Early entry, capabilities and shakeout in the US brewing industry

2016 ◽  
Vol 22 (1) ◽  
pp. 24-49 ◽  
Author(s):  
Lynn A. Walter ◽  
Linda F. Edelman ◽  
Keneth J. Hatten
Keyword(s):  
Hazard Analysis ◽  
Firm Survival ◽  
Firm Characteristics ◽  
Brewing Industry ◽  
Content Type ◽  
Probability Of Survival ◽  
Technology Sector ◽  
Early Entry ◽  
Industry Study ◽  
The Us

Purpose – The purpose of this study is to examine how early-entry and process-based capability development affected firm survival during shakeout in the US brewing industry between 1938 and 1980. Design/methodology/approach – Hazard analysis was conducted on US brewing industry data spanning 42 years from 1938 to 1980. Findings – Both early-entry and later capability developments enhance the probability of survival. In addition, firms which entered early were also more likely to be the firms who continually developed capabilities across the decades. Research limitations/implications – This study contributes to our understanding of shakeout in traditional, non-high-technology businesses. However, because it is a single industry study, the ability to the generalize findings to other industry contexts is limited. Practical implications – Early entry can determine survival in industries with stable products and low levels of technological change. Social implications – Policy-makers interested in competitive dynamics should take note of the historical conditions that lead to industry consolidation in traditional industries, which, while not as glamorous as the technology sector, provide the core of US industry. Originality/value – Historical firm characteristics can impact industry structure and firm survival for over a century.

The US brewing industry, strategic windows and survival

2014 ◽  
Vol 20 (4) ◽  
pp. 434-458 ◽  
Author(s):  
Lynn A. Walter ◽  
Linda F. Edelman ◽  
Keneth J. Hatten
Keyword(s):  
Dynamic Capabilities ◽  
Survival Rates ◽  
Second Phase ◽  
Brewing Industry ◽  
Content Type ◽  
Operational Capabilities ◽  
Select Group ◽  
The Us ◽  
The Usa

Purpose – This paper aims to investigate how dynamic capabilities enabled survival in a select group of brewers, during one of the lengthiest and most severe industry consolidations in history. In doing so, we advance Abell’s (1978) theory of strategic windows through integration with the resource-based view of the firm. Design/methodology/approach – Using a mixed method approach, we first apply case study methods to develop hypotheses around the timing and level of operational capability required for survival. In the second phase, we test these hypothesized estimations on the USA Brewing population. Findings – Indicate that brewers which had advanced distribution and manufacturing operational capabilities before the strategic window of opportunity closed had higher survival rates. Practical implications – This study reinforces the importance of making timely strategic investments in capabilities. Originality/value – The integration of strategic window and capability theories advances our understanding of the roles that capabilities and time play in determining firm survival.

scholarly journals The impact of COVID-19 on the standard & poor 500 index sectors: a multivariate generalized autoregressive conditional heteroscedasticity model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maha Elhini ◽  
Rasha Hammam
Keyword(s):  
Significant Relation ◽  
Content Type ◽  
Daily Return ◽  
Technology Sector ◽  
Time Period ◽  
The Us ◽  
Us Dollar ◽  
The Impact ◽  
Autoregressive Conditional Heteroscedasticity ◽  
Daily Returns

Purpose This paper aims to examine the impact of the daily growth rate of COVID-19 cases in the USA (COVIDg), the Federal Fund Rate (FFR) and the trade-weighted US dollar index (USDX) on S&P500 index daily returns and its 11 constituent sectors’ indices for the time period between January 22, 2020, until June 30, 2020. Design/methodology/approach The study uses the multivariate generalized autoregressive conditional heteroscedasticity (MGARCH) model to gauge the impacts over the whole period of study, as well as over two sub-periods; first, January 22, 2020, until March 30, 2020, reflecting uncertainty in the US markets and second, from April 1, 2020, until June 30, 2020, reflecting the lockdown. Findings Results of the MGARCH model reveal a negative and significant relation between COVIDg and S&P500 index daily returns over the first sub-period and the whole study period in the following sectors, namely, communications, consumer discretionary, consumer staples, health, technology and materials. Yet, COVIDg showed a positive and significant relation with S&P500 index daily returns during the second time period in the following sectors, namely, communication, consumer discretionary, financial, industrial, information technology (IT) and utilities. Besides, USDX showed a negative significant effect on S&P500 index daily returns and on the daily return on each of its 11 constituent sectors over the second sub-period and the whole period. Further, FFR showed a significant effect only in the second sub-period, specifically, a negative effect on the daily return of the financial sector and a positive effect on the daily return of the technology sector index. Nevertheless, FFR had a positive significant effect on the daily return of the utilities sector index for the whole period under study. Research limitations/implications The impact of the crisis on the S&P500 index can be assessed only with some limitations owing to available global data and the limited time frame of the lock-down. Practical implications The study proposes supporting a smooth, functioning and resilient financial system; increasing fiscal measures by the US Government to increase liquidity on constraints; measures by The Federal Reserve to alleviate US dollar funding shortages; support market integrity; ensure continuous transparency and sharing of information; support the health sector, as well as consumer-based sectors that faced demand shocks and facilitate investments in the technology sector. Originality/value The originality of this paper lies in the examination of the impact of the novel COVID-19 pandemic on each of the 11 sectors constituting the S&P500 index separately, reflecting how the main economic sectors formulating the US economy reacted to the shock during the peak time of the pandemic to observe a full picture of the economic consequences amid the pandemic.

