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Vitkovskyi, Yurii. "Strategies of innovation and investment activity of agrarian business entities and development models." Actual problems of innovative economy, no. 2020/2 (May 28, 2020): 12–17. http://dx.doi.org/10.36887/2524-0455-2020-2-2.
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Introduction. The development of innovative activities ensures the adaptability of agricultural enterprises to chang-es in the economic environment. The introduction of diversification ensures an appropriate level of competitiveness and financial stability of agricultural enterprises. The lack of focus of the enterprise management system on the development of innovative technologies leads to the risk of financial losses and weakening of the market position of the entity. The purpose of the research is to develop strategies for innovation and investment activities of agricultural business-es and models of their development. Results. It is established that innovative, scientific and technological activities ensure the transformation of agricul-tural enterprises at the national level and ensure their entry into the world economic space. Manifestations and essence of innovative activity of domestic subjects of agrarian business are characterized. Possibilities and difficulties in the process of simultaneous introduction of innovative and diversification activities in the practice of domestic agricultural enterprises are outlined. Changes in the introduction process of the diversification strategy of the agricultural enterprise in the conditions of crises of the economic environment are characterized. The expediency of technical re-equipment of enterprises of the agri-cultural sector as innovations during the economic crisis is substantiated. External systems for implementing strategies to diversify the activities of agricultural enterprises are identified as a precautionary measure to prevent their internal crises. The main problems that hinder the development of full-fledged diversification and innovation activities of agricultural enterprises are outlined, and measures to intensify diversification strategies are proposed. Conclusions. It is expedient to carry out strategic development of agrarian business entities with the introduction of diversification strategies into innovation activities at the micro and macro levels. This will ensure the maintenance of com-petitiveness and adaptability of agricultural enterprises in an unstable economic environment. Keywords: strategy, diversification, innovations, innovative activity, investment activity, agrarian enterprise.
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Schwartz, Michael, and Christoph Hornych. "Specialisation versus diversification: perceived benefits of different business incubation models." International Journal of Entrepreneurship and Innovation Management 15, no. 3 (2012): 177. http://dx.doi.org/10.1504/ijeim.2012.046599.
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Holzmayer, Florian, and Sascha L. Schmidt. "Financial performance and corporate diversification strategies in professional football – evidence from the English Premier League." Sport, Business and Management: An International Journal 10, no. 3 (April 15, 2020): 291–315. http://dx.doi.org/10.1108/sbm-03-2019-0019.
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PurposeProfessional football clubs have increasingly initiated two corporate diversification strategies to enfold growth opportunities besides traditional income sources: business diversification and international diversification. Empirical findings from management and sport management literature provide inconclusive evidence on these strategies' financial performance effects, necessitating further research. The purpose of this article is therefore to investigate how both corporate diversification strategies affect the financial performance of professional football clubs.Design/methodology/approachA 15-year panel data set of English Premier League (EPL) clubs is examined, many of which have employed corporate diversification strategies. Measures for related business diversification (RBD) and unrelated business diversification (UBD) as well as international diversification are established from management literature. Based on fixed effects regression models, their effects on clubs' revenues and profitability are then examined.FindingsU-shaped effects from RBD on revenues and profitability are found, but no effects from UBD. These findings empirically support the theoretically appealing superiority of RBD over UBD and, with increasing levels of RBD, over a focused strategy in management literature. With international diversification, an inverted U-shaped effect on revenues is identified.Research limitations/implicationsDespite focusing only on the EPL, these findings provide new evidence of non-linear financial performance effects from corporate diversification strategies adding to (sport) management literature and setting the stage for future research on these strategies in professional football.Practical implicationsThese findings have significant implications for club managers' strategic growth opportunities such as new business models or geographic markets.Originality/valueThis is the first study to empirically examine the financial effects of corporate diversification strategies in the football market context.
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Nguyen, Loan Thi Nguyet, Phuong Thi Lan Tran, Nguyet Thi Minh Trinh, and Anh Quynh Le. "Does the Business Model Increase Bank Stability?" Financial Risk and Management Reviews 8, no. 1 (July 14, 2022): 20–26. http://dx.doi.org/10.18488/89.v8i1.3062.
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Research on risk or sustainability in the banking system does play an important role in the banking industry, where competitiveness increases unceasingly. Simultaneously, the trend of diversifying banks’ business models is becoming more popular. Thus, this paper attempts to investigate the impact of business model diversification on bank risk and stability. The proxy of business models includes (1)Non-net interest income; (2) trading income. The paper applied Generalized Least Squares (GLS) to conduct empirical research on 18 joint-stock commercial banks listed on the Vietnam Stock Exchange from 2010 to 2019 (The GLS with panel data). The results indicated the negative impact of non-net-interest income on bank stability. Trading in foreign exchange, gold has no meaning for bank risk. The study offers some theoretical and practical implications for banks to control better risks based on new empirical findings. Especially, the diversification of business models is ineffective, and banks need more suitable solutions.
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Wu, Jizhong, and Sergio Cesaretti. "Characteristics of Business Models, Business Diversification and Price Segmentation Strategies of Wineries in the Wine Route of Baja California, Mexico." International Journal of Business Administration 10, no. 2 (January 28, 2019): 147. http://dx.doi.org/10.5430/ijba.v10n2p147.
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This study examined the characteristics of business models used by wineries in Baja California, Mexico wine route. It also identified strategies being used regarding price segmentation and business diversification, and how business diversification relates to production performance. The results showed a limited presence in the supermarket channel, vineyard/land and wine-making facilities/machinery being considered as the most valuable resources, a growing tendency of companies having lodging facilities, a low differentiation in key activities performed, high differentiation regarding revenue generation structure, three revenue generation clusters containing the majority of the companies, companies with a diversification strategy outperformed those with single business strategies in regards to case production during a five year period, and the price segments from $251 to $600 Mexican pesos for 750ml bottles of wine being the most popular ones. This study used a non-random sampling technique to collect primary data in the form of surveys and face-to-face structured in-depth interviews. A total of 65 companies, accounting for approximately 55% of the total wine producers in the area, were interviewed during the data 1-month data collection period (July 2018). Out of these 65 companies, 50 provided complete useable data.
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Corbey, Michael, Frans de Roon, and Stef Hinfelaar. "Company life cycle models and business valuation." Maandblad Voor Accountancy en Bedrijfseconomie 93, no. 9/10 (October 28, 2019): 285–96. http://dx.doi.org/10.5117/mab.93.37561.
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Future free cash flow is a crucial element of most business valuation tools, such as the Discounted Cash Flow model, with the quality of the valuation depending heavily on its forecast accuracy. This paper explores the theory on business life cycle (and growth) models in an aim to improve that quality. Life cycle and growth models have been studied in the management and organization literature for decades, but the relevant aspects from a business valuation perspective remain unclear. Reviewing the existing literature, we argue that the five-stage Hanks model (Start-up, Growth, Maturity, Diversification, and Decline) is applicable for valuation purposes. We further argue that life cycle thinking provides useful insights for making grounded assumptions in predicting the future free cash flows and residual value of a company. This paper presents practical valuation approaches and insights for each of the five stages of the Hanks model.
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Galletta and Mazzù. "Liquidity Risk Drivers and Bank Business Models." Risks 7, no. 3 (August 25, 2019): 89. http://dx.doi.org/10.3390/risks7030089.
