Competitive advantage in algorithmic trading: a behavioral innovation economics approach

PurposeThis paper investigates the strategic behavior of algorithmic trading firms from an innovation economics perspective. The authors seek to uncover the sources of competitive advantage these firms develop to make markets inefficient for them and enable their survival.Design/methodology/approachFirst, the authors review expected capability, a quantitative behavioral model of the sustainable, or reliable, profits that lead to survival. Second, they present qualitative data gathered from semi-structured interviews with industry professionals as well as from the academic and industry literatures. They categorize this data into first-order concepts and themes of opportunity-, advantage- and meta-seeking behaviors. Associating the observed sources of competitive advantages with the components of the expected capability model allows us to describe the economic rationale these firms have for developing those sources and explain how they survive.FindingsThe data reveals ten sources of competitive advantages, which the authors label according to known ones in the strategic management literature. We find that, due to the dynamically complex environments and their bounded resources, these firms seek heuristic compromise among these ten, which leads to satisficing. Their application of innovation methodology that prescribes iterative ex post hypothesis testing appears to quell internal conflict among groups and promote organizational survival. The authors believe their results shed light on the behavior and motivations of algorithmic market actors, but also of innovative firms more generally.Originality/valueBased upon their review of the literature, this is the first paper to provide such a complete explanation of the strategic behavior of algorithmic trading firms.

Surviving the Black Swan Event: How Much Reserves Should Nonprofit Organizations Hold?

Organizational survival is a primary current focus, as the unforeseen economic effects of the pandemic ravage the civil sector. Over time, however, we turn to questions of resilience: How can organizations prepare for rare, but devastating, financial shocks? Three months of funds to cover operating expenses are often described as a suitable savings target. However, organizations differ greatly in their revenue volatility, which suggests that “3 months” may severely underestimate the reserves that certain organizations should hold. We measure revenue volatility and calculate reserve fund targets for 25 nonprofit subsectors, showing sharp differences in optimal savings levels ranging up to 1 year of total expenses. We also explore organizational characteristics associated with revenue volatility. We argue for a resilience strategy that goes beyond optimizing the contents of the revenue portfolio. Funders and nonprofit practitioners should consider the broader context of financial resilience that includes correctly sized reserves as a stabilizing force.

The Grand Strategies of Violent Rebel Groups

This chapter examines a range of strategic options violent nonstate actors such as terrorist groups and insurgencies have used over the years with varying degrees of success. These include trying to wear down government forces, attracting significant foreign help, winning over the local population, and intimidating a range of foes in the hope of undermining the government. In many cases, strategies focus on organizational survival, trying to endure and attract resources and recruits while making an area ungovernable or inhospitable for regime forces. The chapter weighs the requirements, strengths, and weaknesses of each approach and how the enemy government shapes the best strategy for the group. It illustrates its arguments with examples from history and a longer description of the Palestinian experience. The chapter concludes by discussing how states might disrupt violent rebel group strategies through diplomacy, political reform, better intelligence, and effective military operations.

How culture, leadership and engagement helped a small business survive during the pandemic

Purpose The purpose of this case study is to investigate how a small catering company has coped with the current Covid-19 pandemic. Initial research was performed in 2014 and repeated in 2018. Given the far reaching business challenges of the pandemic, the authors examined the viability of the organization within the current climate. Design/methodology/approach Embedded organizational components of culture, leadership and engagement are explored as key elements in the sustainability of the company during the pandemic crisis. Prior research data using the organizational culture inventory is used to assess organizational culture over a four-year period. Employee data and interview analysis within company structure is used to determine how leadership and employee engagement is impacted. Culture research is examined to determine the influence of company culture upon organizational survival. Findings This paper identifies workplace culture elements that contribute to company sustainability. Embedded core value systems, strong employee engagement mechanisms and focused leadership styles were observed to be critical influences upon company survival during the pandemic. Originality/value This research would assist industry professionals and practitioners in understanding the active workplace culture mechanisms found to be effective for organizational survival during periods of crisis. Companies that adopt similar practices may acquire sustainability advantage during the pandemic.

Effect of organizational learning and effectiveness on the operations, employees productivity and management performance

Purpose In today’s business world, competition is no longer about resources accumulated, but the emphasis is now placed more on the actual accumulation and utilization of knowledge within the organization. Attention has shifted drastically from just acquiring wealth in the organization to an era where knowledge and learning within the organization becomes more critical and important to the organizational survival and continuous growth as put forward by this paper. This paper investigated the effect of organizational learning and effectiveness on operations, employee productivity and management performance. This paper aims to add to scholarly works and knowledge on organizational learning. Design/methodology/approach Random and stratified sampling techniques were used. Data collection was done with the use of a questionnaire and analyzed using confirmatory factor analysis and hierarchical multiple regression. Findings The result from the data analyzed shows that there is a positive relationship between organizational learning and effectiveness, operations, employees’ productivity and management performance suggesting that organization learning impact is encompassing because it affects and influences the effectiveness and efficiency of all the staff at every level within the organization. Practical implications Organizations should strive and do everything possible to ensure organizational learning because this study is in an era where knowledge and learning within the organization are more critical and important to organizational survival and continuous growth. Originality/value The study demonstrates that the only way to fast-track growth in every sphere of the organization is to ensure organizational learning as it influences the effectiveness and efficiency of all the staff at every level within the organization.

“This Ain’t My School!” Criminality, Control, and Contradictions in Institutional Responses to School Truancy

While previous research has explored the causes and consequences of school truancy, few studies have considered the meanings of institutional responses. This paper offers an ethnographic analysis of a pilot program promoted as a “progressive” form of truancy intervention. Midvale Truancy Center claimed to focus on education, rather than punishment. In practice, however, the crime control tactics used to capture, isolate, and discipline truants often overshadowed the Center’s educational objectives, locating the Center in a liminal space between school and detention facility. The Center’s competing goals—revenue creation, truancy deterrence, and organizational survival—resulted in rehabilitation being pushed aside in favor of normalization and behavioral control. These findings illustrate a recent larger cultural turn toward control and punishment (Garland 2001), and the encroachment of crime control tactics into the civil sphere.

Towards an economic recovery after the COVID-19 pandemic: empirical study on electronic commerce adoption of small and medium enterprises in Vietnam

The COVID-19 outbreak has created a severe crisis for general economic situation. Despite the short time span of the pandemic, many innovations are implemented for organizational survival and recovery in the competitive market environment of digital age. This paper aims to find out significant factors and how they impact on E-commerce adoption of small and medium enterprises in Vietnam, especially in the epidemic time. The results reveal that technology perceived compatibility has the greatest effect on E-commerce adoption, followed by management support and external pressure. Moreover, external support only has minor impact on E-commerce adoption in the Covid-19. Meaningfully, this study makes contribution to both innovation literature and practical management with new insight of current Vietnamese situation for small and medium organizations.

Learning Within Teams: A Multilevel Analysis of Team Behavioral Integration and Creativity

Innovation, a process fueled by creativity, is key to organizational survival. The current studies test a multilevel moderated mediation model to explore whether team behavioral integration influences individual creativity in general management teams. Two field surveys were conducted: Study 1 included 356 employees nested in 86 teams; Study 2 included 138 employees nested in 39 teams. Results from integrated path analyses demonstrate that team behavioral integration is positively related to individual creativity, explorative and exploitative learning mediate the relationship, and the indirect effects are stronger for individuals with higher creative self-efficacy. Implications and suggestions for future research are discussed.

It’s a trust thing

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The combination of authentic leadership, business model flexibility, and a rigorous and successful CSR initiative are crucial for organizational survival during a crisis. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.