Strategic groups in hotel industry： Empirical evidences

The Serra da Estrela Tourism Region （SETR）, gifted of unique landscape conditions, of singular natural resources, filled with culture and history, has become an attractive leisure and recreation region. Considering its tourism potential, we have seen a development of the tourism activities on that region, making necessary a study of the presence of derivative offering components, mainly on the tourism hotels level. Considering the crucial strategic role that this activity has on the region, and since there are only a few follow-up studies of the activity development, the present research aims to contribute for the knowledge of the relevant tourism hotels units reality in the SETR. In this sense, the authors intend to analyze the different strategies that are being taken in the region, by this sort of companies and, to identify the existence （or not） of company groups that carry on similar strategies--strategic groups. To reach such goals, an empirical study was developed, based upon the information obtained from the statistical analysis of questionnaires applied to the hotels unit＇s managers. The results allowed concluding that the hotels units enforce combined strategies, instead of a single specific strategy. It was also possible to identify the existence of different strategic groups that use similar competitive strategies. From this process, it also resulted that the companies that operate in this sector consider that strategy assumes a determinative role for the success of their activity.     

A Capabilities Perspective on the Evolution of Firm Boundaries: A Comparative Case Example from the Portuguese Moulds Industry*

ABSTRACT The issue of vertical firm boundaries continues to attract interest both for economics and management research. The transaction cost economics approach, emphasizing transaction‐specific assets and opportunism in order to explain discrete ‘make‐or‐buy’ decisions, dominates the literature. Nevertheless, alternative perspectives, developed under the guise of the capabilities, competence or knowledge‐based theories of the firm, have gained attention recently. They focus on the evolutionary dynamics of boundaries in the context of the division of labour among firms in an industry and on what is to be divided and co‐ordinated – i.e. productive knowledge. The conceptual links between this line of research, which some refer to as neo‐Marshallian, and the Industrial Networks approach are explored in this paper. The paper emphasizes both a vision of firms as sets of direct and indirect capabilities, developed and combined in different ways over time, and the connectedness between inter‐firm relationships. The discussion is illustrated with the cases of two firms, which are contrasted in terms of the dynamic evolution of their boundaries. The analysis made supports the argument that firms’ vertical boundaries reflect their relationships with specific counterparts and the way they address through time the division and integration of knowledge through the configuration of direct and indirect, counterpart specific, capabilities.     

Evaluating irrigation investments in Malawi: economy‐wide impacts under uncertainty and labor constraints

Irrigation expansion is critical to increase crop yields and mitigate effects from climate change in Sub‐Saharan Africa, but the low profitability has led to little irrigation investments in the region so far. Using an integrated modeling framework, we simultaneously evaluate the returns to irrigation arising from both economic and biophysical impact channels to understand what determines the profitability of irrigation in Malawi. Our results confirm that the returns to irrigation cannot cover the costs in Malawi. While labor‐intensive irrigation expansion leads to unfavorable structural change in the short‐run, the profitability hinges on low irrigated yields that fall far from expectations due to insufficient input use and crop management techniques. On the other hand, we find that the nonmonetary benefits of irrigation regarding higher food security, lower poverty, and reduced vulnerability to climate change make investments in irrigation worthwhile to improve the livelihoods of smallholders.     

Agricultural Trade among NAFTA Countries: A Case Study of U.S. Meat Exports

The U.S. NAFTA partners are important markets for U.S. meat exports. A source-differentiated almost ideal demand system is used in this study to estimate meat demand in Canada and Mexico. Empirical results suggest that while a U.S. price increase in the Canadian market is expected to increase U.S. sales revenues; it would decrease sales revenues in the Mexican market. Furthermore, an increase in meat expenditures in Canada and Mexico is expected to increase the demand for U.S. meats, while the bovine spongiform encephalopathy outbreaks have had a negative effect on U.S. and Canadian beef market shares. Finally, a decomposition of the causes of changes in demand for U.S. meats over time is performed.