scholarly journals Contemporary Competition: Process or Result?

2021 ◽  
Vol 65 (8) ◽  
pp. 5-13
Author(s):  
N. Rozanova
Keyword(s):  
Product Differentiation ◽  
Business Models ◽  
Digital Economy ◽  
Linear Process ◽  
Successful Implementation ◽  
Business Practices ◽  
Competitive Pressure ◽  
Relevant Market ◽  
Traditional Concept ◽  
Circular Model

Digital economy has significantly changed business reality. The radical transformations are ubiquitous. New patterns feature economic behaviour of market participants, their interactions, their business models and their market activities. What about competition? What forms of competitive conduct have lost importance in contemporary digital economy? And what are the newest strategies that enhance competitiveness of the firms? Which digital business practices could limit competition? And which of them could stimulate business rivalry? Digitalization has changed many, in not all, of our traditional conceptual visions in the area of competition, market, market power, relevant market actors. The nature of competition itself is under scrupulous investigation. What conclusions could we draw from current theoretical and empirical analyses of competition mechanism? First of all, we deal with new forms of competition. The old Schumpeterian question – whether competition is a creative innovative destruction or it leads only to unfair elimination of competitors from the market – has arisen again nowadays. Online competition has two radically different outcomes. On the one hand, lower transaction costs, more possibilities to compare prices and assortment, expanding markets beyond geographical limits, low entry barriers reinforce rivalry. On the other hand, online activity of the firms can mitigate competitive pressure though new forms of product differentiation and usage of phantom strategies, phantom products, phantom plans. In order to increase their overall competitiveness, firms have elaborated an O2O (online-to-offline) business model that is allowed to utilize virtual and actual activity at the same time. Restaurant business, cosmetic industry, taxi deals are examples of its successful implementation. Is more competition better for consumers? This concept has been considered doubtful. Digital competitive pressure has led to a novel format of product differentiation, that is, targeted product design. Unlike traditional view in line with Salop circular model, contemporary firms choose product strategies that target as little individuals as possible. The less the circle of potential clients is, the less their price elasticity would be, and the weaker price rivalry might become. Traditional concept views competition as a Markov stochastic process. Contemporary analyses demonstrate more complicated nature of competitive mechanism. Online and offline innovations transform competition into non-linear process with “humps and jumps”, the outcomes of which are not always in the interests of consumers’ welfare.

Big Tech and the Digital Economy

2020 ◽  
Author(s):  
Nicolas Petit
Keyword(s):  
Twentieth Century ◽  
Competition Policy ◽  
Business Models ◽  
Digital Economy ◽  
Regulatory Agencies ◽  
Policy Intervention ◽  
Competitive Pressure ◽  
The Subject ◽  
Monopoly Rents ◽  
Oligopoly Competition

To date, world antitrust and regulatory agencies have invariably described large technology companies—such as Google, Amazon, Microsoft, Apple, and Facebook—as dominant, bottleneck or gatekeeping companies comparable to the textbook monopolists of the early twentieth century. They have proceeded on this basis to discipline their business activities with unprecedented financial penalties and other regulatory obligations. This “techlash” is the subject of this book. Proceeding from the observation that big tech firms engage in both monopoly and oligopoly competition across digital markets, the book introduces a theory of moligopoly competition. It suggests that rivalry-spirited antitrust and regulatory laws are both conceptually and methodologically impervious to the competitive pressure that bears on big tech firms, resulting in a risk of well-intended but irrelevant policy intervention. The book proposes a refocusing of competition policy towards certain types of tipped markets where digital firms extract monopoly rents, and careful adoption of regulation toward other social harms generated by big tech’s business models.

scholarly journals PERMANENT ESTABLISHMENT. THE CRISIS OF THE ARTICLE 5 OECD MC IN THE DIGITAL ECONOMY

2021 ◽  
Vol 180 (3) ◽  
pp. 97-131
Author(s):  
Montserrat Hermosín Álvarez
Keyword(s):  
Business Models ◽  
Digital Economy ◽  
Legal Regime ◽  
Traditional Concept ◽  
Permanent Establishment ◽  
Physical Presence ◽  
The Moment ◽  
Article 5 ◽  
Economic Capacity

The rise of the digital economy, breaking with business models that require a physical presence to develop their activities, has dislodged the traditional concept of permanent establishment set out in Article 5 OECD MC. In the light of the precept’s loopholes, large multinationals have engaged in abusive practices to relocate their profits, thus avoiding contributing in the States where the income is generated in accordance with their economic capacity. In this paper, we examine the concept of permanent establishment included in art. 5 OECD MC, its typology following the BEPS Project’s modifications and the different scenarios that do not constitute a permanent establishment. We also explore whether its legal regime continues to be useful in today’s context or whether, on the contrary, the moment has come to abandon the concept of permanent establishment entirely due to the problems generated by today’s article 5 OECD MC, unable to respond to the challenges posed by the digital economy.

