Chile retail will struggle as COVID-19 hastens change

2020 ◽  
Keyword(s):  
Real Estate ◽  
Business Model ◽  
Domestic Demand ◽  
Retail Sector ◽  
Shopping Malls ◽  
Social Unrest ◽  
Content Type ◽  
The Social ◽  
Consumer Habits ◽  
Real Estate Assets

Significance Chile’s retail sector is reeling from the successive impacts of the social unrest that erupted in late 2019 and, since March, the COVID-19 pandemic, which has also affected the operations of its larger players in other countries. Even before these two events, the industry was struggling to adapt its business model to changing consumer habits. Impacts Even if domestic demand increases by 7.7% in 2021, as the Central Bank anticipates, it will remain well below its level in mid-2019. Retail is among the sectors where most jobs have been lost during the pandemic, affecting women in particular. Shopping malls may emerge as especially vulnerable to a likely reduction in the return on retail real estate assets.

Evaluating the cost and benefits of earthquake protection of buildings

2018 ◽  
Vol 11 (2) ◽  
pp. 263-278 ◽  
Author(s):  
Benedetto Manganelli ◽  
Marco Vona ◽  
Pierfrancesco De Paola
Keyword(s):  
Real Estate ◽  
Seismic Risk ◽  
Risk Mitigation ◽  
Tax Incentives ◽  
Seismic Retrofitting ◽  
Content Type ◽  
Seismic Risk Mitigation ◽  
The Cost ◽  
Earthquake Protection ◽  
Real Estate Assets

Purpose The purpose of this study is the evaluation of the cost and benefits of earthquake protection of buildings to verify whether the legislative push, through tax incentives, will produce results and lead to a redevelopment of private real estate assets. Design/methodology/approach Through contingent valuation, this research aims to measure the propensity of homeowners to invest in the seismic security of their properties. The sample of homeowners was selected in a southern Italy city, which was characterized by a medium-high seismic hazard. The willingness to pay, once made independent from the family income, was compared with the actual cost of a seismic retrofitting technique to assess its cost-effectiveness. Findings The analysis developed on an example case shows that the economic sustainability of the intervention is only verified when considering the current tax incentives for this type of intervention. Practical implications Choosing to introduce a system to compulsory insurance against seismic risk could certainly be a strong incentive for the implementation of retrofitting interventions on private real estate assets. In this direction, investigations like this can be fundamental to establish the fair risk premium. Originality/value The need for effective seismic risk mitigation policies is also based on the growing awareness of the, often fatal, effects of seismic events, emphasized by the recent medium and high intensity events that hit Italy. The issue of the security of residential buildings is therefore a very topical issue in view of their high seismic vulnerability and the vast number of buildings requiring major seismic retrofitting. Therefore, the propensity of owners to intervene in improving the seismic performance of their properties can be crucial in seismic risk mitigation.

Tunisia's risk of default will rise

2021 ◽  
Keyword(s):  
Informal Economy ◽  
Health Crisis ◽  
Social Unrest ◽  
Content Type ◽  
The Social

Significance The social unrest is partly the result of rising unemployment and poverty, worsened by the COVID-19 crisis. Political gridlock has also prevented the country from undertaking difficult reforms. Impacts Unemployment is likely to stay high, and until the informal economy can resume it will remain a cause of unrest. The release of multiple vaccines should lift some pressure from the health crisis before the end of 2021. The presidency and parliament need to solve the current gridlock in order to implement reforms in due course.

How the social entrepreneurship business model designs in South Africa create value: a complex adaptive systems approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olu Oludele Akinloye Akinboade ◽  
Trevor Taft ◽  
Johann Friedrich Weber ◽  
Obareng Baldwin Manoko ◽  
Victor Sannyboy Molobi
Keyword(s):  
South Africa ◽  
Business Model ◽  
Value Creation ◽  
Social Entrepreneurship ◽  
Complex Adaptive Systems ◽  
Local Governments ◽  
Business Models ◽  
Social Entrepreneurs ◽  
Content Type ◽  
The Social

