Search Results (1,245)

Tax incentives play a crucial role in enhancing firm dynamism and aiding a nation in becoming a significant trade power. Drawing on data from the Annual Survey of Industrial Firms Database and the Chinese Customs Database for the period 2010 to 2013, this study employs a difference-in-differences approach to assess the impact of China’s transition from a business tax to a value-added tax (RBTVAT) on the export diversification of manufacturing firms. The findings indicate that the tax reform significantly decreases the number of export categories, increases export value, and elevates the export unit price for manufacturing firms. Specifically, by promoting specialized production and encouraging the manufacture of products with higher export tax rebate rates, the reforms have led firms to narrow their range of export categories. This effect is particularly pronounced among firms experiencing higher financing constraints, lower profitability, weaker innovation capabilities, and larger size. Furthermore, a consistent negative impact is observed for both state-owned and non-state-owned enterprises. These results provide novel insights and empirical evidence for understanding the relationship between tax reform and export diversification. Full article

The Food Bank of Bogotá is a non-profit organization whose primary mission is to provide food aid to economically vulnerable people and others. One of its key operations is the distribution of food to over 600 beneficiaries. In this research, we present the design and implementation of a computer application that calculates the delivery schedule of the Food Bank vehicles. Firstly, the beneficiaries of the Food Bank are clustered into four delivery zones, and their orders are assigned to specific weeks of the month. Next, a variant of the Capacitated Periodic Vehicle Routing Problem (CPVRP) is solved with an open-source tool. Lastly, routes are assigned to days of the week depending on the traffic conditions. The numerical results showed significant improvements in terms of total time reduction with respect to the business-as-usual practice. This tool is essentially for the monthly planning of the distribution of routes. These routes eventually will need adjustments because of changes in the beneficiaries’ demand, traffic conditions, fleet availability, and so forth. At the time of writing, the model is being integrated with another application that records and tracks the orders in the Food Bank. The users of this application would handle the daily operation and will make manual adjustments if needed. Finally, we discuss the main limitations of the application, which lie primarily in the need to educate both the Food Bank staff and the beneficiaries’ management, who are accustomed to last-minute orders, very tight time windows, and reactive delivery schedules that are highly inefficient. Full article

Recent studies have focused on the detrimental effects of global economic policy uncertainty (EPU) on firm profitability. Nevertheless, none of these studies has focused on a developing economy like Nigeria. To understand this, the study conducted a host of regression analyses using the Driscoll and Kraay fixed-effect estimator and the two-step system generalised method of moments to examine the effects of global crude oil prices and domestic and global economic policy uncertainty on firm profitability in Nigeria from 2005 to 2024. The findings indicate that while global EPU had a minimal impact on firm profitability, domestic EPU had a substantial negative impact. The findings remain consistent even across the sub-samples, sensitivity, and robustness analyses. Furthermore, the findings showed that firm size and capital are significant determinants of profitability for Nigerian firms. At the same time, oil prices and their interactions do not affect firm profitability in Nigeria. The study suggests that regulators in the Nigerian business environment can contribute to building a more resilient environment by implementing systems to monitor critical economic indicators and ensure timely responses to emerging challenges. Systematic evaluations of economic uncertainties, including business sentiment, inflation rates, exchange rates, interest rates, and economic growth, can provide valuable insights for policy formulation and interventions aimed at enhancing the profitability of Nigerian firms. Full article

A key component of creating robust and sustainable businesses is the digital transformation of business operations. This study examines the impact of distributed digital technology, namely cloud computing and blockchain technology, on an auditor’s behavior, an essential component of the framework for corporate responsibility. This study also highlights the impact of digital transformation on sustainable auditing, urging auditors to improve their technological skills to build trust in evolving entities. We used a unique dataset of Chinese A-share listed companies from 2013 to 2021 to show that this time period is important because it shows the beginning and growth of these technologies in the Chinese business world. This gives us a good starting point for looking at their early-stage audit effects. Our key findings are threefold. First, we found that firms using distributed digital technologies (cloud computing and blockchain) experienced (a) higher audit fees and (b) standard audit opinions, indicating the growing complexity and the requirement that auditors acquire specialized skills in order to evaluate cyber-resilience and technological structures. Second, firms facing substantial profit fluctuations (higher risk level) following digital engagement were subject to higher audit fees and a decreased probability of standard audit outcomes, emphasizing the nuanced risks of digital transformation. Third, the main results were more pronounced in (a) non-state-owned enterprises and (b) high-tech enterprises. Our study is robust to multiple sensitivity analyses, endogeneity tests, and propensity score matching (PSM). The results show that regulators need to create and support specialized auditing regulations regarding distributed technologies. These regulations would assist auditors in evaluating cloud and blockchain engagement and make it clear to businesses what is important to be compliant. Full article

