Icarus of the 21st century: bond/monoline insurance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dulani Jayasuriya Daluwathumullagamage
Keyword(s):  
Public Finance ◽  
Systematic Review ◽  
Business Model ◽  
Empirical Data ◽  
Success Factors ◽  
Industry Studies ◽  
Content Type ◽  
Governance Framework ◽  
Prior Literature

Purpose The business model of monoline insurers is to guarantee payments of debt issues in case of defaults by the issuer. Although sparse attention is given to monolines in literature, they play an important role in enabling municipalities and firms in refinancing. This study aims to conduct a systematic review of 181 articles from 1990 to 2020 from 23,130 records and a case study on the key monoline insurers. Key failure, success factors and demand for future monoline insurance are identified. Finally, the study explores monolines’ potential during COVID-19 and develops a framework for monoline governance and regulation. Design/methodology/approach The study follows Briner and Denyer and Moher et al. to implement the systematic review. The methodology involves ascertaining the motivation behind the review, and formulating research questions; aggregating relevant prior literature from scientific databases, conducting quality assessment and synthesising the data; and conducting extensive analysis for framework development. Case study methodology foundation phase focuses on understanding the research philosophy. The second phase involves documenting the procedures involved. The final phase involves collecting the relevant quantitative and qualitative material. In addition, collecting empirical data from numerous sources allows triangulation. Findings The review results of 181 articles from 1990 to 2020 show that peak article counts occur in 2010 and 2013 (nine academic studies) and in 2008 and 2010 (six industry studies). Over- and under-explored domains happen to be bond pricing (86 academic studies) and bond markets (36 industry studies) and corporate bonds (19 academic studies), respectively. The study highlights failure factors such as adverse selection, premiums mispricings, inadequate capital and regulation, untimely downgrades and governance issues; and identifies success factors such as conservative underwriting, early financing, competitor business acquisitions and obtaining put-back claims. Potential during COVID-19 is discussed and a monoline governance framework is developed. Research limitations/implications Search and selection criteria distortions may lead to sample selection bias in systematic reviews. Issue is addressed by using different permutations of the search key words to refine the search criteria. Reference list of collected final sample of articles are perused to identify additional articles. It is difficult to obtain verifiable empirical data on the bond/monoline insurers or their insured products, especially for the structured finance sector. Most of the information available on data stream and firm’s quarterly financial reports for publicly traded monoline/bond insurers and credit rating reports are included to overcome this issue. Practical implications Demand for bond/monoline insurance still persists even in the USA. Although borrowing costs are low, obtaining bank loans would be challenging for municipalities and corporates with increased risks. Especially, given worldwide government stimulus on wages, most municipalities would possess reduced budgets for public finance. Monoline insurance can play a key role in financing such projects. Thus, it is important to understand their unique traditional and transformed business model and applicability during and post-COVID-19. Given the near extinction of bond/monoline insurers during the 2008 global financial crisis (GFC), an adequate framework for bond/monoline insurers as developed in this study is key for future business continuity. Social implications There is significant interest, especially, from the industry on monolines as identified in our systematic review. Monoline insurance has major effects on taxpayers, government policies and bond investors. They aid in financing public finance projects that have significant societal impact. This study contributes by filling existing gaps in the literature, especially, from a behavioural, ethical and social perspective of the monolines, regulators, other stakeholders and new entrants to the industry during COVID-19. This study links prior finance theories to the impact of bond/monoline insurer’s during the 2008 GFC and their stakeholders involved that has societal implications. Originality/value This study can be differentiated from prior research on monoline insurers as follows: The study identifies, gaps, similarities, trends between prior academic and industry literature and develop a bond/monoline governance framework; identifies key failure and success factors during the 2008 GFC crisis to develop the governance framework and identify monolines’ potential during COVID-19; as opposed to most prior literature that only focus on one (Drake and Neal, 2011 analyse MBIA) or two key bond/monoline insurers, this study focuses on five key bond/monoline insurers in detail and all other key insurers as well in the empirical analysis section.