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This paper examines the bank liquidity risk while using a maturity mismatch indicator of loans and deposits (LTDm) during a specific period. Core banking activities that are based on the process of maturity transformation are the most exposed to liquidity risk. The financial crisis in 2007–2009 highlighted the importance of liquidity to the functioning of both the financial markets and the banking sector. We investigate how characteristics of a bank, such as size, capital, and business model, are related to liquidity risk, while using a sample of European banks in the period after the financial crisis, from 2011 to 2017. While employing a generalized method of moment two-step estimator, we find that the banking size increases the liquidity risk, whereas capital is not an effective deterrent. Moreover, our findings reveal that, for savings banks, income diversification raises the liquidity risk while investment banks reliant on non-deposit funding decrease the exposure to liquidity risk.
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Pluciński, Michał, Izabela Kotowska, Marta Mańkowska, and Ludmiła Filina-Dawidowicz. "Research on Diversification Strategies of Terminal Operators—Evidence from Polish Seaports." Sustainability 15, no. 7 (March 23, 2023): 5644. http://dx.doi.org/10.3390/su15075644.
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In response to changes taking place in the global environment, seaport terminal operators constantly search for lines of development in their operations, choosing i.a. a strategy of diversification or specialisation. So far, the issue of applying a diversification strategy in business models used by operators of multipurpose terminals has not been sufficiently addressed in the literature on the subject. In view of the above, the purpose of this paper is to identify and hierarchize the motivations for diversification and to specify the areas of diversification strategies and corresponding measures taken by operators of multipurpose terminals. The multi-case-study method was applied to conduct the research, along with the research technique of semi-structured in-depth interviews held with representatives of five terminal operators that had been running their business activity in Polish seaports and applying a diversification strategy. As a result of the completed research study, it was possible to specify the motivations for implementing a diversification strategy, and to hierarchize them. The main motives in selecting a diversification strategy as the main business strategy among the interviewed terminal operators were safeguarding against seasonal or sporadic business cycle fluctuations, and changes taking place in maritime trade and transport. Moreover, four areas of diversification strategies pursued by the terminal operators were identified: cargo diversification, contract diversification, services diversification, and cargo flow direction diversification. The diversification measures taken by the terminal operators in the specified areas were analysed in detail. The most important areas of the diversification measures in the studied entities were cargo diversification and services diversification. A heat map was developed to present the dependencies between the motivations for diversification and the areas of diversification strategies implemented by the terminal operators. The identified specific measures taken by the terminal operators as part of the indicated diversification areas included technical and organisational measures. The diversification strategy developed by terminal operators proved to be an effective strategy in coping with the effects of economic slowdown and disruptions ensuing from the COVID-19 pandemic and war in Ukraine. The results of the considerations may be of interest to seaports, transshipment terminals or other entities interested in implementation of a business activity diversification strategy.
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Klimas, Patrycja. "Key Resources in Game Developers’ Business Models." Journal of Management and Financial Sciences, no. 31 (July 29, 2019): 135–49. http://dx.doi.org/10.33119/jmfs.2018.31.11.
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This paper presents the results of the research on key resources exploited under business models of video game developers. The main attention is paid to the identification and hierarchizing of key resources, as well as their specific types. It should be noticed that the reported study takes into account diversification of video game developers in terms of monetization models exploited, i.e. premium, freemium, or hybrid, which seems to be novel.In general, the findings locate people together with their tacit, experience-based knowledge at the top of the key resources hierarchy. Nevertheless, the results show that there are differences in perception and exploitation of the key resources among the considered types of game developers. Interestingly, only those with the premium monetization model point at tacit organizational knowledge as a specific type of key resources exploited under their business model. Moreover, the identified relational resources – although not considered in the business model canvas approach – are acknowledged only by developers using the hybrid monetization model. Last but not least, physical resources are seen as non-key ones by all the considered types of game developers.
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Surlemont, Bernard, Diego Chantrain, Frédéric Nlemvo, and Colin Johnson. "Revenue models in haute cuisine: an exploratory analysis." International Journal of Contemporary Hospitality Management 17, no. 4 (June 1, 2005): 286–301. http://dx.doi.org/10.1108/09596110510597561.
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PurposeThe aim of this paper to shed light on the strategies adopted by chefs and to identify the most successful in terms of Michelin rating and profitability.Design/methodology/approachIn‐depth exploratory interviews with 20 great chefs located in France, Belgium, the UK and Switzerland having gained two or three Michelin stars over the last ten years.FindingsChefs use three different strategies for revenue‐generation: core business, full diversification and partial diversification. The reasoning behind the choice of strategy varies between two‐ and three‐star restaurants. The first strategy seems to lead to higher Michelin star ratings, and strategy, the second seems superior in terms of profitability. The third strategy yields inferior results, but is less risky.Research limitations/implicationsThe observations are constrained to “recently successful” restaurants, and hence may not be applicable to longer‐standing restaurants.Practical implicationsConcentrating on the core business leads to higher star rating, but lower profitability. Full diversification increases profitability but can jeopardize Michelin rating. The middle‐of‐the‐road approach seems inferior in any case.Originality/valueTo this day, little research has been conducted on the way in which great chefs having two or three stars in the famed Michelin Red Guide run their businesses. In particular, very little is known about their revenue‐generating strategies: what options are available and which revenue models are the “best”. This paper is exploratory in nature and aims to inform further research about luxury restaurants.
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Song, Changhyeon, and Kwangsoo Shin. "Business Model Design for Latecomers in Biopharmaceutical Industry: The Case of Korean Firms." Sustainability 11, no. 18 (September 6, 2019): 4881. http://dx.doi.org/10.3390/su11184881.
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Given high business risks and interdependency with various organizations in biopharmaceutical industry, business model has become a key element for firms that aim to be more sustainable and profitable. Despite its growing importance, research on the business model design in biopharmaceutical industry is limited. In particular, there is a lack of research dealing with business models or strategies for latecomers. In the face of drastic changes such as market expansion and patent expiration, there has been growing interest in latecomer’s business model in the biopharmaceutical industry. This study identifies different types of business model designs using hierarchical clustering. Based on an empirical study of 313 biopharmaceutical firms in Korea, we find three types of business models: business diversified research firm, non-diversified research firm, and mature firm. We then compare the general characteristics and performances of each cluster. The findings indicate that business diversification of biopharmaceutical firms is beneficial in terms of profit. This implies that the biopharmaceutical firms in latecomer countries such as Korea are recommended to consider business diversification for sustainable management.
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Cardillo, Concetta, Luca Bartoli, Marcello De Rosa, Martina Francescone, Margherita Masi, Hanae Sahir, and Yari Vecchio. "Exploring Diversification Strategies among Italian Farms." Sustainability 16, no. 20 (October 13, 2024): 8856. http://dx.doi.org/10.3390/su16208856.
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The multifunctionality model is receiving more and more attention from policymakers as a result of recent initiatives to build more resilient and sustainable food systems as well as the potential for increased farm revenue. This paper explores the role of multifunctional farming in the Italian agriculture viewed through the lens of an entrepreneurial strategy grounded on-farm diversification. Farm diversification strategies, which broaden the farm’s traditional boundaries to include additional activities at the farm level, help the evolution towards multifunctionality. A policy-driven transition towards multifunctional farming has been noticed in Italy during the past few decades, which has prompted a strategic reconfiguration of the farm’s business models. Drawing on the identified activity of portfolio diversification, this study provides an overview of the analyzed 49,429 Italian farms, by articulating diversification strategies into four entrepreneurial activities, which are related to on/off-farm/farm-related or farm-diverse diversification strategies. This article has attempted to verify the presence of farm types that responded to portfolio diversification management strategies through the use of a cluster analysis on data from the general census of Italian agriculture. Supporting new patterns in the adoption of business models focused on multifunctionality should be considered in European rural development policies.
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Баржаев, Р. Р. "Transformation of business-models of Russian banks." Экономика и предпринимательство, no. 5(118) (June 11, 2020): 729–34. http://dx.doi.org/10.34925/eip.2020.118.5.148.
