Incumbents as disruptor and their disruptive behaviour enabling disruptive innovation: case study of high performance and low cost CPU and foundry market

ABSTRACT

The ability and role of incumbents to enable and sustain disruptive innovation is underestimated so far, compared with new entrants. Thus, this research aimed to observe incumbents’ role as a disruptor and their disruptive behaviours to enable disruptive innovation in different market segments. Based on two case studies of CPU and foundry markets, it was observed that incumbents enabled disruptive innovation by adjusting disruptive window in the context of performance trajectories and discontinuous time, and they sustained their market leadership by having advantages through continuous cost reduction and accumulated technological knowledge in high performance and low cost market. This study has extended the theory of disruptive innovation by including incumbents’ role and their disruptive behaviours and has practical implications as well for incumbents and new entrants to establish competitive technology strategy at the organisation as well as national level.     

Does productivity growth lower inflation in Korea?

We investigate Granger causality between productivity growth and inflation in Korea using quarterly data for the period 1985Q1–2002Q4. Our results indicate unidirectional Granger causality from productivity growth to inflation. In light of such causality, we estimate the effect of productivity and other variables on productivity. According to our regression results, a 1% increase in labour and Total Factor Productivity (TFP) reduces Consumer Price Index (CPI) inflation by 0.07–0.08% and 0.37–0.44%, respectively. Our results also suggest that the productivity-inflation nexus became stronger in Korea since the Asian financial crisis, and that this was largely due to structural reform and technological progress.     

Religion and perceived travel risks

This study investigates the effects of religion on perceived risks associated with travel to China. A sample of 223 international travelers answered questions about the travel risks associated with travel to China, their religious affiliation, and the strength of their religious beliefs—their religiosity. A principal components analysis identified five risk dimensions: “Value risk,” “Physical/Psychological risk,” “Health risk,” “Terrorism/Social risk,” and “Equipment/Satisfaction risk.” Regression analyses identified statistically significant positive relationships between religiosity and perceived travel risks while holding experience constant. Multivariate analysis of variance (MANOVA) and a series of one-way analysis of variance (ANOVA) tests revealed significant differences in the perceived travel risks across religious affiliations. Across all five risk dimensions, travelers who reported a religious affiliation perceived more risk than nonreligious travelers did. Religiosity, religious affiliation, and the perceived risk dimensions also discriminated among preferred travel styles for a future trip to China. Implications of the study's results are discussed, and limitations and recommendations for future research presented.     

Time–Space Movement of Festival Visitors in Rural Areas Using a Smart Phone Application

The purpose of this study is to analyse the tourists’ spatiotemporal behaviour at the rural festival using the theory and tracking methods of time geographies and the smart phone application based on global positioning system data. Main results show that most festival tourists visit only the entrance and central spaces, walking along on the same paths, while only a small number of visitors visit the regional commercial area, including the traditional market, main streets in the downtown area, although their tickets allow them to visit these spaces. Based on the time and space density analysis, this study draws the time–space aquarium of the Sancheoneo Ice Festival and can find a spatiotemporal concentration and limitation of socio-economic sustainability in rural tourism using festival as a development booster. Therefore, festival planners and policy-makers should focus on these limited spatial movement patterns and temporal flows of visitors in community-based tourism.     

Doing right,investing right: Socially responsible investing and shareholder activism in the financial sector

In this article, we present an overview of corporate social responsibility (CSR) in the financial sector. We focus on how socially responsible investment and shareholder activism have been integral parts of corporate social responsibility in the financial sector. We examine how the financial sector and its firms are evaluated and rated via a sustainability index, the Dow Jones Sustainability World Index, and show that even leading financial institutions do not employ proactive practices regarding socially responsible investment and shareholder activism. Finally, we provide examples of two companies, UBS AG and the Co-operative Banking Group, that do utilize proactive practices.     

A resource‐based perspective on human capital losses,HRM investments,and organizational performance

Reversing the focus on human capital accumulations in the resource‐based literature, the authors examine the issue of human capital losses and organizational performance. They theorize that human capital losses markedly diminish the inimitability of human capital stores initially, but that the negative effects are attenuated as human capital losses increase. They argue further that these effects are more dramatic when human resource management (HRM) investments are substantial. As predicted, Study 1 shows that the human capital losses (voluntary turnover rates)‐workforce performance relationship takes the form of an attenuated negative relationship when HRM investments are high. Study 2 shows stronger curvilinear effects of voluntary turnover rates on financial performance via workforce productivity under these conditions. Implications for resource‐based theory and strategic HRM are addressed.     

An Empirical Analysis of Futures Margin Changes: Determinants and Policy Implications

Margin regulation raises two policy concerns. First, an alignment of margins to volatility can amplify procyclicality, leading to a build-up of excess leverage in good times and a forced deleverage in bad times. Second, competition among central counterparties (CCPs) can result in lower margin levels in order to attract more trading volume, which is referred to as a “race to the bottom.” Motivated by these issues, we empirically analyze the determinants of margin changes by using a data set of various futures margins from Chicago Mercantile Exchange (CME) Group. We first find that CME Group raises margins quickly following volatility spikes but does not immediately lower margins following volatility declines, implying that margin-induced procyclicality is more of a concern in recessions than in expansions. In addition, we find some evidence that the margin difference between CME Group and its competitor, Intercontinental Exchange (ICE), is an important driver of margin changes after changes in other margin determinants are controlled for, implying that competition may be factored into margin setting.     

Does the XBRL Reporting Format Provide Incremental Information Value? A Study Using XBRL Disclosures During the Voluntary Filing Program

This study investigates whether the eXtensible Business Reporting Language (XBRL) reporting format provides incremental information value beyond the same 10K/10Q filings previously provided in HTML format. Using a sample from the XBRL Voluntary Filing Program, we document a significant increase in stock price variance on the day when voluntary XBRL reports are filed. We find market response is stronger when more content is filed on the same day. To evaluate relative information value, we decompose the quarterly return variance for three primary news announcements related to earnings including earnings announcement, HTML filing, and XBRL filing. We find XBRL filings have larger relative information value than HTML filings. Our results indicate that the XBRL reporting format provides incremental information content.     

Diagnosing service quality using customer reviews: an index approach based on sentiment and gap analyses

Recognizing the importance and potential benefits of customer reviews as a source of the voice of customers, this study proposes an analytic framework and procedures for analyzing customer reviews—termed a customer review-based gap analysis—that are tailored to diagnosing service quality. To this end, we conduct sentiment analysis on customer reviews to capture customers’ perceptions and expectations at the service-feature level, which are not expressed explicitly in their reviews. A case study of a mobile navigation service shows that the customer review-based gap analysis can provide the practical information required to diagnose service quality from customer review data. The suggested indexes for capturing customers’ perceptions and expectations reveal quality strengths and drawbacks at the service-feature level. In addition, incorporating these indexes into those for quality performance and objectives based on a service-feature hierarchy provides a diagnostic tool capable of examining service quality in both overall as well as detailed aspects.