Understanding the influence of technological capability and exogenous pressure on business model dynamics: insights from a longitudinal case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jingqin Su ◽  
Shuai Zhang ◽  
Huanhuan Ma
Keyword(s):  
Business Model ◽  
New Technology ◽  
Innovation Process ◽  
Technological Capability ◽  
Future Research ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Research Stream ◽  
Over Time

PurposeThe purpose of the study is to explore how technological capability and exogenous pressure interactively influence business model (BM) dynamics over time in new technology-based ventures.Design/methodology/approachThe study adopts a longitudinal case study of the BM innovations of a Chinese financial technology venture. The structural approach and temporal bracket are used to analyze and theorize the data.FindingsThe findings indicate that distinct contextual changes impel a firm to refine or abandon existing BMs over time. In different stages, the antecedents interactively influence BM dynamics with three successive patterns, namely pressure dominance, parallel influence and hybrid influence. While both antecedents trigger changes during the initiation and implementation of new BMs, they also serve as the filter and the enabler, respectively, during the ideation and integration of BMs.Research limitations/implicationsThe study inductively develops three propositions regarding the relationship between BM dynamics and its antecedents, which is based on the data collected from one single firm. Future research should test the propositions in other domains and take more cross-level antecedents into consideration.Originality/valueThe study contributes to the nascent research stream of BM dynamics by offering in-depth insights into the interaction of internal and external antecedents and by linking the differentiated roles of antecedents to the BM innovation process. The research offers some practical implications for new technology-based ventures seeking to develop BMs in a fast-changing environment.

The innovation ecosystem in rural tourism and hospitality – a systematic review of innovation in rural tourism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arun Madanaguli ◽  
Puneet Kaur ◽  
Alberto Mazzoleni ◽  
Amandeep Dhir
Keyword(s):  
Systematic Review ◽  
Business Model ◽  
Resource Sharing ◽  
Business Environment ◽  
Business Model Innovation ◽  
Rural Tourism ◽  
Innovation Ecosystem ◽  
Content Type ◽  
Research Profile ◽  
Tourism And Hospitality

Purpose Innovation in rural tourism and hospitality (RT) is a complex process that involves the exchange of knowledge and resources between many actors and the interrelationships between those actors in the business environment. The purpose of this paper is to provide structure to this “knowledge and resource ecosystem” through a thorough systematic review of the extant literature. Design/methodology/approach The current study uses a time-tested and reproducible systematic literature review process to identify and analyse 79 research papers that have discussed innovation in RT. Findings Through content analyses, this review identifies critical stakeholders in the innovation ecosystem, as well as the enabling and hindering roles these stakeholders play in innovation. The thematic analysis uncovers three key research foci: stakeholders and their roles, outcomes of innovation and business model innovation. The review also identifies types of innovation and critically analyses the bibliographical research profile. The authors summarise the findings in an RT innovation ecosystem model, which includes the various actors and their knowledge and resource sharing roles within the business environment. Originality/value This is one of the first systematic reviews to concentrate on RT innovation and, within that focus, on knowledge and resource networks in particular rather than on innovation in tourism in general, which was the focus of prior reviews. The authors encourage cross-pollination of ideas by introducing theories from the strategic management, innovation, knowledge management and business model innovation literature wherever appropriate. To consolidate and present the findings on the innovation process’s antecedents and outcomes, the authors present an ecosystem of innovation within the RT framework.

scholarly journals Driving internationalization through business model innovation

2019 ◽  
Vol 28 (2) ◽  
pp. 201-220 ◽  
Author(s):  
Angelo Cavallo ◽  
Antonio Ghezzi ◽  
Bertha Viviana Ruales Guzmán
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Business Models ◽  
International Entrepreneurship ◽  
Single Case ◽  
Business Model Innovation ◽  
Content Type ◽  
A Company ◽  
North Western

Purpose This paper aims to investigate how a firm may innovate its business model to internationalize. Design/methodology/approach Owing to its novelty and to the depth of the investigation required to grasp the mechanisms and logics of business model innovation aiming at internationalization, a single case study has been performed related to a company located in North-Western Colombia. Findings The study provides detailed empirical evidences over the mutual connection and complementarities among value mechanisms of business models. Moreover, this study suggests that BMI fosters internationalization to scale, which, in turn, will require additional changes to match new customer needs as they emerge. Also, the study shows an extension of the action–space of lean startup approaches, intended as scientific approaches to international entrepreneurship. Originality/value This study connects business model innovation and internationalization as few studies have done before.

