everything But Arms" scheme and for many of them Economic Partnership Agreements (EPAs) or other trade agreements with the EU are applied, encouraging regional cooperation and trade. In 2020, the EU applied 45 free trade agreements (FTAs) with 77 partners. The share of agri-food trade under preferential agreements is also expanding and in 2021, it accounted for 31% and 41% of total EU agri-food exports and imports, respectively. The value of EU agri-food trade under preferential agreements expanded more in relative terms compared to total EU agri-food trade. EU agri-food ex

The COVID-19 pandemic as a renewing factor of the rural development model in Colombia

This article presents a compilation of the history of rural development in Colombia, through the economic political complex articulated with reality and its conflicts, which have generated an adverse episode for the competitiveness of the agricultural sector an d in turn an impact on the economic, social and cultural level. Afteraward, analyzing the actors, the complexity of the agricultural sector related to land ownership, analyzing the impact of factors such as biological risks, economic openness and peace agreements as new alternatives to generate competitive, sustainable development for communities, environment and territories. Finally, some alternatives are resolved that can achieve favorable changes in the sector, considering the implementation of the peace accords, the decentralization of the country, the recovery of ancestral knowledge and the strengthening of public institutions through research.

Assessment of competitiveness factors of agriculture in the context of the pandemic

The article discusses the state of agriculture in the context of a pandemic, as well as factors that influenced the strengthening of the competitive advantages of the industry. The study compared indicators and factors of agricultural competitiveness in 2020 in comparison with the previous period. The analysis showed that agriculture was less affected by restrictions due to the coronavirus than other sectors of the economy, therefore, the main trends in production and the formation of gross value added remained during the pandemic. The study noted that a 3.5% decrease in real money income of the population in 2020 affected the purchasing power of income and the structure of consumption of certain types of food, which could lead to a redistribution of production resources. The article notes the impact of the devaluation of the national currency, which contributed to the rise in the cost of imported food and the strengthening of the competitive advantage of domestic producers in the domestic market and the export of agricultural products. As a result, despite many negative trends, Russian agriculture has demonstrated high stability and positive dynamics of development, strengthening its position in the world market. Positive factors were inelastic demand for food and significant government support, favorable weather conditions, which contributed to agricultural production and an increase in export volumes. As the analysis has shown, the competitive advantages of the industry manifested themselves not only in comparison with other types of economic activity, but also in strengthening the country's position in the world food market, where the country is becoming one of the leading exporters.

Export restrictions under the pandemic shock: implications for the competitiveness of wheat production in Russia

As a wheat exporter, Russia ranks first in the world. Almost half of domestic wheat production is exported due to its competitiveness characterized by the relatively high level of comparative advantage. According to the study in the context of export parity and significant export volumes, domestic wheat prices follow world market prices and largely depend on major importers' demand. Global wheat prices have been rising consistently over the past months caused by the recovery in Chinese economy, adverse weather conditions, disruptions in food value chains and liquidity injections in the USA and EU economies to mitigate the impacts of the COVID-19 pandemic. To restrain the rise in domestic prices, Russian government decided to introduced a floating export duty on wheat. This mechanism in the context of high world grain prices, economic stagnation, shrinking disposable incomes and increased risks of further devaluation of the national currency would lead to deterioration of the financial and economic situation, reduction of investment opportunities and technological lagging of Russian wheat producers behind their competitors in the world market. In this respect, Russian government efforts should be focused on increasing production and improving the competitiveness of wheat instead of restricting exports. A comprehensive set of measures regulating the wheat market also implies subsidizing wheat consumers, support for the development of transport and logistics infrastructure, and targeted assistance to vulnerable groups of the population. Such approaches would support grain consumers while respecting the interests of producers and exporters, thereby helping to achieve the national agri-food export target of USD 45 billion in the coming ten years.

