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This paper is motivated by two observations in the large civil aircraft (LCA) industry. (1) Boeing and Airbus are significantly different in the degree of offshoring. (2) The degree of offshoring also changes among different aircraft models. To offer an explanation, this paper focuses on issues related to fragmentation. Existing literature has established the tie between fragmented technology and offshoring. However, it is assumed that production can be fragmented readily and at no cost; and only exogenous global economic factors have impact on the degree of fragmentation. This model distinguishes itself from others by incorporating endogeneity in fragmentation. A final-good firm can spend on R&D specifically for its own fragmented technology. As a result, the final-good firm can optimally choose the portion of components to be offshored. A strategic trade policy model is used to show that the degree of offshoring depends on the firm's own cost of production, the host country's cost of production, the global state of technology as well as the government trade policies. In particular, export subsidy and subsidy on R&D of fragmented technology are shown to be policy substitutes. Keywords: Fragmentation; Offshoring; Outsourcing; Aircraft; Export subsidy; R&D subsidy; Boeing; Airbus JEL classification: F12; F13; F23; L13

Objective: As a world tourist destination, Macao is inevitably under the impact of the COVID-19 pandemic. However, the market of integrated resorts in Macao are shared by only a few casino concessionaries, together forming an oligopoly. While the firms attempted to adjust price, quantity and quality of their hotel services in response to the pandemic, they could not overlook the strategic interactions with other players in the market. Hence, this paper aims to investigate the possible impact of the pandemic on the oligopolistic strategies in the integrated resort market in Macao. Methodology: Application of a theoretical model of differentiated oligopoly to this six-firm case shows that price differences across firms depend on their quality differentiation. In order to analyze these price differences empirically, this paper collects data of hotel room rates of the integrated resorts from November, 2019 to mid-August, 2020, covering the periods before and after the outbreak of COVID-19. Originality: In the existing literature, there is a lack of studies of the oligopoly in the hospitality industry of Macao. Furthermore, the effect of COVID-19 is still ongoing, so this present paper is one of the first to perform such analysis. Results: The regression of each of the hotel price differentials on the COVID-19 dummy variable shows that COVID-19 has statistically significant impacts on almost all the price differentials. Intuitively, MGM and Wynn were in the high-price segment before and after the outbreak, while other firms switched positions in the low-price segment during the pandemic. One obvious downstream movement was by Conrad. According to the proposition derived from the theory, these imply that COVID-19 should have significant impact on the quality differentiation of the firms. Practical implications: The results are in line with the observations that the integrated resorts have rolled out staycation packages according to preferences of local residents. These quality adjustments observed in Macao’s hospitality industry currently only involved variable inputs rather than fixed inputs of production; therefore, the impact of COVID-19 should be seen as short-term effects. Keywords: Covid-19; Differentiated oligopoly; Hospitality industry; Hotel room rate; Oligopolistic market structure; Pricing strategy.

This paper aimed to build up the theorical and conceptual understanding of future forecasting study of Macau’s GDP and Gross Gaming Revenue (GGR) by co-movement of economic indicators. Macau GDP and GGR showed co-movements with a number of time series economic indicators, including China’s exports and imports, China’s manufacturing PMI, non-manufacturing PMI, China's electricity production growth, share price of some Macau’s gaming operators, etc. These time series data can be found in statistics departments of China, Macau and Hong Kong, stock exchanges, and international organizations such as the International Monetary Fund (IMF), the World Bank, the World Trade Organization (WTO). Burns and Mitchell’s study in 1946 identified co-movements between economic indicators and being further carried out and developed leading, coincident and lagging indicators, which is essential for future econometric models and nowcasting techniques developments to study these co-movements. In particular, with the proper application of nowcasting techniques, future studies can exploit the data of leading and coincident economic indicators to forecast Macau’s GDP and GGR within an acceptable level of error. Since Macau is a “monotown,” where the gaming revenue makes a significant contribution to the economy. The forecasting of gaming revenue is crucial as it aids the gambling and tourism industries in preparing supply and provides information to policymakers to plan for the near future. This research also contributes to understand Macau’s economy by investigating its internal and external economic variables.