Origin warehouses, positioned at the critical “first mile” of the agri-food supply chain, profoundly influence supply chain power structures and profit allocation, as well as supply chain stability and sustainable development. To explore the role of origin warehouses in the agri-food supply chain, this study develops a three-level game model comprising a “planter–origin warehouse operator–seller” framework. Notably, this study conceptualizes the dual-functional “origin warehouse” as observed in practice, proposing two theoretical modes: the Logistics Center (LC) and the Supply Chain Center (SCC). By treating quality level, service level, and selling price decisions as endogenous variables, this study further reveals the interconnected decision-making mechanisms under different operational modes. Overall, the LC mode performs better in quality-driven markets, generating higher system profits and greater social welfare, whereas the SCC mode is superior when consumers are more price-sensitive or place greater value on service. Based on these findings, this study provides decision-making guidance for origin warehouse operators aiming to select the optimal mode under varying market conditions and proposes targeted coordination strategies to promote the high-quality development and economic sustainability of the agri-food supply chain. Full article

This paper investigates the factors of sustainability of the financial performance of Islamic insurance (Takaful) windows in Pakistan. A large body of literature has examined Takaful providers across many countries; however, there is little research on the dynamics of Takaful windows. This study uses an analytical approach to investigate the effects of various operational and financial measures on Takaful window performance. It is one of the earliest works to examine the profitability of Takaful windows with a dynamic PVAR model, providing new evidence on the peculiar financial forces in hybrid Islamic–conventional insurance frameworks. It explores the effects of the retention ratio, Wakalah fees, commission ratio, gross written contributions, and underwriting surplus on profitability, measured by return on assets (ROA) and return on equity (ROE). It uses annual data from 18 Pakistani Takaful window insurers, employs a panel vector autoregressive framework to capture dynamic interdependencies and endogeneity, and conducts a variance decomposition with impulse response analysis. The findings indicate that the retention ratio and underwriting surplus have significant positive effects on ROA, whereas Wakalah fees have a negative impact. In the case of ROE, the underwriting surplus and commission ratio are associated with positive effects; meanwhile, the retention ratio and gross written contributions are related to negative effects. Variance decomposition emphasizes the commission and retention ratios as the main sources of profitability, with Wakalah fees and underwriting surplus being insignificant. The regulators need to ensure proper fund separation and establish the most optimal rules regarding Wakalah fees. The operation of Takaful windows should focus on commission management and business retention strategies to enhance profitability and financial sustainability. The increase in the financial performance of Takaful windows contributes to the expansion of Shariah-compliant insurance, facilitating the financial inclusion of Muslim communities in mixed markets. Full article

This article aims to find out if pre-exit financial (FP) and internationalization (IP) performance indicators can be used for predicting full de-internationalization (ceasing all export activities; CE). To achieve that, a theoretical concept focusing on the behavior of these predictors is built, and three research questions are postulated. Full de-internationalization is an under-researched topic in international business studies, while quantitative studies focusing on its predictors are especially rare. This study fills both gaps by providing population-level evidence for the theoretical concept. The dataset is composed of Estonian exporters that ceased or continued exporting in 2010–2022. IP variables focus on export scale, intensity and scope, while FP variables focus on liquidity, solvency, profitability and revenue-creation capability. The variables cover the timespan of three (pre-exit) years. To outline the significance of predictors and accuracies in the whole population and for different types of exporters, initially, logistic regression is applied, after which the prediction models are also composed with neural networks. Before CE, IP is in a gradual decline, while the bulk of this decline is concentrated shortly before the exit. Before CE, exporters are constantly liquidity- and solvency-constrained, while the problems with revenue creation and profitability are much shorter-lived. That population-level behavior is subject to substantial variation for different types of exporters, especially regarding FP. Prediction models incorporating the full set of variables achieve high accuracy; however, predictive performance declines as the time to exit increases and varies across exporter types. IP variables are more beneficial for predicting CE. The latter also serve as the main practical implications of the paper. Full article

