What comes next after recession? – Airline industry scenarios and potential end games

While airline managers learned lessons from the 2001/2003 “double dip” economic crisis, the post 2008 downturn has been more extreme. Airlines reacted quickly in 2008 and adjusted capacities and cost levels but recovery in profits has been slow for many airlines. The dynamics of the downturn has enlarged the gap between successful and less successful business models, and fostered shakeouts of the latter. Furthermore, the occurrence of new business models has accelerated. In 2001, it was the European continental low cost model; this time, we may see new attempts to change the rules of the game in international long-haul traffic. Long-term non-cyclical trends such as deregulation or consolidation will also shape potential end game scenarios, We briefly examine the differences between the last (2001/03) and the recent (2008/09) aviation crises, and evaluate the impact on different types of carriers.     

Tariffs and income: a time series analysis for 24 countries

We argue for a new approach to examining the relationship between tariffs and growth. We demonstrate that more can be learned from time series analyses of the experience of individual countries rather than the usual panel data approach, which imposes a causal relation and presents an average coefficient for all countries. Tentative initial results using simple two-variable cointegrated VAR models suggest considerable heterogeneity in the experiences of the countries we look at. For most, however, there was a negative relationship between tariffs and levels of income for both the pre- and post-Second World War periods. However, in the second half of the twentieth century, the causality ran from income to tariffs: that is, countries simply liberalized as they got richer. Policy decisions based on the usual panel approach might thus be very inappropriate for individual countries.     

Reviewing Thailand's master plans and policies: implications for creative tourism?

This article contributes to an understanding of how creative tourism is perceived on a national level, by using Thailand as a case analysis. The primary objective of this article is to investigate Thailand's plans and policies for the creative economy at both national and ministry levels in relation to creative tourism. It also identifies how a national strategic plan can provide a blueprint for individual agency master plans to provide policy support for the development of the creative economy in the tourism sector. Thailand is chosen as an example of how government and related agencies can contribute to a national creative tourism movement in the country, especially in the light of the Tourism Authority of Thailand branding campaign to stimulate creative tourism to the destination. The qualitative research methodology through content analysis is used to scrutinise the plan and policy contents from the selected government agencies. The results demonstrate a better view of how creative tourism is positioned in the Thailand context and contribute to a policy study on the creative economy in the tourism sector as well as in creative tourism.     

Beitrag von technologischen und strukturellen Veränderungen im Energiesystem der EU-27 zur Erreichung ambitionierter Klimaschutzziele

To stabilise the concentration of GHG (Greenhouse gases) in the atmosphere to a level of 450ppm (parts per million), a strong climate policy in the EU-27 will be required. The target is achievable through a 71% reduction of GHG emissions from 1990 emission levels by the year 2050. With the regionalised Pan-European TIMES energy system model, the role of technologies with regard to efficiency improvement, fuel switching and energy saving measures will be analysed under such an emission reduction target. The Pan-European TIMES model illustrates in detail the whole energy system of the different member states of the EU-27 plus Iceland, Norway and Switzerland. The limited resource and import potentials of different energy carriers, the competition of the use of energy carriers among different sectors and the country specific differences in energy demand will be taken into account. The results show that the energy consumption of the EU is influenced rather by political targets and positions related to climate protection, security of supply and the use of nuclear energy than by the available technological options. Under a climate protection scenario with restricted use of nuclear energy, the most commonly used options are to increase the use of renewable energy in all sectors, produce electricity in combination with carbon capture and storage (CCS) and to increase the use of electricity over other fuel sources in the demand sectors. Furthermore, technological improvements will be required throughout the entire energy system if political targets are to be successfully realised.     

Do board chairs matter? The influence of board chairs on firm performance

Research summary : We use a variance decomposition methodology to assess the degree to which board chairs may influence their companies' performance. To isolate the board chair effect, we focus on firms in which the CEO and board chair positions are separated. Using a U.S. sample of 6,290 firm‐year observations representing 1,828 board chairs in 308 different industries, our results indicate that the board chair effect is substantial at about nine percent. Drawing on resource dependency theory, we also theorize and show how this board chair effect is contingent on the task environment in which firms operate. Our results add to the literature examining the role and influence of board chairs and the context in which chairs may have a greater impact on performance. Managerial summary : Following institutional and regulatory changes, more firms are separating the CEO and board chair positions. With an increasing number of individuals separate from the CEO serving as board chairs, a critical question becomes: What influence do these separate board chairs have on firm performance? Prior research suggests that separate board chairs can provide important resources—including advice and counsel, legitimacy, information linkages, and preferential access to external commitments and support—to their CEOs, other top managers, and overall firms. In turn, who the board chair is and the individual's ability (or lack thereof) to provide these resources may have a significant impact on firm performance. Offering support for this perspective, we find that separate board chairs explain nine percent of the variance in firm performance. Copyright © 2016 John Wiley & Sons, Ltd.     

Unbundling the effects of institutions on firm resources: The contingent value of being local in emerging economy private equity

How do host country institutions influence the value of a firm's local resources? Using a novel dataset on the performance of 47 private equity (PE) firms in 49 emerging economies, we show evidence that the answer depends on the type of institution. Focusing on conditions at the time of initial investment, we find that PE firms with local origins and foreign PE firms with local experience performed better when contract enforcement institutions were weak than when they were strong. Financial development, in contrast, may have undermined the value of PE firm local origins. These results help reconcile contrasting findings on how host country institutions influence performance and lead us to contend that unbundling institutions is necessary for continued development of the institutions‐based view. Copyright © 2014 John Wiley & Sons, Ltd.     

The innovator's media dilemma: How journalists cover incumbents' adoption of discontinuous technologies

We offer a new vantage to the literature on the role of infomediaries in incumbent firms' struggles to adopt discontinuous technologies: the perspective of news media. Specifically, we combine the discontinuous technology literature with studies on news media journalism to theorize that journalists cover an incumbent's new product introductions differently, depending on whether a given new product builds on a discontinuous technology or on the respective established, continuous technology. First, discontinuous-technology-based product introductions receive a greater volume of coverage than continuous-technology-based product introductions because journalists prefer covering issues that are novel, deviate from the conventional, and potentially strongly impact society. Second, the coverage of discontinuous-technology-based product introductions is more divergent in tenor than the coverage of continuous-technology-based product introductions, as journalists seek to present opposing and thus more engaging opinions. Our analyses of unique archival data from two samples of product introductions in the automotive and photography industries, respectively, support our hypotheses. We also find intriguing indications that news media coverage of new products introductions using hybrid technologies is significantly context-dependent. Overall, our study points to so-far undescribed, media-related dilemmas for incumbent firms that aim to adopt discontinuous technologies.     

Third-Degree Price Discrimination in Oligopoly when Markets are Covered*

We analyze oligopolistic third-degree price discrimination relative to uniform pricing when markets are covered. Pricing equilibria are critically determined by supply-side features such as the number of firms and their marginal cost differences. It follows that each firm's Lerner index under uniform pricing is equal to the weighted harmonic mean of the firm's relative margins under discriminatory pricing. Uniform pricing then lowers average prices and raises consumer surplus. We can calculate the gain in consumer surplus and loss in firms' profits from uniform pricing based only on the market data of the discriminatory equilibrium (i.e., prices and quantities).