Strategic guidelines for the development of bioenergy potential of agricultural enterprises in the transition to a circular economy

2019 ◽  
pp. 144-151
Author(s):  
Ihor Yatsiv ◽  
Mykhaylo Stupen ◽  
Nadiya Pylypiv ◽  
Diana Shelenko
Keyword(s):  
Sustainable Development ◽  
Circular Economy ◽  
Business Models ◽  
Agricultural Sector ◽  
Agricultural Waste ◽  
Successful Implementation ◽  
Strategic Orientations ◽  
Circular Model ◽  
Long Run ◽  
Strategic Goals

Given the limited volume of natural resources and the trend towards population growth, the existing linear model of take-use-recycling economy needs rethinking. The idea that underlies the circular model of the economy, according to which goods of today are to become resources of tomorrow, is becoming increasingly relevant. Under these conditions, the agricultural sector must, first of all, ensuring food security, intensify the production of biomass as a renewable source of energy, since bioresources and biomass make up the highest share in agriculture. The article summarizes and proposes the strategic goals and guidelines for the development of the bioenergy component of agriculture. In Ukraine, a significant amount of biomass is produced annually, which is not used efficiently. Instead of addressing the needs of the energy sector, the lion’s share of waste is recovered through incineration, which in itself causes significant damage to the environment in general and the economy in particular. It has been researched that the potential of bioenergy largely depends on the geographical distribution and availability of existing waste and by-products on the one hand, and on the overall strategic orientations of the sector’s development on the other. The article analyzes the strategic goals of the rational use of agricultural waste for bioenergy production, which would certainly be economically viable and contribute to the sustainable development of the state’s economy. Strategic guidelines that are formulated in terms of the requirements and constraints of the circular economy are also offered. They are: 1) Use biomass that is obtained only on the basis of the principle of sustainability; 2) Promote the use of research, development and innovation at various stages; 3) Adhere to the principles of optimal use of bioresources; 4) Transformation of business models of players in the bioenergy market. Successful implementation of the circular business model in the agricultural sector must take into account the interests of all market participants, based on the principle of sustainable development. At the stage of transformation from a linear to a circular economy, the agricultural sector needs to change its existing business models in order to increase its innovation component, improve its logistics processes, develop a strategy for realizing its existing bioenergy potential and sustainable economic development in general. It should be understood that the benefits expected from the bioenergy sector are only possible in the long run.

scholarly journals Policy Forum: Promoting Tax Compliance by Regulating the Digital Economy—Quebec's Uber Initiative

2021 ◽  
Vol 69 (2) ◽  
pp. 513-527
Author(s):  
Michaël Robert-Angers ◽  
Luc Godbout
Keyword(s):  
Tax Evasion ◽  
Business Models ◽  
Tax Compliance ◽  
Digital Economy ◽  
Provincial Government ◽  
Business Practices ◽  
Tax Revenues ◽  
Physical Presence ◽  
New Business ◽  
Policy Forum

The development and expansion of the digital economy is changing how companies interact with their customers and suppliers. Digital business models facilitate transactions between individuals and make it easier to conduct business abroad without the need for a physical presence. However, the growing use of such models creates many challenges for tax administrations. In particular, these new business practices call into question the traditional ways of collecting tax revenues, and thus force tax administrations to innovate. In Quebec, the context surrounding the legalization of the operations of the multinational Uber has led to an agreement between the company and the provincial government providing that Uber will carry out, on behalf of the drivers using its platform, tax compliance activities that employers would normally perform. Specifically, Uber now pays the sales tax applicable to drivers' transactions directly to Revenu Québec. This arrangement helps to protect commodity tax revenues in an economic sector where tax evasion is prevalent.