An examination of a social tourism business in Granada, Nicaragua

2019 ◽  
Vol 74 (6) ◽  
pp. 1179-1190 ◽  
Author(s):  
Alexia Franzidis
Keyword(s):  
Business Model ◽  
Social Enterprise ◽  
Building Blocks ◽  
Content Type ◽  
Business Model Canvas ◽  
Tourism Product ◽  
The Many ◽  
A Company ◽  
Depth Interviews

Purpose The purpose of this paper is to examine the business model of a successful social tourism business in Granada, Nicaragua. The study assesses how the business provides an avenue to combat the challenges that restrict certain stakeholders from participating in tourism. The case identifies specific mechanisms, such as investing in the local community’s education and favoring local vendors and merchants, as ways in which social tourism businesses can disseminate value among all stakeholders and create a more equitable form of tourism. Design/methodology/approach The case study method was chosen for collecting and analyzing data. Data include in-depth interviews with business founders, managers and employees, field observation notes, photographic documentation and additional written documents. Data were analyzed using content analysis. Findings The study found that the business was able to produce a high-quality tourism product that disseminated value among all stakeholders. The study also proved the value of the additional building blocks within the Business Model Canvas for Social Enterprise, and the clear distinction between “co-creators” and “beneficiaries.” Originality/value This study uses the Business Model Canvas for Social Enterprise, a model unverified since inception, to analyze a successful social tourism business. It confirms the usefulness of the additional building blocks within the model, and the additional delineations between “co-creators” and “beneficiaries.” Furthermore, the paper recommends these distinctions are extended to all blocks in the canvas, to illustrate the many ways a company can distribute value based on its business model.

The influence of firm characteristics on profitability

2018 ◽  
Vol 30 (8) ◽  
pp. 2845-2868 ◽  
Author(s):  
Elisa Menicucci
Keyword(s):  
Business Model ◽  
Ownership Structure ◽  
Hospitality Industry ◽  
Empirical Studies ◽  
Developed Countries ◽  
Content Type ◽  
Return On Equity ◽  
Prior Literature ◽  
Market Variables ◽  
Hotel Managers

Purpose The purpose of this study is to inspect factors influencing profitability in the Italian hospitality industry during the period 2008-2016. Design/methodology/approach This paper examines the profitability and its determinants using a sample of 2,366 Italian hotels. The author applies a multidimensional measure of profitability comprising return on equity, return on assets, occupancy rate and gross operating profit per available room. The author investigates variables influencing performance and includes them into five groups: market variables, business model, ownership structure, management education and control variables. Findings The results show that financial crisis, business model and ownership structure affect hotel firms’ profitability. Particularly, findings suggest that size, internationalization, location, accommodation as first activity and chain affiliation influence profitability positively. Research limitations/implications Results confirm the importance of firm-specific factors for evaluating the profitability of a hotel firm. Findings also provide new evidence for academics to assess factors that would guarantee profitability of hotels in developed countries such as Italy. Practical implications This investigation offers valued information and strategic suggestions for hotel investors, hotel owners, hotel managers, tourism playmakers and government. Originality/value This paper offers an in-depth examination of the practices and characteristics of profitable hotels in Italy. Few empirical studies examined the determinants of performance in the European and Italian hospitality field so far. Hence, this study attempts to bridge the gap in prior literature on profitability of the Italian hospitality industry.

scholarly journals Potential integration of blockchain technology into smart sustainable city (SSC) developments: a systematic review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Phui Fung Wong ◽  
Fah Choy Chia ◽  
Mee San Kiu ◽  
Eric C.W. Lou
Keyword(s):  
Systematic Review ◽  
Design Methodology ◽  
Digital Transformation ◽  
Economic Sustainability ◽  
Sustainable City ◽  
Content Type ◽  
Blockchain Technology ◽  
Prior Literature ◽  
Social Environmental ◽  
The City