scholarly journals The more I err, the less I pay

2019 ◽  
Vol 53 (5) ◽  
pp. 916-943 ◽  
Author(s):  
Etayankara Muralidharan ◽  
Hari Bapuji ◽  
Manpreet Hora
Keyword(s):  
Future Research ◽  
Published Data ◽  
Product Recalls ◽  
Firm Characteristics ◽  
Product Recall ◽  
Product Complexity ◽  
Firm Reputation ◽  
Content Type ◽  
The Us ◽  
Toy Industry

Purpose This study aims to investigate the effects of firm characteristics and crisis characteristics on remedies offered to consumers by firms in the event of a product recall crisis. Design/methodology/approach Published data on 868 product recalls in the US toy industry from 1988 to 2011 have been used to investigate the effects of firm experience in product recalls, type of firm (company versus intermediary) and product recall severity in predicting remedies offered to consumers in the event of a product recall. Findings The findings show that firm recall experience, firm type and recall severity are negatively associated with recall remedies offered. Specifically, firms offer lower remedies if they have higher recall experience, if they are upstream firms in the supply chain (farther from consumers) and if the recall is more severe. Research limitations/implications This study focuses on the toy industry and does not consider product complexity, firm reputation and the role of external regulatory agencies in the prediction of remedies offered by firms. Future research may extend this study to include the above factors. Practical implications Offering a high remedy to consumers of a recalled product may be a responsible decision by a firm, but it may also attract shareholder wrath. The study has implications for managing multiple goals in product recall crisis management. Originality/value Studies focused on issues of interest to consumers during a recall crisis, such as swift recalls and appropriate remedies, are limited. This study contributes to the understanding of the antecedents of recall remedies.

scholarly journals Strengths, innovation, and opportunities in a burgeoning industry: an exploratory study

2018 ◽  
Vol 30 (2) ◽  
pp. 276-296
Author(s):  
Abel Duarte Alonso ◽  
Nikolaos Sakellarios ◽  
Nevil Alexander ◽  
Seamus O’Brien
Keyword(s):  
Theory Of The Firm ◽  
Quality Improvements ◽  
Brewing Industry ◽  
Theoretical Frameworks ◽  
Online Questionnaire ◽  
Content Type ◽  
Craft Beer ◽  
The Us ◽  
Small Craft ◽  
Beer Tourism

Purpose The purpose of this paper is to examine key areas related to the craft brewing industry from the perspective of operators of micro and small craft breweries, and propose a framework based on the resourced-based theory of the firm and the theory of innovation. The areas investigated include participants’ perceived strengths of their craft brewery, involvement in innovative practices, opportunities for the craft brewing firm, and potential differences related to these areas based on the demographic characteristics of participants and their breweries. Design/methodology/approach Given its growing significance and economic contribution, the US craft brewery industry was chosen for this study. An online questionnaire was designed to gather data from craft brewery operators across the nation. Findings Product and service quality, knowledge, reputation, and expertise were revealed as key strengths, while creating new recipes and using social media tools were the most considered ways of innovating. Furthermore, opportunities were perceived through craft beer tourism, increased consumption, and quality improvements. Statistically significant differences emerged, particularly based on production levels, staff numbers, and involvement/no involvement in exports. Various associations between the findings and the adopted theoretical frameworks were revealed. Originality/value In terms of originality, the proposed refinement based on the adopted theoretical frameworks and findings facilitates understanding of the significance of resources and innovation, particularly for firms operating in a growing industry. Regarding value, the findings have important implications for the industry, for instance, in the marketing of craft brewing, as well as in the development of new craft brewing products.

