A Supplier Switching Model With the Competitive Reactions and Economies of Scale Effects

2017 ◽  
Vol 47 (11) ◽  
pp. 2831-2843 ◽  
Author(s):  
Jianxiong Zhang ◽  
Qian Wei ◽  
Guowei Liu ◽  
Wansheng Tang
Keyword(s):  
Economies Of Scale ◽  
Scale Effects ◽  
Switching Model ◽  
Competitive Reactions ◽  
Supplier Switching

scholarly journals Managing the increasing returns of a high-tech business model in industry: Classic and ecosystem effects

Upravlenets ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 43-58
Author(s):  
Svetlana Orekhova ◽  
Andrey Misyura ◽  
Evgeny Kislitsyn
Keyword(s):  
Business Model ◽  
Economies Of Scale ◽  
Business Models ◽  
Scale Effects ◽  
Model Management ◽  
Increasing Returns ◽  
High Tech ◽  
Research Results ◽  
Industrial Enterprises ◽  
Ecosystem Effects

Business model management is possible on the basis of detailing and clarifying methods for calculating forms of increasing returns. High-tech companies, in contrast to traditional ones, have additional rents associated with the dual use of technologies and digitalization. The article develops a set of methods for assessing the cumulative increasing returns of a hightech business model based on the calculation of classic and ecosystem effects. The neoclassical economic theory, the network (relational) approach, the concepts of business models and ecosystems constitute the methodological basis of the study. The authors differentiate between five forms of returns: economies of scale effects, effects of innovation, diversity, direct and indirect network-based (ecosystem) effects. The research method is pioneered by the authors and based on a sequential assessment of the five forms of returns. For each form, an optimal calculation method is proposed, the results of which are unified by the standardization method. The level of increasing returns is empirically calculated using the case study of the civil production of the Semikhatov Scientific and Production Association (SPA) of Automatics – one of the largest high-tech industrial enterprises. The paper highlights the problems in measuring returns, such as the lack of panel data on the enterprise, a uniform method and relevant examples for calculation, as well as objective data on sectoral markets. The research results prove that the key management objective is to enhance the positive difference between increasing and decreasing returns through transformation of the business model. To achieve this objective, we compile a matrix of effects, the level of which allows making appropriate management decisions. Our calculations show that the enterprise experiences decreasing returns from adoption of innovation. The level of increasing returns from the learning effect and the direct network-based effect is quite low, which indicates that the enterprise’s business model is traditional, rather than technological. The research results can serve as a basis for the development of a detailed management mechanism for transforming a business model. The method for increasing returns assessment is universal and can be applied to evaluate the effectiveness of any business models.

scholarly journals Economies of Scale in Local Government Services: A Meta Analysis

2020 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Siew King Ting ◽  
Rene Villano ◽  
Brian Dollery
Keyword(s):  
Regression Analysis ◽  
Local Government ◽  
Economies Of Scale ◽  
Scale Effects ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Structural Reform ◽  
Government Services ◽  
Meta Regression ◽  
Meta Regression Analysis

In this paper, a meta-regression analysis is presented by 38 empirical studies on the size of scale in various local government services. Our results show that income classification was the most important factor in determining size of scale and all selected local government services recorded decreasing size of scale in the recent decades, with water services exhibiting the largest decreasing size of scale. The existence of scale effects has important ramifications for local government structural reform, given the globally indifferent results of local government reorganization.

Efficiency losses through fragmentation? Scale effects in European ANS provision

2019 ◽  
Vol 20 (4) ◽  
pp. 275-289
Author(s):  
Thomas Standfuss ◽  
Frank Fichert ◽  
Michael Schultz ◽  
Petros Stratis
Keyword(s):  
Traffic Management ◽  
Economies Of Scale ◽  
Service Providers ◽  
Scale Effects ◽  
Dynamic Environment ◽  
Air Traffic Management ◽  
Current Approach ◽  
Data Envelopment ◽  
Navigation Service ◽  
The Relationship

Fragmentation has been suspected of contributing to inefficiencies in the European Air Traffic Management (ATM) system. Heterogeneities between providers may contain multiple aspects, such as airspace structure, staff rostering, or systems used for flow management. Applying the scientific approach of data envelopment analysis, this article provides a new outlook on the relationship between airspace fragmentation and efficiency in the admittedly complex and highly dynamic environment of European ATM. We show that there are airspaces that might benefit from economies of scale, but that there is a tipping point where diseconomies of scale occur. Subsequently, the current approach of functional airspace blocks might inhere inefficiencies for some air navigation service providers.