In today’s dynamic and global business landscape, economic profitability is essential for creating and sustaining competitive advantage. Nevertheless, a critical gap persists in the literature regarding the application of advanced optimization techniques that systematically link operational improvements in the supply chain with strategic financial indicators. Accordingly, this study aims to identify and synthesize the optimization techniques applied to supply chain processes and their impact on economic profitability. To achieve this objective, the PRISMA methodology was employed. A systematic literature review covering the last ten years (2015–2025) was conducted using the Web of Science database. After applying inclusion and exclusion criteria, 35 studies were selected, revealing a growing methodological diversity. Nature-Inspired Algorithms (NIAs) and hybrid approaches (such as MILP combined with Simulation) demonstrate greater capacity to address complex and multi-objective scenarios. Notably, hybrid techniques have been successfully applied to the maximization of Economic Value Added (EVA), a key strategic value indicator. Despite the sophistication of these optimization techniques, the predominant objective remains total cost minimization, often sidelining the direct optimization of strategic indicators such as EVA or the Cash Conversion Cycle (CCC). Additionally, a key research gap was identified in the development of adaptive and resilient models that integrate technologies such as Digital Twins, Blockchain, and Artificial Intelligence to dynamically manage physical and financial disruptions in supply chains. The study concludes by emphasizing the need for a theoretical shift toward models that go beyond cost minimization and focus on real value metrics, as well as the exploration of more accessible solutions for SMEs. This review contributes a reference framework for academics and practitioners to align the most suitable optimization techniques with strategic financial objectives in supply chain management. Full article

This article presents the results of the Innovation Support Program (ISP), designed to enhance the market readiness of 12 bio-based innovators from six European rural regions: Northern Sweden, Mazovia (Poland), Upper Austria, Pays de la Loire (France), Strumica (Macedonia), and Andalusia (Spain). Over three years, the ISP applied a modular and flexible methodology, beginning with a cross-regional needs analysis to identify knowledge gaps, followed by a call for Expressions of Interest to select promising bio-based solutions, and concluding with tailored support delivered through regional Task Forces. These provided mentoring and capacity-building activities focusing on business modeling, market analysis, and funding opportunities. The program identified market access as a major barrier to scaling up and noted that many solutions followed Social and Solidarity Economy principles, prioritizing social and environmental impact over profit. Through targeted assistance and knowledge exchange, the ISP strengthened local innovation capacity and contributed measurable progress in companies’ Technology Readiness Levels (TRLs) and Key Performance Indicators (KPIs). Positioned within the framework of the EU Bioeconomy Strategy, the ISP demonstrates how combining regional insights with a structured support framework can effectively accelerate the scaling of bio-based solutions, highlighting the need for iterative, long-term support to sustain regional bioeconomy growth. Full article

To promote green and low-carbon transformation in the transportation sector and achieve the national “dual-carbon” targets, this study examines rooftop photovoltaic (PV) deployment at 12 representative railway stations located on the Qinghai–Tibet Plateau. Using high-resolution solar radiation data, building spatial information, and regional electricity pricing, we develop an integrated analysis framework that combines a PV power-generation simulation, life-cycle cost assessment, and carbon emission reduction evaluation. The model systematically evaluates the power output, economic performance, and emission reduction potential of rooftop PV systems installed on railway station buildings. Two PV array configurations—horizontal angle and optimum tilt angle—together with three business models (T1: all-consumption; T2: all-feed-into-grid; T3: self-consumption with surplus feed-in) are compared. The results indicate that the Qinghai–Tibet Plateau possesses substantial solar energy advantages. Rooftop arrays installed at a horizontal angle significantly increase both installed capacity and lifetime electricity generation, with stations XN and LS producing 523.12 GWh and 300.87 GWh, respectively, values that exceed the corresponding optimum tilt scenarios. In terms of economic performance, the T1 model yields the highest returns, with several stations achieving a lifetime return on investment exceeding 300% over a 25-year period. The T3 model demonstrates strong profit potential at stations such as RKZ and ZN, whereas the T2 model shows the weakest economic viability due to feed-in tariff constraints. Regarding carbon reduction, horizontal systems perform the best, with cumulative CO₂ emission reductions at station XN exceeding 300,000 tonnes of CO₂-equivalent. Overall, the findings highlight the substantial PV development potential of railway station rooftops on the Qinghai–Tibet Plateau. By selecting appropriate installation angles and business models, significant economic benefits and carbon emission reduction outcomes can be achieved, providing practical guidance for renewable-energy utilization in high-altitude transportation infrastructure. Full article

In the realm of financial management, optimizing the allocation of funds in banking companies is vital to their operational efficiency. Banks manage their funds by allocating them into reserve and credit funds as the main activities of banking. Optimizing these allocations ensures that all assets are effectively utilized. However, real-life optimization problems often involve uncertainty, making deterministic data assumptions insufficient. Robust Optimization is a methodology that addresses these uncertainties by incorporating computational tools to solve optimization problems with uncertain data. The uncertainty approach used in robust optimization is polyhedral sets. In the context of banking, uncertainties influencing the allocation of reserve and credit funds include financial risks and returns. These risks can be quantified using Conditional Value-at-Risk (CVaR), a suitable measure for banking fund allocation due to its ability to accommodate varying risk characteristics under different business conditions. This study focuses on developing an optimization model for reserve and credit fund allocation in banking companies using a Multi-objective Robust CVaR approach with lexicographic, informed by business risk data and credit instruments. The resulting optimization model yields optimal allocations for reserve and credit funds, ensuring efficient asset utilization to support banking operations. This approach offers new perspectives for banks to achieve fund allocations that are not only regulatory compliant but also optimal. The implications of such optimal allocations include mitigating risks associated with reserve fund imbalances and enhancing profitability through optimal credit returns. Full article

