1. (NRQRPL RFK VDPKlOOH
(FRQRPLFV DQG 6RFLHW
6NULIWHU XWJLYQD YLG 6YHQVND KDQGHOVK|JVNRODQ
3XEOLFDWLRQV RI WKH +DQNHQ 6FKRRO RI (FRQRPLFV
1U
,PRK $QWDL
2SHUDWLRQDOL]LQJ 6XSSO KDLQ YV 6XSSO
KDLQ RPSHWLWLRQ
+HOVLQNL

2. LL
2SHUDWLRQDOL]LQJ 6XSSO KDLQ YV 6XSSO KDLQ RPSHWLWLRQ
.H ZRUGV 6XSSO FKDLQ FRPSHWLWLRQ VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ QLFKH
EUHDGWK RYHUODS HFRORJLFDO QLFKH WKHRU
‹ +DQNHQ 6FKRRO RI (FRQRPLFV ,PRK $QWDL
,PRK $QWDL
+DQNHQ 6FKRRO RI (FRQRPLFV
'HSDUWPHQW RI 0DUNHWLQJ
6XSSO KDLQ 0DQDJHPHQW RUSRUDWH *HRJUDSK
32 %R[ +HOVLQNL )LQODQG
'LVWULEXWRU
/LEUDU
+DQNHQ 6FKRRO RI (FRQRPLFV
32 %R[
+HOVLQNL )LQODQG
7HOHSKRQH
)D[
(PDLO SXEO#KDQNHQIL
KWWSZZZKDQNHQIL
,6%1 SULQWHG

3. ,6%1 3')

4. ,661
(GLWD 3ULPD /WG +HOVLQNL R

5. LLL
$.12:/('*(0(17
7KH FUHDWLRQ RI DQ DFDGHPLF ZRUN LQHYLWDEO GUDZV XSRQ WKH ZLVGRP DQG DFFXPXODWHG
NQRZOHGJH RI VXSHULRUV FROOHDJXHV IULHQGV DQG IDPLO )LUVW , ZLVK WR WKDQN 3URIHVVRU
6UL 7DOOXUL DQG 3URIHVVRU .HQW /XPVGHQ P SUHH[DPLQHUV , DP JUDWHIXO WR ERWK RI RX
IRU WKH GHWDLO RX WRRN WR P PDQXVFULSW H[DPLQDWLRQ DQG IRU WKH FRQVWUXFWLYH
FRPPHQWV WKDW HPDQDWHG WKHUHRI , HVSHFLDOO ZLVK WR WKDQN WKH IROORZLQJ ZKR KDYH
LPSDFWHG P WUDLQLQJ KHUH DW WKH %XVLQHVV 6FKRRO LQ RQH ZD RU WKH RWKHU
3URIHVVRU .DUHQ 6SHQV P GHJUHH VXSHUYLVRU 7KDQN RX IRU RXU SDWLHQFH LQ SXWWLQJ
XS ZLWK PH LQ P EHJLQQLQJ GDV DV D UHVHDUFK VWXGHQW DQG IRU RXU FRQILGHQFH LQ
JLYLQJ PH WKH UHLQV WR UXQIUHH DURXQG WKH UHVHDUFK NLWW SHQ , DP WKDQNIXO IRU WKH
H[FHOOHQW H[DPSOHV RI PHQWRUVKLS RX KDYH VKRZQ RYHU WKH HDUV DQG IRU PDNLQJ P
VWD KHUH UHODWLYHO EXPSIUHH , KDYH OHDUQHG VR PXFK GXULQJ P 3K' H[SHULHQFH
XQGHU RXU VXSHUYLVLRQ
3URIHVVRU -RVHSK 6DUNLV P WKHVLV VXSHUYLVRU WKDQN RX IRU RXU DGYLFH DQG
HQFRXUDJHPHQW DQG IRU DOZDV EHLQJ VR FORVH HYHQ WKRXJK ZH DUH VR IDU DSDUW 3LD
3ROVD IRU DOORZLQJ PH MXPS RQWR WKH KHDOWKFDUH TXDOLW SURMHFW EDUHO DV D URRNLH
UHVHDUFKHU DQG IRU RXU FRQWLQXHG IULHQGVKLS FRRSHUDWLRQ DQG VXSSRUW GXULQJ P HDUV
DW +DQNHQ LW KDV EHHQ D EODVW ZRUNLQJ ZLWK RX *|QJL .RYiFV IRU PDNLQJ WKLV
H[SHULHQFH D PHPRUDEOH DQG GLIIHUHQW RQH 5XVVLDQ EDUV +XQJDULDQ PXVLF +HOVLQNL
QLJKWV .*% VS WRZHUV HWF ZHUH VRPH RI WKH PDQ WKLQJV RX VKRZHG PH DERXW
+HOVLQNL DQG PRUH LPSRUWDQWO IRU WKH RSSRUWXQLW WR ZRUN DQG OHDUQ ZLWKLQ WKH
H[FLWLQJ EXW LPPHQVHO LPSRUWDQW ILHOG RI +XPDQLWDULDQ /RJLVWLFV 6XSSO KDLQ
0DQDJHPHQW , DFNQRZOHGJH WKH PDQ IDFHOHVV IXQGLQJ VRXUFHV WKDW PDGH P 3K'
ZRUN SRVVLEOH , ZDV IXQGHG E VHYHUDO +DQNHQ )RXQGDWLRQV ZKLFK VXSSRUWHG P
VWXGLHV DQG WKH QXPHURXV FRQIHUHQFH WULSV WKDW KHOSHG EXLOG P FRQILGHQFH DV D
UHVHDUFKHU /LLNHVLYLVWVUDKDVWR DOVR DVVLVWHG PH LQ WKLV UHJDUG DQG IRU ZKLFK , DP
JUDWHIXO 0 ZRUN ZDV DOVR VXSSRUWHG E WKH 0DUFXV :DOOHQEHUJ DQG 2VNDU gIOXQG
)RXQGDWLRQV DW GLIIHUHQW VWDJHV RI P VWXGLHV
, ZRXOG OLNH WR DFNQRZOHGJH SDVW DQG SUHVHQW FROOHDJXHV DW WKH 6XSSO KDLQ
0DQDJHPHQW RUSRUDWH *HRJUDSK GLYLVLRQ IRU SURPRWLQJ D VWLPXODWLQJ DQG
VXSSRUWLYH DFDGHPLF HQYLURQPHQW GXULQJ RXU VHPLQDUV DQG IRU WKH PDQ FRQVWUXFWLYH
GLVFXVVLRQV ZH KDYH KDG RYHU WKH HDUV 0LNDHO 9DLQLRQSll (YD +ROPEHUJ -UNL
5WLOl ,UD +DDYLVWR +HLGL +HUOLQ 1LNRGHPXV 6ROLWDQGHU 0DUWLQ )RXJHUH DQG -RVHSK
6DFNH
, DP LQGHEWHG WR $UMD +DOOEHUJ P IULHQG DQG FROOHDJXH WKDQN RX IRU RXU VWHDG DQG
VHOIOHVV VXSSRUW DQG IULHQGVKLS HYHQ LQ WKH IDFH RI DGYHUVLW DQG IRU PDNLQJ P HQG
WLPH LQ +HOVLQNL FRPIRUWDEOH , KDYH DOVR KDG WKH SOHDVXUH WR ZRUN ZLWK RU DORQJVLGH
SDVW DQG SUHVHQW FROOHDJXHV -RQDV +ROPTYLVW $QX +HONNXOD $QGUHDV 3HUVVRQ 1DWDVD
*ROLN .ODQDF 5REHUW :HQGHOLQ +HQULFK 1PDQ /RWWD 9XRULVWR 3HNND +HOOH 6DUD
/LQGHPDQ .DUO-DFRE 0LFKHOVVRQ DQG DOO RWKHU VXSHULRU FROOHDJXHV DW WKH PDUNHWLQJ
GLYLVLRQ , KDYH OHDUQW D ORW IURP RX LQ PRUH ZDV WKDQ , FDQ LPDJLQH
, ZRXOG OLNH WR UHFRUG P JUDWLWXGH WR 3URIHVVRU -DQ /XQGJUHQ DQG )UHGHULN 3HUVVRQ IRU
KRVWLQJ PH DV D YLVLWLQJ VFKRODU DW WKH 'LYLVLRQ IRU 4XDQWLWDWLYH /RJLVWLFV 8QLYHUVLW RI
/LQN|SLQJ 1RUUN|SLQJ ,Q P ODWHU HPSLULFDO ZRUN , DP SDUWLFXODUO LQGHEWHG WR (ULN
+HOOTYLVW DQG 5RJHU $QGHUVRQ DW WKH .DWULQHKROP /RJLVWLFV HQWHU ./