Inventing Regenerative Sustainability

2020 ◽  
Vol 31 ◽  
pp. 89-99
Author(s):  
Saeed Rahman ◽  
Stefano Pogutz ◽  
Monika Winn ◽  
Keyword(s):  
Business Strategy ◽  
Business Models ◽  
Corporate Sustainability ◽  
Theory And Practice ◽  
Future Research ◽  
Successful Implementation ◽  
Business Practices ◽  
Case Study Methodology ◽  
Organization And Management ◽  
Business Practitioners

Despite growing engagement by business practitioners in regenerative sustainability, there is little research into what factors contribute to its successful implementation. This paper offers first steps to close that gap. It examines theoretical foundations of and proposes empirical research for studying such innovative business practices. Our literature review draws on research in natural sciences, organization and management studies, corporate sustainability, and business strategy to theoretically (1) define regenerative sustainability, (2) explore how adopting principles of regeneration can help firms achieve “true business sustainability” (Dyllick & Muff, 2016: 163), and (3) assess potential benefits, obstacles, and enablers of such radically different business models. We then propose an in-depth interpretive case study methodology to empirically investigate the phenomenon of interest, namely how proactive firms effectively enact regenerative sustainability principles. The paper closes with potential implications of the proposed study for management theory and practice and offers ideas for future research.

Influence of social networks on business processes’ development

2020 ◽  
Vol 19 (12) ◽  
pp. 2225-2252
Author(s):  
E.V. Popov ◽  
V.L. Simonova ◽  
O.V. Komarova ◽  
S.S. Kaigorodova
Keyword(s):  
Social Networks ◽  
Social Media ◽  
Business Models ◽  
Business Processes ◽  
Digital Economy ◽  
Theoretical Understanding ◽  
Sales Channels ◽  
A Value ◽  
The Impact

Subject. The emergence of new ways of interaction between sellers and buyers, the formation of new sales channels and product promotion based on the use of digital economy tools is at the heart of improving the business processes. Social networks became a tool for development; their rapid growth necessitates theoretical understanding and identification of potential application in enterprise's business process digitalization. Objectives. We explore the role of social media in the digitalization of business processes, systematize the impact of social networks on business processes of enterprises in the digital economy. Methods. The theoretical and methodological analysis of social networks as a tool for digitalization of company's business processes rests on the content analysis of domestic and foreign scientific studies, comparison, generalization and systematization. Results. We highlight the key effects of the impact of social networks on the business processes of the company; show that the digitalization of business processes should be considered in the context of a value-based approach, aimed at creating a value through the algorithmization of company operations. We determine that social networks are one of the most important tools for digitalization of company's business processes, as they have a high organizational and management potential. We also systematize the effects of social media on company's business processes. Conclusions. We present theoretical provisions of the impact of social networks on business processes of enterprises, which will enable to model and organize ideas about the development of digital ecosystems and the formation of business models.

DIGITAL ECONOMY AND GLOBALIZATION: THE IMPORTANCE OF DIGITAL ENTREPRENEURSHIP DEVELOPMENT

2020 ◽  
Vol 6 (3) ◽  
pp. 17-20
Author(s):  
Farxod Tursunov ◽  
Keyword(s):  
Business Models ◽  
Digital Economy ◽  
Management Systems ◽  
Entrepreneurship Development ◽  
New Business ◽  
Definition Of ◽  
Digital Enterprise ◽  
New Business Models ◽  
Digital Entrepreneurship

The article discusses the role of the digital economy in the development of the country, how it becomes the basis of the economy, new business models and management systems. The opinion of scientistsis analyzed, a definition of a digital enterprise is given

Industry 4.0 initiatives in EU countries: experience for Ukraine

2020 ◽  
pp. 65-70
Author(s):  
Nataliya Ryvak ◽  
Anna Kernytska
Keyword(s):  
Industry 4.0 ◽  
Business Models ◽  
Industrial Revolution ◽  
Successful Implementation ◽  
Industrial Complex ◽  
Interconnected System ◽  
Industrial Transformation ◽  
Eu Countries ◽  
European Experience ◽  
High Level