Dividend yields and stock returns in Hong Kong

2015 ◽  
Vol 41 (2) ◽  
pp. 164-181 ◽  
Author(s):  
Michael L. Lemmon ◽  
Thanh Nguyen
Keyword(s):  
Hong Kong ◽  
Stock Returns ◽  
Stock Prices ◽  
Firm Characteristics ◽  
Dividend Yield ◽  
Firm Level ◽  
Content Type ◽  
Tax Capitalization ◽  
The Us ◽  
Rule Out

Purpose – The positive relationship between dividend yield and risk-adjusted return, which is called the dividend yield effect, is well documented in the US market. Yet, the drivers of the yield effect are unclear. Some argue this evidence is consistent with the prediction that the investor-level tax burden is capitalized in stock prices, also known as the tax capitalization hypothesis. Still others contend that nontax omitted factors drive the yield effect. The purpose of this paper is to contribute to the debate by exploring if the yield effect occurs in Hong Kong market where no taxes exist on either dividend income or capital gain. Design/methodology/approach – The authors use two main approaches to detect the dividend yield effect. The first approach groups stocks into portfolios based on dividend yields and tests for the presence of a yield effect at the portfolio level. The second approach employs the Fama-MacBeth methodology at the firm level and tests if a yield effect is existent after controlling for firm characteristics known to explain stock returns. Findings – The paper documents a robust dividend yield effect in the Hong Kong market and suggests that nontax reasons help to explain the yield effect. Originality/value – Tax capitalization is a long-standing question in financial economics and the research evidence is mixed. The findings do not completely rule out the tax capitalization hypothesis. The main contribution is to illustrate the difficulty of conducting a powerful test of this hypothesis in practice and to urge caution in interpreting the dividend yield effect as evidence in support of this hypothesis.

Consumers' perceptions of product quality and entrepreneurial survival: evidence from the craft brewery industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jose Manuel Fernandez ◽  
Stephan F. Gohmann
Keyword(s):  
Product Quality ◽  
Firm Survival ◽  
Perceived Quality ◽  
Entrepreneurial Firms ◽  
Entrepreneurial Success ◽  
Brewing Industry ◽  
Standard Deviation Increase ◽  
Content Type ◽  
Good Market ◽  
Using Data

Purpose Most studies of entrepreneurial failure do not have good measures of consumers' perceptions of product quality. As a result, perceived quality in entrepreneurial success is often omitted. The craft brewery industry is comprised of small entrepreneurial firms selling an experience good making it an ideal study setting. Using online beer reviews, the authors examine how perceptions of beer quality and the size of brewery production influence entrepreneurial success of microbreweries and brewpubs.Design/methodology/approach Using data from the Brewers Association and over 12 million reviews from beeradvocate.com between 2002 and 2016, the authors examine the relationship between perceived product quality to firm survival. Perceived quality is measured using online beer reviews. The authors expect larger microbreweries will survive longer as will breweries with higher perceived quality. The authors use a conditional log-log hazard model to estimate survival for microbreweries and brewpubs.Findings A one standard deviation increase in the beer ratings reduces the probability of exit by 26% for a microbrewery and 19% for brewpubs. The authors find that larger microbreweries have a lower hazard of exiting.Originality/value Entrepreneurs in the brewing industry start as home brewers before beginning commercial enterprises. Scaling up production is difficult. The initial size of their brewery is an important determinant of their success. Likewise, the perception of the quality of their beer as measured by consumer ratings gives a good market indication about future survival. This research is one of the few studies to examine the influence of perceived quality on firm survival in a growing industry.

OCIE issues risk alert on the most frequently identified advisory fee and expense compliance issues

2018 ◽  
Vol 19 (4) ◽  
pp. 1-3
Author(s):  
Robert Van Grover
Keyword(s):  
Design Methodology ◽  
Best Practice ◽  
Investment Management ◽  
Content Type ◽  
Informed Decisions ◽  
Policies And Procedures ◽  
The Us ◽  
Investment Advisers ◽  
Practical Implications

Purpose To summarize and interpret a Risk Alert issued on April 12, 2018 by the US SEC’s Office of Compliance Inspections and Examinations (OCIE) on the most frequent advisory fee and expense compliance issues identified in recent examinations of investment advisers. Design/methodology/approach Summarizes deficiencies identified by the OCIE staff pertaining to advisory fees and expenses in the following categories: fee billing based on incorrect account valuations, billing fees in advance or with improper frequency, applying incorrect fee rates, omitting rebates and applying discounts incorrectly, disclosure issues involving advisory fees, and adviser expense misallocations. Findings In the Risk Alert, OCIE staff emphasized the importance of disclosures regarding advisory fees and expenses to the ability of clients to make informed decisions, including whether or not to engage or retain an adviser. Practical implications In light of the issues identified in the Risk Alert, advisers should assess the accuracy of disclosures and adequacy of policies and procedures regarding advisory fee billing and expenses. As a matter of best practice, advisers should implement periodic forensic reviews of billing practices to identify and correct issues relating to fee billing and expenses. Originality/value Expert guidance from experienced investment management lawyer.