This study analyzes the green marketing strategies with specific reference to the hotel industry. The concept of green marketing in this sector is crucial due to the growing expected importance of tourism in the future of global economy and its potential impact on social and economic development; this is true particularly in areas with relevant volumes of tourist arrivals. In this sense, we carried out an exploratory research in the hotel industry of the Special Administrative Region (SAR) of Macao in order to: highlight the primary motivations that underlie interventions geared towards the eco-sustainability of hotels, the services they offer and point out the problems, issues, and future prospects in the development of green marketing, as well as explore the role of eco-sustainable values in hotels’ online communication policies. In order to reach these aims a qualitative research was carried out with a semi-structured questionnaire (face-to-face interviews) to a group of hotels. The research was finished by an analysis of their websites, in order to verify possible references to the steps taken to protect the environment.

Over the years Macao has been exposed to different cultures and has been influenced by various political and economic interests. The booming casino economy has ultimately transformed the city into the largest gambling hub in the world. In spite of the consensus about Macao's shiny future, there are factors (such as the large reliance on a single industry) and socio-economic problems (such as labor shortage, unequal income distribution, and inflationary pressure) that moderate the optimism. By making use of the Chatterjee and Nankervis' convergent and divergent process model for management, this paper examines how global, regional, and local forces have impacted the economic development process, form and type of organizations in Macao. The paper also suggests that the government implement a framework that develops and diversifies the economy but also takes into consideration the social needs of the community.

YouTube has become increasingly popular for marketing purposes. As corporate and user-generated content is widely available on this platform, beauty-related professionals need to understand how to create videos that make their products more appealing and stand out from the clutter. In this study, we examine four factors (i.e., perceived usefulness of the information, perceived credibility of the information, attitude toward the purchase, and perceived video characteristics) that affect the purchase intentions of female consumers. After viewing beauty-related videos, a sample of 204 female consumers was analyzed by structural equation modeling. The findings showed that videos with more views, likes, and comments tend to have a greater effect on the respondents' intentions to purchase. Also, the factors of perceived usefulness of the information, perceived credibility of the information, and attitude toward the purchase exhibited a significant effect on the intention to buy beauty-related products. The result showed that perceived video characteristics (such as quality and visuals) did not significantly influence the purchase intention, however, there is evidence that this factor should not be ignored by content creators. Finally, our research provides insights, strategies, and future directions for industry practitioners and marketers.

Molecular Chinese Medicine (MCM) is a recent method of manufacturing and dosing prescriptions that brings several advantages when compared with Traditional Chinese Medicine (TCM). For instance, MCM is highly dissoluble, tastes better than the usual decoction, and the active principles are easily absorbed. Also, the manufacturing process is subject to better quality control. In spite of these benefits, consumers' intentions remain unclear due to the novelty of this technique. Therefore, an assessment of individuals' perceptions is relevant since molecular medicine is redefining how scientists understand and treat diseases, and it can be considered a medical innovation. To fill the research gap, the Value-based Acceptance Model (VAM) (Kim et al., 2007) is used to assess the individuals' perceptions of value and intention to accept MCM. Data from a sample of Macau residents are analyzed by means of structural equation modeling (SmartPLS). The results support the use of the model in our context, thus extending the applicability of the VAM to other settings. Except for 'technicality', the constructs of 'usefulness', 'enjoyment', and 'perceived fee' had a significant impact on the overall 'perceived value' of MCM, and in turn on the behavioral intention to use the innovation. To facilitate the diffusion of this dosage method in the marketplace, it is suggested that communications strategies consider the proposed sources of value when promoting MCM. To further explain the adoption process, it is recommended to include additional factors that may affect consumers' intention to adopt the innovation and extend the analysis to the actual usage.

The decision to accept and use technology innovations has long been a source of debate across disciplines due to the complexity involved in predicting behavior. Recognizing that the subject is vast and fragmented, this paper examines the mainstream technology works to assist researchers to understand, conceptualize and select the most appropriate theoretical framework for their study. Starting with the pioneering effort on Diffusion of Innovations (DOI/IDT), the analysis considers the Theory of Reasoned Action (TRA), the Theory of Planned Behavior (TPB), the Technology Acceptance Model (TAM/TAM-2/TAM-3), the Value-based Acceptance Model (VAM), and the Unified Theory of Acceptance and Use of Technology (UTAUT/UTAUT-2) among the most important. A review of the key literature is vital to assessing and identifying research trends, as well as contributing to the discussion of emerging technologies such as Artificial Intelligence (AI), Augmented Reality (AR), Blockchain, Cloud Computing, Internet of Things (IoT), Mobile Apps, etc. Suggestions for future research paths are also provided.

