Horizontal price agreements in Australian antitrust: Combatting anti-competitive corporate conspiracies of complicity and connivance

When the Trade Practices Act came into operation in 1974, Australian executives, for whom price-fixing had previously been commonplace, faced the prospect of having to abandon their usual methods of doing business. However, with no criminal penalties and a maximum monetary penalty of 250,000 (changed to250,000 (changed to 10m only in 1993), and with little social antagonism towards cartels, there were no significant incentives for firms to act independently. Yet while relatively few major price-fixing cases have been instituted, and no defendant has paid a major monetary penalty, there nevertheless has been a change in business attitudes towards price-fixing. It is not easy to provide a systematic characterization of either the products, firms, markets or justifications which have featured in these cases. To avoid being found guilty in the absence of smoking gun evidence, the courts have established that firms need only show that their behavior was consistent with ordinary commercial conduct.We are grateful to Rod Williams for his helpful comments on an earlier draft of this paper.     

Exploring the concept of coopetition: A typology for the strategic moves of the Finnish forest industry

The Finnish forest industry is sustainable, well-established, internationally oriented and successful. For companies in such a basic industry, an industry that features mainly bulk products and relatively small domestic markets, sustainability in business may hinge on long-term strategic choices. It is proposed in this paper that it is not only strong domestic competition, but also—and especially—coopetition traditions (simultaneous cooperation and coopetition) that are the crucial factors contributing to the success of the industry. This article contributes to the literature by providing industry-level tools, namely a coopetition framework and combined coopetition typology. The findings indicate that coopetition traditions have been present throughout the activities of the Finnish forest industry, enabling sustainability of the industry to a significant extent. Managerial and theoretical implications are also discussed.     

Detailed cost estimating in the automotive industry: Data and information requirements

The automotive industry operates in a very competitive market which requires controlling product costs, improving the product quality and shortening the development lead time. Cost estimation requires quality data and information, therefore this research project identified several issues that hinder this activity, namely a lack of resources and information acquiring and validation difficulties. This research paper presents the various data and information requirements for detailed cost estimating in automotive industry. The research project has identified the common cost estimation process model within the identified industry sector. The study identified the types of data and information requirements for cost estimating. It has also constructed the relevant data infrastructure as the basis for a Web Portal, which is the physical presentation of the information infrastructure. Multiple sources of data collection techniques were employed to identify the types of data needed for detailed cost estimates within a manufacturing company. These techniques include participant observation, semi-structured interviews, process models and document analysis of six different UK based automotive companies. Methods of process modelling like IDEF3 and knowledge capture technique known as X-Pat (eXpert Process Knowledge Analysis Tool) were employed in this study.This study makes several contributions concerning both conceptual and practicable information issues that have long vexed detailed cost estimating practices in the automotive industry. The study conceptually defines the detailed bottom-up information (i.e., individual cost elements and the links between them) needed for an accurate estimate of cost, and shows why each element of information is needed and where it fits into the cost model. To respond to the practicable information vexations, the study shows where to find the necessary cost information and proposes a validation method. The research creates useful knowledge in the form of an improved understanding of information requirements for cost estimates. The benefits to the industry of better cost estimates based on this research at the conceptual design stage include improved cost control and enhanced ability to adjust to anticipated market trends.     

On the determinants of non-market strategy: The separations mechanism and cost shifting in the telecommunications industry

This study examines the relationship between performance levels and the levels of cross-subsidy attained by local exchange carriers in the United States telecommunications industry. These cross-subsidies have been obtained by firms via their engagement in a separations mechanism, based on a cost allocation process, which telecommunications sector regulatory authorities use. Non-market strategies have assumed primacy in the activities of several sectors world-wide. Thus, understanding non-market strategic choices is important in the analysis of firms’ behavior and performance. Active engagement in the separations process is an important non-market strategy in the telecommunications industry, as a firm relatively successful in this activity can gain large cross-subsidies. The analysis establishes that less profitable firms obtain greater cross-subsidies. Once the profitability variable is decomposed into its two main components, which are productivity and price recovery, the impact of the profitability variable reduces. Firms which are relatively unproductive, as well as those unable to recover higher output prices, obtain relatively greater cross-subsidies. These results are inconsistent with the postulates of the strategic cost-allocation and behavior literatures but are consistent with x-inefficiency and rent-seeking perspectives of firms’ strategic actions.     

Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers

This paper studies the relationship between competitive strategy and improvement in the competitive position of pioneers and followers in the mobile telecommunications industry. The analysis uses a panel of data comprising all the actions of European firms operating in the digital mobile telecommunications industry with GSM 900 and/or DCS 1800 networks. The results show that competitors gain market share when they follow competitive strategies that are different from those of other firms. The paper also finds that price reduction actions represent the best approach for followers, while differentiation actions are the most effective strategy for pioneers.     