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Банковский бизнес в России всегда был неоднороден. Характер бизнеса каждого банка зависит от размера его капитала и активов, формы собственности и целей, которые ставятся перед менеджерами. В условиях активно изменяющейся макросреды финансовые институты активно проявляют существенный интерес в укреплении своего положения на рынке, поддержании и развитии финансовой устойчивости, эффективности и производительности своей операционной деятельности, создании «уникальных» банковских продуктов и услуг, внедрении современных банковских технологий и т.п. В течение ближайших 5 лет формировать структуру банковского бизнеса будут универсальные банки, которые в силу институционально закрепленных преимуществ способны извлекать выгоду из диверсификации деятельности. Banking business in Russia has always been heterogeneous. The nature of the business of eachbank depends on the size of its capital and assets, the form of ownership and the goals that are set for managers. In the situation of an actively changing macro environment, financial institutions actively show significant interestin strengthening their market position, maintaining and developing financial stability, efficiency and productivity of their operating activities, creating “unique” banking products and services, introducing modern banking technologies, etc. Over the next 5 years, universal banks will form the structure of the banking business, which, by virtue of institutionalized advantages, will be able to benefit from the diversification of activities.
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Stoliarchuk, Yaroslava, Denys Ilnytskyy, and Glib Turolev. "GLOBAL BUSINESS NETWORK: OFF-SHORE MODEL’S DIVERSIFICATION AND IMPACT." Economics & Education 5, no. 2 (April 25, 2020): 20–29. http://dx.doi.org/10.30525/2500-946x/2020-2-3.
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Modern literature lacks systematization and assessment of impact of network of international corporations and their off-shore models on development of national economies in post-industrial times. There is variety of tools besides well-known multinational corporate accounting policies and strategies of MNCs that provide mechanism for the management of transaction costs in reporting period, thus reducing the amount of taxable profit due to application of the method of accelerated depreciation and channels of tax deferrals, which allow to reduce corporate tax payments owing to the objective reduction of real purchasing power of money over time. The purpose of the article is to propose in-depth systematization of balanced pros and cons for further development of national FDI policies aimed at network of MNCs. The paper utilizes a compound methodology of review and systematization to calculate overall impact of offshoring that exceeds 1% of global GDP. While modern financial and economic activities of MNC’s distinguish both internal and external offshoring, the paper focuses upon endogenous one. The key attention is on dominant ones – tax inversion phenomenon is known as base erosion and profit shifting, tax planning strategies, international debt shifting, models of tax treaty shopping, tax deferral, tax hybrids, strategic transfer pricing tools. In business and financial management MNCs resort to the development of extremely complex network structures of parent and subsidiary companies in order to increase international competitive advantages. MNCs make special efforts to recruit staff capable of effectively performing key functions in the field of corporate offshoring. We find huge regional asymmetries in MNCs impact on development of national economies. On one hand, a number of highly profitable corporations pay almost zero tax in favour of their countries of registration; on the other, MNCs create jobs, markets, volumes and asymmetries of geographical structure of differences in the value of goods and services supplied through international trade between developing and developed countries due to enormous scale of business offshoring.
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Puie, Florina Răzvanţă. "Conceptual framework for rural business models." Proceedings of the International Conference on Business Excellence 13, no. 1 (May 1, 2019): 1130–39. http://dx.doi.org/10.2478/picbe-2019-0099.
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Abstract Business models have been developed to contribute to rural economic development, being used to create, deliver and capture economic and social value. The aim of this paper is to conceptualize the context of developing business models in rural areas, how these have evolved over time and what is the impact on future strategies in community development based on rural entrepreneurship. The increasing focus and attention on business model innovation has been seen among researchers in the last two decades, and several studies have been conducted to define the concept of business modeling. However, variations in business model definitions are noticeable and opinions regarding its components, structure and relationships inside a business vary as well. The literature review provided significant definitions on the key concepts on business models in rural entrepreneurship. The results of the research are to contribute in developing a framework on the understanding of various terms, such as business model, rural entrepreneurship, community development, and innovative entrepreneurship, with reference to shedding some light on conceptual meaning, purpose, methodology and scope of application. Capturing the existing trends in economic development in rural areas could be performed, based on the literature reviewed in this paper, in order to analyze the potential for diversification of economic activities, by finding the business models already implemented in the rural communities and measuring the impact they had on community development. In this way, a structure for a business model and an emphasis on business opportunities for the rural areas of interest could be developed.
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Xia, Yu. "Analysis of the Business Models of Alibaba." Frontiers in Business, Economics and Management 13, no. 3 (March 5, 2024): 181–85. http://dx.doi.org/10.54097/zykm3v71.
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In the era of the burgeoning network economy, Alibaba, the most successful e-commerce company in China, has emerged as a pivotal player, shaping the landscape of e-commerce with its innovative business model and expansive global footprint. This paper presents a comprehensive analysis of Alibaba’s strategic evolution, technology integration, operational dynamics, and global market expansion. Founded in 1999 by Jack Ma and associates, Alibaba has grown from its roots as a business-to-business (B2B) platform to a multifaceted conglomerate encompassing business-to-consumer (B2C), consumer-to-consumer (C2C), and cloud computing services. At its core, Alibaba’s corporate strategy emphasizes long-term vision, customer-centricity, and global dominance, positioning itself as the foremost e-commerce service provider. Alibaba’s technological prowess is evident in its seamless integration of advanced communication, computing, and financial technologies, facilitating secure transactions and enhancing user experience. The company’s operational model emphasizes customer segmentation, revenue diversification, and robust logistics management, driving sustainable growth and market leadership. Furthermore, Alibaba’s strategic expansion into international markets, including Russia, Southeast Asia, India, the Middle East, Australia, and Africa, underscores its commitment to global commerce and economic empowerment. Through strategic investments and partnerships, Alibaba continues to redefine the contours of e-commerce, fostering innovation, connectivity, and inclusive growth on a global scale.
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Nguyen, Thuy Thu, Hai Hong Ho, Duy Van Nguyen, Anh Cam Pham, and Trang Thu Nguyen. "The Effects of Business Model on Bank’s Stability." International Journal of Financial Studies 9, no. 3 (August 26, 2021): 46. http://dx.doi.org/10.3390/ijfs9030046.
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The literature shows little evidence of the effects of business models upon the volatility of banks in developing and fast-growing economies. Hence, this study examines the effects of business model choice on the stability of banks in ASEAN countries. Using GMM and other robust econometric methods on the sample of 99 joint stock commercial banks, we find significant and negative impacts of a diversification model in which banks shift toward non-interest and fees-based activities. We also find that the impacts are different between two groups of countries. For Vietnam, Indonesia and the Philippines, the diversification entails negative impacts on stability while demonstrating positive impacts for Thailand and Malaysia. Based on these findings, we draw policy implications for more sustainable development in the ASEAN banking business.
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Huynh, Japan, and Van Dan Dang. "Loan portfolio diversification and bank returns: Do business models and market power matter?" Cogent Economics & Finance 9, no. 1 (January 1, 2021): 1891709. http://dx.doi.org/10.1080/23322039.2021.1891709.
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Andrieş, Alin Marius, and Simona Mutu. "Bank Business Models and Performance During Crisis in Central and Eastern Europe." Review of Economic and Business Studies 10, no. 2 (December 1, 2017): 79–113. http://dx.doi.org/10.1515/rebs-2017-0055.
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AbstractThis paper investigates the impact of business models on bank performance during the period 2007-2008 among 156 banks from Central and Eastern European countries. The findings show that banks with higher capitalization perform better and present a lower probability of default. The orientation towards the traditional lending activities as well as a higher degree of income diversification boosts performance. Using a Difference-in-Difference framework we also highlight the importance of bank business strategies for bank performance across different bank characteristics (ownership, size) and macroeconomic conditions (financial crisis, EU membership status, regulatory framework.