In this paper, digital technologies development was analyzed as the basis for the so-called “fourth industrial revolution” with the potential for the qualitative transformation of the Ukrainian economy based on EU countries’ experience. Industry 4.0 is a new control chain over the entire chain of creating value throughout the product lifecycle. When developing an economic policy, it is important to pay attention to Industry 4.0. It increases productivity, produces new, better, and individualized products, and implements new business models based on “undermining” innovations. A comparative analysis of national initiatives I4.0 with their characteristics according to the main dimensions, including funding, focus, direction, was conducted. Particular attention was paid to considering deterrents to the successful implementation and enforcement of the I4.0 initiative in European countries. The factors of successful implementation of I4.0 initiatives in the EU countries were analyzed. Drawing on the analysis of the European experience of digital transformations in industry and national economies in general, the necessity of critical focus of such transformations in Ukraine was highlighted, and the need for state support of industrial transformation was substantiated. The emphasis was placed on the cooperation development between stakeholders within the implementation of Industry 4.0 – it is necessary to create national and regional 4.0 platforms, following the example of EU countries, which would bring together government institutions, businesses, and academics. The successful positioning of the Ukrainian modern industrial complex on the world markets depends on the high level of the interconnected system providing factors that characterize its development process. Considering the influence of a list of inhibiting factors on implementing the country’s industry accelerated development, a set of measures needed to transform Ukraine’s industry based on European experience was substantiated.

scholarly journals Sustainability and Business Outcomes in the Context of SMEs: Comparing Family Firms vs. Non-Family Firms

2018 ◽  
Vol 10 (11) ◽  
pp. 4080 ◽  
Author(s):  
María López-Pérez ◽  
Iguácel Melero-Polo ◽  
Rosario Vázquez-Carrasco ◽  
Jesús Cambra-Fierro
Keyword(s):  
Business Models ◽  
Family Firms ◽  
Medium Size ◽  
Stewardship Theory ◽  
Business Practices ◽  
Socially Responsible ◽  
Business Outcomes ◽  
Proposed Model ◽  
Moderator Role

Society is demanding more sustainable and socially responsible business models. Therefore, the concept of sustainability has become a cornerstone to help understand the success of many firms in the current competitive context. However, the context of SMEs has received little attention thus far. In order to solve this gap this article analyses the links between sustainability practices and business outcomes—both financial and non-financial (i.e., image and reputation)—for small and medium-size enterprises (SMEs). In addition, the study strives to analyze the potential differences between family firms and non-family firms. To this end, a quantitative study is carried out using PLS techniques to analyze a sample of SME owners and managers with a view to testing the proposed model based on the Stewardship Theory and Socioemotional Wealth Theory. In this sense, our study is pioneering in that it aims to assess—from a quantitative viewpoint—the moderator role of family firms on a series of relevant sustainability-driven outcomes. The data suggest that, in SME contexts, sustainability influences the corporate reputation, brand image, and financial value of the company. Importantly, we find that the profile (family vs. non-family) of the firm moderates the links between sustainability and business outcomes. Hence, our findings have important implications for sustainability implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of sustainability-based business practices.

scholarly journals Case study concerning successful Romanian SMEs development by students education and entrepreneurial training

2021 ◽  
Vol 3 (1) ◽  
pp. 18-24
Author(s):  
Irina Radulescu ◽  
Alexandru Radulescu
Keyword(s):  
Business Models ◽  
Economic Trend ◽  
Business Practices ◽  
Development Education ◽  
Sustainable Business ◽  
Sustainable Technologies ◽  
Mechanical Field ◽  
Online Sales ◽  
Entrepreneurial Training ◽  
The University

The European Commission has published in 2020 the SMEs Strategy for a Sustainable and Digital Europe that aims to increase the number of SMEs engaged in sustainable business practices, as well as the SMEs number that use digital technologies. Important opportunities for SMEs can be provided by digitization, to improve the production processes efficiency and the ability to innovate products and business models, by using advanced disruptive technologies. Good management is needed for a successful SME, education and entrepreneurship training have the role of consolidating business knowledge and skills. Educational activities and skills upgrading are essential for all SMEs managers and employees. Romania is on the last place in EU, regarding SMEs number and it ranks 11th place out of 28, in terms of connectivity. Regarding the digital maturity of Romanian SMEs, the White Papers on Romanian SMEs presents their main working elements: computer, e-mail applications, internet, intranet, social networks, the company's own website, online sales / purchases transactions. The objectives of the Bachelor's degree specialization of Economic Engineering in Mechanical field and Industrial Entrepreneurship Master are students training and education, in order to be able to sustain digitization and sustainable technologies. The university curriculum and the educational disciplines offered by the Economic Engineering in Mechanical field specialization and Industrial Entrepreneurship Master is connected to the society requirements and must follow the economic trend, by educating, training and getting good specialists. Keywords: SMEs development, education, entrepreneurship

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