6. .DWULQHKROP
6ZHGHQ IRU JUDQWLQJ XV SHUPLVVLRQ WR LQYHVWLJDWH WKH FRQQHFWLRQ EHWZHHQ ORJLVWLFV

7. LY
FHQWHUV DQG VXSSO FKDLQ FRPSHWLWLRQ , DP DOVR LQGHEWHG WR +DQV 2OVRQ IRU WDNLQJ WKH
WLPH RXW WR FRQGXFW DQG WUDQVODWH PDQ KRXUV RI LQWHUYLHZV DQG WKH PDQ WULSV WR
.DWULQHKROP /RJLVWLFV HQWHU ./

8. RQ P EHKDOI DQG IRU ZKLFK , DP WRWDOO JUDWHIXO
, ZRXOG DOVR OLNH WR WKDQN P VXSSRUW VVWHP RXWVLGH +DQNHQ ULVSLQ 0XWVKLQGD IRU
WHDFKLQJ PH HYHUWKLQJ , NQRZ DERXW %DHVLDQ UHVHDUFK , DP SULYLOHJHG WR KDYH KDG
RXU IULHQGVKLS DQG VXSSRUW WKURXJKRXW P WLPH LQ +HOVLQNL DQG , EHOLHYH WRJHWKHU ZH
FDQ PDNH WKH ZRUOG D EHWWHU SODFH 0 FRDXWKRU $VHHP .LQUD IRU KLV IULHQGVKLS DQG
DGYLFH RQ PDWWHUV UHODWLQJ WR UHVHDUFK DQG SXEOLFDWLRQ 6DPXHO $]DVX P IULHQG DQG
FRQILGDQWH WKDQNV IRU DOORZLQJ PH SLOIHU ERRNV IURP RXU VKHOYHV DQG IRU RXU
FRQVWVWDQW UHDGLQHVV IRU DQ DFDGHPLF VSDUULQJ VHVVLRQ 7KDW ZDV IXQ 5LFKDUG 2ZXVX
IRU EHLQJ VXFK D JUHDW IULHQG DQG IRU DOO WKH TXDOLW WLPH ZH VKDUHG *UDWHIXO WKDQNV WR
$ODEL 6RQHH IRU RXU FRQVWDQW HQFRXUDJHPHQW WR GR EHWWHU DQG IRU RXU H[SHULHQFHG
DVVLVWDQFH LQ JDWKHULQJ GDWD IURP WKH ILHOG 7R )LGHOLV /DQG DQG $PLQDK 1DOLNND IRU
DOZDV NHHSLQJ PH DFDGHPLFDOO HQJDJHG 7R DOO P IULHQGV +HOVLQNL DQG DEURDG IRU
RXU IULHQGVKLS RYHU WKH HDUV WKDQN JXV
, ZDQW WR H[WHQG P KHDUWIHOW JUDWLWXGH WR P IDPLO KRPH DQG DEURDG DQG WKH 2OVRQ
IDPLO ZLWKRXW ZKRP , ZRXOG QHYHU KDYH HQMRHG VR PDQ RSSRUWXQLWLHV RXU
FRQVWDQW HQFRXUDJHPHQW DQG EHOLHI LQ PH KDV JLYHQ PH VRODFH LQ WLPHV RI GRXEW DQG
DVVXUDQFH LQ WLPHV RI XQFHUWDLQW DQG IRU ZKLFK P PHUH H[SUHVVLRQ RI JUDWWLWXGH
OLNHZLVH GRHV QRW VXIILFH
7R /LQGD IRU RXU VWHDG VXSSRUW DQG ORYH ZLWKRXW ZKLFK , FRXOG QRW KDYH GRQH WKLV
$QG WR 7LPRWK .HYLQ DQG $OLFH IRU RXU SDWLHQFH DQG HQGXUDQFH LQ SXWWLQJ XS ZLWK
P DEVHQFH DOO WKHVH HDUV RX JLYH PHDQLQJ WR P DFFRPSOLVKPHQWV DQG DUH WKH
PRWLYDWLRQ IRU GRLQJ WKLV DQG WKH PDQ PRUH WR FRPH /RYH RX DOO
+HVLQNL 2FWREHU
,PRK $QWDL

9. Y
217(176
,1752'87,21
%DFNJURXQG
3UREOHP VWDWHPHQW
$LP DQG REMHFWLYHV
-XVWLILFDWLRQ RI QDWXUDO VFLHQFH EDVLV
7HUPV DQG NH FRQFHSWV
6HUYLFH
,QWHUDFWLRQ
9DOXHYDOXH FUHDWLRQ
6XSSO FKDLQ
6XSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ
RPSHWLWLRQ FRPSHWLWLYHQHVV DQG FRPSHWLWLYH DGYDQWDJH
1LFKH VXSSO FKDLQ

10. 1LFKH EUHDGWK DQG 1LFKH RYHUODS
3RVLWLRQLQJ DQG WDUJHW RI WKH WKHVLV
6WUXFWXUH RI WKH WKHVLV
/LPLWDWLRQV RI WKH VWXG
6833/ +$,16 3$5$',*0 6+,)76 $1' 203(7,7,21
KDQJLQJ SDUDGLJPV RI FRPSHWLWLRQ
6XSSO FKDLQ DV DQ HQWLW
6XSSO FKDLQ FRPSHWLWLRQ DV VSHFLHV FRPSHWLWLRQ
7+(25(7,$/ %$.*5281'
(FRORJLFDO 1LFKH 7KHRU
RQFHSWXDOL]LQJ VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ
0(7+2'2/2*
:K ERWKHU ZLWK PHWKRGRORJ
2QWRORJ DQG HSLVWHPRORJ LQ VXSSO FKDLQ PDQDJHPHQW UHVHDUFK
5HVHDUFK PHWKRGRORJ
%DHVLDQ ,QIHUHQFH
4XDOLWDWLYH RQWHQW $QDOVLV
DVH 6WXG