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Jang, Youjin, Yonghan Ahn, Moonseo Park, Hyun-Soo Lee, and Nahyun Kwon. "Business Models and Performance of International Construction Companies." Sustainability 11, no. 9 (May 4, 2019): 2575. http://dx.doi.org/10.3390/su11092575.
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As the construction business environment becomes ever more competitive and intense, business models are receiving considerable attention as potential sources of sustainable survival and growth. In order to design sustainable business models in today’s global construction market, it is important to understand the business models that would make a construction company achieve higher performance in terms of profitability, growth and market competitiveness. Therefore, this study identifies the business model variables of international construction and statistically analyzes the relationship between business model variables and firm performance guiding 72 international construction companies over a six-year period from 2009 to 2014. We examine the effect of business model variables on firm performance and how different business model variables can lead to different outcomes. The results show that business models play significant roles in determining the performance of international construction companies, with financial resources being a major determinant of profitability and regional diversification a major determinant of revenue growth and market competitiveness. Each business model variable had a different effect on profitability, growth and market competitiveness. This confirms that there are ideal combinations of business model variables that can help firms achieve higher performance. These findings are expected to provide useful guidance to assist executives’ decision making when designing a business model that will enable their firm to thrive in the global marketplace.
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Bakurova, Anna, Hanna Ropalo, and Elina Tereschenko. "Modeling of complex diversification for centralized pharmacy network." E3S Web of Conferences 166 (2020): 09003. http://dx.doi.org/10.1051/e3sconf/202016609003.
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The risk management of a centralized pharmacy network identifies the research object. The paper proposes a strategy of complex diversification for the pharmacy network. By constructing portfolio models for complex diversification and solving relevant multicriteria problems, multiple pareto-optimal portfolios have been found for successive risk management. Based on the fundamentals of Markowitz portfolio theory and multicriteria optimization, this paper builds four models of the optimal portfolios for centralized pharmacy network. In contrast to the classic two-criteria model (risk minimization while maximizing income), our models have been introduced to maximize entropy, which enhances the diversification effect. Matlab software has been developed for solving multicriteria problems. Model verification was performed on real data provided by one of the pharmacy networks. The modeling results will be useful for automating the business processes of any trading network, managing risk, analysing loyalty programs to improve the effectiveness of their operations.
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Benito-Osorio, Diana, Alberto Colino, Luis Ángel Guerras-Martín, and José Ángel Zúñiga-Vicente. "The combined effects of product and geographical diversification on performance: Evidence in manufacturing SMEs." BRQ Business Research Quarterly 23, no. 2 (April 2020): 91–106. http://dx.doi.org/10.1177/2340944420916332.
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This study explores both the individual impact of geographical diversification and its effect combined with product diversification on small and medium-sized enterprises’ (SMEs) performance. Unlike most prior studies, this study distinguishes between related and unrelated product diversification. The research setting is a sample of manufacturing SMEs (1994–2014). By using dynamic panel data models, the results provide statistical support for the existence of a horizontal S-shaped relationship between geographical diversification and performance. The findings also indicate that while related product diversification positively enhances the performance of those SMEs engaged in geographical diversification (albeit not indefinitely), unrelated product diversification may significantly impair it, especially for SMEs opting for low and high levels of international diversification. Our study reveals that product and international diversification strategies in the case of SMEs are complementary or substitutive strategies depending on the specific type of product diversification strategy and the level of geographical diversification adopted. JEL CLASSIFICATION: F23; L25; M16
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Aversa, Paolo, Andres Hervas-Drane, and Morgane Evenou. "Business Model Responses to Digital Piracy." California Management Review 61, no. 2 (January 2, 2019): 30–58. http://dx.doi.org/10.1177/0008125618818841.
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Digital piracy challenges firms by reducing revenues and shifting consumption habits. Recently, some firms have successfully leveraged business models against piracy, but the understanding about this phenomenon still lacks depth and structure. This study examines the characteristics of digital piracy in some of the most affected industries; presents comparative case studies of two iconic firms, Spotify and Netflix; and analyzes their digital business model responses. This article then considers a generic digital content distributor and explains how business model responses contribute to generating and capturing value. Theoretical and practical implications for technological innovation, firm diversification, and network competition are also discussed.
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Do, Hung Quang, M. Ishaq Bhatti, and László Kónya. "On ASEAN capital market and industry integration: A review." Corporate Ownership and Control 13, no. 2 (2016): 8–22. http://dx.doi.org/10.22495/cocv13i2p1.
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Due to the benefits of investment diversification across markets and industries, and the increasing importance of ASEAN capital markets, this paper attempts to review recent studies on capital market integration and investment implications in six selected ASEAN countries. Several methodologies including VAR, GARCH, Copula and DCC, Bayesian approach, CAPM and factor models have been examined in this research. Most of the existing studies consider the capital market integration and its investment implications at a country level, whereas this paper attempts to extend the analysis to the industry level of integration. It also reviews the uses of a VARMA-MGARCH-asymmetric BEKK models to investigate the integration at industry levels in recommending investment diversification. The findings of this paper may provide guidance to academia, investors and policy makers on asset diversification.
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Huynh, Japan. "Bank Diversification, Competition and Earnings Opacity." Organizations and Markets in Emerging Economies 15, no. 2(31) (December 23, 2024): 331–55. https://doi.org/10.15388/omee.2024.15.16.
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The paper explores the impact of bank diversification on earnings opacity. We aim at offering a comprehensive analysis by focusing on four dimensions of diversification: income, assets, funding, and loan portfolios. Using data from Vietnam over the period 2007–2022, we document consistent and robust evidence that increased diversification across all forms mitigates earnings management via discretionary loan loss provisions. To shed further light on this pattern, we examine how the banking complexity and opacity nexus varies with multiple measures of bank competition. We find that more intense competition in the banking system likely accentuates the impact of diversification on bank earnings manipulations. Our findings provide important implications related to bank business models and banking market structures in the era of financial deregulation and innovation.
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Huynh, Japan, and Thi Minh Hue Phan. "Uncertainty and bank risk in an emerging market: The moderating role of business models." PLOS ONE 19, no. 2 (February 15, 2024): e0297973. http://dx.doi.org/10.1371/journal.pone.0297973.
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The paper explores the role of business models in the link between uncertainty and bank risk. From the perspective of banks, given that future outcomes tend to be less predictable if banking uncertainty rises, we highlight a framework that a larger dispersion of bank shocks to bank-specific variables might mirror such decreased predictability as a consequence of increasing uncertainty. To compensate for the persistence of bank risk and address the endogeneity issue, we applied the system generalized method of moments (GMM) estimator as the main regressions. Analyzing a panel of commercial banks from Vietnam between 2007 and 2019, we find that higher levels of banking uncertainty may increase bank risk, as gauged by banks’ credit risk (loan loss reverses and non-performing loans) and default risk (Z-score index). This detrimental influence of uncertainty appears to be most pronounced with banks relying on pure lending, and it decreases with more non-interest income. A deeper investigation after estimating the marginal effects with plots reveals an asymmetric pattern that bank risk is immune to uncertainty in banks with the highest level of income diversification. Interestingly, we also provide evidence that uncertainty may lower the default risk level when income diversification exceeds a sufficiently high level. Our findings demonstrate that diversified business models are an efficient buffer against higher bank risk in times of increased uncertainty.
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Ganzarain, Jaione, and Nekane Errasti. "Three stage maturity model in SME’s toward industry 4.0." Journal of Industrial Engineering and Management 9, no. 5 (December 20, 2016): 1119. http://dx.doi.org/10.3926/jiem.2073.