Data envelopment analysis methods in sustainable agricultural development research

2021 ◽  
pp. 179-205
Author(s):  
Katarzyna Smędzik-Ambroży ◽  
Agnieszka Sapa
Keyword(s):  
Sustainable Development ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Economies Of Scale ◽  
Scale Effects ◽  
Three Dimensions ◽  
Data Envelopment ◽  
Farm Accountancy Data Network ◽  
Business Entities ◽  
The Individual

Sustainable development of business entities can be analysed in terms of three dimensions, i.e., economic, social and environmental ones. The economic dimension of sustainable development can be assessed, inter alia, by entities’ technical efficiency defined as the relation of outputs to inputs. One of the methods that is used to assess the technical efficiency of business entities compared to other entities is the Data Envelopment Analysis (DEA) method. The aim of the chapter is to determine the relative technical efficiency of representative agricultural farms from the individual European Union countries in 2018. Moreover, the scale efficiency indexes and the area of scale effects (increasing or decreasing) of the analysed farms were also determined. In the study the data from the Farm Accountancy Data Network (FADN) for 2018 were applied. In order to achieve the assumed research goals, the input-oriented DEA model was used, and the technical efficiency indexes of farms were estimated with the assumption of constant return to scale (CRS) and variable return to scale (VRS). This allowed, among others, for indicating the countries with farms achieving the highest technical efficiency (Belgium, Spain, Italy, Malta and Netherlands assuming CRS, and Belgium, Spain, Italy, Malta and Netherlands, Greece, Ireland, Romania and Slovenia assuming VRS), the lowest technical efficiency (the Czech Republic and Slovakia) within surveyed group of farms. All relatively inefficient farms (except Slovakia) functioned in the area of increasing economies of scale.

Healthcare managers’ perception of economies of scale

2017 ◽  
Vol 31 (3) ◽  
pp. 317-330 ◽  
Author(s):  
Anna Svarts
Keyword(s):  
Economies Of Scale ◽  
Healthcare Professionals ◽  
Scale Effects ◽  
Healthcare Delivery ◽  
Healthcare Services ◽  
Small Sample ◽  
Fixed Cost ◽  
Fixed Costs ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to explore how healthcare managers perceive economies of scale and the underlying mechanisms for how scale/size affects performance. Design/methodology/approach Data were collected in 20 in-depth interviews with healthcare professionals from 13 healthcare delivery organizations and from a public authority that finances and contracts healthcare services. Data were coded and analysed using content analysis. Findings The study concludes that the impact of scale on performance is perceived by healthcare professionals to be different for different types of healthcare services: For surgery, significant scale effects related to spreading of fixed cost, the experience curve, and potential for process improvement. For inpatient care, moderate scale effects related to spreading of fixed costs and costs of doctors on on-call duty. For outpatient care, small or no scale effects. Research limitations/implications The small sample of interviewees from a single geographical region and healthcare system limits the applicability of the findings. Originality/value The paper provides insights into how healthcare managers experience scale effects and how they consider economies of scale when planning hospital configuration. Also, past studies of economies of scale in hospitals proffer mixed results and the findings in this paper indicate a possible explanation for this inconclusiveness, i.e. differences in service mix between different hospitals.

