The purpose of this paper is to compute an aggregate misalignment index using a multiple indicator approach to identify under- or over-valuation of house prices in Malta based on…
Abstract
Purpose
The purpose of this paper is to compute an aggregate misalignment index using a multiple indicator approach to identify under- or over-valuation of house prices in Malta based on fundamentals.
Design/methodology/approach
A total of six indicators are used that capture households, investors and system-wide factors: the house price-to-Retail Price Index ratio, the price-to-hypothetical borrowing volume ratio, price-to-construction costs ratio, price-to-rent ratio, dwelling investment-to-GDP ratio and the loan bearing capacity. The weights are derived using principal component analysis. The analysis is performed using both the house price indices of the National Statistics Office (NSO) and the Central Bank of Malta (CBM), which are based on contract and advertised prices, respectively.
Findings
House prices in Malta were overvalued by around 20 to 25 per cent in the pre-crisis boom. This disequilibrium started to be corrected following the decline in house prices, with the CBM and NSO house price cycles reaching a trough in 2013 and 2014, respectively. At the trough, house prices were undervalued by around 10 to 15 per cent. Since then, house prices started to recover although the recovery in advertised prices was more pronounced compared to that based on contract prices. In mid-2017, advertised house prices were slightly overvalued, while contract prices still have to reach their equilibrium level. The dynamics from the misalignment index, including its peaks and troughs, are remarkably similar to the range derived from statistical filters.
Practical implications
Estimates of house price misalignment have both economic and financial stability implications.
Originality/value
This paper allows for a decomposition of the house price cycle, tailored for the particular characteristics of the Maltese housing market. It also takes into account the relationship between house prices and private sector rents, which in recent years have been buoyed, among other factors, by the high inflow of foreign workers and changing patterns in the tourism industry.
Details
Keywords
Brian Micallef, Reuben Ellul and Nathaniel Debono
The private rental market in Malta has expanded significantly in recent years, but as at 2020, no official rent index is yet published. This paper aims to construct such an index…
Abstract
Purpose
The private rental market in Malta has expanded significantly in recent years, but as at 2020, no official rent index is yet published. This paper aims to construct such an index and explores the relative importance of structural, locational and neighbourhood factors to advertised rents.
Design/methodology/approach
The authors compile hedonic indices for advertised rents in Malta collected from publicly available sources using webscraping techniques. The database comprises more than 25,000 listings with information on various property attributes. Hedonic regressions are estimated using ordinary least squares and rent indices are computed using three alternative methods: the time dummy method, the rolling time dummy method and the average characteristics method. For the latter, indices are computed using the Laspeyres, Paasche and Fisher methods.
Findings
The results from the hedonic indices indicate that the annual growth rate in advertised rents was slowing down during 2019, albeit still remaining relatively high, while in 2020, advertised rents contracted sharply, amplified by the effects of COVID-19. The findings also reveal that advertised rental prices are significantly influenced by various structural, locational and neighbourhood factors.
Originality/value
This paper introduces the first rent index in Malta that will be used to monitor developments in the rental segment of the housing market and for financial stability purposes given the share of buy-to-let properties. It also provides various elasticities on the impact of property attributes on advertised rents in Malta. Finally, the study contributes to the literature on the effect of foreign-born residents on advertised rents.
Details
Keywords
Frank Wiengarten, Brian Fynes, Paul Humphreys, Roberto C. Chavez and Alan McKittrick
This paper seeks to report the results of an empirical study examining the value creation process of e‐business (EB) applications from a supply chain perspective.
Abstract
Purpose
This paper seeks to report the results of an empirical study examining the value creation process of e‐business (EB) applications from a supply chain perspective.
Design/methodology/approach
A questionnaire was sent to procurement managers located in the German automotive supply chain. Interaction effects were examined through regression analyses to illustrate the moderating role of the suppliers' EB readiness in the value creation process throughout the supply chain.
Findings
Based on the resource‐based view (RBV) and previous research this study illustrates that EB applications (i.e. EB interaction applications, EB coordination applications and EB integration applications) have a significantly stronger positive impact on operational performance when a company's key suppliers are ready and willing to engage in EB (suppliers' EB readiness).
