Business Model Themes and Product Market Strategies as Value Drivers in Omni-Channel Retail: A Set of Propositions

We focus on the analysis of current research in Business Models in the context of e-business, resulting in relevant research gaps and a set of propositions. A bibliographic review has been conducted from which a theoretical framework has been developed. Once the gaps in the literature have been pointed out, a series of research proposals are presented. These should be tested based on data collected from real cases through analysis and interpretation. The applied lens of the theory is Amit and Zotts Business Model framework (2001) and Business Model Themes (BMT) “NICE” (novelty, lock-in, complementarity and efficiency) (2001). Analysis evolves around the explanation and feasibility of Business Model Themes for value creation and value capture in digital business models (current general research gap in the e-business domain). The results show that future directions should investigate different combinations of BMTs which represent research gaps (propositions 1 to 3). Other contexts which were not considered so far in this regard (non-digital business), also represent a research gap (proposition 4). Moreover, further synthesis of the literature resulted in a potential consideration of “product market strategies” (Amit and Zott, 2008) as a new theory to apply and test value creation and capturing in digital business (proposition 5 and 6), also from an evolutionary perspective. We ask how this combination affects the performance of firms who want to move on digital transformation with an omnichannel environment. It is essential in this study how these firms can create new value and how they can keep it. We try to explain how these value drivers could be work across time, even under varying environmental regimes. It would mean an advance in the existing academic framework around the reference literature on the business model. To be able to determine which combinations of BMT and Product Market Strategy (PMS) have not yet been tested would be advantageous for the firms. It could offer the appropriate information to the retail company with traditional BM towards digital BM. Moreover, it will be able to work successfully and to maintain constant along the time.

Uncertainty Shocks, Cultural Behaviors and Economic Development

The literature regarding cultural background change points out that changes in cultural background can only be slow moving. However, under high uncertainty levels, cultural background may change in the short or medium term as well. In this paper, the effects of uncertainty on cultural behaviors are investigated. Cultural background is captured through the Schwartz’s cultural values, based on the waves provided by the European Social Survey from 2002 up to 2018, performing relative Principal Component Analyses. An Uncertainty Index is constructed based on the volatility of the stock market for all Eurozone countries, from the euro’s adoption in January 2001 up to December 2018. Using an unbalanced panel dataset comprised of 18 Eurozone countries for the time period from 2002 up to 2018, a fixed-effects assessment method, different fixed terms between the examined economies, dummies per wave of the nine total data waves of the European Social Survey and country-specific clustered robust estimates of the standard errors, the main conclusions of the empirical analysis are the following: (a) Uncertainty significantly affects the cultural background of societies and leads to its change; (b) The effects of uncertainty on culture start two years after an uncertainty shock has occurred; (c) The effects of uncertainty on specific cultural values reveals significant effects on all Schwartz’s cultural values. However, the effect is the highest for the dipole “conservatism and autonomy” and the smallest for the dipole “mastery vs. harmony”. (d) When uncertainty is high, this leads to higher levels of hierarchy (authority, humbleness), self-direction (independent thought and action), stimulation (excitement, novelty and challenge in life), affective autonomy (pursuit of actively positive activities: pleasure, exciting life) and mastery (ambition and hard work, daring, independence, drive for success) which means their life’s harmony is disrupted, at least two years later. Thus, countries exhibiting systematically high levels of uncertainty are about to develop a cultural background that is going to hinder economic development, and vice versa.

Cultural Perspectives of Financial and Non-Financial Incentives

The present paper delineates an explanatory framework for the defining factors of incentives, both financial and nonfinancial, through the theory of human economic action and that of personality traits, which shape human goals and, ultimately, social identity. It is ascertained that three types of variables affect incentives: basic conditions (cultural change, etc.), basic values and needs (tradition, external values, etc.) and the dynamism of social identity, which includes the goals that are set. More specifically, the two basic variables that shape the incentives for human action and imbue dynamism in behavior relate to megalothymia—i.e., the need for acknowledgement of a person’s integrity along with the predisposition to be thought superior to others as well as the aspiration to a certain level of quality in life.

Surveying Financial Decisions? From Homo Economicus to Historical Specificity and J.S. Mill’s Cultural–Institutional Individualism

The aim of this paper is to evidence that non-economic factors, such as culture, emotions and ethics, can be seen as an important force in influencing human economic behavior and human action. This is conducted by putting the homo economicus notion into the perspective of the history of economic thought and, more specifically, of John Stuart Mill. More specifically, Mill’s institutional individualism, as is presented in his System of Logic (1843), and his relativity of economic doctrines construction, as is included in his Principles of Political Economy (1848), are synoptically delineated. Through Mill’s analysis, it is supported that cultural differences between different states of societies are determinant in understanding different behaviors. The paper concludes that Mill’s historical specificity and his more pluralistic version of cultural–institutional methodological individualism are more compatible in understanding human decision making.