11. YL
6800$5,(6 0$,1 ),1',1*6 $1' 2175,%87,21 2)
25,*,1$/ 3$3(56
3DSHU , (PHUJLQJ ORJLFV RI FRPSHWLWLRQ 3DUDGLJP VKLIW IDQWDV RU UHDOLW
FKHFN
3DSHU ,, $ WKHRU RI WKH FRPSHWLQJ VXSSO FKDLQ $OWHUQDWLYHV IRU
GHYHORSPHQW
3DSHU ,,, 6XSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ $Q HFRORJLFDO QLFKH
EDVHG DSSURDFK
3DSHU ,9 ,QWHUDFWLRQ $ QHZ IRFXV IRU VXSSO FKDLQ YV VXSSO FKDLQ
FRPSHWLWLRQ
6XPPDU RI WKHVLV ILQGLQJV DQG FRQWULEXWLRQV
21/86,21 ,03/,$7,216 $1' )857+(5 5(6($5+
0DQDJHULDO LPSOLFDWLRQV
ULWLFDO UHPDUNV
$YHQXHV IRU IXUWKHU UHVHDUFK
5()(5(1(6
$33(1',(6
$SSHQGL[ ,QWHUYLHZ *XLGH
$SSHQGL[ /LVW RI ,QGLYLGXDO (VVDV
7$%/(6
7DEOH 3ULQFLSOHV RI (FRORJ
7DEOH 7KH IRXU VRFLRORJLFDO SDUDGLJPV

12. YLL
),*85(6
)LJXUH 6XSSO FKDLQ XQLW RI DQDOVLV
)LJXUH )RFXV RI WKH WKHVLV
)LJXUH 5HODWLRQVKLS EHWZHHQ WKH WKUHH WKHRUHWLFDO GRPDLQV
)LJXUH 6WUXFWXUH RI WKH WKHVLV
)LJXUH $VVXPSWLRQV IURP SUHYLRXV UHVHDUFK RQ WKH DVVRFLDWLRQ EHWZHHQ
RXWVRXUFLQJ DQG FRPSHWLWLRQ
)LJXUH ,OOXVWUDWLRQ RI VXSSO FKDLQ QLFKH
)LJXUH RQFHSWXDO RSHUDWLRQDOL]DWLRQ RI VXSSO FKDLQ FRPSHWLWLRQ YLD QLFKH
RYHUODS
)LJXUH 5HODWLRQVKLS EHWZHHQ FRPSHWLWLYH FKDUDFWHULVWLFV RI VXSSO FKDLQV
)LJXUH $Q LQWHJUDWHG PRGHO IRU HQDEOLQJ VXSSO FKDLQ FRPSHWLWLRQ

13. YLLL
6HFWLRQ ,

14. ,1752'87,21
%DFNJURXQG
7KRPDV / )ULHGPDQ LQ KLV EHVWVHOOLQJ ERRN ³7KH ZRUOG LV IODW $ EULHI KLVWRU RI WKH VW
FHQWXU´ PHWDSKRULFDOO DVVHUWV WKDW WKH ZRUOG LV IODW 7KH HPSORPHQW DQG DSSOLFDWLRQV RI
WKLV DOOHJRU LV QR PRUH UHOHYDQW DQZKHUH HOVH WKDQ LQ WKH LQIOXHQFHV LW FUHDWHV LQ VKDSLQJ
EXVLQHVV DQG FRPSHWLWLRQ ZLWKLQ DQ LQFUHDVLQJO ³VPDOOHU´ ZRUOG 7KH UHIHUHQFHV RI
)ULHGPDQ WR WKH XQLIRUPLW RI RXU ZRUOG DUH GLUHFWO OLQNHG WR DGYDQFHV LQ WHFKQRORJ DQG
WUDQVSRUWDWLRQ ZKLFK KDV HQDEOHG IDVWHU DFFHVV WR GLVWDQW PDUNHWV RQ HYHU SRLQW RQ WKH
SODQH
,Q D IODW ZRUOG WKH JOREDO SODLQJ ILHOG LV OHYHOHG LQ WHUPV RI DFFHVVLELOLW DQG VXFK
GLIIHUHQWLDWLRQ RI WKH EXVLQHVV FRQFHUQ EHFRPHV LPSRUWDQW DQG HYHQ QHFHVVDU LQ RUGHU WR
UHPDLQ DQG WKULYH RQ WKLV SODQH 7R EH GLVWLQJXLVKDEOH PHDQV WR VSHFLDOL]H 7KH ULVH RI
JOREDO PDUNHWV DQG WKH UHFRJQLWLRQ RI REYLRXV GHVWLQDWLRQV VXFK DV ,QGLD IRU ORZ FRVW
RXWVRXUFLQJ LQ WHFKQRORJ DQG ILQDQFLDO VHUYLFHV DQG KLQD DV D PDQXIDFWXULQJ KXE DUH D
GLUHFW UHVXOW RI DVVXPLQJ FHUWDLQ H[SHUWLVH DQG EHFRPLQJ VSHFLDOL]HG LQ ZKDW RQH GRHV
:KLOH VXFK GHVWLQDWLRQV DUH VFDWWHUHG RYHU )ULHGPDQ¶V

15. IODW ZRUOG ILUPV DQG
RUJDQL]DWLRQV ZDQWLQJ WR WDNH DGYDQWDJH RI WKHVH VSHFLDOL]DWLRQV ZRXOG QHHG WR PRYH
PDWHULDO H[SHUWLVH ILQDQFHV DQG SURGXFWV EHWZHHQ D QXPEHU RI VXFK VSHFLDOLVWV DW
GLIIHUHQW GHVWLQDWLRQV RQ WKH SODQH ,Q RUGHU WR GR WKDW WKH VVWHP RI RUJDQL]DWLRQV WKDW
HPSOR SHRSOH DQG WHFKQRORJ WR FDUU RXW DFWLYLWLHV XVLQJ LQIRUPDWLRQ DQG UHVRXUFHV WR
PRYH SURGXFWV DQG VHUYLFHV IURP D VSHFLDOLVW WR D FXVWRPHU EHFRPHV H[WUHPHO LPSRUWDQW
WR VD WKH OHDVW 7KLV VVWHP RI RUJDQL]DWLRQV SHRSOH WHFKQRORJ DFWLYLWLHV LQIRUPDWLRQ
DQG UHVRXUFHV LV FRPPRQO NQRZQ DQG GHVFULEHG DV WKH VXSSO FKDLQ
7KLV PHDQV WKDW IRU FRPSHWLWLRQ LQVWHDG RI RUJDQL]DWLRQV DQG FRPSDQLHV FRPSHWLQJ
DJDLQVW RWKHU FRPSDQLHV SKVLFDOO DW VHYHUDO GHVWLQDWLRQV LW LV UDWKHU WKH VXSSO FKDLQV
WKDW WKHVH FRPSDQLHV UXQ RU DUH SDUW RI WKDW EHFRPHV WKH SODWIRUP XSRQ ZKLFK WKDW
FRPSHWLWLRQ LV EDVHG 6FKXHW] HW DO )DZFHWW DQG OLQWRQ 0RQ]FND DQG
0RUJDQ KULVWRSKHU 9RNXUND HW DO