Drivers of farmers' success during the first wave of COVID-19

The paper deals with the analysis of the sources of competitiveness in the group of small farmers during the first wave of COVID-19. The aim is to reveal the drivers of farmer's success under introduced institutional measures. In particular, the paper addresses the following research questions: Does the group of small farmers catch up the opportunity to enhance their business? What are the sources of farmers' success? The results show that almost two third of interviewees were affected by the first wave of COVID-19 in the production and sale. The farmers faced problems with delivery of inputs, hiring labour inputs, increased sanitary requirements, limited or functionless some marketing channels and the ban on foreign trade. On the other hand, the analysis revealed that the costumers increased their demand on local and higher quality food. Moreover, farmers introduced several business innovations, such as the introduction of online payment methods and online technologies in the sale. Furthermore, they were pushed to speed up the prepared investments projects. These activities helped to increase the sales during the first wave of the COVID-19 and might represent drivers of success in their future business.

Increasing total factor productivity as a condition for enhancing competitiveness of the Russian agriculture: regional features

The aim of the paper is to analyse the dynamics of total factor productivity of agriculture (TFP) in Russia as a whole and in the regional context as the basis for increasing competitiveness of the industry in the context of a pandemic and environmental shocks. As a result of the calculations, it was revealed that the basic index of agricultural growth in Russia for the period from 2005 to 2019 was 1.62, TFP growth occurred with an increase in the output of agricultural products and a decrease in the volume of resources for its production. Against the background of TFP growth, the foreign trade competitiveness of the Russian agriculture increased. The export of agricultural products increased 5.5 times over this period, the country became a net exporter. In 2020, during the COVID-19 pandemic, agricultural production increased by 1.5%, and exports grew by 20% in both volume and value. In the federal subjects of Russia, dynamics of output, resources growth vary markedly. Such dynamics lead to big regional differences in agricultural TFP dynamics. Based on the calculations performed for 2005-2019 (2005 is the base year), the authors reveal a significant unevenness of TFP dynamics in the regions of Russia. The first group with the highest TFP rates includes 17 regions from the Central (9 regions), Privolzhsky (3 regions), Northwest (2 regions), Southern (2 regions), North Caucasian (1 region) Federal Districts. In Kursk, Oryol, Belgorod and Lipetsk Oblast, TFP more than doubled over the period under review (2.69;2.57;2.37;2.35, respectively), in the remaining 13 regions of the first group the TFP growth is from 1.65 up to 1.99. The second group consists of regions with cumulative TFP growth values which are less than 1.61, but more than 1.00. It is the most numerous group. It includes 43 regions from all federal districts of the Russian Federation. In 18 regions, the value of TFP growth over the period ranges from 1.31 to 1.61. And in the remaining 25 regions, the values are very low: from 1.00 to 1.31. The third group contains 12 regions, five of which are in the Far Eastern Federal District. The growth of the total factor productivity in the regions that are currently lagging behind in this indicator will contribute to the growth of competitiveness of the Russian agriculture.

Environmental Risk and Credit Ratings, and the Moderating Effect of Market Competition.

This study examines the relationship between environmental risk and corporate bond credit ratings, and the moderating effect of market competition. We focus on Korean firms that are facing increasing risk of environmental crisis after the COVID-19 pandemic. Recently, the Korean government has been controlling businesses while promoting policies to transform the economy into a low-energy, low-carbon economy. We find that a firm's greenhouse gas emission and energy consumption, which are direct indicators of environmental risk, are negatively associated with bond credit ratings. We also report that the negative effect of environmental risk on credit ratings is stronger in firms with low market competition. This study contributes to prior research by improving the understanding of the effect of environmental risk on credit ratings. In particular, it is significant to examine the effect of environmental risk, measured as direct environmental performance not affected by green washing, on credit rating. Therefore, we shed light on environment-oriented management beyond the determinants of credit ratings, which have been discussed in previous studies. We also suggest that policymakers need to manage market competition in terms of environmental justice, given that market competition has a significant moderating effect on the relationship between environmental risk and credit ratings.