The role of digital marketing in mediating the effect of the COVID-19 pandemic and the intensity of competition on business performance

This study aims to explain the role of digital marketing adoption in mediating the effect of the COVID-19 pandemic and the intensity of competition on business performance, which is seen from the perspective of financial performance and non-financial performance. This research was conducted on the culinary sector SMEs in Bali. The size of the sample used is 210 culinary sector SMEs with a purposive sampling approach, namely the culinary sector SMEs that have adopted digital marketing. The analytical tool used is SEM-PLS. The results of the study show that the effect of the COVID-19 pandemic and the intensity of competition has a negative and significant effect on business performance, both financial and non-financial performance. The adoption of digital marketing was unable to mediate the effect of the COVID-19 pandemic and the intensity of competition on financial performance, but the adoption of digital marketing was capable in mediating the effect of the COVID-19 pandemic and the intensity of competition on non-financial performance. Therefore, the adoption of digital marketing needs to be re-optimized to improve business performance, both financial and non-financial performance.

Competition and Innovation in Markets with Technology Leaders

In this article, we consider technology leaders (which are innovators) and technology followers (which are non-innovators) to provide a new theoretical explanation for the well-cited empirical evidence of an inverted-U relationship between competition and aggregate innovation. We consider a two-stage game with a deterministic Research and Development (R&D) process, where the leaders first determine their R&D investments simultaneously and then all leaders and followers determine their outputs simultaneously. We show that the inverted-U relationship between competition and aggregate innovation occurs if competition is affected by the number of technology followers. However, the presence of more technology leaders decreases individual R&D investments while increasing aggregate R&D investments. If the total number of firms remains the same but the composition of technology leaders and followers changes in favor of leaders (followers), individual R&D investments decrease (increase) but aggregate R&D investments increase (decrease). The relationship between competition and R&D investments can be U-shaped if the intensity of competition is measured by product substitutability. Contrary to the standard expectation, the presence of more firms may reduce welfare.

Analisis Aspek Pasar dan Pemasaran dalam Kewirausahaan

In carrying out business activities, every company, whether engaged in services or goods, has the same goal, namely to make a profit. To achieve this goal, the company must implement one of them is to analyze the market and marketing aspects. This is important because the way of marketing is one of the main considerations of consumers in choosing a product. Market and marketing aspects are analyzing market potential, intensity of competition, market share that can be achieved, and analyzing marketing strategies that can be used to achieve the expected market share. Aspects of market and marketing determine the life and death of a company. If the market aspect is not researched properly, what are the prospects for the future, it is not impossible that the company's goals will never be achieved.

Endogenous Expectations Management with Network Effects: A Note

We examine the endogenous choice of commitment device to consumers’ expectations with network effects. Under Cournot competition, we show that choosing commitment to expectations for each firm is a dominant strategy regardless of the strength of network effects. However, under Bertrand competition, three types of commitment with both/no commitment/multiple emerge in equilibrium depending on the strength of network effects. Thus, we obtain different Pareto efficiency between Bertrand and Cournot competition, depending on the intensity of competition.

Implementation of a Discount Policy the Shortage B2B Markets: a Marketing Ploy or Price Discrimination?

Modern research of B2B markets focuses on various aspects of information and economic interaction of market participants, but most often the features of marketing strategies in the field of promoting goods / services and building marketing communications are analyzed in order to increase customer satisfaction and loyalty. The issues of effective pricing and the implementation of discount policy as a tool to stimulate sales in B2B markets have not been practically studied. The variability in the application of seller pricing policy instruments in B2B markets under conditions of a limited number of buyers can have a significant impact on the intensity of competition in the market and, as a consequence, lead to a change in the market structure, its transformation and loss of balance. Therefore, the pricing system in non-equilibrium, in particular, shortage markets, in which the inefficient use of discount mechanisms by sellers can take the form of price discrimination of buyers due to the increased market power of the seller, is of considerable scientific and practical interest. This article, being a continuation of the discourse started by the authors on price discrimination in scarce markets, published in No. 3 of the journal Modern Competition, and is devoted to the study of the feasibility of using discounts in equilibrium and scarce B2B markets. At the end of the series of articles on price discrimination in scarce markets [1], the authors intend to publish a third article, which will examine the case of a shortage solid-rolled wheel market in Russia in 2018-2019 from the standpoint of assessing the feasibility of preserving discount programs for certain categories of buyers in the specified oligopolistic B2B market.