Price-Matching Guarantees and Equilibrium Selection in a Homogenous Product Market: An Experimental Study

Price-matching guarantees have been alleged to sustain collusive prices in a homogenous product market. Theories in this literature also suggest that there exist multiple equilibria (i.e., a set of price equilibria between the competitive and the monopoly price) when all sellers adopt these guarantees in such a market. Theoretical prediction in this case fails to pin down the actual behavior of players a priori. This paper illustrates the essential role of controlled experiment in testing the collusive theory of price-matching guarantees and thereby shedding light on the embedded equilibrium selection problem. In particular, this paper studies two highly stylized market models, obtains testable predictions, and lays out the design of the controlled experiment. Results indicate that these guarantees facilitate collusion among sellers and thus solve the equilibrium selection problem considerably. I am grateful to Jim Cox, Martin Dufwenberg, Haimanti Bhattacharya, and the editor of this journal and the two referees for their suggestions. I thank seminar participants at the University of Arizona and North American Economic Science Association meeting at Tucson, 2003 for their helpful comments. A research grant from ESL, University of Arizona, for this project is gratefully acknowledged. I am solely responsible for any remaining errors and omissions.     

Foods and natural health products: Gaps and ambiguities in the Canadian regulatory regime

Canadian regulations have different rules for foods and natural health products (NHPs) regarding allowable health claims, requirements for use in clinical trials and good manufacturing standards and labeling requirements. How these rules apply to products at the food–NHP interface is often unclear. This paper describes the regulatory environment and explores two product examples – probiotic yogurt and green tea – to illustrate the issue. In addition, results from a qualitative study of NHP/food researchers highlights the confusion and frustration of those working in the field. Interim agreements between the NHP and Foods Directorate of Health Canada regarding products reviews provide a temporary response but regulatory amendments, accompanied by clear guidance to stakeholders, are needed.     

Cooperation in the agro-food industry: Spain,Greece and Portugal

This article is concerned with some characteristics of the agro-food industry in Spain, Greece and Portugal, countries that will soon enter the European Community. The analysis is based on an examination of the ways in which the agro-industry and food consumption patterns influence the economic development of those countries. The article also considers the problems of agreements between the food industry and the agricultural sector and the role played by public administration.     

Internationalisation in the telecommunications services industry: Literature review and research agenda

A review of 356 publications addressing internationalisation aspects of the telecommunications services industry (TSI) shows a growing body of contributions, mainly covering research themes like settlement and regulation policy, strategic alliances and incumbents’ reactions to deregulation as well as opening of markets in-depth until recently. Wireline telephony TSI has been the dominant segment in most contributions, while the mobile or broadband Internet segments only featured in more recent work. Segment characteristics like non-uniform barriers to entry, different reasons for alliances and non-uniform levels of internationalisation differentiate these TSI segments pose a number of additional questions concerning telecom firms’ internationalisation strategy and success promising for future research.     

Value innovation in business markets: Breaking the industry recipe

The industrial marketing as well as the strategic management literature stresses the importance of “value innovation” in order to create/sustain competitive advantage and to rejuvenate the organization.In the first part of this article the construct of value innovation is operationalized within the context of selected business-to-business markets. We report the results of an ongoing research project; starting from traditional ways of value creation, the study reveals different types of value innovation initiatives undertaken by industry participants. We observe, however, that networks, firms and managers are embedded in industry recipes. These recipes block the creation and realization of value innovation. Some firms are trying to break out of existing frames and their experiences pinpoint to specific ways of markets sensing, strategic marketing and different marketing-mix tools. As such, the research frames value innovation initiatives in the existing industry contexts and managerial frames, and identifies drivers, barriers and perceived success factors for the process of value innovation.The second part of the article then looks at the stages of value innovation and their impact on marketing, organizations and networks. Based on the data analysis, the paper posits propositions which stress the concept of “multilevel absorptive capacity”.     

Business networks and retail internationalization: A case analysis in the fashion industry

The paper presents different theoretical perspectives on the issue of business networks and their role in the process of internationalization. With regard to methodology, a specific case study is conducted of a vertically integrated firm in the fashion supply chain, which has implemented branding and retailing strategies in international markets. The case analysis, which is the result of a longitudinal study conducted over several years, aims at an in depth analysis of the extent to which business relationships represent a learning context involving opportunities/constraints in the internationalization process. The paper outlines the relationship between the specific business model, the international patterns followed, and business relationships. Three research questions are posed and discussed. Some final remarks on the relationships between business networks and international retail expansion conclude the work.     

