Forecasting VoWLAN technology for the Taiwan mobile telecommunication industry

Disruptive innovation is always a great challenge to the management of incumbent firms, especially in fast-changing industries. In this study, scenarios were developed to facilitate strategic decision-making by incumbent mobile telecommunications firms that confront the threats of disruptive technology of voice over wireless local area network (VoWLAN). Combining various possible outcomes of uncertain conditions and strategic alternatives available to the incumbent firms, six scenarios were developed: incremental evolution, disruptive evolution, cost deterrence, fierce competition, market pre-emption and market convergence. The results show that a passive ‘do-nothing’ strategy by incumbent firms leads to failure if the disruptive technology is inevitable. However, firms can slow the pace of disruptive technology by applying a price-cut strategy and enjoy several years of profits in the process. Industrial insights and strategic implications obtained from all the scenarios are discussed.     

Surplus Value Production and Realization in Marxian Theory – Applications to the U.S., 1990–2015

ABSTRACT

Marx's Capital shows that surplus value can be produced in one industry, yet realized as profit (and possibly revenue) by other industries over the course of circulation. This paper highlights the separation between surplus value production and realization in Marx's work, and develops a new method for estimating surplus value production at the industry level to trace out transfers of surplus value across industries. The framework is based on the ‘New Interpretation’ and links money value added to surplus value production at the industry level. Data on value added by industry for the U.S. are used to estimate surplus value production by industry. The analysis allows comparison of surplus value production and realization in each industry. The pattern of differentials between surplus value creation and realization across industries sheds light on the processes of capitalist competition and points to a source of instability for capitalist economies.     

Tourist market segmentation with linear and non-linear techniques

The need for in-depth knowledge of tourist market segments and the need to overcome the limitations of using linear techniques to analyse non-linear relationships requires a re-assessment of generally used approaches such as cluster analysis and multiple linear regression. The objectives of the research are (1) to consider the use of self-organising (SOM) neural networks for segmenting tourist markets and (2) to analyse the predictive ability of backpropagation (BP) neural networks for classifying tourists from follow-up surveys by using the output provided by a SOM neural network. The findings of the SOM neural network modelling indicate three natural clusters. In addition, the predictive ability of the BP neural network model appears to be superior to that of MLR static filter and logistic regression models. The BP neural network model developed for this application appears suitable for deployment (i.e. classification of tourists from follow-up surveys).     

Measuring the Impact of Reserve Requirement Changes Using Interest Rate Spreads: Evidence from Costa Rica

Researchers have proposed several different theories regarding the effects of reserve requirement changes. One theory suggests that reserve requirements represent a tax on financial institutions. This theory is usually tested by examining stock price responses to announced reserve requirement changes. Reliable, historical stock price information for Costa Rica firms is generally not publicly available. In this paper, the spread between deposit rates and loan rates is used as a proxy for firm profitability. The results indicate a complex response to reserve requirement changes that is dependent on bank classification.     

Defining Corporate Citizenship: Evidence from Australia

This study reports the results of a survey of the attitudes to corporate citizenship and practices of corporate citizenship of 93 of the largest private and publicly listed corporations in Australia. The results suggest there was considerable hesitation in positioning corporate citizenship as a proactive, long term, internal culture process. Instead, corporate emphasis was generally on short-term community activities. Also, there was little variation in these results when respondents were classified by industry, international involvement and legal structure. Clearly, significant links have yet to be made by corporate Australia to connect the financial, social and environmental bottom lines.     

Responsibility Cost Control System in China: The Han Dan Experience

This study undertakes a longitudinal analysis of the ethical management practices of Sri Lankan companies by comparing the results from a survey conducted in 2003. During this period regulatory developments have taken place within Sri Lanka and internationally aimed at improving the level of corporate governance. Based upon this survey data we conclude that progress has been made in ensuring that ethical management practices are more homogenous and standard practice across companies. Internationalized companies remain the ones that are more aware of the environmental consequences of their actions, although few companies, unfortunately, recognize this as an issue of concern.     

Demand-side inertia factors and their benefits for innovativeness

Inertia reflects a firm’s inability to change or innovate and may be fostered by many sources. Though researchers have focused on internal inertia factors, we examine inertia factors within a firm’s customer base: switching costs, customer preference stability, and network externalities. New products at 279 firms are examined to assess the role of these demand-side inertia factors in determining innovativeness and, ultimately, financial performance. The inertia factors are hypothesized to have differential innovativeness effects for early and late entrants. Overall, demand-side factors affect innovativeness positively, contrasting with firm-based factors (e.g., routines or assets), which typically inhibit innovativeness. Consumer preference stability is the only factor negatively related to innovativeness, though only for early entrants. Network externalities and switching costs increase innovativeness (particularly for early entrants). Demand-side inertia factors are critical determinants of innovativeness and may now be placed within the previously internally focused set of factors engendering early mover advantage.     

The impact of credit scoring on consumer lending

We study the adoption of automated credit scoring at a large auto finance company and the changes it enabled in lending practices. Credit scoring appears to have increased profits by roughly a thousand dollars per loan. We identify two distinct benefits of risk classification: the ability to screen high‐risk borrowers and the ability to target more generous loans to lower‐risk borrowers. We show that these had effects of similar magnitude. We also document that credit scoring compressed profitability across dealerships, and provide evidence consistent with the view that credit scoring may have substituted for varying qualities of local information.     

Using involvement for segmenting the adoption of e-commerce in travel

While the adoption of e-commerce in the purchasing of leisure travel is gaining momentum, higher levels of adoption can be achieved if greater knowledge of the market for e-commerce is obtained. This research uses two variables, involvement with computers for leisure purposes and purchasing leisure travel over the Internet, as a means of segmenting the market with regard to the adoption of e-commerce in the purchasing of leisure travel. A sample of residents of a suburban borough of Lisbon (Portugal) was surveyed and hierarchical clustering was performed on 225 usable questionnaires. The four resulting clusters of residents that emerged were quite different from one another in relation to the adoption of e-commerce in the purchasing of leisure travel and in supporting the internal and external validity of the clustering procedure. One segment that has not been reported in the literature before was identified, comprising those who have moderate involvement with both innovations (the moderate enthusiasts). Moreover, the results suggest that individuals in this cluster may be stronger candidates for the adoption of e-commerce in the purchasing of leisure travel that computer fanatics.