Industrielles statt gewerbliches Denken ist gefordert (Essay)

2016 ◽  
Vol 167 (4) ◽  
pp. 196-199
Author(s):  
Hans Rudolf Heinimann
Keyword(s):  
Economies Of Scale ◽  
Scale Effects ◽  
Tree Breeding ◽  
Forest Sector ◽  
Special Importance ◽  
Present Contribution ◽  
Wood Harvesting ◽  
Forestry Sector ◽  
Production And Distribution ◽  
The 1960S

Industrial thinking has to replace craftsmanship thinking (essay) By the beginning of the 1980s, the Swiss forestry sector lost its financial viability. Although operational forestry activities have been subsidized, the overall situation even worsened con sid erably since then. This poses the question whether there are ways out of this situation and if there are, which ones. The present contribution takes up the hypothesis that the Swiss forestry sector is still mainly based on craftsmanship thinking while successful forestry sectors of other countries have been following industrial thinking. The analysis results in the following theses: The difficulties of economic efficiency emerged in the 1960s, and sector-wide initiatives were launched to solve the problem, among which the 1975 master plan for a Swiss forest sector policy was of special importance. Industrial thinking is based on the following principles: 1) a systematic capitalization of economies of scale effects, 2) an integration of all production and distribution processes across owners and firms, 3) full mechanization of wood harvesting, and 4) rationalization of the biological production based on modern tree breeding methods. The intention of the present article is to contribute to a discussion which discards outworn patterns of thought, and which is honestly looking for viable, competitive solutions.

Highly Flexible Final Production Stages - Taking Advantages of Scale Effects by Reducing Internal Component Variants

2014 ◽  
Vol 907 ◽  
pp. 127-137
Author(s):  
Michael Grigutsch ◽  
Johannes Nywlt ◽  
Matthias Schmidt ◽  
Peter Nyhuis
Keyword(s):  
Economies Of Scale ◽  
Scale Effects ◽  
Integrated Approach ◽  
Production Costs ◽  
Rapid Manufacturing ◽  
Production Stage ◽  
Late Emergence ◽  
Internal Component ◽  
Production Stages ◽  
High Production

The rapid manufacturing of a great variety of variant products is gaining importance in global competition. Customers are increasingly demanding products which are matched to their specific demands. The production of these customized variants gives a competitive advantage, but also affords a high inner variance which leads to high production costs. Almost every step in the process of making a product is capable of generating variants. A key element in variant management is to make the variants as late as possible in order to exploit economies of scale in the earlier stages of production and to minimize the complexity of production. The technique of the highly flexible final production stage consists in achieving a late emergence of variants by integrating the variant-specific manufacturing processes into the assembly stage and enabling a mass production within a preliminary production stage at the same time. This means abandoning the conventional distinction between manufacturing and assembly in favour of a division into the preliminary, variant-neutral production stage and a final production stage where the variants take shape. The final production stage includes all the processes that determine variants. The complete manufacture of variant-neutral parts and subassemblies takes place in the preliminary production stage, as does the pre-manufacturing of those parts and sub-assemblies which are to undergo final manufacturing as variants in the final production stage. In order to apply the technique of the highly flexible final production stage successfully an integrated approach is necessary which is presented in this paper.

ANALYZING THE EFFICIENCY AND PRODUCTIVITY OF SLOVAK FARMS SPECIALIZING IN LIVESTOCK

2021 ◽  
Author(s):  
Jaroslava Košařová
Keyword(s):  
Economies Of Scale ◽  
Scale Effects ◽  
Malmquist Index ◽  
Scale Efficiency ◽  
Managerial Decision ◽  
Managerial Performance ◽  
Managerial Efficiency ◽  
Farm Productivity ◽  
Structure Changes ◽  
Input Use

This paper aims to estimate productivity, efficiency, and especially the estimation of managerial performance among 284 farms specializing in livestock in Slovakia. Data Envelope Analysis (DEA) is used to estimate farm efficiency and related economies of scale. Taking full advantage of the panel structure, changes in farm productivity are provided by the Malmquist index and are divided into technological progress, scale effects, and managerial decision-making. Empirical results show that, on average, a 31% reduction in input use could be achieved, provided that all livestock farms operate efficiently, without further restrictions on this adjustment. In 2012 farms specialized in livestock improved their performance compared to the best farms by 17%, mainly due to improvement of the managerial efficiency by 12% and improvement of scale efficiency by 4%.

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