16. JLYHQ WKH LQFHQWLYH IRU WKH
LQGLYLGXDO RUJDQL]DWLRQV WR MRLQ WKH VXSSO FKDLQ
+LVWRULFDOO FRPSDQLHV DQG RUJDQL]DWLRQV KDG DOZDV KHOG DQG RSHUDWHG VXSSO FKDLQV
KRZHYHU WKHVH VXSSO FKDLQV ZHUH PRVWO PHDJHU DQG VRPHZKDW GLVUHJDUGHG 5HIHUHQFHV
WR LWV UROH RQO DV D PHDQV RI PRYLQJ PDWHULDO EHWZHHQ GHSDUWPHQWV LQVLGH WKH VDPH
RUJDQL]DWLRQ +RXOLKDQ 2OLYHU DQG :HEEHU

17. LQGLFDWHV WKH XQGHUUDWHG KLVWRU
RI VXSSO FKDLQV $W WKDW WLPH FRPSHWLWLYH DGYDQWDJH RI RUJDQL]DWLRQV ZDV IRFXVHG RQ
FRPSHWLWLRQ EHWZHHQ SURGXFWV DV ZHOO DV FRPSHWLWLRQ EHWZHHQ LQGLYLGXDO FRPSDQLHV ZLWK
VXSSO FKDLQV IXOILOOLQJ LQWHUQDO FRPSDQ IXQFWLRQV VXFK DV ORJLVWLFV DQG PDWHULDOV
PDQDJHPHQW %DLO %DLO DQG )DUPHU 7HUVLQH DQG DPSEHOO

18. 6LQFH
WKHQ VXSSO FKDLQV DQG LWV PDQDJHPHQW KDV JURZQ WR VSDQ FRPSDQLHV H[WHUQDO VXSSOLHUV
VHUYLFHV SURYLGHUV DQG FXVWRPHUV DV DQWLFLSDWHG E KULVWRSKHU

19. DQG QRZ
FRXQWULHV +RZHYHU FRPSHWLWLRQ EDVHG RQ VXSSO FKDLQV ZLOO UHYROYH DURXQG FRUH
SURFHVVHV KULVWRSKHU

20. ZKLFK PHDQV GRLQJ ZKDW WKH NQRZ KRZ WR GR EHVW 7KH
SUDFWLFH RI FRPSHWLQJ RQ FRUH SURFHVVHV SHUSHWXDWHV WKH LGHD RI VSHFLDOL]DWLRQ :LWK
GLIIHUHQW VSHFLDOL]DWLRQ GHVWLQDWLRQV WR EH DFFHVVHG YLD WKH VXSSO FKDLQ WKH WDVN RI

21. PDQDJLQJ WKHVH VXSSO FKDLQV DFURVV VHYHUDO GHVWLQDWLRQV IRU WKH VDWLVIDFWLRQ RI WKH HQG
FXVWRPHU EHFRPHV DQ LVVXH RI VWUDWHJLF FRQFHUQ IRU RUJDQL]DWLRQV 7KXV VXSSO FKDLQ
PDQDJHPHQW UHSUHVHQWV D ZD RI RSWLPL]LQJ FXVWRPHU VDWLVIDFWLRQ 6WRFN HW DO

22. E
FRPELQLQJ DQG LQWHJUDWLQJ WKH HIIRUWV DQG SURFHVVHV RI VHYHUDO RUJDQL]DWLRQV WR PHHW
FXVWRPHUV¶ QHHGV 0HQW]HU HW DO )UDQNHO HW DO

23. %HFDXVH VXSSO FKDLQV DQG
LWV PDQDJHPHQW KDYH XQGHUJRQH FRQVLGHUDEOH DOWHUDWLRQ DQG GHYHORSPHQW VLQFH LWV
LQFHSWLRQ D FRPSUHKHQVLYH GHILQLWLRQ RI VXSSO FKDLQ PDQDJHPHQW UHPDLQV HOXVLYH LQ
OLWHUDWXUH HJ *LEVRQ HW DO /DUVRQ HW DO

24. 7KH RXQFLO RI 6XSSO KDLQ
0DQDJHPHQW 3URIHVVLRQDOV 603

25. GHILQHV VXSSO FKDLQ PDQDJHPHQW ZLWK UHJDUGV WR
ERXQGDULHV DQG UHODWLRQVKLSV EHWZHHQ VXSSO FKDLQ PHPEHUV DV DQ LQWHJUDWLRQ IXQFWLRQ
ZLWK WKH WDVN RI OLQNLQJ PDMRU EXVLQHVV SURFHVV DQG EXVLQHVVHV ZLWKLQ DQG DFURVV WKH
VXSSO FKDLQ LQWR D FRKHVLYH DQG KLJK SHUIRUPLQJ EXVLQHVV PRGHO 603

26. 7KH LQFUHDVH LQ WKH XVH RI VXSSO FKDLQ PDQDJHPHQW SULQFLSOHV LQ SUDFWLFDOO HYHU
EXVLQHVV ILHOG KDV EHHQ WRXWHG DV DPRQJ RWKHU WKLQJV D ZD RI LQFUHDVLQJ HIILFLHQF
UHGXFLQJ FRVW DQG LPSURYLQJ VHUYLFHV SURYLGHG 0RUHRYHU LW LV EHOLHYHG WKDW WKH
SURILWDELOLW RI ILUPV LV FRQWLQXDOO PRUH GHSHQGHQW RQ WKH FRPSHWLWLYH HIIHFWLYHQHVV RI
WKHLU VXSSO FKDLQV ZKLFK QHFHVVLWDWHV WKH LGHD RI D FRQFHSWXDOL]DWLRQ IRU WKLV IRUP RI
FRPSHWLWLRQ DQG WKH HVVHQFH RI WKLV GLVVHUWDWLRQ $V VXFK ZH QRWLFH WKDW PRVW RI
PDQDJHPHQW¶V DWWHQWLRQ LV IRFXVHG RQ KRZ LWV VXSSO FKDLQV FRXOG EHFRPH PRUH
DJJUHVVLYH LH LQ D VHQVH PDNLQJ HDFK ILUP LQ WKH GLVWULEXWLRQ FKDQQHO PRUH HIILFLHQW DQG
SURGXFWLYH DQG WKXV PRUH HIIHFWLYH XVLQJ YDULRXV PRWLYDWLRQDO VWUDWHJLHV 7KLV VHDUFK IRU
HIILFLHQF FDQ LQHYLWDEO OHDG WR FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV KULVWRSKHU