scholarly journals The survival of business takeovers and new venture start-ups

2020 ◽  
Vol 29 (3) ◽  
pp. 797-826
Author(s):  
Guoqian Xi ◽  
Jörn Block ◽  
Frank Lasch ◽  
Frank Robert ◽  
Roy Thurik
Keyword(s):  
Life Cycle ◽  
Survival Rate ◽  
Firm Survival ◽  
Organizational Ecology ◽  
New Venture ◽  
Firm Characteristics ◽  
Entry Modes ◽  
Survival Patterns ◽  
Start Ups ◽  
The Relationship

Abstract Business takeovers and new venture start-ups are two important and distinct entry modes of entrepreneurship. They differ from resource-based and organizational ecology perspectives. We compare firm survival patterns and determinants associated with the two entry modes. From two large French datasets, we find that business takeovers have a higher survival rate than new venture start-ups. However, these differences in survival probability reduce over the entrepreneurship life cycle and when controlling for different entrepreneur and firm characteristics. Moreover, we identify differences in determinants of survival for the two groups, highlighting a distinction between the two entrepreneurship entry modes. This work contributes to the literature on the relationship between entrepreneurship entry and firm survival, thereby contributing to both entrepreneurship and firm survival research.

scholarly journals The freshness of the fell streams: contextualizing the success of Lapin Kulta Beer in the 1960s

2019 ◽  
Vol 11 (2) ◽  
pp. 165-180
Author(s):  
Janne Ikäheimo
Keyword(s):  
Marketing Research ◽  
External Factors ◽  
Primary Sources ◽  
Trade Association ◽  
Brewing Industry ◽  
Content Type ◽  
European Free Trade Association ◽  
The Social ◽  
Social Tensions ◽  
The 1960S

Purpose As Finland became an associate member of the European Free Trade Association in early 1960s, the domestic brewing industry faced a new threat posed by imported beer. It was neutralized effectively with joint and individual efforts of the breweries. This paper aims to analyze the maneuvers taken by Tornion Olut Oy to brand its new product, Lapin Kulta, which ultimately became the most popular beer in Finland. In addition, the contemporary changes in the Finnish society with related social tensions are shown to have contributed to its success significantly. Design/methodology/approach Archival research focusing on primary sources complemented with biographies, historical newspaper and magazine articles as well contemporary research papers with an aim to reconstruct and better understand the historical and social context of the events. Findings The success of the Lapin Kulta beer in 1960s was not only based on the effective marketing, although a well-thought name, the successful participation in international beer “competitions” enhancing the brand and both improved distribution and logistics certainly contributed to it. Instead the success is shown to have depended also on seemingly odd collection of external factors. However, when put together, the success is shown to have been based on brand's capability to address the social tensions present in Finland during 1960s. Originality/value The importance of the context reconstruction in historical marketing research is underlined as developments traditionally attributed solely to product qualities and marketing may equally stem from a multitude of external factors. As a case study, the research represents a fresh take on the subject through a variety of previously neglected sources.

Absence of the weekend effect and industry-style portfolios

2019 ◽  
Vol 12 (4) ◽  
pp. 463-475
Author(s):  
Selma Izadi ◽  
Abdullah Noman
Keyword(s):  
New York ◽  
Stock Market ◽  
Structural Breaks ◽  
Stock Exchange ◽  
Structural Break ◽  
Weekend Effect ◽  
Content Type ◽  
Market Portfolio ◽  
The Us ◽  
Using Data

Purpose The existence of the weekend effect has been reported from the 1950s to 1970s in the US stock markets. Recently, Robins and Smith (2016, Critical Finance Review, 5: 417-424) have argued that the weekend effect has disappeared after 1975. Using data on the market portfolio, they document existence of structural break before 1975 and absence of any weekend effects after that date. The purpose of this study is to contribute some new empirical evidences on the weekend effect for the industry-style portfolios in the US stock market using data over 90 years. Design/methodology/approach The authors re-examine persistence or reversal of the weekend effect in the industry portfolios consisting of The New York Stock Exchange (NYSE), The American Stock Exchange (AMEX) and The National Association of Securities Dealers Automated Quotations exchange (NASDAQ) stocks using daily returns from 1926 to 2017. Our results confirm varying dates for structural breaks across industrial portfolios. Findings As for the existence of weekend effects, the authors get mixed results for different portfolios. However, the overall findings provide broad support for the absence of weekend effects in most of the industrial portfolios as reported in Robins and Smith (2016). In addition, structural breaks for other weekdays and days of the week effects for other days have also been documented in the paper. Originality/value As far as the authors are aware, this paper is the first research that analyzes weekend effect for the industry-style portfolios in the US stock market using data over 90 years.

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