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Purpose: To address the challenges regarding the concept of Industry 4.0 and the diversification methodology and based on the strategic guidance towards Industry 4.0, we propose a process model as a guiding framework for Industry 4.0 collaborative diversification vision, strategy and action building. In this paper we suggest a stage process model to guide and train companies to identify new opportunities for diversification within Industry 4.0. Systematically carrying out the stages will take a company to their individual specific vision and collaborative vision between different companies in the Industry 4.0 scenario.Design/methodology/approach: This new collaborative diversification methodology involves industry within the pilot program; from the diversification and capacity assessment analysis of the company`s profile, skills and technologies that dominates, to identify the diversification opportunity map and its business modeling within the Industry 4.0 paradigm.Findings: The application of maturity models to the Industry 4.0 may help organizations to integrate this methodology into their culture. Results show a real need for guided support in developing a company-specific Industry 4.0 vision and specific project planning.Originality/value: Industry 4.0 promotes a vision where recent developments in information technology are expected to enable entirely new forms of cooperative engineering and manufacturing. The vision of industry 4.0 describes a whole new approach to business operations, and especially the production industries. To address the challenges regarding the concept of Industry 4.0 and the diversification methodology discussed above, and based on the strategic guidance towards Industry 4.0, we propose a unique process model as a guiding framework for Industry 4.0 collaborative diversification vision, strategy and action building.
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Grossmann, Matt. "Campaigning as an Industry: Consulting Business Models and Intra-Party Competition." Business and Politics 11, no. 1 (April 2009): 1–19. http://dx.doi.org/10.2202/1469-3569.1243.
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American political campaigns have become a multi-billion dollar industry. Rather than assume that only political factors affect the campaigns that voters see, scholars must assess the importance of the business incentives associated with political consulting. Economic competition does not match political competition; firms compete for clients within the two major parties, against their political allies. I argue that the supply of firms in each party, the revenue models in the industry, the diversification of client types, and the cooperative structure in each party all may affect political campaigns. The way the industry operates and the different patterns of behavior within each party create incentives and practices that may alter campaigns in response to economic factors having little to do with optimal political strategy. Using two original surveys and a network analysis, I analyze how the industry is changing and how consultants in each party cooperate and compete.
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Bakurova, Anna, Alla Savranska, Elina Tereschenko, Dmytro Shyrokorad, and Mark Shevchuk. "Analysis of the criteria selection problem in diversification models." Innovative Technologies and Scientific Solutions for Industries, no. 4(26) (December 27, 2023): 5–15. http://dx.doi.org/10.30837/itssi.2023.26.005.
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The digitalization of the economy reduces the cost of doing business by automating the relevant processes, but any transformation creates new risks and economic instability. Economic instability leads to a drop in the standard of living and, as a result, negatively affects the activities of trade enterprises. Small and medium businesses are especially sensitive to any changes. The decrease in demand for most everyday goods has a painful effect on the activities of small and medium-sized businesses and leads to the emergence of new risks. These risks have a significant impact on reducing the profitability of enterprises. Therefore, it is important for each enterprise to diversify the activities of the enterprise, which includes the expansion of the product range, the reorientation of sales markets and the optimal distribution of goods between divisions of one enterprise. The subject of the article is multi-criteria models of a diversified portfolio that minimize the risks that arise in the era of the digital economy when managing retail chains. To formalize the problem, five models are proposed that differ in vector objective functions, both in the quantity and quality of the selected criteria. The aim of the work is to analyze the problem of choosing criteria in the corresponding multicriteria or vector diversification problems. The article examines the advantages of introducing an additional criterion of entropy maximization into the criteria of the classical two-criteria model of portfolio theory, which characterizes the degree of diversity of the portfolio composition. A complex combination of methods of classical portfolio theory and multicriteria optimization is applied. The results include a comparison of three methods for solving the following problems: criteria convolution, successive concessions, and computer simulation of the Pareto set. Conclusions: the results obtained will be useful for automating the risk management of retail chains. The practical value is that the obtained results of real data for the network have demonstrated the possibility of using the developed tool for automatic allocation of resources in the form of pareto-optimal portfolios in order to minimize risks.
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Prados, María-José, Marta Pallarès-Blanch, Ramón García-Marín, and Carolina del Valle. "Renewable Energy Plants and Business Models: A New Rural Development Perspective." Energies 14, no. 17 (September 1, 2021): 5438. http://dx.doi.org/10.3390/en14175438.
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The paper evaluates the rural development (RD) contribution of local economic activities (LEAs), whether generated or affected by the proximity of renewable energy plants (REPs). The study also informs about LEAs’ role as co-players in the fight against climate change. Semi-structured research interviews have been applied to identify LEAs’ BM (business model) in Andalusia, Murcia, and Catalonia, autonomous communities of Spain. Most LEAs present a BM based on the RE plant, and others do not, but they still contribute to RD, rural communities’ well-being and global sustainability. Results show, first, that certain LEAs, due to their inter-connection with large REPs, can innovate and create a significant number of stable jobs. Second, land leasing to REPs allows for temporary farms’ diversification, which is conditioned to its bargaining power. Third, advice on integration RE projects in RD strategies should be provided. Conclusions suggest the need for new governance to favor energy transition coherent with the Sustainable Development Goals (SDGs).
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Wu, Zeyu. "The Analysis of Grab's Business Model and Revenue Strategies." Advances in Economics, Management and Political Sciences 145, no. 1 (January 3, 2025): 21–29. https://doi.org/10.54254/2754-1169/2024.ld19018.
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With the development of technology and the times, the global economy and business environment are constantly changing. Relying on the introduction of new business models to maintain continuous transformation and innovation capability is significant for companies to survive and thrive in a rapidly changing business environment. In an increasingly competitive business environment, the business model is a very effective conceptual strategic analysis tool. Operating a business with the right business model can accelerate the accumulation of wealth. The global market after the pandemic is filled with new challenges and opportunities, but without a perfect business model, it will be equally difficult to make money. From a business operator's or an investors view, learning about business models and pricing strategies is significant. A good pricing strategy can reflect the value of a business model, while the business model can address commercial issues. In this article, the author will analyze the business model and pricing strategy of a specific company. This research includes three aspects: Multi-Sided Platform Model, Service Expansion and Diversification (two aspects studying business models), and Revenue Strategies (studying pricing strategies). These parts show that, the new business model and revenue strategy effectively protect Grab's interests.
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Nguyen, Phong Hoang, and Duyen Thi Bich Pham. "Income diversification and cost-efficiency of Vietnamese banks." International Journal of Managerial Finance 16, no. 5 (April 10, 2020): 623–43. http://dx.doi.org/10.1108/ijmf-06-2019-0230.
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PurposeThe study examines the impact of income diversification on cost efficiency of Vietnamese commercial banks over the period 2005–2017.Design/methodology/approachIncome diversification indicators are designed based on measures of diversifying loan portfolio. Besides the traditional model, we use the Fractional Regression to estimate the model with dependent variables defined on the unit interval.FindingsThrough the two-stage DEA analysis, we find that the income diversification has a positive impact on the cost efficiency of banks. In addition, this impact is stronger for unlisted banks and in the phase of banking system ongoing restructuring.Originality/valueThe use of a variety of income diversification measures and estimation methods for models with bounded dependent variable has provided a reliable empirical evidence of the advantages of implementing a strategy on structural diversity of both interest and non-interest income in the emerging banking markets such as Vietnam.
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Lee, Cheng-Yu, Yen-Chih Huang, and Chia-Chi Chang. "Factors influencing the alignment of technological diversification and firm performance." Management Research Review 40, no. 4 (April 18, 2017): 451–70. http://dx.doi.org/10.1108/mrr-03-2016-0071.