27. RPSHWLWLRQ LV DQ LPSRUWDQW DUHD RI VWXG LQ HFRQRPLF WKHRU DQG EXVLQHVV ,W LV YLWDO LQ
PHHWLQJ FRQVXPHUV JURZLQJ H[SHFWDWLRQV VWLPXODWLQJ LQFUHDVH LQ WKH VL]H RI WKH PDUNHW
SXVKLQJ LQQRYDWLRQ DQG UHGXFLQJ FRVW DPRQJ RWKHU WKLQJV IRU WKH XOWLPDWH FXVWRPHU
+RZHYHU UHVXOWV DUH OLNHO WR EH VXERSWLPDO ZKHQ ILUPV LQ D VXSSO FKDLQ RSHUDWH
LQGHSHQGHQWO RI RWKHU ILUPV LQ WKH FKDLQ %DQRPRQJ

28. 7KHUHIRUH LQ RUGHU WR
DFKLHYH WKH EHQHILWV RIIHUHG E D ZHOOPDQDJHG VXSSO FKDLQ PHPEHUV QHHG WR IXQFWLRQ DV
D XQLW LQ RUGHU WR EH DEOH WR FRPSHWH LQ WKH PDUNHW SODFH 7KLV XQLW SLFWXUHV VXSSO FKDLQV
DV VWUDWHJLF HQWLWLHV DQG DV VXFK LWV DELOLW WR FRPSHWH DJDLQVW RWKHU VXSSO FKDLQV
$V RQH RI WKH WHQ IODWWHQHUV LGHQWLILHG E )ULHGPDQ¶V

29. DVVHVVPHQW RI D JOREDO
HQYLURQPHQW GULYHQ E DGYDQFHV DQG OHDSV LQ WHFKQRORJ DQG WUDQVSRUWDWLRQ VXSSO FKDLQV
KDYH DQ LPSRUWDQW UROH WR SOD LQ WKH FRQVWDQWO FKDQJLQJ EXVLQHVV HQYLURQPHQW )RU RQH
LW VHUYHV DV D OLQN EHWZHHQ WKH FXVWRPHUV ,W DOVR HQFRXUDJHV VSHFLDOL]DWLRQ ZKLFK WHQGV WR
LQFUHDVH YDOXH IRU HQG FXVWRPHUV )LQDOO VXSSO FKDLQV SUHVHQW D ZD IRU RUJDQL]DWLRQV WR
DFKLHYH FRPSHWLWLYH DGYDQWDJH DQG VWD FRPSHWLWLYH
3UREOHP VWDWHPHQW
RPSHWLWLRQ LV D FRPSOH[ FRQFHSW FRQVLVWLQJ RI VHYHUDO LQWHUDFWLQJ VXEDUHDV RU FRUUHODWHV
WKDW DUH UHTXLUHG LQ RUGHU WR GHYHORS D FRPSOHWH XQGHUVWDQGLQJ RI WKH FRQFHSW 7KHVH
FRUUHODWHV LQFOXGH FRPSHWLWLYHQHVV DQG FRPSHWLWLYH DGYDQWDJH :LWK UHJDUGV WR
FRPSHWLWLRQ DQG LWV FRUUHODWHV WKH ILUVW PDMRU SUREOHP RI WKH FRPSHWLWLRQ FRQFHSW ZLWKLQ
VXSSO FKDLQ PDQDJHPHQW LV WKH ODFN RI D FOHDU GHVFULSWLRQ RI ZKDW WKH WHUP PHDQV ZLWKLQ
WKH GLVFLSOLQH 6HFRQG DQG PRVW LPSRUWDQW LV WKH SUREOHP RI ZKDW LWV H[SODQDWRU SXUSRVH
LV RU UDWKHU VKRXOG EH ZLWKLQ WKH GLVFLSOLQH RI VXSSO FKDLQ PDQDJHPHQW

30. :LWKLQ VXSSO FKDLQ PDQDJHPHQW DV ZHOO DV WKH EURDGHU EXVLQHVV OLWHUDWXUH WKHUH KDV EHHQ
SRSXODU DJUHHPHQW WKDW FRPSHWLWLRQ EHWZHHQ FRPSDQLHV LV VHW WR WDNH SODFH DORQJ WKHLU
VXSSO FKDLQV KRZHYHU WKHUH KDV EHHQ PXFK LQFRQVLVWHQF RQ KRZ VXSSO FKDLQV ZLOO
FRPSHWH ZLWK RWKHU VXSSO FKDLQV KHQFHIRUWK VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ

31. 6HYHUDO DWWHPSWV LQ OLWHUDWXUH DW GHVFULELQJ WKH QDWXUH RI FRPSHWLWLRQ LQ VXSSO FKDLQV DQG
KRZ VXSSO FKDLQV ZLOO FRPSHWH KDYH EHHQ SURSRVHG )RU H[DPSOH /DQJGRQ DQG 6LNRUD

32. VXJJHVW WKH XVH RI FRPSOH[ DGDSWLYH VVWHPV DV D FRQFHSWXDOL]DWLRQ RI VXSSO FKDLQ
YV VXSSO FKDLQ FRPSHWLWLRQ ZKLOH =KDQJ

33. VHH FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV
LQ WHUPV RI WKH HFRQRPLF QHWZRUN PRGHO 5LFH DQG +RSSH

34. GHILQH VXSSO FKDLQ YV
VXSSO FKDLQ FRPSHWLWLRQ EDVHG RQ QHWZRUN FDSDELOLWLHV DQG $QGUHDVVHQ

35. XVHV
EHQFKPDUNLQJ DV D PHDQV RI XQGHUVWDQGLQJ VXFK FRPSHWLWLRQ
:KLOH WKHVH DSSURDFKHV FRQFHSWXDOL]H VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ IURP
GLIIHUHQW SHUVSHFWLYHV QR FOHDU FRQQHFWLRQ H[LVW EHWZHHQ PHWKRGV SURSRVHG WRZDUGV D
GHYHORSPHQWDO VVWHP WKDW FDQ IXUWKHU WKH FRQFHSWXDOL]DWLRQ RI FRPSHWLWLRQ EHWZHHQ
VXSSO FKDLQV 7KLV LPSOLHV D ODFN RI H[SODQDWRU IRFXV RI FRPSHWLWLRQ EHWZHHQ VXSSO
FKDLQV 7R KDYH DQ H[SODQDWRU IRFXV RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV D WKHRU XSRQ
ZKLFK VXFK IRFXV UHVWV RQ PXVW EH EXLOW RU LGHQWLILHG 7KH DOOLQFOXVLYH QDWXUH RI VXSSO
FKDLQV DQG LWV PDQDJHPHQW LPSO WKDW QR VLQJOH WKHRUHWLFDO IRFXV IRU VXSSO FKDLQ
PDQDJHPHQW H[LVWV 7KHUHIRUH WKH FXUUHQW XQGHUOLQJ FRQWHQWLRQ LV WKDW FRPSHWLWLRQ
EHWZHHQ VXSSO FKDLQV LV GLIILFXOW DQG HYHQ UDUHO XQGHUVWRRG ZLWKLQ WKH FRQWH[W RI VXSSO
FKDLQ PDQDJHPHQW GXH WR WKH IDFW WKDW LW GHPDQGV D PXOWLGLVFLSOLQDU DQG FURVVIXQFWLRQDO
DSSURDFK WUDQVFHQGLQJ GLVFLSOLQHV DQG IXQFWLRQDO DSSURDFKHV 7DORU

