How large are competitive pressures in services markets?

Bottini, Novella; Molnár, Margit

doi:10.1787/eco_studies-2010-5kmh5x5dbkf8

Cited by 11 publications

(6 citation statements)

References 12 publications

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“…More broadly, the literature on services has established that services are subject to larger trade frictions than goods, or in other words to less international exposure (Miroudot et al, 2013) and that competition in services is overall less intense than in goods sectors (Bottini and Molnar, 2010). While not pretending to provide a single explanation for either of these two stylised facts, this paper links them through the lens of services trade restrictiveness.…”

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confidence: 89%

Services Trade Restrictiveness, Mark-Ups and Competition

Rouzet

Spinelli

2016

OECD Trade Policy Papers

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This report explores the relationship between services trade policies and markups at the firm level, taken as a measure of competitive pressure. Restrictive regulations are found to enable firms to charge higher markups in a majority of services sectors, suggesting ample scope for pro-competitive gains from trade liberalisation. Barriers to establishment consistently enable incumbent firms shielded from competition to raise their prices, while a lack of regulatory transparency and complex administrative procedures tend to add to all firms' operating expenses. A "tax equivalent" of trade-restrictive regulations is then inferred from the abnormal price-cost margin of domestic firms in each service sector. These estimates indicate the magnitude of the welfare costs of regulatory trade restrictions across sectors and countries. The sectors with the highest average tax equivalents of STRI indices are broadcasting, construction, storage, and air and maritime transport, while those with the lowest averages are road transport, architecture and cargo-handling. There is however considerable variation between countries in all sectors.

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confidence: 89%

Services Trade Restrictiveness, Mark-Ups and Competition

Rouzet

Spinelli

2016

OECD Trade Policy Papers

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“…These empirical findings clearly signify how critical it is to consider number of bidders and competitiveness of potential bidders in deciding mark-up size, especially given the highly competitive business environment in the construction industry. The industry has been characterised by substantially lower mark-ups compared to other industries due to the large competitive pressure (Molnár and Battini, 2010).…”

Section: Discussionmentioning

confidence: 99%

Mark-up on construction projects: what have we learnt in the last 20 years?

Lim

Runeson

2022

ECAM

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PurposeWith the aim to provide a global view of factors affecting mark-up size on construction projects, this study performs a meta-analytical review of the relevant studies over the past 20 years.Design/methodology/approachThe analytical process involved the identification and evaluation of the importance of critical factors affecting mark-up size on construction projects, and the assessment of the generalisability of findings of the meta-analysis. A random-effects model was adopted in the statistical meta-analysis.FindingsThe results show that there are 23 critical factors, and the top five factors are: (1) competitiveness of other bidders; (2) number of bidders; (3) relationship and past experience with client; (4) experience on similar project; and (5) project size. A heterogeneity test further shows that there is no statistically significant heterogeneity across the studies, reinforcing the generalisability of the findings to a global context.Research limitations/implicationsThe list of critical factors from a global perspective should form a good basis for future efforts in bidding model development.Practical implicationsThe research findings have practical implications to both construction clients and contractors in formulating their contracting practices and strategies.Originality/valueThis is the first meta-analysis of a sizeable collection of replicated studies on factors affecting mark-up size on construction projects in the literature.

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“…As a result, the pressures increase the organization’s ability to craft strong and positive actions for the organizations instead of weakened course. The pressures will act as a catalyst to increase competitiveness (Bottini & Molnár, 2011 ).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The Influence of the Barriers of Hybrid Strategy on Strategic Competitive Priorities: Evidence from Oil Companies

Alnoor

Khaw

Chew

et al. 2023

Glob J Flex Syst Manag

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This study examines the impact of the barrier of adopting hybrid strategy on strategic performance using the oil sector in Iraq as a case. International oil companies consider various strategies in order to achieve superior performance. The procedure needs to overcome certain essential barriers for the adoption of the hybrid strategy that combines the cost leadership and differentiation strategy. The questionnaire was distributed online due to the COVID-19 pandemic that led to the closure of companies in the country. Out of the 537 questionnaires answered, 483 were used for further analysis which yielded usable response rate of 90%. The structural equation modeling results confirmed that the high costs of technologies, the priority of other external matters, inadequate industry regulation, insufficient supply, organizational capabilities, strategic capabilities, and financial capabilities are significantly related to strategic performance. The researchers recommend conducting an in-depth study of the phenomenon based on theoretical and empirical foundations, especially considering the relationship between the barriers of a hybrid strategy and strategic performance based on linear and non-compensatory relationships. This research sheds light on the barriers to adopting the hybrid strategy required by the oil sector as it relies on continuous production.

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How large are competitive pressures in services markets?

Cited by 11 publications

References 12 publications

Services Trade Restrictiveness, Mark-Ups and Competition

Services Trade Restrictiveness, Mark-Ups and Competition

Mark-up on construction projects: what have we learnt in the last 20 years?

The Influence of the Barriers of Hybrid Strategy on Strategic Competitive Priorities: Evidence from Oil Companies

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