Macau has long been considered to be an example of remarkable economic growth. With the opening of the gaming sector in 2002, the casino and hospitality sector flourished, creating employment opportunities but also imposing several challenges on managers. Since Macau endeavors to be positioned as the center for international business with Portuguese-speaking countries and a platform for trading with China’s Greater Bay Area (GBA), it becomes essential for international enterprises to understand the local dynamics. In light of the limited research available, this study aims to identify management challenges from the perspectives of senior executives in different industries based in Macau. Our findings point out that managers must contend with several issues, such as the lack of a skilled local talent pool, high turnover rates, employees' work attitudes, and a tightly controlled immigration policy. It is also imperative for international managers to nurture relationships and pay attention to the local culture. Our results suggest that Macau has to develop a highly skilled local workforce to attract international companies, while local organizations also have to create an attractive working environment to compete in the marketplace.

Citizens' trust in eGovernment is crucial for the successful implementation of new electronic services. This relationship in the Greater Bay Area (GBA) plays an essential role since the Government services rely on mobile mini-programs This study investigates the trust towards government service mini-programs in WeChat and Alipay. A user feedback questionnaire was designed, and a total of 609 valid samples were collected from Shenzhen, Guangzhou, Hong Kong, and Macau. The findings imply that competence, integrity, and benevolence are the key components of trust in e-government (TIEG). TIEG positively influences perceived value (PV), which positively affects citizens' Intention to adopt service mini-programs. PV significantly mediates the relationship between TIEG and Intention. Although TIEG does not effectively reduce perceived risk (PR), risk issues cannot be ignored in the adoption process. Finally, this article proposes relevant implications and suggestions for the GBA government agents and policy makers.

The Guangdong-Hong Kong-Macau Greater Bay Area (GBA) was first conceptualized in 2016, which aimed to facilitate trade and finance liberalization among the three regions. The trade and financial environment of the GBA is unique. Due to the “one country, two systems” principle, Mainland China, Hong Kong and Macau are considered to be trading partners bounded by WTO rule, but bilateral free trade agreements have been signed between Mainland China and Hong Kong, and between Mainland China and Macau, but not between Hong Kong and Macau. Furthermore, each of the three regions circulates a local currency subject to its own exchange rate policy, with Hong Kong Dollar and Macau Pataca currently pegged to the US Dollar. These affect the mobility of trade and capital flows in the area. Hence, this paper applies the widely-used price-based approach due to Cheung et al. [5] to analyze the degrees of real and financial integration in the GBA based on interest rates, exchange rates, and price indexes data from January, 2016 to November, 2021. The real interest differential (RID), uncovered interest differential (UID) and the deviation from purchasing power parity (PPD) between each regional pair have means that are statistically and economically close to zero, implying high real and financial integration in the GBA. The unit root tests for stationarity also confirm that the time series are mean-reverting, so the economic integration in the GBA in the long run is foreseeable.

Technology research offers several theories and models to explain how individuals accept and use technology innovations. While these often focus on the technical aspects of the innovation, they tend to downplay the affective component of technology. Recognizing that the adoption of technology is also determined by what it means and represents to the users, this paper aims to fill the gap in the literature by studying the effects of social influence and image on the behavioral intention to adopt a technology. We used structural equation modeling (SmartPLS) to analyze data collected from 238 self-administrated surveys regarding the behavioral intention of Macau residents to use battery electric vehicles. The result showed significant relationships among the variables in the model and depicted the construct of image as a strong factor in the adoption decision. Our findings suggest that social influence may not exhibit substantial impact in the case of innovations in their initial phase and, more importantly, the construct of image could be included as a key predictor of behavioral intention in technology acceptance models, particularly in contexts where the choices that consumers make are public, and therefore subject to judgments from the members of the community.