36. 7KLV
XOWLPDWHO SDLQWV D IXWXUH VFHQDULR RI VXSSO FKDLQ PDQDJHPHQW LQ ZKLFK LW LV QR ORQJHU D
KROLVWLF GLVFLSOLQH EXW RQH GLYLGHG LQWR GLVFLSOLQDU VWUHDPV VXFK DV ³HQJLQHHULQJ VXSSO
FKDLQ PDQDJHPHQW´ ³PDUNHWLQJ VXSSO FKDLQ PDQDJHPHQW´ ³FRQVWUXFWLRQ VXSSO FKDLQ
PDQDJHPHQW´ DQG PHGLFDO VXSSO FKDLQ PDQDJHPHQW WR PHQWLRQ D IHZ 7R UHPDLQ KROLVWLF
UHTXLUHV WKDW WKH VXSSO FKDLQ PDQDJHPHQW GLVFLSOLQH FUHDWHV DGRSWV RU LGHQWLILHV NH
SULQFLSOHV WKDW PD EH DSSOLHG DFURVV WKH ERDUG 7KLV LV HVVHQWLDO IRU GHYHORSLQJ WKHRU
HVSHFLDOO DV LW DSSOLHV WR GHYHORSLQJ WKH FRQFHSW RI VXSSO FKDLQ YV VXSSO FKDLQ
FRPSHWLWLRQ $QG RQO WKHQ FDQ ZH EHJLQ WR FRQFHSWXDOL]H DQG SHUKDSV RSHUDWLRQDOL]H WKH
FRQFHSW RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ *LYHQ WKH FRPSOH[LWLHV DQG
XQFHUWDLQWLHV VXUURXQGLQJ WKH VXSSO FKDLQ DQG LWV PDQDJHPHQW WKHUH LV D QHHG WR
GHYHORS WKH FRQFHSW RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ IRU DSSOLFDWLRQ ZLWKLQ
VXSSO FKDLQ PDQDJHPHQW :KLOH WKLV HQGHDYRU SUHVHQWV VLJQLILFDQW FKDOOHQJHV LQ WKLV
UHJDUG WKLV WKHVLV DWWHPSWV WR DGGUHVV WKH SUREOHPV LGHQWLILHG KHUHLQ XVLQJ SUREDELOLVWLF
PHWKRGV DQG D WKHRUHWLFDOO XQLTXH IRXQGDWLRQ LQ WKH WKHRU RI HFRORJ
$LP DQG REMHFWLYHV
3URSRVHG DSSURDFKHV WR FRQFHSWXDOL]LQJ VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ KDYH VR
IDU RYHUORRNHG WKH DVSHFW RI XQFHUWDLQW DQG YRODWLOLW RI LQIRUPDWLRQ PRYHPHQW HPEHGGHG
LQ WKH VXSSO FKDLQ LWVHOI QR PDWWHU KRZ VPDOO LW PD EH DQG WKH VWRFKDVWLF QDWXUH RI WKH
HQYLURQPHQW ZLWKLQ ZKLFK VXSSO FKDLQV RSHUDWH *LYHQ WKLV WKH DLP RI WKLV VWXG LV WR
GHYHORS WKH FRQFHSW RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ ZLWKLQ WKH GLVFLSOLQH RI
VXSSO FKDLQ PDQDJHPHQW ,W LQWHQGV WR H[SORUH WKH DSSDUHQW ODFN RI FRKHUHQFH LQ WKH
OLWHUDWXUH WDNLQJ LQWR DFFRXQW WKH UDQGRPQHVV VXSSO FKDLQV WKDW RSHUDWH LQ GLIIHUHQW
HQYLURQPHQWV PD H[KLELW 7KLV LV LQWHQGHG WR EH FDUULHG RXW ZLWKLQ D SUREDELOLVWLF

37. IUDPHZRUN LQ RUGHU WR DGHTXDWHO GHDO ZLWK WKH UDQGRPQHVV HPEHGGHG ZLWKLQ WKH GDWD
FROOHFWLRQ SURFHVV DV ZHOO DV LQ WKH JHQHUDO RSHUDWLRQ RI WKH VXSSO FKDLQ
7KH REMHFWLYHV RI WKH UHVHDUFK VWXG DUH LGHQWLILHG DV WKH IROORZLQJ
• ([DPLQH WKH VWDWXV RI FRPSHWLWLRQ DQG FRPSHWLWLYHQHVV ZLWKLQ UHOHYDQW OLWHUDO
GLVFLSOLQHV ZLWK UHJDUGV WR D SDUDGLJP VKLIW LQ FRPSHWLWLRQ
• ,GHQWLI FRPSHWLWLRQ WKHRULHV IRU VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ
FRQFHSWXDOL]DWLRQ
• 'HYHORS D PRGHO IRU HVWLPDWLQJ VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ
• ,QYHVWLJDWH ORJLVWLFV FHQWHUV DV DQ H[DPSOH RI DQ HVVHQWLDO VRXUFH RI LQWHUDFWLRQ IRU
VXSSO FKDLQV DQG KHQFH VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ
,Q OLJKW RI WKH PXOWLSOLFLW RI GLVFLSOLQHV UHSUHVHQWHG LQ WKH ILHOG RI VXSSO FKDLQ
PDQDJHPHQW %XUJHVV HW DO

38. HJ FRQVXPHU EHKDYLRU LQIRUPDWLRQ WHFKQRORJ
PDQXIDFWXULQJ RSHUDWLRQV DQG VWUDWHJ %UHZHU HW DO

39. FRQWULEXWLRQ WR WKH ILHOG LV
HQFRXUDJHG 7KXV WKLV VWXG ORRNV WR WKH QDWXUDO VFLHQFH GLVFLSOLQH RI HFRORJ IRU LQVLJKW WR
WDFNOLQJ WKH FRPSOH[ LVVXH RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ 7KH XVH RI
GLIIHUHQW PHWKRGV IURP VHYHUDO ILHOGV RI VWXG KDV VHUYHG WR LQVSLUH IXUWKHU GHYHORSPHQW RI
WKH ILHOG RI VXSSO FKDLQ PDQDJHPHQW DQG FRQWULEXWLRQ WR LWV OLWHUDWXUH DGYDQFHPHQW
6WRFN %XUJHVV HW DO

40. 7KLV UHVHDUFK VWXG LV LPSRUWDQW LQ WKUHH ZDV )LUVW WKLV VWXG VHHNV WR H[SORUH WKH
DSSDUHQW OXOO LQ WKH OLWHUDWXUH DV LW FRQFHUQV WKH SDUDGLJPV ZLWK ZKLFK ZH XVH WR H[SORUH
DQG VROYH SUREOHPV RI FRPSHWLWLRQ LQ JHQHUDO 7KLV DOVR DSSOLHV WR VXSSO FKDLQV ZKLOH DOVR
DVSLULQJ WR FRQWULEXWH WR GHYHORSLQJ WKH ERG RI NQRZOHGJH LQ WKH ILHOG RI VXSSO FKDLQ
PDQDJHPHQW
6HFRQG JLYHQ YDOXH FUHDWLRQ DV WKH XQGHUVWDQGLQJ RI WKH DLP RI VXSSO FKDLQV LQWHUDFWLRQ
DV D ZD RI RSHUDWLRQDOL]LQJ VXFK FRPSHWLWLRQ LQ VXSSO FKDLQV LV LPSRUWDQW LQ OLJKW RI WKH
IDFW WKDW YDOXH VHHNV WR VLPXOWDQHRXVO UHZDUG WKH PHPEHUV RI WKH VXSSO FKDLQ IRU WKHLU
LQSXW DQG VDWLVI WKH GHPDQGV RI WKH HQGFXVWRPHUV ,Q WULQJ WR DFKLHYH WKLV YDOXH IRU HQG
FXVWRPHUV JOREDOL]DWLRQ RI LQGXVWU DQG KHQFH WKH VXSSO FKDLQ LV LQHYLWDEOH DV WKH VHDUFK
IRU ORZHU ODERU FRVW GULYH ILUPV RIIVKRUH KULVWRSKHU

