Market structure and horizontal growth strategies – A case study of the container shipping industry

This article aims to review the structural transformation in the container shipping industry from 1995 to 2020 and identify the growth strategies of global carriers to enhance their market presence. Along with large investments in mega vessels, the growing deployment of charter capacity in all ship sectors has been a prominent trend in fleet expansion. The waves of mergers/acquisitions and bankruptcies have narrowed the group of global carriers. In addition to internal and external growth, they have been increasingly involved in strategic alliances to expand service coverage and compete well with powerful rivals. A few mega carriers have progressively captured the industry. In 2020, the Top 12 controlled 88 % of the global supply, and nearly 56 % was in the hands of the Top 4. Besides the substantial expansion of the four biggest carriers, we can identify the de-concentration within this gigantic group through the less inequality between their market shares.

Biocontrol Agents Reduce Progression and Mycotoxin Production of Fusarium graminearum in Spikelets and Straws of Wheat

The aim of this study was to evaluate the interactions between wheat plant (spikelets and straws), a strain of mycotoxigenic pathogen Fusarium graminearum and commercial biocontrol agents (BCAs). The ability of BCAs to colonize plant tissue and inhibit the pathogen or its toxin production was observed throughout two phases of the life cycle of pathogens in natural conditions (colonization and survival). All evaluated BCAs showed effective reduction capacities of pathogenic traits. During establishment and the expansion stage, BCAs provoked an external growth reduction of F. graminearum (77–93% over the whole kinetic studied) and mycotoxin production (98–100% over the whole kinetic studied). Internal growth of pathogen was assessed with digital droplet polymerase chain reaction (ddPCR) and showed a very strong reduction in the colonization of the internal tissues of the spikelet due to the presence of BCAs (98% on average). During the survival stage, BCAs prevented the formation of conservation perithecia of the pathogen on wheat straw (between 88 and 98% of perithecia number reduction) and showed contrasting actions on the ascospores they contain, or perithecia production (−95% on average) during survival form. The mechanisms involved in these different interactions between F. graminearum and BCAs on plant matrices at different stages of the pathogen’s life cycle were based on a reduction of toxins, nutritional and/or spatial competition, or production of anti-microbial compounds.

Run or hide: changes in acquisition behaviour during the COVID-19 pandemic

PurposeMergers and acquisitions (M&As) are an important strategic tool for continuous adaptation, sustainable corporate development and external growth. At the same time, M&As involve high levels of risk with mixed performance results even under normal circumstances. Even though the M&A market was continuously growing for the last decade, it was abruptly ended by the coronavirus 2019 (COVID-19) pandemic as executives were more concerned about liquidity than with long-term growth strategies. This raises the question how M&A behaviour is affected by the economic fall-out of the COVID-19 pandemic.Design/methodology/approachThe mixed method research design was employed in this study.FindingsThe authors particularly investigate how target selection as well as synergy management are affected by the pandemic. The study analysis reveals four archetypical responses to the COVID-19 crisis. The authors describe those responses in detail and analyse antecedents that seem to influence firms' acquisition behaviour during the pandemic.Originality/valueThe paper draws on survey and interview data of M&A practitioners.

Effect of external growth environment on cocrystal habits of HNIW/DNB: a molecular dynamics simulation

The modified attachment energy model was applied to predict the crystal morphology of hexanitrohexaazaisowurtzitane/1,3-dinitrobenzene (HNIW/DNB) cocrystal in ethanol. A double-layer interface structure was established based on experiments. Molecular dynamics simulation was employed to investigate the interaction of flat faces and ethanol solvents. We used periodic bond chains and roughness calculations to analyze the characteristics of the HNIW/DNB cocrystal. The crystal morphology of the HNIW/DNB cocrystal is mainly composed of the (001), (010), (102), and (111) faces in vacuum. The (001) face occupies the largest area (49.54%). In ethanol, the area of the (001) face increases to 68.58%. Ethanol molecules are adsorbed on the polar face through hydrogen bonding. In the slowest growth direction, two HNIW layers and one DNB layer alternately appear. The higher molecular recognition of the (001) face of HNIW/DNB resulted in this face becoming the most important growth face. Meanwhile, we also predicted the crystal morphologies of ε-HNIW and DNB in ethanol. The prediction morphologies are in excellent agreement with the experimental shapes. These simulation results can provide guidance for the recrystallization of HNIW/DNB.