Originality/value
Although research on the performance impact and business value of EB applications has advanced over the past years, there is still a scarcity of research taking a supply chain perspective on EB value. This study addresses this gap through reporting results of an empirical study examining the value creation of EB applications through the moderating role of suppliers' EB readiness on the EB applications‐operational performance relationship throughout the supply chain. This paper will thus be beneficial for supply chain managers considering investing in EB systems and will support further research in EB value creation in supply chains.
Details
Keywords
The purpose of this paper is twofold: to explore the distribution and pricing characteristics of Airbnb listings in Malta as at May 2019; and to develop a pricing model to…
Abstract
Purpose
The purpose of this paper is twofold: to explore the distribution and pricing characteristics of Airbnb listings in Malta as at May 2019; and to develop a pricing model to determine the factors which have a statistically significant impact on price per night of listings.
Design/methodology/approach
A descriptive analysis of location and pricing of listings was undertaken via heat mapping techniques. A cross-sectional ordinary least squares (OLS) regression was run to determine the statistically significant variables.
Findings
Listings tend to cluster around not only in traditional tourist towns but also in rural areas which opens up new opportunities for tourist lodging. The Southern Harbour region was found to be the most expensive with the Gozo and Comino region being the least expensive. The coefficients of the pricing regression model were in line with a priori expectations.
Research limitations/implications
The study is based on a cross-sectional data set and thus fails to account for seasonal changes in prices. Likewise, the use of an OLS regression without incorporating quantile regression methods or spatial autocorrelation econometric techniques is another limitation of this study.
Originality/value
The paper is one of the few related to sharing economy rental platforms, particularly in Malta. It is also the first study in Malta to develop a comprehensive pricing model to determine what affects a listing’s price per night and the extent to which certain factors do so.
Details
Keywords
Brian R. Webb and Frank Schlemmer
Web services promise a step change in business‐to‐business application models and practices. But how do we measure web services' performance? Because web services are so new, and…
Abstract
Purpose
Web services promise a step change in business‐to‐business application models and practices. But how do we measure web services' performance? Because web services are so new, and implementations so few, the purpose of this paper is to take internet performance as a proxy for web services performance.
Design/methodology/approach
The authors surveyed 106 e‐business SMEs to identify key drivers for internet performance, and then predicted web services performance.
Findings
Surprisingly, it was found that while business resources and IT resources positively impact internet performance, dynamic capabilities do not. Also, there appear to be significant firm size effects.
Originality/value
The implications of these findings for the strategic management of web services are discussed, and in particular, managers' need to balance resources and capabilities in volatile business environments.
Details
Keywords
Frank Schlemmer and Brian Webb
This research aims at examining the role of the managing director in the development of dynamic capabilities at SMEs.
Abstract
Purpose
This research aims at examining the role of the managing director in the development of dynamic capabilities at SMEs.
Design/methodology/approach
The paper used a mixed‐methods approach and conducted case studies at 13 SMEs. The primary sources of data were semi‐structured interviews, which were supplemented by quantitative data from a postal survey and content analysis of the companies' websites.
Findings
The paper suggests that managing directors “enact” in the development of dynamic capabilities, if they believe that dynamic capabilities are a source of competitive advantage. If they do not appreciate the importance of dynamic capabilities they can get trapped in a vicious circle.
Research limitations/implications
This research focuses especially on small firms, and it is unlikely that the findings can be applied to large firms.
Practical implications
The key managerial implication is the threat of a vicious circle if the development of dynamic capabilities is neglected.
Originality/value
This paper draws the dynamic capabilities framework and the enactment concept together, suggesting that managerial decisions and behavior affect dynamic capabilities at an organizational level, which then drives firm performance.
Details
Keywords
Frank Wiengarten, Paul Humphreys, Alan McKittrick and Brian Fynes
The internet and web‐based technologies have enabled the integration of information systems across organisational boundaries in ways that were hitherto impossible. The measurement…
Abstract
Purpose
The internet and web‐based technologies have enabled the integration of information systems across organisational boundaries in ways that were hitherto impossible. The measurement of e‐business (EB) value has been traditionally considered as a single construct. However, the desire to develop a comprehensive understanding of the impact of EB applications from a theoretical perspective has resulted in the modelling of multiple EB constructs. The impact of EB enabled collaboration on operational performance was also investigated. The purpose of this paper is to explore the enabling role of multiple dimensions of EB investigating if all EB applications impact directly and positively on supply chain collaboration.