Investments in tracking and tracing systems in the food industry: A PLS analysis

Traceability and related concepts, such as trust and transparency have gained greatly in relevance in food supply chains. This study seeks to answer what exactly determines firms’ investments in traceability systems by developing and testing a theoretical framework using partial least squares methodology and empirical data from 234 companies of the German food industry.The results reveal that high external pressure to implement improves the image of tracking and tracing systems in the sense that their use enhances a firm’s status, increases the intention to use those systems and fosters their perceived usefulness in the eyes of agribusiness executives. The hypothesized negative effect of costs on perceived usefulness and the intention to invest could not be verified.     

Power plays: Regulation,diversification, and backward integration in the electric utility industry

This paper explores how regulatory oversight influences strategic management. Predictions of the extent to which a firm diversifies and integrates upstream based on transaction-cost economics are developed and then tested among 49 American electric utilities from 1974 through 1986, a period that witnessed increasingly hostile regulatory relations. The results confirm the influence of regulation on both diversification and backward integration, supporting the transaction-cost view of these phenomena. The implications of these findings for the study of interorganizational relations, the concept of implicit contracting as a governance mechanism, and the pursuit of longitudinal theory-building are discussed.     

黑龙江省工程咨询业SWOT分析与发展趋势研究

黑龙江省工程咨询行业是伴随黑龙江经济快速发展而兴起的行业。近年来,已经成为推动黑龙江经济发展不可缺少的部分。城市化进程的加快不仅给工程咨询业带来了前所未有的发展机遇,同时也带来了更高的挑战,由于我国工程咨询业起步较晚,在行业发展过程中必然存在一定的劣势和威胁。文章在阐述工程咨询业对加快黑龙江经济发展战略意义的基础上,对该行业进行SWOT分析,明确黑龙江工程咨询行业的市场定位,并根据市场定位分析黑龙江省未来几年工程咨询业的发展趋势。     

Customer solutions in the capital goods industry: Examining the impact of the buying center

Based on in-depth interviews with customers, this study explores the customers' view of relevant solution criteria in the capital goods industry. Our research examines (1) whether the initial four-process conceptualization of customer solutions also holds for this industry, or whether it has to be extended and (2) which criteria of the customer solution matter the most for each member of the buying center. This study reveals that customers purchasing solutions in the capital goods industry expect the provider to be excellent in terms of six customer/supplier relational processes, namely (1) customer requirements definition, (2) customization and integration of goods and/or services, (3) their deployment, (4) post-deployment support, (5) signaling activities, and (6) inter-process management. Moreover, we found that the relevance of these processes differs across the most important members of the buying center (users, buyers, and deciders) due to their specific organizational function.     

Industry costs and consolidation: efficiency gains and mergers in the U.S. railroad industry

Since partial deregulation in 1980, there has been a massive consolidation of firms in the U.S. railroad industry premised largely on efficiency gains. We estimate a cost function and use it to calculate cost effects for specific mergers and for all mergers at the industry level from 1983–2003. Our central results are that consolidation in the railroad industry accounts for about an 11.4 percent reduction in industry costs (more than $4 Billion in 1992 prices), and that while there are tremendous differences across mergers with respect to the direction, level, timing, and source of cost impacts, most mergers result in cost savings.     

Product development in the chemical industry: A description of a maturing business

To help us understand the massive complexity of the chemical industry, Robert A. Linn breaks it down into product/market sectors that show differing business requirements, and hence, differing new product development requirements. This is an important industry that has struggled through the 1970s with sharp changes in external pressures and very little technological excitement. Where are the new product opportunities in an industry such as this? How do you pursue them? On the basis of his years of experience in the industry, Linn offers some suggestions and some challenges for managers.     

Parallel sourcing and supplier performance in the Japanese automobile industry

Japanese auto makers are reported to enjoy high supplier performance through long-term relationships, specific investments, and sole sourcing. Quality management consultants in the U.S. have been strongly advocating adoption of these practices. But economic and management theorists would predict that the combination of a high level of relationship-specific investments and sole sourcing will lead to problems with supplier performance. In fact the Japanese auto makers use a hybrid form of organization we term parallel sourcing. We present a transaction costs model that shows how parallel sourcing provides incentives for supplier performance associated with multiple sourcing while preserving claimed benefits of sole sourcing.     

Supply chain management in the luxury industry: A first classification of companies and their strategies

This paper aims at analysing the supply management strategies in the luxury industry in order to find out (1) whether different clusters of companies could be identified within the luxury industry, on the base of a set of contingent variables derived from previous research, and (2) which supply chain strategy is currently applied within each cluster. Case study methodology is used. A sample of 15 Italian luxury companies, belonging to different industrial sectors, was taken into account.On the basis of five classification variables (company size, selling volume, product complexity, product fashionableness and brand reputation) four clusters are identified; these clusters present differences in terms of Supply Chain strategy, as well as in terms of practices for managing manufacturing, sourcing and distribution processes.