Rethinking the Role of M&As in Promoting Sustainable Development: Empirical Evidence Regarding the Relation Between the Audit Opinion and the Sustainable Performance of the Romanian Target Companies

External growth strategies face crucial barriers when taken into consideration for investing if the involved companies are not audited. The integrity of a company’s financial information, its control systems, and its sustainable behavior represent cornerstones when participating in mergers and acquisitions (henceforth M&As). Thus, the audit function became a must and its role increased over the years, becoming an intrinsic part of faithfully disclosing financial and nonfinancial information (sustainable reporting included). M&As are ideal when the need for rapid innovation is required, in order to maintain or develop a sustainability policy. Given the environmental issues, we analyzed a sample of 1491 target companies listed on Bucharest Stock Exchange, clustered into three categories: polluters, medium polluters, and low polluters. The study reveals that the investors’ decision to purchase a certain amount of stake in target companies is influenced by the audit opinion and the sector in which they operate, depending on their pollution status.

ENTRY INTO AND EXIT FROM INFORMAL MICROENTERPRISE ENTREPRENEURSHIP IN A SOUTH AFRICAN MUNICIPALITY: A TALE OF RESILIENCE

Although research on entrepreneurship in the micro and small firms has been the subject of much scholarly attention, it has been mostly on the formal rather than informal economy. Drawing on the push and pull theory, this paper uses Principal Component Analysis to examine the motivations influencing entrepreneurs to venture into informal sector entrepreneurship in a specific South African municipal context. Against a background of addressing their constraints to growth, the prospects of formalization were considered, using logistic regression. The results, based on a sample of 160 entrepreneurs, show that even in the informal economy, pull factors are the uppermost motivations, apparently stronger than push factors, in influencing individuals to partake in microenterprise entrepreneurship. The logistic results indicate that even when some internal and external growth constraints are addressed, the likelihood of the entrepreneurs’ formalizing their business is not encouraging. Although alleviation of the growth hurdles may assist in enhancing entrepreneurial competence, it does not necessarily favor formalization, but enables a lock-in contentment effect to the informal sector. Against this inertia, implications for policy makers are presented.

Adaptations Accumulated under Prolonged Resource Exhaustion Are Highly Transient

ABSTRACT Many nonsporulating bacterial species can survive for years within exhausted growth media in a state termed long-term stationary phase (LTSP). We have been carrying out evolutionary experiments aimed at elucidating the dynamics of genetic adaptation under LTSP. We showed that Escherichia coli adapts to prolonged resource exhaustion through the highly convergent acquisition of mutations. In the most striking example of such convergent adaptation, we observed that across all independently evolving LTSP populations, over 90% of E. coli cells carry mutations to one of three specific sites of the RNA polymerase core enzyme (RNAPC). These LTSP adaptations reduce the ability of the cells carrying them to grow once fresh resources are again provided. Here, we examine how LTSP populations recover from costs associated with their adaptation once resources are again provided to them. We demonstrate that due to the ability of LTSP populations to maintain high levels of standing genetic variation during adaptation, costly adaptations are very rapidly purged from the population once they are provided with fresh resources. We further demonstrate that recovery from costs acquired during adaptation under LTSP occurs more rapidly than would be possible if LTSP adaptations had fixed during the time populations spent under resource exhaustion. Finally, we previously reported that under LTSP, some clones develop a mutator phenotype, greatly increasing their mutation accumulation rates. Here, we show that the mechanisms by which populations recover from costs associated with fixed adaptations may depend on mutator status. IMPORTANCE Many bacterial species can survive for decades under starvation, following the exhaustion of external growth resources. We have previously shown that bacteria genetically adapt under these conditions in a manner that reduces their ability to grow once resources again become available. Here, we study how populations that have been subject to very prolonged resource exhaustion recover from costs associated with their adaptation. We demonstrate that rapid adaptations acquired under prolonged starvation tend to be highly transient, rapidly reducing in frequency once bacteria are no longer starved. Our results shed light on the longer-term consequences of bacterial survival under prolonged starvation. More generally, these results may also be applicable to understanding longer-term consequences of rapid adaptation to additional conditions as well.

Synergistic effect of joining process and its measurement

Rapid technological advances, globalization is leading to intensified global competition. In order to remain competitive and strengthen their market position, companies often opt for an external growth strategy through M&A. The most frequently mentioned reason for merging companies to achieve a synergistic effect. For this reason, it is essential that the buyer assesses the potential concentration in order to create value for shareholders. This paper focuses on analyses and characteristics and definition of synergy effect, analysis of main sources of synergy, definition of key variables in assessment of synergies.