Abdullah Altun, Taner Turan and Halit Yanikkaya
The study evaluates the effects of GVC participation on firm productivity and profitability. Hence this study aims to find evidence whether there is a clear difference between the…
Abstract
Purpose
The study evaluates the effects of GVC participation on firm productivity and profitability. Hence this study aims to find evidence whether there is a clear difference between the productivity and profitability effects of simple and complex backward and forward participations for Turkish firms.
Design/methodology/approach
The authors employ a firm level data from the Türkiye's both first and second top 500 industrial enterprises from 1993 to 2019. In addition, the authors calculate country-sector level both backward and forward GVC participation indices with their simple and complex sub-indices for each year from 1990 to 2015 from the Full Eora data of the Eora Global Supply Chain Database. The authors estimate the model with OLS and fixed effects. To understand the role of the 2008 global crisis, the authors also undertake estimations for the pre-crisis and post-crisis. The authors also divide the data by R&D intensity of sectors.
Findings
While backward GVC participation lowers both labor productivity and profitability growth, forward GVC participation promotes both. Moreover, simple and complex backward participation have similarly negative effects on productivity and profitability growth, simple and complex forward participation have the completely opposite effects though. The authors then provide substantial evidence for the differing effects of participation on productivity and profitability growth between pre-crisis and post-crisis periods. Interestingly, backward participation has a negative impact for both hi-tech and low-tech firms while forward participation boosts the productivity growth only for low-tech firms, probably due to the relatively more upstream position of low-tech firms.
Originality/value
To the best of the knowledge, no previous study has yet examined the profitability effects of GVC for firms. Second, in addition to overall backward and forward GVC participation rates, the authors also calculate and utilize simple and complex GVC measures in the estimations. Third, to reveal whether the global financial crisis leads to a shift in the productivity and profitability effects of GVCs, the authors separately run the regressions for the pre- and post-crisis periods. Fourth, the authors then investigate the argument that hi-tech sectors/firms could benefit more from joining GVCs compared to firms in low-tech technology sectors.
Details
Keywords
Sumanjeet Singh, Dhani Shanker Chaubey, Rohit Raj, Vimal Kumar, Minakshi Paliwal and Seema Mahlawat
This study explores the intricate relationship between social media communication, consumer attitude and purchase intention within the context of lifestyle category products. With…
Abstract
Purpose
This study explores the intricate relationship between social media communication, consumer attitude and purchase intention within the context of lifestyle category products. With the rapid proliferation of social media platforms, businesses have turned to these platforms to connect with consumers and influence their purchasing decisions. This study aims to provide an in-depth analysis of how social media communication strategies impact consumer attitudes and, in turn, influence purchase intentions.
Design/methodology/approach
The study employs partial least squares structural equation modeling (PLS-SEM) to analyze the data collected from a sample of consumers.
Findings
The results of this study present that lack of visibility (LV), low-efficiency levels (LEL) and unpredictable elements (UE) are ranked as the top three major risk hurdles whereas real-time information on a package’s location (LV1), putting a GPS tracking system to track last-mile journey (OT3) and users wants on time location of their package (LV2) are ranked as top three most significant criteria affecting the practices of modern last-mile logistics in e-commerce businesses.
Research limitations/implications
The results of this study contribute to our understanding of how social media influences consumer behavior in the lifestyle product sector, shedding light on the underlying mechanisms that drive consumer purchasing decisions.
Originality/value
By constructing and testing experimentally a research model that reveals a thorough analysis of pertinent literature and identifies multiple important elements influencing consumer behavior in the lifestyle category, this paper adds to the body of knowledge on marketing. Practical ramifications for lifestyle firms are examined, along with suggestions for improving their social media tactics, in light of the findings.