In recent years, entrepreneurship and innovation have been highly propagandised for Macau's economic development, diversification, and the Greater Bay Area (GBA). Since 2013, efforts have been exerted by the Macau government to encourage and support entrepreneurship, from the launching of the Young Entrepreneurs' Aid Scheme in 2013 and the Macau Young Entrepreneur Incubation Centre in 2015. While the failure rate of startups has been considered high in most parts of the world, the rate was only as low as 14% in Macau, with many businesses created every year. This research aims to study the unique entrepreneurial environment for small-to-medium enterprises (SMEs) starting up in Macau from the experience of local entrepreneurs who are benefactors of government support. In-depth interviews were conducted to understand the experience and perceptions of these entrepreneurs as they go through each stage of the entrepreneurial process. Existing research on entrepreneurial processes varies from the two-stage process, which focuses on the beginning of an enterprise, to the different models of various stages from ideas generation to exit or long-term development. From the consolidation of the literature on the entrepreneurial process, five key stages were taken to guide this qualitative research. Findings suggested that idea validation at the start of the entrepreneurial process is almost non-existent amongst our research subjects. Yet it does not affect the implementation and growth of these SMEs. The growth strategies tend to be steady and for the long term, with most SMEs having no consideration of an exit plan.

As the rate of change increases exponentially, organizations must adapt quickly to the business landscape's volatility, uncertainty, complexity, and ambiguity (VUCA). As a result, organizations must implement agile strategies and practices to ensure their responsiveness and readiness to any changes brought about by internal or external factors. With a greater number of changes, change agents are tasked with implementing various change management methodologies to ensure that change recipients accept change initiatives. This research will look at one of the methodologies used by change agents, the use of nudges from Thaler and Sunstein's Nudge Theory, which is a subtle intervention to influence an individual's decision-making with the goal of steering them towards a specific desired outcome; and analyze their effectiveness towards the change recipients when implemented. Change agents were interviewed on the application of Nudge Theory to change recipients when managing to change initiatives within their respective organizations. The results indicate that the use of nudges created by the change agents can significantly impact the level of resistance from the change recipients. If used correctly, the Nudge Theory can mitigate change resistance, and the success of a change initiative is higher. But, if change recipients are forced to comply, their resistance will be greater, affecting the organization overall.

Objective: Over the past decade, arbitration has grown in popularity as a method of resolving commercial disputes worldwide. However, this practice is relatively new in Macao SAR. Recently, official plans were announced to make Macao as a seat of arbitration for commercial disputes between China and Portuguese-speaking countries (Hereinafter PSCs). This article is dedicated to explores the possibility of Macao undertaking and implementing such a role. Accordingly, this article addresses the following issues: What are the strengths and weaknesses of Macao as a seat and eventually as venue for hosting international commercial arbitration between Chinese and PSCs entrepreneurs?Methodology: A mixed-method approach of legal doctrinal and empirical research was used in this article. We first included a thorough study of the concept of arbitration followed by analysis of various legal journals and legislations, including Macao, China, and PSCs’ arbitration laws. An empirical research was then used to collect data by surveying and interviewing with both lawyers and arbitration practitioners from Macao, China and PSCs.Results: This article argues that the strength of Macao resides in the similarities between its legal system and that of the China and PSCs and the languages advantage (Chinese and Portuguese both official languages). In spite of this, arbitration is still relatively underutilized in the region, and there is a limited number of arbitrators and legal professionals with bilingual proficiency.Contributions: This article contributes to the identification of the opportunities and challenges that Macao faces in its potential future development as a seat/venue of arbitration between China and the PSCs.

Abstract With its large population and natural resources, Africa needs investors who can sustain its development. At the same time, foreign investors expect returns on their investments. In ...

Association Rule Mining by Aprior method has been one of the popular data mining techniques for decades, where knowledge in the form of item-association rules is harvested from a dataset. The quality of item-association rules nevertheless depends on the concentration of frequent items from the input dataset. When the dataset becomes large, the items are scattered far apart. It is known from previous literature that clustering helps produce some data groups which are concentrated with frequent items. Among all the data clusters generated by a clustering algorithm, there must be one or more clusters which contain suitable and frequent items. In turn, the association rules that are mined from such clusters would be assured of better qualities in terms of high confidence than those mined from the whole dataset. However, it is not known in advance which cluster is the suitable one until all the clusters are tried by association rule mining. It is time consuming if they were to be tested by brute-force. In this paper, a statistical property called prior probability is investigated with respect to selecting the best out of many clusters by a clustering algorithm as a pre-processing step before association rule mining. Experiment results indicate that there is correlation between prior probability of the best cluster and the relatively high quality of association rules generated from that cluster. The results are significant as it is possible to know which cluster should be best used for association rule mining instead of testing them all out exhaustively.