Cultural Specifics and the Momentum Effect on the Bulgarian Stock Exchange

This article analyses the relationship between the documented momentum effect on the Bulgarian Stock Exchange and the cultural characteristics of Bulgarian society on the basis of the 6-Dimensions Culture Model by Hofstede. Derived are possible behavioural biases, that could cause investors to underreact to firm-specific information, resulting in short-term return predictability. Outlined are implications for the relation between the rising of momentum effect and low individualism index, as identified on the Bulgarian Stock Exchange (BSE).

Culture, Institutions and Financial Development

When culture and institutions coevolve, which means that these are changing simultaneously and in the same direction, financial development is facilitated. In contrast, when institutions and the cultural background deviate from this development, their asynchronous and different direction changes may lead to a series of failed attempts to implement a modernized financial development framework. Thus, the purpose of the paper is to highlight whether the institutional and cultural backgrounds operate in a complementary or substitute way in terms of their role in financial development. An unbalanced panel dataset comprising 98 countries over the last four decades (1981–2019) is used. The empirical results indicate that both the institutional background and the cultural background positively affect financial development. Furthermore, there is a complementary relationship between the institutional background and the cultural background in terms of their role in financial development; when both sizes are at a strong level, this leads to the highest level of financial development, while when at least one or both are at a weak level, the financial development is lower. Moreover, the interaction term of the two sizes has a positive and statistically significant effect on financial development in all tests performed. Lastly, the institutional background seems to have a greater impact on the formation of the level of financial development in relation to the cultural background. To upgrade the financial development of their economies, policymakers have to realize economic policies that change the institutional background and simultaneously change the cultural background in the same direction.

Some Cultural Foundations of Financial Macroeconomics

Mainstream economists concede that finance tests the deductive powers of the microfoundations model. Accordingly, we attempt to derive a structural model inductively through use of empirical studies and history. Culture is the means by which a task is set about. The term consists of the following elements. The unit of analysis is groups or classes as found in National Income accounts. The connection between them does not consist of substitution effects or conflict but complementarities and cooperation. Secondly, the economy is defined as the inseparable composite of the fiscal and the monetary authorities and the components of the private sector. Finally, finance eases the flow of production and consumption and investment. However, banks are beset with problems of asymmetric information and runs. Additionally, market finance is prone to bubbles and crashes. Elements of culture are required to hold fast during the interactions between the financial and the real world.

Glamorous Acquisitions in Telecommunications after the Market Liberalisation: Success or Failure?

The academic literature indicates that “glamour” influences the investor’s behaviour. This article analyses the performance and value creation of the glamorous operations of mergers and acquisitions (M&A) in the telecommunications sector, trying to understand if these operations are conducive to stockholder wealth maximization. To conduct this analysis, the telecommunications M&A that occurred in the convulsed period of the internet bubble were counted as samples (1995–2010). The research concludes that glamour tends to be opposite to value creation in the long run: the glamour firms show significant value destruction and worse performance than non-glamour firms. Certain acquirers’ characteristics, such as size, are determinant in the glamour behaviour. This paper combats the shortage of research of a quantitative sectoral nature on telecommunications M&As, when leading international companies like Vodafone, Cable and Wireless, France Telecom or Telecom Italia are very active in this kind of operations.

The Impact of Short Selling on Firms: An Empirical Literature Review

This review surveys the existing empirical literature on the real effects of short selling on firms, addressing them through three main perspectives: corporate governance, financial decisions, and performance. The results of the (too) few empirical studies under scrutiny converge to a common rationale: a positive impact as a disciplinary mechanism on corporate governance and corporate investment policy and a positive impact on operating and corporate social responsibility (CSR) performance, even if some results are still puzzling. It appears that further investigations are necessary and should test the consequences of short selling on firms from a broader and more systematic perspective, with different theoretical and methodological approaches.

Monetary and Fiscal Policies in the COVID-19 Crisis. Will They Work?

The spread and mortality rate of the COVID-19 virus has created enormous strains on global healthcare systems and driven governments to take extreme measures to contain the virus, including the lock down of most citizens and shutting down most economic sectors. Due to these unique challenges and coming from an economy that was weak already in 2018 and 2019, the world faces a global crisis of unprecedented impact and high uncertainty about the recovery process. In this paper, we analyze how the world economy is addressing the COVID-19 pandemic. We start with the situation of the main economic regions at the end of last year to understand the tools available to fight against what could be the worst crisis since World War II, according to the IMF1. Moreover, we review the estimated economic impact of COVID-19, as well as the expected recovery and its time frame. Additionally, we reflect on the fiscal and monetary measures adopted by different countries, especially G7 economies, to tackle the crisis. Finally, we discuss the optimal policies to overcome the situation and advance towards economic recovery and the stabilization of public finances. This crisis is a supply shock added to a forced shutdown of the economy. As such, traditional tools to boost credit demand and usual demand-side policies alone are likely to generate little positive effect, as any aggregate demand that may be incentivized will not likely be followed by aggregate supply. A combination of demand-side and supply-side measures may prove to be more effective to boost the recovery after the pandemic.