Purpose This paper aims to understand social entrepreneurship (SE) business model design to create values whilst undertaking public service delivery within the complex environments of local governments in South Africa. Design/methodology/approach Face-to-face semi-structured interview was conducted with 15 purposively selected social entrepreneurs in Gauteng and Western Cape provinces. The interview guide consisted of main themes and follow-up questions. Themes included SEs’ general history, the social business model; challenges faced and how these were overcome; scaling and growth/survival strategies. These enabled the evaluation of SEs in terms of identifying key criteria of affordability, availability, awareness and acceptability, which SEs must achieve to operate successfully in low-income markets. Social enterprise owners/managers within the electricity distribution, water reticulation and waste management services sectors were surveyed. Findings Most respondents focus on building a network of trust with stakeholders, through communication mechanisms that emphasize high-frequency engagements. There is also a strong focus on design-thinking and customer-centric approaches that strengthen value creation. The value creation process used both product value and service value mechanisms and emphasized quality and excellence to provide stakeholder, as well as societal value, within their specific contexts. Practical implications This study builds upon other research that emphasizes SEs’ customer-centric approaches to strengthen value creation and on building a network of trust with multiple stakeholders. It contributes to emphasizing the business paradigm shift towards bringing social values to the business practice. Social implications Social good, but resource providers are demanding more concrete evidence to help them understand their impact (Struthers, 2013). This is because it is intrinsically difficult for many social organizations to document and communicate their impact in more than an anecdotal way. The research has contributed to the understanding of how SEs can provide evidence of value creation. Originality/value This study contributes to the understanding of how business models are designed to create value within the context of the overwhelming complexity of local government services in South Africa.

scholarly journals Intermediaries and social entrepreneurship identity: implications for business model innovation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maribel Guerrero ◽  
Carlos A. Santamaría-Velasco ◽  
Raj Mahto
Keyword(s):  
Business Model ◽  
Social Entrepreneurship ◽  
Economic Value ◽  
Control Group ◽  
Innovation Ecosystem ◽  
Content Type ◽  
The Social ◽  
Depth Analysis ◽  
Social Innovations

PurposeThe authors propose a theoretical basis for understanding the role of ecosystem intermediaries in the configuration of social entrepreneurship identities in social purpose organisations (SPOs) and their business model innovations (BMIs).Design/methodology/approachAdopting a retrospective multiple-case study, the authors offer insights into the paths/elements that determine the building of 44 social entrepreneurship identities in the context of an emerging economy (Mexico).FindingsThe study sheds light on the role of intermediaries in the configuration of the entrepreneurial identities of Mexican SPOs and BMIs, as well as several externalities generated during the process of capturing the social and economic value, especially when social innovations are focussed on solving societal, economic and ecological social problems.Research limitations/implicationsThe first limitation is related to the analysis of intermediaries within the social entrepreneurship ecosystem, which needs more conceptual and empirical evidence. The second limitation is that the analysis focussed only on intervened SPOs, as the authors did not control for non-intervened SPOs. Thus, this allows for future in-depth analysis of intermediary efficiency in a focus group (intervened SPOs) and a control group (non-intervened SPOs).Practical implicationsThe study also provides insights for Mexican SPOs on how a social entrepreneurship identity helps to capture the value creation of social innovations within an innovation ecosystem. Indeed, it is strongly aligned with the United Nations' Social Development Goals.Originality/valueThe study enhances the discussion about how intermediaries could encourage social entrepreneurial identity, as well as how intermediary intervention could facilitate the design and implementation of BMIs in the innovation ecosystem.

scholarly journals Transitions towards omni-channel retailing strategies: a business model perspective

2019 ◽  
Vol 47 (2) ◽  
pp. 78-93 ◽  
Author(s):  
Milan Jocevski ◽  
Niklas Arvidsson ◽  
Giovanni Miragliotta ◽  
Antonio Ghezzi ◽  
Riccardo Mangiaracina
Keyword(s):  
Business Model ◽  
Group Discussion ◽  
Consumer Electronics ◽  
Three Dimensions ◽  
Retail Sector ◽  
Senior Managers ◽  
Content Type ◽  
Use Of Data ◽  
Novel Approach ◽  
Italian Market

Purpose Digitalisation has been identified as a driving force behind retail sector transformation. The purpose of this paper is to provide a deeper understanding of how omni-channel strategies link to the digitalisation phenomenon. The study is explorative in nature and aims to expand existing knowledge by using a business model (BM) perspective. Design/methodology/approach The study uses a qualitative approach. Data collection involved a questionnaire answered by 13 firms from three retail segments (i.e. fashion, consumer electronics and bookstores and media) and a group discussion with senior managers. The data were complemented with information from websites, applications and available online reports. Findings The findings present empirical insights about different strategic and BM approaches to omni-channel retailing and highlight examples of pioneering retailers from the Italian market. The proposed framework consolidates earlier studies and puts forward three dimensions for a successful transition to omni-channel retailing BMs: a seamless customer experience, an integrated analytics system and an effective supply chain and logistics. Practical implications Managers can employ an overview of mobile commerce usage to manage the process of integrating channels, within their BMs, alongside the customer journey. Particular attention should be paid to development and the use of data analytics tools as one of the dimensions with a significant impact on omni-channel management. Originality/value First, this paper applies a BM perspective as a novel approach for analysing a transition to omni-channel retailing. Second, it is based on empirical analysis of three retail segments, which provide new insights into omni-channel strategies in the retailing literature.