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Purpose Although scholars have paid considerable attention to the relationship between technological diversification and firm performance, research on this relationship has produced mixed findings. To reconcile these inconsistent findings, this study, thus, aims to revisit the performance effect of technological diversification by considering two organizational characteristics as crucial moderators, namely, firm size and financial slack. Design/methodology/approach To test the research hypotheses, the research sample covers manufacturing firms in the 2008 Standard & Poor (S&P) 500 index. Data regarding the characteristics and patent information of the sample firms were obtained from Compustat and the US Patent and Trademark Office. The hypotheses were tested by using hierarchical regression models. Findings In a sample of 168 S&P 500 manufacturing firms, this study finds that technological diversification has a positive effect on firm performance. The relationship between technological diversification and firm performance is also found to be positively moderated by firm size, financial slack and their configuration. Originality/value The findings of this study further suggest that firms should be aware that the effect of technological diversification on performance can be enhanced or hindered in specific contexts.
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Lahbabi, Ahmed. "Le secteur postal face aux défis de la disruption digitale." International Journal of Performance and Organizations 2, no. 2 (December 31, 2023): 172–92. http://dx.doi.org/10.55897/ijpo.2023.02.19.
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Digital disruption has affected most business sectors. The postal sector has seen its core business, physical mail, disrupted by new communication methods. Postal business models have been weakened. This qualitative study of three postal operators, based on their activity reports over a period of 10 years, has outlined the different reactions they have adopted to this situation. Diversification into other sectors and outside national borders are among the main reactions to the disruptive effects. The performance of these operators depends on mastering the evolution of new low-margin businesses.
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Alda Chairani, Pricilia Johani Sakti, Novita Widyastuti Sugeng, Fachrul Husain Habibie, and Freddy Triono. "Food Franchise Business in Indonesia." Technium Social Sciences Journal 59 (July 10, 2024): 138–46. http://dx.doi.org/10.47577/tssj.v59i1.11206.
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This research analyzes market trends and key factors that influence the success of the franchise industry in Indonesia. Through a descriptive and exploratory approach, data was obtained from surveys, interviews, case studies, and document analysis. Market trends show diversification of the franchise sector and a shift in consumer preferences towards value-added brands. However, regulatory, technological, and fierce competition challenges also arise. Success factors for franchise businesses include a robust business model, strategic location, competent management, and smooth operations. Business models and management strategies support each other to achieve success. The government's role in developing the franchise industry includes clear regulations, training, and promotion. Popular food and beverage franchises in Indonesia, such as Ayam Sabana, Kebab Baba Rafi, and Tahu Jeletot Taisi, offer promising business opportunities with affordable start-up capital. Support from the management team and a proven business concept help strengthen the franchise's position in the competitive market.
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Nuryana, Yayan, Diah Wuriah Ningsih, Dian Murdianingsih, and Saras Melia. "Pengaruh Strategi Diversifikasi terhadap Kinerja Keuangan pada Bank Umum Konvensional yang Terdaftar di BEI 2020-2022." Business Perspective Journal 4, no. 1 (June 26, 2024): 11–20. http://dx.doi.org/10.37090/bpj.v4i1.1654.
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The study investigates the impact of diversification on the financial performance of commercial banks listed on the Indonesian Stock Exchange (BEI) from 2020 to 2022. Using purposive sampling techniques, the study analyzed data from 90 samples to examine the relationship between diversification strategies and measured financial performance with return on assets (ROA). Research results show that diversification has no significant impact on the financial performance of commercial banks. It shows that higher levels of diversification in banks do not always correlate with higher financial performance. On the contrary, the effects of diversification on financial performance depend on how banks manage their capital costs and maximize revenue. The study also revealed that commercial banks tend to take different approaches in implementing diversification strategies, which can vary depending on the size of the bank, business models, and market conditions. Although diversification does not have a significant direct impact on financial performance, the study emphasizes the importance of well-planned and implemented diversity strategies. The findings provide important insights for bank management and policymakers in the banking sector. Further research is suggested to explore other factors that may affect financial performance in the banking industry, including risk management practices, financing structures, and macroeconomic conditions. This research is expected to contribute to a deeper understanding of the relationship between diversification and financial performance in the Indonesian banking context. Keywords: diversification strategy, financial performance
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Soleha, Soleha, Endang Bidayani, and Ardiansyah Kurniawan. "ANALYSIS OF THE CANVAS MODEL BUSINESS FOR FISH FARMING IN SANGRIANG FARM, TUATUNU SUB-DISTRICT, GERUNGGANG SUB-DISTRICT, PANGKALPINANG CITY." Journal of Fish Health 2, no. 2 (December 31, 2022): 116–26. http://dx.doi.org/10.29303/jfh.v2i2.2096.
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The fish farming business in Pangkalpinang City is growing along with the increasing demand for aquaculture products. Sangriang Farm is a fish farming business engaged in the hatchery and rearing of Gurame ( Osphronemus goramy ), Catfish ( pangasius sp .), Goldfish ( Cyprinus carpio ), Tilapia ( Oreochromis niloticus ), and Catfish ( Clarias sp .). This study aims to analyze existing business models and recommend new business models through the Business Model Canvas (BMC). The research method used in this study is a survey method with a case study technique. Analysis of existing conditions reinforced by SWOT analysis resulted in BMC improvements in Channels elements (use of social media, product labels, and packaging), Key Resources (additional human resources, capital, and intensification of cultivation technology), Customer Segments (target consumers of semi-finished processed products and restaurant suppliers), and Revenue Streams (bookkeeping management and product diversification). Implementing the recommendations is expected to increase the business capacity of Sangriang Farm.
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ESCAITH, Hubert, and Bekele TAMENU. "SURFING ON THE TIDE? LEAST-DEVELOPED COUNTRIES TRADE DURING THE GREAT GLOBAL TRANSITION." Theoretical and Practical Research in the Economic Fields 5, no. 1 (June 30, 2014): 32. http://dx.doi.org/10.14505/tpref.v5.1(9).03.
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The rebalancing of global demand towards large emerging countries and the resulting long-lasting cycle of high international commodity prices had a profound impact on LDC trade. This process contributed to a wider geographical diversification of LDCs' exports but led also to a greater reliance on those highly priced commodities. LDCs remain particularly vulnerable to external shocks; the 2008-2009 global crisis and the bumpy transitional recovery that followed illustrate the fragility of the recent trends. A slowdown in the growth of large emerging countries may end the commodity "super-cycle", deepening LDCs' structural trade imbalances. In such a perspective, renewed efforts towards extensive product diversification are called for. Fostering diversification has been supported for many years by preferential market access to develop and --more recently-- to emerging countries. But preferences alone are not sufficient to improve the supply-side capabilities of most LDCs. The new business models related to global value chains offer new opportunities to LDCs for export diversification and trade facilitation is one of the key components of this diversification strategy.
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Staglianò, Raffaele, and Maurizio La Rocca. "Theoretical foundation of diversification decisions: Opportunism or financial benefits." Corporate Ownership and Control 8, no. 2 (2011): 37–45. http://dx.doi.org/10.22495/cocv8i2p4.
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The impact of firm diversification on firm value has received considerable attention from economists. However, there is no consensus on the direction of this relationship. It may be that theoretical and empirical models do not capture several complexities of real-life setting, that affect the motivation to diversify. This article surveys recent studies that extend traditional frameworks to incorporate relevant aspect of corporate governance topics
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Pölling, Bernd, María-José Prados, Bianca Maria Torquati, Giulia Giacchè, Xavier Recasens, Chiara Paffarini, Oscar Alfranca, and Wolf Lorleberg. "Business models in urban farming: A comparative analysis of case studies from Spain, Italy and Germany." Moravian Geographical Reports 25, no. 3 (September 1, 2017): 166–80. http://dx.doi.org/10.1515/mgr-2017-0015.