41. 7KLV LPSOLHV WKDW VXSSO
FKDLQV DUH EHFRPLQJ ORQJHU DQG DV WKH GR VR DFTXLULQJ DQG XVLQJ LQIRUPDWLRQ HIIHFWLYHO
DQG HIILFLHQWO EHFRPHV DQ LPSRUWDQW IDFWRU LQ PDQDJLQJ WKH LQWULFDWH ZHE RI VXSSO FKDLQV
WKDW UHVXOW IRU FRPSHWLWLRQ SXUSRVHV
$FURVV WLPH FRPSHWLWLRQ KDV EHHQ FRQVLVWHQWO GHVFULEHG DV EHLQJ WKH IRXQGDWLRQ XSRQ
ZKLFK DQ HIILFLHQW VVWHP IRU UHVRXUFH GLVWULEXWLRQ LV EXLOW 6WLJOHU 0DVROHOO
:KLQVWRQ DQG *UHHQ

42. 7KLV UHVRXUFH GLVWULEXWLRQ UROH LV QRW OLPLWHG RQO WR PRQHWDU
RU ILVFDO UHVRXUFHV EXW DOVR WR WKH UHGLVWULEXWLRQ RI YDOXH DV FRXOG EH DUJXHG ZLWK WKH FDVH
RI WKH VXSSO FKDLQ 7KXV GHYHORSLQJ WKH FRQFHSW RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV
DOORZV ILUPV WR WDS LQWR WKH HIILFLHQF REWDLQHG E ZD RI VKDUSHQLQJ LQFHQWLYHV WR DYRLG
LQDFWLYLW DQG VODFN ZKLFK LV D PDMRU VRXUFH RI JDLQ WR SURGXFWLYH HIILFLHQF RYHU WLPH DQG
DFKLHYHG WKURXJK FRPSHWLWLYH LQQRYDWLRQ 9LFNHUV

43. 7KLV DVVXPHV WKDW LQFHQWLYHV IRU
PHPEHUV RI WKH VXSSO FKDLQV KDYH EHHQ SURSHUO DOLJQHG ZLWK LWV JRDOV ,W WKHQ JRHV
ZLWKRXW VDLQJ WKDW FRPSHWLWLRQ UHPDLQV DW WKH FRUH RI EXVLQHVV VXFFHVV RU IDLOXUH 3RUWHU

44. $V VXFK FRPSHWLWLRQ LQ VXSSO FKDLQV LV QHFHVVDU DV PXFK DV LW LV LPSRUWDQW *LYHQ
WKH XQDYRLGDEOH QHZ HUD RI FRPSHWLWLYH LQWHUDFWLRQ WKDW WKH EXVLQHVV FRPPXQLW IDFHV WKH
XVH RI VXSSO FKDLQV LV H[SHFWHG WR SOD D SURPLQHQW UROH LQ WKDW IXWXUH 7KXV WKLV VWXG
ORRNV IRUZDUG WR KRZ VXFK D FRPSHWLWLYH LQWHUDFWLRQ EHWZHHQ VXSSO FKDLQV PD EH

45. DFKLHYHG $V VXFK WKH WKHRUHWLFDO IRXQGDWLRQ XSRQ ZKLFK WKLV UHVHDUFK LV EDVHG FRPHV IURP
WKH QDWXUDO VFLHQFHV LQ JHQHUDO DQG WKH HFRORJLFDO QLFKH WKHRU LQ SDUWLFXODU
-XVWLILFDWLRQ RI QDWXUDO VFLHQFH EDVLV
,Q WKH DQDOVLV RI SKHQRPHQD ZLWKLQ VXSSO FKDLQ PDQDJHPHQW LW LV SUDFWLFDOO LPSRVVLEOH
WR UHO RQ D VLQJOH WKHRUHWLFDO SHUVSHFWLYH WR SURYLGH D FRPSUHKHQVLYH H[SODQDWLRQ RI VXFK
SKHQRPHQD +DOOGRUVVRQ HW DO

46. ,W LV LPSRUWDQW WKDW FRPSOHPHQWDU WKHRULHV DUH
H[SORUHG LQ RUGHU WR H[SODLQ VXSSO FKDLQ PDQDJHPHQW SKHQRPHQD :LWKLQ PDQDJHPHQW
OLWHUDWXUH +DOOGRUVVRQ HW DO

47. LGHQWLI IRXU FRPSOLPHQWDU WKHRULHV WR VXSSO FKDLQ
PDQDJHPHQW DV 7UDQVDFWLRQ RVW WKHRU WKH 3ULQFLSDO$JHQW WKHRU WKH 1HWZRUN WKHRU
DQG WKH UHVRXUFHEDVHG WKHRU 2YHU WLPH DV VXSSO FKDLQ PDQDJHPHQW GHYHORSHG LW
HQFRXQWHUHG GLIILFXOW SKHQRPHQD ZKLFK KDYH EHQHILWHG IURP ERUURZHG WKHRULHV )RU
H[DPSOH WKH LVVXH RI LQWHJUDWLRQ RI VXSSO FKDLQV WR ZKLFK WKH QHWZRUN WKHRU ZDV
DSSOLHG WKH SRSXODU PDNH RU EX GLOHPPD RXWVRXUFLQJ

48. WR ZKLFK WUDQVDFWLRQ FRVW WKHRU
KDV EHHQ LQVWUXPHQWDO DV ZHOO DV GHDOLQJ ZLWK WKH JRYHUQDQFH LVVXH EHWZHHQ VXSSO FKDLQV
DQG WKLUG SDUW VHUYLFH SURYLGHUV +HUH WKH SULQFLSDODJHQW WKHRU LV XVHIXO
2QFH DJDLQ DORQJ WKH VWULGHV RI LWV GHYHORSPHQW VXSSO FKDLQ PDQDJHPHQW ILQGV LWVHOI
IDFLQJ DQRWKHU FRPSOH[ SKHQRPHQRQ LQ WKH LGHD RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV ,Q
DQ DWWHPSW WR FODULI WKH LGHD RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ WKLV SDSHU UHOLHV
RQ D ERUURZHG WKHRU WKH HFRORJLFDO QLFKH WKHRU (YHQ WKRXJK HFRORJLFDO SULQFLSOHV KDYH
EHHQ DSSOLHG WR PDQDJHPHQW VWXGLHV HJ RUJDQL]DWLRQDO HFRORJ +DQQDQ DQG )UHHPDQ