The importance of distance and attraction in patronizing a shopping mall

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marsela Thanasi-Boçe ◽  
Piotr Kwiatek ◽  
Lasha Labadze
Keyword(s):  
Marketing Strategies ◽  
Shopping Mall ◽  
Social Activities ◽  
Shopping Malls ◽  
Content Type ◽  
The Social ◽  
And Behaviors ◽  
The Impact ◽  
The Relationship ◽  
Practical Level

Purpose The purpose of this paper is to establish mall attractiveness factors in Kuwait, examine the relationship between mall dimensions and mall patronage and explore the impact of mall size and distance on mall patronage. Design/methodology/approach Data from 190 shopping mall visitors were analyzed using Stata software. Factor analysis was used to identify the mall attraction factors, and regression models were run to analyze their relationships with people’s frequency of visits to shopping malls and the amount of time spent per visit. Findings The results unearth five important factors, namely, performance of buying, entertainment, social activities, physical atmosphere and location. Analysis reveals that the performance of buying and social activities factors had a significant impact on the frequency of visits, while the amount of time spent per visit was significantly affected only by the social activities factor. Furthermore, mall size is more important than distance to the mall. Finally, gender differences in shoppers’ mall preferences and behaviors were reported. Practical implications On the practical level, shopping mall developers and managers can use the attraction scale to develop attractive malls and effective marketing strategies. Researchers can use findings to confirm the factors extracted in the study and for further research on the topic. Originality/value This study extends theories on consumers’ preferences and behaviors. It provides empirical evidence about the impact of attractive mall dimensions on shoppers’ patronage in Kuwait, an understudied context.

Business model innovation

2015 ◽  
Vol 9 (3) ◽  
pp. 200-218 ◽  
Author(s):  
Jaqueline Pels ◽  
Tomás Andrés Kidd
Keyword(s):  
Business Model ◽  
Business Models ◽  
Single Case ◽  
Business Model Innovation ◽  
Three Dimensions ◽  
Bottom Of The Pyramid ◽  
Bottom Up ◽  
Content Type ◽  
The Social ◽  
Medical Healthcare

Purpose – The purpose of this paper is to develop a framework that expands business model innovation literature by including a social goal, the emerging markets (EMs) environmental characteristics and adopting a bottom-up perspective. Design/methodology/approach – This paper draws on a single-case study. Sistema Ser/CEGIN (SER–CEGIN) is an Argentine social business that offers high-quality medical healthcare to BOP users. Findings – The paper presents a new conceptualization on business model innovation that includes three dimensions: firm-centric, environment and customer-centric. The framework incorporates to the traditional framework on business model innovation, the social profit equation, the general and task environment and the end-user, as well as the dynamics between them. Research limitations/implications – While the authors acknowledge the importance of studying the components of the business model operating levels (economic, operational and strategic) to determine the type of business model innovation (revenue, enterprise and industrial), the framework incoporates the environment and customer-centric dimension. The suggested framework opens new streams of research both for the innovation business model literature as well as for the EMs – bottom of the pyramid (BOP) literature. Practical implications – To achieve economic and social goals, particularly in the BOP, firms need to adopt a bottom-up approach to understand the components of their business model that need to be modified. Originality/value – The paper proposes a novel business model innovation conceptualization which is useful for both researches to better study business models in the BOP and for firms to successfully operate in the BOP.