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Abstract The “Urban Agriculture Europe” EU COST-Action (2012–2016) has shown that the complexity of urban agriculture (UA) is hardly compressible into classic business management models and has proposed new management models, such as the Business Model Canvas (BMC). Business models of UA have to be different from rural ones. In particular, factors such as differentiation and diversification, but also low cost-oriented specialisation, are characteristic and necessary business models for UA to stay profitable in the long term under challenging city conditions. This paper aims to highlight how farm enterprises have to adjust to urban conditions by stepping into appropriate business models aiming to stay competitive and profitable, and how the BMC is useful to analyse their organisation and performance, both economically and socially. The paper offers an inter-regional analysis of UA enterprises located in Spain, Italy, and Germany, which are further subdivided into: local food, leisure, educational, social, therapeutic, agri-environmental, cultural heritage and experimental farms. The analysis demonstrates that UA is differentially adjusted to specific urban conditions and that the BMC is useful for analysing urban farming. Heterogeneous local food farms and the integration of local and organic food production in social farming business models are most frequent in our case studies.
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Salvioni, Cristina, and Lara Fontanella. "Diversification strategies and their impact on farm performance." Applied Studies in Agribusiness and Commerce 7, no. 2-3 (September 30, 2013): 57–61. http://dx.doi.org/10.19041/apstract/2013/2-3/9.
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The objective of this study is to identify factors determining the economic performance of agricultural holdings in Italy, with specific attention to the impact of the adoption of on-farm diversification strategies, namely income diversification and product differentiation. The adoption of these kinds of strategies has been increasingly recognised as a viable business option in agriculture as they allow better allocation of farm resources and an increase in the quota of value added retained on farms and therefore not passed on to other agents operating at the end of the food supply chain. By using a panel of professional Italian farms over the time period of 2003-2009, we estimate random effect, ordinary least square and quantile regression models to estimate the impact of income diversification and product differentiation strategies on the levels of farm income per unit of labour income. Our findings show that scale economies are important positive determinants of farm economic performance. On the contrary, when the family play an important role in the farm business, economic performance is worse. Finally, we do not find evidence of a statistically significant impact of the adoption of income diversification and product differentiation strategies. This latter result may be interpreted as a signal that farms use these strategies as risk management tools rather than as income increasing ones.
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Ruda, Mariana, and Alina Pylypenko. "Assessment of the efficiency of diversifying the geographical structure of foreign economic activities in the conditions of European integration." Management and Entrepreneurship in Ukraine: the stages of formation and problems of development 2023, no. 2 (December 1, 2023): 112–26. http://dx.doi.org/10.23939/smeu2023.02.112.
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An analysis and assessment of factors influencing the effectiveness of diversification of the geographical structure of foreign economic activity of "NOVA POSHTA" LLC was carried out. The essence of the concept of diversification is determined, its types and features of this strategy of de-veloping new markets are given. The prerequisites for the implementation of the strategy of geo-graphical diversification of foreign economic activity, the opportunities and threats that may arise during the expansion of activities in the EU markets are outlined. Diversification of foreign economic activity is caused by increasing the dynamism of enter-prise development, changes in demand and the emergence of new industries on the market. In such cases, the diversification makes it possible to compensate for the drop in sales in one market by in-creasing it in other markets. It also contributes to attracting foreign investments and increasing the competitiveness of the enterprise. All types of geographic diversification open up new business op-portunities for enterprises - business entities can make maximum use of resource potential and pro-duction capacity, distribute commercial risks of dependence on one market and minimize them. Nowadays, logistics as an industry has great potential and prospects. According to the fore-cast, until 2024, the world market of logistics services will grow annually by 7.5% in monetary terms. The main players on the market in Ukraine are "NOVA POSHTA" and "Ukrposhta". This is due to the fact that more and more people are switching to online shopping. As a result of the conducted research, it was determined that in modern business conditions, the strategy of diversifying the geographical structure of foreign economic activity is becoming more and more relevant, but it must be supported by empirical data coming from the marketing monitoring system. Assessing the necessity of diversifying the geographical structure of foreign economic activity in case of "NOVA POSHTA" LLC requires consideration of many factors, especially resources, fi-nancial capacity and taxation. Taking them into account the recommended directions for the imple-mentation of the GoToMarket-strategy for "NOVA POSHTA" LLC are given in the article. The stages of marketing strategy implementation considering national and international market fea-tures and service consumption models of "NOVA POSHTA" LLC in conditions of diversification of the geographical structure of foreign economic activity are outlined. Recommended business indica-tors for evaluating the effectiveness of diversifying the geographical structure of foreign economic activity of "NOVA POSHTA" LLC are identified.
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Yu, Jing-Rung, Wan-Jiun Paul Chiou, and Jian-Hong Yang. "Diversification benefits of risk portfolio models: a case of Taiwan’s stock market." Review of Quantitative Finance and Accounting 48, no. 2 (February 29, 2016): 467–502. http://dx.doi.org/10.1007/s11156-016-0558-0.
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AlKhouri, Ritab, and Houda Arouri. "The effect of diversification on risk and return in banking sector." International Journal of Managerial Finance 15, no. 1 (February 4, 2019): 100–128. http://dx.doi.org/10.1108/ijmf-01-2018-0024.
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PurposeThe purpose of this paper is to investigate the effect of revenue diversification, non-interest income and asset diversification on the performance and stability of the Gulf Cooperation Council (GCC) conventional and Islamic banking systems.Design/methodology/approachThe authors implement a panel of 69 conventional and Islamic banks listed in six GCC markets over the period of 2003–2015, using the System Generalized Method of Moments methodology.FindingsNon-interest income diversification has a negative impact on GCC banks’ performance, while asset-based diversification affects banks performance positively. However, Investors tend to penalize the value of the banks’ assets, which are highly diversified. Government intervention, lack of competition, legal protection and high control of Central banks on GCC banks’ have positive impact on performance. Contrary to the results on conventional banks, asset diversification adds value to Islamic banks. Overall, both banks’ revenue and non-interest diversification have negative impact on GCC banks’ stability, while asset diversification improves Islamic banks’ stability.Research limitations/implicationsThe analysis is limited to a sample of banks, which are listed in the GCC stock exchanges. The lack of data on private and foreign banks operating in the region made the analysis and, consequently, the results specific to shareholding companies. Also, the authors’ measures of bank stability might not be appropriate to use for Islamic banks, given their banking models implemented.Practical implicationsResearch results provide important implications for regulators, bank managers and policy makers, as to the expected ways to support economic diversification through bank diversification strategies.Originality/valueUnlike related studies, the authors’ sample of homogeneous banks has a market structure that is different from the samples in the literature covering either developed countries or heterogeneous samples from both developed and developing countries. Furthermore, using an efficient econometric methodology, the authors deal with two types of banks: conventional banks and Islamic banks. The research determines which type of bank is more able to benefit from different types of diversification. Unlike previous research, this research explores the sensitivity of the results both to the regulatory environment of the GCC market and to general market conditions.
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Sharma, Shweta, and Anand Anand. "Income diversification and bank performance: evidence from BRICS nations." International Journal of Productivity and Performance Management 67, no. 9 (November 19, 2018): 1625–39. http://dx.doi.org/10.1108/ijppm-01-2018-0013.
