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The purpose of this study is to determine the relationship between the geographic market size of businesses and the competitiveness of being able to bid at low prices.
Abstract
Purpose
The purpose of this study is to determine the relationship between the geographic market size of businesses and the competitiveness of being able to bid at low prices.
Design/methodology/approach
The design of this study is based on a natural experiment approach. Firstly, after controlling for the firm size and other factors, the author sees that firms participating in bidding in a large region are more competitive to bid at lower prices than firms doing business in a smaller region. The author then tests for causality in a natural experiment of the exogenous event.
Findings
The results show that firms participating in the bidding process in a large area are more competitive to bid at lower prices than firms doing business in a small area. This is tested in a natural experiment, and the result is that they are more competitive because they do business in a larger area.
Practical implications
The practical implication is that, when aiming for competitiveness, it is most important to consider the nature of the business and to see the essence of the business, for example, that networks are important in the construction industry, and that doing business over a wide area is the way to become competitive.
Social implications
The social implications are that to make firms more competitive, we must look at the characteristics of the industry and come up with policies that fit the reality, such as encouraging them to do business in a wide area.
Originality/value
The originality of this study is that this study viewed competitiveness as being able to bid low prices for public procurement and found that doing business in a wide area is competitive. Furthermore, the causal effect of the study was to test the fact that doing business in a wide area does not mean doing business in a wide area because it is competitive, but that doing business in a wide area creates a competitive advantage.
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Tomonori Hasegawa, Koki Hirata and Kunichika Matsumoto
This article analyzes the challenges of infectious disease control under a super-aged society through Japan’s experience with COVID-19.
Abstract
Purpose
This article analyzes the challenges of infectious disease control under a super-aged society through Japan’s experience with COVID-19.
Design/methodology/approach
This article provides an overview of Japan’s COVID-19 measures and their characteristics, discusses their successes and failures, and identifies future challenges.
Findings
Japan’s basic strategy for COVID-19 consists of three parts: the border defense (Stage 1), slowing down the spread (Stage 2), and damage control (Stage 3). One key policy feature in Stage 2 and Stage 3 is based on “voluntary restriction”. It had a certain effect, but it was prolonged with each recurring “wave of infection”, resulting in economic exhaustion and people’s dissatisfaction. Thus, the effect of the voluntary restriction has weakened, while the percentage of people who have been vaccinated is improving, making it difficult to predict the damage of the next “wave”. Under the hyper-aged society, it was necessary to identify and protect particularly vulnerable areas, i.e., psychiatry hospitals, chronic care hospitals, and long term care (LTC) facilities. On the other hand, secondary impacts extend to young people. The most serious one is the decrease in births which further accelerates the aging of society.
Originality/value
This study is original as it investigated why Japan’s unique countermeasures against COVID-19 without mandatory lockdown worked well for a considerable period. It also revealed that secondary impacts of the COVID-19 epidemic are broader and more significant than the direct loss of life, and that the social system, especially super-aged society with many vulnerable areas should be reformed in consideration of the threat of infectious diseases. Lessons from the Japanese case may contribute to other countries.
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