Social business model design and implementation in developing countries

2017 ◽  
Vol 36 (1) ◽  
pp. 48-57 ◽  
Author(s):  
Valerie Sabatier ◽  
Ignace Medah ◽  
Peter Augsdorfer ◽  
Anthony Maduekwe
Keyword(s):  
Developing Countries ◽  
Business Model ◽  
Business Models ◽  
Model Design ◽  
Social Business ◽  
Value Capture ◽  
Content Type ◽  
Design And Implementation ◽  
The Social ◽  
Business Model Design

Purpose The purpose of this paper is to contribute to the emergent research on social business models by revealing challenges encountered by the design and implementation of such business models. Design/methodology/approach Case study of the development of FACA, an affordable medicine used to treat sickle cell disease, from traditional medicine to market in Burkina Faso. Findings Social business models present important challenges in terms of value capture for all stakeholders. The social profit equation and the profit equation suggested by Yunus et al. are difficult to apply in practice, and therefore, social business model design should consider the social and profit equations jointly. Originality/value Developing countries are seeking different approaches to innovation and healthcare. Social business models appear as one of the potential solutions to bring value to society, organizations, and individuals. The identification of challenges raised by social business models can help policymakers and executives in the design and implementation of these social business models.

scholarly journals The impact of lease structures on the optimal holding period for a commercial real estate portfolio

2015 ◽  
Vol 33 (2) ◽  
pp. 121-139 ◽  
Author(s):  
Charles-Olivier Amédée-Manesme ◽  
Michel Baroni ◽  
Fabrice Barthélémy ◽  
Mahdi Mokrane
Keyword(s):  
Real Estate ◽  
Portfolio Management ◽  
Cash Flows ◽  
Commercial Real Estate ◽  
Content Type ◽  
Holding Period ◽  
Specific Risk ◽  
The Impact ◽  
Real Estate Assets ◽  
Rental Value

Purpose – The purpose of this paper is to demonstrate the impact of lease duration and lease break options on the optimal holding period for a real estate asset or portfolio. Design/methodology/approach – The authors use a Monte Carlo simulation framework to simulate a real estate asset’s cash flows in which lease structures (rent, indexation pattern, overall lease duration and break options) are explicitly taken into account. The authors assume that a tenant exercises his/her option to break a lease if the rent paid is higher than the market rental value (MRV) of similar properties. The authors also model vacancy duration stochastically. Finally, capital values and MRVs, assumed to be correlated, are simulated using specific stochastic processes. The authors derive the optimal holding period for the asset as the value that maximizes its discounted value. Findings – The authors demonstrate that, consistent with existing capital markets literature and real estate business practice, break options in leases can dramatically alter optimal holding periods for real estate assets and, by extension, portfolios. The paper shows that, everything else being equal, shorter lease durations, higher MRV volatility, increasing negative rental reversion, higher vacancy duration, more break options, all tend to decrease the optimal holding period of a real estate asset. The converse is also true. Practical implications – Practitioners are offered insights as well as a practical methodology for determining the ex-ante optimal holding period for an asset or a portfolio based on a number of market and asset-specific parameters including the lease structure. Originality/value – The originality of the paper derives from its taking an explicit modelling approach to lease duration and lease breaks as additional sources of asset-specific risk alongside market risk. This is critical in real estate portfolio management because such specific risk is usually difficult to diversify.

scholarly journals Market heterogeneity, investment risk and portfolio allocation

2017 ◽  
Vol 10 (5) ◽  
pp. 641-661
Author(s):  
Charles-Olivier Amédée-Manesme ◽  
Michel Baroni ◽  
Fabrice Barthélémy ◽  
François Des Rosiers
Keyword(s):  
Real Estate ◽  
Quantile Regression ◽  
Efficient Frontier ◽  
Portfolio Allocation ◽  
Individual Investors ◽  
Investment Risk ◽  
Content Type ◽  
Management Context ◽  
Housing Attributes ◽  
Real Estate Assets

Purpose The purpose of this paper is to address the heterogeneity of real estate assets with regard to investment risk measurement, with Paris’ apartment market as a case study. Design/methodology/approach Quantile regression is used to handle the fact that willingness to pay for housing attributes may vary greatly over both space and asset value categories. The method is alternately applied on central and peripheral districts of Paris, or “arrondissements”, with hedonic indices built for nine deciles over a 17-year period (1990-2006). Portfolio allocation is subsequently analysed with deciles being the assets. Findings The findings suggest that during the slump, peripheral districts show better resilience and define the efficient frontier while also exhibiting a lower volatility. In addition, higher returns are observed for lower-priced apartments, both central and peripheral. During the recovery and boom stages of the cycle, the highest returns are experienced for the cheapest apartments in central locations, whereas upper-priced, centrally located units yield the lowest returns. Originality/value The originality of this research resides in the application of quantile regression in a real estate investment and risk management context. The methodology may raise individual investors’ and practitioners’ attention, especially index providers’.

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