PurposePrior literature lacks concrete and systematic review of the current blockchain application in smart sustainable city that covered to the full extent of various components. Thus, this study explores the integration of blockchain technology in making the city smarter, safer and sustainable.Design/methodology/approachThis study conducted a systematic literature review of 49 publications published globally. Data were analysed by coding of the publications whereby the codes were generated based on frequency of appearance (n).FindingsThe results showed that smart sustainable city could leverage blockchain technology in several areas such as governance, mobility, asset, utility, healthcare and logistics. Blockchain technology could also aid smart sustainable city in achieving social, environmental and economic sustainability.Originality/valueThis study proposes a smart sustainable city with blockchain technology framework: guiding city planners and policymakers by deploying blockchain that supports technology within smart sustainable city framework. This facilitates the digital transformation of a city towards smart and sustainable through the use of blockchain.

Business models for the now economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Art T. Weinstein
Keyword(s):  
Online Learning ◽  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Content Type ◽  
Digital Business Models ◽  
Business Practitioners ◽  
The Impact ◽  
Remote Learning

Purpose Business models are a key to success. This paper aims to identify the characteristics of the Now Economy, discuss the components of an effective business model, examine numerous e-commerce business models and provide an application of online learning. Design/methodology/approach The literature on business models is reviewed. E-commerce models are explored as a means for building competitive advantage in the Now Economy. An in-depth case study of remote learning in universities illustrates the development of a sound digital business model. Findings Business models explain where and how an organization competes and the financial feasibility of its strategy. Digital business models create market differentiation or disruption. This paper explains 20 e-commerce business models and offers an in-depth view of the opportunities and challenges in the online learning sector. Research limitations/implications Building on the literature, this work is conceptual and presents a case study. It is not an empirical study. A three-point agenda for scholars includes research on speed and service in business models, assessing the impact of customer value and examining the market power of Big Tech. Practical implications The digital component of the economy is growing annually. Business practitioners must respond by developing winning business models. The remote learning application is particularly relevant given today’s changing educational market. Originality/value While there has been considerable research on business models, there has been limited work on digital business models, which is the focus of this article.

Building blocks of the luxury jewellery industry: conversations with a CEO

2019 ◽  
Vol 31 (4) ◽  
pp. 817-829
Author(s):  
Beulah Pereira ◽  
Kevin Teah ◽  
Billy Sung ◽  
Min Teah
Keyword(s):  
Hong Kong ◽  
East Asia ◽  
Business Model ◽  
Success Factors ◽  
Chief Executive ◽  
Building Blocks ◽  
Human Interaction ◽  
South East Asia ◽  
Content Type ◽  
Depth Interview

Purpose The purpose of this paper is to conduct an in-depth interview with the Chief Executive Officer (CEO) of Larry Jewelry, a luxury jeweller with boutiques in Hong Kong and Singapore. Given the ever-evolving luxury jewellery market in South East Asia, it is paramount to understand the success factors of the luxury jewellery sector. Design/methodology/approach An in-depth interview approach is used to understand the antecedents of the success of the luxury jewellery sector. Specifically, this paper presents a complex business model of Larry Jewelry and an in-depth interview with the CEO of Larry Jewelry for current insights in the sector. Findings This paper highlights the history of Larry Jewelry, its product segments and the key elements of its business blueprint. Specifically, the success of Larry Jewelry is attributed to its business model and strong branding on quality, craftsmanship, rarity, human interaction and trust. Originality/value Despite the substantial growth in the luxury jewellery sector, there is relatively little research on the success factors of this industry, especially in South East Asia. The current research provides practical insights into business blueprint of a successful luxury jeweller in Hong Kong and Singapore.