THE EFFECTS OF COMPETITIVE INTENSITY AND TECHNOLOGY MANAGEMENT ON THE RELATIONSHIP OF ACCOUNTING INFORMATION SYSTEM AND FIRM PERFORMANCE

In today's conditions, where the intensity of the competition is high, the achievement of the desired performance outputs of the companies is closely related to the better understanding of the performance leaders. The aim of this study is to examine the effect of competitive intensity and technology management on firm performance through the accounting information system. The study covers data obtained from 256 SME managers in the West Marmara region. The data obtained were analyzed with the help of exploratory factor and multiple regression analysis. According to the exploratory factor analysis results, the variables were divided into sub-factors and the regression analysis was performed between the sub-components. As a result, the tendency of companies to preventive technology management and the increase in the use of internal and external accounting information systems increase the financial performance of companies in a meaningful and positive way. On the other hand, the increase in the intensity of competition, the use of company protective technology management and internal accounting information systems increases the market performance of the company in a meaningful and positive way. Again, the intensity of competition and the increase in collaborative technology management increase the use of external accounting information systems. Collaborative technology management increases the use of internal accounting information system. Finally, increased competition intensity increases collaborative technology management.

Indicators of effectiveness in the sustainable development field of construction companies: evidence of Ukraine

The article is devoted to the issue of sustainable development and practical aspects of its implementation in the field of construction. Priority directions in formation of strategy of sustainable development of construction companies are established. The success of the implementation of the established areas of activity depends on the indicators of effectiveness and efficiency in the field of sustainable development and corporate social responsibility and their monitoring systems. The analysis was performed on 100 construction companies in Ukraine. The construction industry illustrated by concentration calculation indexes which allow to quantify the degree of concentration and intensity of competition in construction. Recommendations for the identification of sustainable development criteria for construction companies as for the development of sustainable development programs and further confirmation of sustainable development reports by auditors were identified.

Peculiarities of formation of competitive strategy of the enterprises of flour-milling branch of Ukraine

The article deals with the peculiarities of formation of competitive strategy of the enterprises of flour-milling branch of Ukraine. The paper substantiates the necessity to determine the stage of the life cycle of the industry in the process of formation of the competitive strategy. The market analysis of flour-milling industry of Ukraine is carried out on indicators: size of the market, commodity nomenclature, buyers and their behavior, raw material base and intensity of competition. The paper determines that the flour-milling industry of Ukraine is at the stage of growth and has a number of tendencies, such as: decrease in sales volumes, increase in export volumes, standardization of products and average level of competition intensity. The following stages of the life cycle of the industry are studied: introduction, growth, maturity and decline. The paper proves the necessity of distinguishing the stage of renewal in the life cycle of the industry, which is implemented on the basis of modern technologies. The practical significance of the research consists in developing recommendations for choosing a competitive strategy of the flour mill enterprise in accordance with the stage of the life cycle of the industry. The enterprises of the flour-milling industry of Ukraine, in accordance with the stage of the life cycle of the industry are recommended to form competitive advantages on the basis of the concept of "lean production".

Sharing Demand Information with Retailer Under Upstream Competition

We analyze demand information sharing collaboration between two manufacturers and a retailer under upstream competition. The manufacturers produce partially substitutable products, which are stocked by the retailer that sells them in the market characterized by random demand. The manufacturers are privately informed about uncertain demand and decide on whether to share this information with the retailer. We show that by not sharing information, a manufacturer ends up distorting its wholesale price upward to signal its private information to the retailer, and under upstream competition, this distortion is propagated to the competing manufacturer. Thus, although a manufacturer’s decision to not share information may benefit or hurt its own profit, this always benefits the competing manufacturer. Under low intensity of competition, signaling-driven distortions exacerbate double marginalization and hurt all parties, whereas under more intense competition, these distortions help manufacturers offset downward pressure on wholesale prices. Thus, in equilibrium similarly informed manufacturers share information in the former case but not in the latter case. Additionally, when manufacturers differ in their information accuracies, only the better-informed manufacturer shares information. The retailer always benefits from both manufacturers sharing information, and its benefits are larger when the better-informed manufacturer shares information. We show existence of a contracting mechanism the retailer can employ to enable information sharing. Finally, we analyze manufacturers’ information acquisition decisions and find that under competition, two manufacturers acquire minimal information so that they are better off not sharing information in the information sharing game. This paper was accepted by Vishal Gaur, operations management.

Projection of Private Values in Auctions

We explore how taste projection—the tendency to overestimate how similar others’ tastes are to one’s own—affects bidding in auctions. In first-price auctions with private values, taste projection leads bidders to exaggerate the intensity of competition and, consequently, to overbid—irrespective of whether values are independent, affiliated, or (a)symmetric. Moreover, the optimal reserve price is lower than the rational benchmark, and decreasing in the extent of projection and the number of bidders. With an uncertain common-value component, projecting bidders draw distorted inferences about others’ information. This misinference is stronger in second-price and English auctions, reducing their allocative efficiency compared to first-price auctions. (JEL D11, D44, D82, D83)