Design/methodology/approach
A web‐based survey was carried out to collect data within the German automotive industry. Structural equation modelling was conducted to test the measurement and structural model.
Findings
The results provide justification for the modelling of EB in multiple dimensions. Furthermore, some EB applications impacted positively on supply chain collaboration whilst some did not. The results also proved that EB enabled collaboration impacted directly and positively on the multiple dimensions of operational performance tested.
Practical implications
EB applications cannot be viewed by practising managers as being universally beneficial in improving collaboration across a buyer‐supplier boundary. However, the results reveal that, by carefully selecting the most appropriate EB applications, operations improvement benefits can be realised across a range of operational metrics due to enhanced supply chain collaboration.
Originality/value
The deconstruction of EB into multiple constructs will enable the measurement of EB value to be more accurately assessed. Furthermore, the direct impact of EB‐enabled collaboration to facilitate interaction and integration and its impact on operational performance adds to the body of knowledge within the larger research field of supply chain collaboration.
Details
Keywords
Man Zhang and Patriya S. Tansuhaj
The increasing economic importance and the number of born global firms make it worthwhile to study what leads to their success in the international market. To better understand…
Abstract
The increasing economic importance and the number of born global firms make it worthwhile to study what leads to their success in the international market. To better understand this international business phenomenon, we conducted in‐depth interviews with managers, coupled with public database and Web site searches. Research propositions were developed based on an extensive qualitative method. The relationship between organizational culture, information technology capability, and performance is proposed in the context of born global firms, based on viewing the concept of IT capability from the resource‐based view. We further provide recommendations for managers, theoretical contributions and suggestions for future research.
Details
Keywords
Brian West and Garry D. Carnegie
The purpose of this paper is to explore the circumstances and implications of an episode of accounting change arising from the extended use of accrual accounting within the…
Abstract
Purpose
The purpose of this paper is to explore the circumstances and implications of an episode of accounting change arising from the extended use of accrual accounting within the Australian public sector. The matter under scrutiny is the reporting of the library collections of Australia's public universities as assets in general purpose financial reports.
Design/methodology/approach
A survey is undertaken of the annual reports of Australia's 36 public universities for the period 2002 to 2006. The analysis of the findings is informed by new institutional sociology (NIS), with a focus on mimetic processes, and the concept of “accounting's margins”.
Findings
The survey reveals considerable diversity and subjectivity in the accounting practices adopted, as well as instances of sudden and dramatic changes in carrying values. The financial reporting of library collections is depicted as a “chaotic margin” of accounting, and the technical propriety of attempting to express and account for these non‐financial resources in financial terms is rendered problematic.
Originality/value
The study questions the reliability and usefulness of the information reported, with implications for the accountability of the institutions surveyed as well as the accounting profession in the comparatively neglected domain of the public sector.
Details
Keywords
The aim of this paper is to study the workings of commercial orientation, with a focus on performance management, in an environment that is characterised by limited competition…
Abstract
Purpose
The aim of this paper is to study the workings of commercial orientation, with a focus on performance management, in an environment that is characterised by limited competition between the public and the private sectors and a high level of government social responsibility.
Design/methodology/approach
An interpretive case study approach is adopted for this study. It draws on primary data from interviews with key personnel in public sector organisations, and on secondary data from government publications such as annual reports and budget papers.
Findings
This study shows that the market‐based performance management system has failed to achieve its intended objectives because it was introduced in a socio‐economic context that is hardly supportive of market management practices. The study shows that service delivery to the public has remained driven by social rather than economic imperatives. In the absence of other service providers, the Government's social responsibility towards its citizens has compelled service provision irrespective of the cost and reduced the cost‐benefit relationship in having informative costing systems.
Practical implications
Examining the workings of a market‐based performance management system in a non‐competitive setting provides evidence of the difficulty of achieving the intended benefits from the adoption of commercial practices in public sector agencies in some cases.
Originality/value
Whereas extant literature focuses on the adoption of business practices in the process of public sector reform, no prior study has looked at this concept in a non‐competitive market. Understanding the workings of the market practices in such an environment where contestability is limited is fundamental to policy makers and researchers.