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PurposeThe purpose of this paper is to examine the impact of income diversification on bank performance in BRICS countries as a structural response to concentration risk. The authors argue that effectiveness of this approach is conditional upon its extent and quality. To understand the role of firm-specific characteristics on effectiveness of diversification, the authors examine this relationship across asset sizes.Design/methodology/approachAn unbalanced panel data set of 169 BRICS banks is sampled over the period 2001–2015. Fixed effect models and system generalized method of moments techniques are used to test the relationship between diversification and bank performance using alternate measures.FindingsResults indicate a positive relationship between diversification and performance measured in terms of bank risk and returns for medium and large size banks. However, for small banks this relationship is negative suggesting a “diversification discount.”Originality/valueThe study indicates that diversification as a risk mitigating tool can be effective but the managers and regulators should not emphasize on the “one-size-fits-all” approach for all banks. Policy frameworks for controlling concentration risk should be developed keeping in mind factors like bank size, customer base and financial leverage which brings variations to the risk profile of banks.
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Horyachova, Olena O., Mykyta V. Lavetskyi, Hennadii V. Pedchenko, and Yaroslav B. Pyrih. "Innovative Strategies and Approaches to Adapting Ukrainian Business Models and Quality Management in Conditions of Uncertainty." Business Inform 12, no. 563 (2024): 303–9. https://doi.org/10.32983/2222-4459-2024-12-303-309.
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During the war, Ukrainian business models underwent strategic changes, adapting to the conditions of uncertainty and high levels of riskiness, which included cost optimization, new logistics flows, hybrid work format, energy savings, safety-oriented management, transformation of quality management and the introduction of innovations to remain competitive. The article is aimed at studying innovative strategies and approaches to adapting Ukrainian business models and quality management systems in conditions of uncertainty, in particular during the war, to ensure their sustainability and competitiveness. The article emphasizes that during the war, Ukrainian companies are forced to look for new sources of profit, applying diversification strategies, introducing innovative approaches, digitalization, agile management models, short-term planning, redistribution of roles and responsibilities, as well as new technologies to ensure the competitiveness and efficiency of operations. The features of quality management during the wartime period are outlined and it is noted that companies face supply disruptions, production problems, changes in the assortment, psychological difficulties of employees, economic challenges, the need to maintain high quality standards and communication with customers, which requires the implementation of alternative strategies, such as the search for new suppliers, the creation of raw material stocks, the introduction of backup energy sources, the retraining of staff, development of new products, psychological support for employees, cost optimization, investment in effective technologies, implementation of quality management systems, regular audits, informing customers and the use of digital technologies. It is determined that Ukrainian companies are forced to quickly adapt to new conditions, using strategies of supplier diversification, the introduction of digital technologies, agility in production and product range, support for employees and ensuring their safety, as well as constant monitoring of market conditions and competitors.
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Canil, Jean M., and Bruce A. Rosser. "Tests of two optimal incentive models for executive stock options." Corporate Ownership and Control 9, no. 1 (2011): 136–55. http://dx.doi.org/10.22495/cocv9i1art9.
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Using a unique data set, we test theoretical propositions relating to grant size and exercise price in determination of optimal executive compensation. For Hall and Murphy, pay-performance sensitivity does not behave as predicted with respect to CEO risk aversion and diversification, but the latter supports observed grant size while ATM grants exhibit positive abnormal returns as predicted. Consistent with Choe, exercise price is found inversely related to leverage. The unexpected positive relation between grant size and stock volatility is conjectured driven by CEOs’ influencing large grants, which are found associated with weak corporate governance but ameliorated by outside directors.
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Estes, Kathy. "Diversification and Community Bank Performance during a Financial Crisis." International Journal of Finance & Banking Studies (2147-4486) 3, no. 4 (January 19, 2016): 1. http://dx.doi.org/10.20525/.v3i4.190.
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<p><em>Many U.S. banks failed or performed poorly during the recent financial crisis. Although the costliest failures were large institutions, the majority of failures were community banks (less than $1 billion in total assets). Community banks, which are considered instrumental in small business lending and employment growth, face different risks and challenges than their larger counterparts, including a lack of economies of scale and scope and exclusion from “too-big-to-fail” status. These challenges, coupled with the recent failures, motivate research into potential strategies managers can use to improve performance. This study examined the relationship between three potential diversification strategies and community bank risk-adjusted performance from 2007 to 2011. Understanding these relationships could improve management’s decision-making, allowing them to choose risk-mitigating strategies during a severe economic downturn. Herfindahl-Hirschman Indexes (HHIs) were calculated as proxies for geographic, activity, and asset diversification. Multiple regression models for each of the five years were used to calculate the impact of diversification variables on risk-adjusted ROA. The results show that diversification in all areas is directly related to performance; however, only the asset diversification relationship is significant. To the extent possible for community banks, diversification may improve risk-adjusted performance.</em></p>
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Estes, Kathy. "Diversification and Community Bank Performance during a Financial Crisis." International Journal of Finance & Banking Studies (2147-4486) 3, no. 4 (October 21, 2014): 01–40. http://dx.doi.org/10.20525/ijfbs.v3i4.190.
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Many U.S. banks failed or performed poorly during the recent financial crisis. Although the costliest failures were large institutions, the majority of failures were community banks (less than $1 billion in total assets). Community banks, which are considered instrumental in small business lending and employment growth, face different risks and challenges than their larger counterparts, including a lack of economies of scale and scope and exclusion from “too-big-to-fail” status. These challenges, coupled with the recent failures, motivate research into potential strategies managers can use to improve performance. This study examined the relationship between three potential diversification strategies and community bank risk-adjusted performance from 2007 to 2011. Understanding these relationships could improve management’s decision-making, allowing them to choose risk-mitigating strategies during a severe economic downturn. Herfindahl-Hirschman Indexes (HHIs) were calculated as proxies for geographic, activity, and asset diversification. Multiple regression models for each of the five years were used to calculate the impact of diversification variables on risk-adjusted ROA. The results show that diversification in all areas is directly related to performance; however, only the asset diversification relationship is significant. To the extent possible for community banks, diversification may improve risk-adjusted performance.
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Tkachenko, Alla, and Heorhii Bondarenko. "Diversification of clean production technologies as a basis for agribusiness recovery and economic security." Economic Analysis, no. 34(2) (2024): 395–406. http://dx.doi.org/10.35774/econa2024.02.395.
Full textAbstract:
The article states that the agricultural sector has always been and continues to be the main driving force of Ukraine's economy. Before the full-scale war, Ukraine was among the top five leading countries in terms of food exports. However, the full-scale war has led to significant losses in agribusiness and, consequently, threats to its economic security. The agricultural sector can be restored by adopting business models focused on the diversification of clean production technologies, which aligns with Ukraine's ambitious goals of transforming the country's economy into a low-carbon model. It is emphasized that some agricultural enterprises attempt diversification by growing niche crops, overlooking that diversification involves entering other types and areas of production and economic activities. It is substantiated that diversification is a business model aimed at reallocating resources into new activities, creating new opportunities for better utilization of potential, ensuring the economic security of the enterprise, and promoting its economic growth. It is highlighted that agribusiness currently has significant opportunities for diversification through the production and export of biomethane. Using the example of the Gals Agro agribusiness holding, the feasibility of agribusiness diversification into clean technologies is demonstrated. The potential and forecasts for biomethane production by agribusiness are examined over short- and long-term time horizons. It is emphasized that for the development of biomethane production, the Ukrainian government has created the necessary regulatory framework, highlighting its advantages and gaps that require urgent resolution. It is noted that key issues such as the launch of a biomethane registry to provide guarantees of origin, the development of infrastructure to ensure sufficient biomethane transportation capacity, and state support for infrastructure development remain unresolved. Measures are proposed to create a favorable environment for the development of biomethane production by agribusiness, thereby ensuring its economic security and growth.