Degrowth scholars emphasize the importance of the foundational economy (FE) for ‘living well within planetary boundaries’. The foundational economy describes the provision and regulation of everyday goods and services needed for the satisfaction of basic needs, such as housing, care, education, energy, food and mobility. However, there is a lack of conceptual models linking FE production and consumption to biodiversity conservation and restoration. This paper develops an ecological–economic model of ecosystem services, biodiversity conservation, and the foundational economy. It embeds FE sectors in the whole economy and provides economic arguments both on the supply side (e.g., economies of scale, scope and density; transaction costs) as well as on the demand side (e.g., trust in institutions; universal basic services; willingness to accept changes) in favor of resource efficiency. Compared to extractive and financialized business models, the FE production has major environmental advantages, especially if connected to public and not-for-profit economic activities. Though FE production is certainly a necessary condition for biodiversity conservation, it is not per se a sufficient strategy. The foundational economy is also embedded in natural processes; thus, respective institutional, legal and economic frameworks are needed to limit the environmental impacts of FE. Full article

Bangladesh’s electricity use is growing rapidly, but it has limited fossil fuel reserves. This disadvantage makes it harder for the country to provide people in densely populated cities with access to reliable energy. Solar photovoltaic (PV) electricity could solve these problems by making the grid less dependent on fossil fuels, cutting carbon emissions, and encouraging businesses and institutions to switch to cleaner energy sources. This study designs and simulates a 27 kWp grid-connected solar photovoltaic (PV) system for the University of Asia Pacific (UAP) in Dhaka, Bangladesh. The system has 80 SunPower SPR-MAX2-340 modules and one Sunways STT-30KTL-P inverter. It is expected to generate 36,412 kWh of electricity every year with a performance ratio (PR) of 82.42%. The economic analysis indicates that the system is financially profitable, with a levelized cost of energy (LCOE) of 0.0613 USD/kWh and a payback period of 5 years. The environmental assessment also states that the system will reduce emissions by 503.0 tCO₂ over its lifetime. The results indicate that solar PV systems in cities in Bangladesh could be a long-term solution for meeting energy needs. The overall results show that grid-connected solar PV systems can be a viable, long-term solution for meeting Bangladesh’s urban energy needs. Full article

In the fiercely competitive sharing market, manufacturers have launched product sharing/leasing services through business-to-customer (B2C) and peer-to-peer (P2P) platforms. To reduce the channel conflicts caused by product sharing, manufacturers expand product lines by renting products of different quality on their B2C platform. In this paper, we investigate the product lines in a vertically differentiated duopoly. We examine competing manufacturers’ three product line strategies: the no-product line strategy, the high-end product line strategy, and the low-end product line strategy. We characterize the equilibrium outcomes under these strategies and investigate the manufacturers’ preferences regarding these strategies. Our findings reveal a unique equilibrium: the high-quality manufacturer prefers offering a high-end product line, while the low-quality manufacturer opts for a low-end product line. This configuration leverages each firm’s comparative advantage, mitigates channel conflict, reduces cannibalization, and supports effective market segmentation. The equilibrium leads to a Pareto improvement and enhances operational efficiency for both firms. These results suggest that aligning product line design with intrinsic product quality can balance profitability and market efficiency in shared markets. Full article

The benefits of the servicizing business model, in which a firm sells the use or functionality of a product rather than the product itself, extend beyond attracting new customers and driving economic growth. Aligned with circular economy principles, servicizing promotes sustainability by encouraging firms to enhance product durability and customers to be more mindful of their amount of usage. However, the lack of product ownership may lead to product misuse, negatively affecting both economic and environmental outcomes. This study addresses product misuse as a major risk to servicizing firms’ performance and investigates whether, and under what conditions, adopting Behavior-Dependent Pricing (BDP) can mitigate this risk. Leveraging digital technologies such as the Internet of Things (IoT), we develop a BDP model in which a firm monitors customers’ usage behavior and provides monetary incentives for more sustainable use. We identify conditions under which BDP leads to a win–win–win outcome by increasing firm profits, enhancing customer utility, and reducing environmental impacts. This study provides firms with insights on how and when servicizing can be less vulnerable to product misuse risk that could undermine profitability, thereby encouraging adoption of the servicizing business model and generating economic and environmental benefits. Full article