Can profit and sustainability goals co-exist? New business models for hybrid firms

2017 ◽  
Vol 38 (1) ◽  
pp. 3-13 ◽  
Author(s):  
Fernando G. Alberti ◽  
Mario A. Varon Garrido
Keyword(s):  
Business Model ◽  
Business Models ◽  
Lessons Learned ◽  
Business Strategies ◽  
Hybrid Organizations ◽  
Business Managers ◽  
Content Type ◽  
Trade Offs ◽  
Shed Light

Purpose This paper aims to discuss hybrid organizations whose business models blur the boundary between for-profit and nonprofit worlds. With the aim of understanding how hybrid organizations have developed commercially viable business models to create positive social and environmental change, the authors contend that hybrids are altering long-held business norms and conceptions of the role of the corporation in society. Building on an analysis of the most updated literature on hybrid organizations and with the use of case study approach, the purpose of this paper is to derive managerial lessons that traditional businesses may apply to innovate their business models. Design/methodology/approach This paper has a practical focus to help organizations to develop successful business strategies and design innovative business models. It applies emerging thinking on hybrid business models to provide new insights and ideas on the use of business models as tools for innovating and delivering value. To comply with this, first, the authors discuss the distinctive characteristics of hybrids and the hybrid business model through a concise but comprehensive review of all the literature on hybrid organization, which is still very recent. Second, we relied on a short case study that introduces information technology and digital innovation as the premises of the emergence of a new hybrid business model that adds additional elements to traditional business managers on how to learn from hybrid organizations’ avenues to innovate their business models. Findings In this paper, the authors aimed to shed light on the management of any organization or initiative that aims to embrace multiple and competing yet potentially synergistic goals, as is increasingly the case in modern corporations. Spotting hidden complementarities of antagonistic assets can be arduous, time-consuming, costly and risky, but businesses driven by innovation may want to keep a close eye on the expanding hybrid sector as a source of future entrepreneurial opportunities. To this regard, hybrid social ventures have the potential to shed light on ways to innovate traditional business models. The essence of studying hybrids is that firms may learn how to innovate their business models in ways that go beyond current conceptualizations, making their mission profitable, rather than making profit their only mission! The research design (literature analysis and case study) allowed the authors to disentangle different innovative business models that hybrids suggest highlight strengths and weaknesses of such business models, understand strategies and capabilities associated with hybrids and transpose all these lessons learned to traditional business managers who constantly struggle for innovation. Research limitations/implications The main implication is that hybrid organizations may serve as incubators for new practices that can gain scale and impact by infusion into existing corporations. The authors can assist to a process of “hybridization” of incumbent firms, pushing the boundaries of corporate sustainability efforts toward strategies in which profit and social purpose share more equal footing. Practical implications Firms interested in benefiting from antagonistic assets that can have a dramatic impact on their business model innovation may want to consider some lessons: firms can attempt to build antagonistic assets into their mission, asking themselves what activities they can undertake with the potential to create (or erode) social, environmental and economic value and how these activities might be mediated by the context/environment in which they operate; they can partner with hybrids to benefit from them and absorb competencies from them, so to increase their likelihood to generate value-creating activities and to impact on wider range of stakeholders, including funders, partners, beneficiaries and communities; they can mimic hybrids on how to innovate their business model through the use of the “deliberate resource misfit” dynamic capability, mitigating negative impacts and trade-offs and maximizing positive value spillovers, both for the firms themselves and for the community. Social implications Sharing know-how with hybrids opens up to ways to innovate business models, and hybrids are much more open to sharing lessons and encouraging others to copy their approaches in a genuine open innovation approach. Originality/value The main lesson businesses can take away from studying hybrids is that antagonistic assets – and not only profitable complementary ones, as the resource-based view would suggest – do not have to be a burden on profits. Hybrids ground their strategy first and foremost on their beneficiaries, thus dealing with a bundle of antagonistic assets. The primary objective of hybrids is thus to find imaginative ways of generating profits from their given resources rather than acquiring the resources that generate the highest profit. Profit is the ultimate goal of traditional businesses’ mission, but by making profit their only mission, firms risk missing out on the hidden opportunities latent in antagonistic assets. Learning from hybrids about how to align profits and societal impact may be a driver of long-term competitive advantage.

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