49. WKLV VWXG MXVWLILHV LWV GLUHFW DSSOLFDWLRQ RI WKH QDWXUDO VFLHQFHV WR VXSSO FKDLQ
PDQDJHPHQW EDVHG RQ WKH IROORZLQJ
1DWXUDO VFLHQFH DV WKH EDVLV RI PDQ PRGHOV LQ D YDULHW RI GLVFLSOLQHV
,W LV WUXH WKDW PDQDJHPHQW DV ZHOO DV PDUNHWLQJ GLVFLSOLQHV KDYH ERUURZHG VXEVWDQWLDOO
IURP WKH QDWXUDO VFLHQFHV :LWKLQ WKH FRQWH[W RI ELRORJ OLIHFFOH DQDOVLV /$

50. LV XVHG WR
H[SODLQ WKH GLIIXVLRQ SURFHVV LQ PDUNHWLQJ $OVR FHUWDLQ DVSHFWV RI ELRORJ DUH XVHG WR
H[SORUH WKH H[SDQVLRQ RI JRYHUQPHQW SURJUDPV RQODQ

51. KDRV WKHRU KDV EHHQ
XVHG WR HQKDQFH WKH DSSURDFK WR EXVLQHVV SUREOHPV XVLQJ VZDUP LQWHOOLJHQFH IURP
VWXGLQJ DQWV EHHV DQG ZDVSV %RQDEHDX DQG 0HHU

52. DQG WULHV WR H[SODLQ GLVRUGHU LQ
DQ RUGHUO PDQQHU 2UJDQL]DWLRQDO VWXGLHV DUH DOVR NQRZQ WR UHO KHDYLO RQ FRQFHSWV DQG
WKHRULHV ERUURZHG IURP SVFKRORJ DQG VRFLRORJ :KHWWHQ HW DO

53. 6R PDQ RI WKH PRGHOV XVHG LQ PDUNHWLQJ EXVLQHVV DQG VWUDWHJ KDYH EHHQ GHYHORSHG
IURP QDWXUDO VFLHQFH IRXQGDWLRQV DV VXFK LW LV QRW XQFRPPRQ IRU EXVLQHVV DQG
PDQDJHPHQW GLVFLSOLQHV WR VHHN PHWKRGV IURP WKH QDWXUDO VFLHQFHV WR VROYH SKHQRPHQD RI
FRQFHUQ 7KHUHIRUH WKHRU ERUURZLQJ LV LPSRUWDQW IRU PXOWLVXEMHFW DQG RXQJ
LQWHUGLVFLSOLQDU ILHOGV 0RUJDQ $UQGW :KHWWHQ

54. OLNH VXSSO FKDLQ
PDQDJHPHQW 7KLV LV QHFHVVDU DV LW VHUYHV DV DQ LPSRUWDQW VRXUFH RI IUHVK LGHDV DQG FDQ
KHOS D QHZ ILHOG GHYHORS FUHGLELOLW DQG OHJLWLPDF :KHWWHQ

55. 6HYHUDO QDWXUDO
VFLHQFHEDVHG WKHRULHV VKRZ SURPLVH DV SRWHQWLDO WRROV WR VXSSRUW WKH XQGHUVWDQGLQJ RI WKH
LQWULFDWH FRQWHPSRUDU EXVLQHVV VVWHPV DQG IRU PDQDJHUV RI FRPSOH[ RUJDQL]DWLRQV
6WDSOHWRQ HW DO

56. 7KH HFRORJLFDO QLFKH WKHRU VKRZV VXFK SURPLVH ZLWKLQ WKH FRQWH[W
RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ RSHUDWLRQDOL]DWLRQ

57. 8QLTXH FRQWH[WXDO DSSOLFDWLRQ ZLWKLQ VXSSO FKDLQ PDQDJHPHQW
6XSSO FKDLQ PDQDJHPHQW LV RIWHQ DOVR UHJDUGHG DV DQ DSSOLHG GLVFLSOLQH 0DQ RWKHU
GLVFLSOLQHV ZLWK VXFK WLWOHV ERUURZ VLPLODU FRQFHSWV IURP QDWXUDO VFLHQFHV WRR +RZHYHU
WKH ZD DQG PDQQHU ZLWK ZKLFK VXFK FRQFHSWV DQG WKHRULHV DUH XVHG ZLWKLQ WKH GLIIHUHQW
GLVFLSOLQHV UHIOHFW LWV FKDUDFWHULVWLF PDNH XS DQG LWV DPHQDELOLW WR XVH ZLWKLQ LWV ERUURZHG
FRQWH[W )RU H[DPSOH WKH EDVLV RI RUJDQL]DWLRQDO HFRORJ IRFXVHV SULPDULO RQ WKH
SRSXODWLRQ DQG HYROXWLRQDU PRGHO DVSHFWV RI FKDQJH LQ FRPPXQLWLHV DQG SRSXODWLRQV RI
VSHFLHV +DQQDQ DQG )UHHPDQ

58. LQ RUGHU WR EHWWHU XQGHUVWDQG UHDVRQV ZK
RUJDQL]DWLRQDO VWUXFWXUHV FKDQJH RYHU WLPH 7KLV HPSKDVLV RQ WKH SRSXODWLRQ DQG
HYROXWLRQDU EUDQFK RI HFRORJ ZLWKLQ RUJDQL]DWLRQDO HFRORJ OLWHUDWXUH GLIIHUV VLJQLILFDQWO
IURP WKH HPSKDVLV RI LQWHUDFWLRQ DQG RYHUODS RI HQWLWLHV ZLWK VSHFLILHG UHVRXUFH DUHDV
QLFKH

59. DQG KRZ LW SODV LQ WR DIIHFW WKH FRPSHWLWLRQ EHWZHHQ LQWHUVSHFLILF VSHFLHV
$V VXFK JRLQJ VWUDLJKW WR WKH VRXUFH RI WKH HFRORJLFDO QLFKH LGHD DOORZV IRU GHFLVLRQV RQ KRZ
WKH ERUURZHG WKHRULHV ILW DQG KRZ LW PD EH XVHG LV RQO DFKLHYDEOH E VWDUWLQJ IURP D
QDWXUDO VFLHQFH IRXQGDWLRQ
2ULJLQDOLW
8QOLNH PRVW RI WKH SUHYLRXV FRPSOHPHQWDU WKHRULHV WR VXSSO FKDLQ PDQDJHPHQW
GLVFXVVHG DERYH ZKLFK RULJLQDWH IURP PDQDJHPHQW RU EXVLQHVV GLVFLSOLQHV WKH HFRORJLFDO
QLFKH WKHRU LV GRPLFLOHG LQ WKH QDWXUDO VFLHQFHV 8VHG ZLWKLQ VXSSO FKDLQ PDQDJHPHQW
IRU WKH FRQFHSWXDOL]DWLRQ RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV LW SUHVHQWV D GHSDUWXUH
IURP WKH QRUP DW OHDVW ZLWKLQ WKH VXSSO FKDLQ PDQDJHPHQW GLVFLSOLQH 7KLV VWXG
SUHVHQWV DV RQH RI WKH ILUVW VWXGLHV WR LQWURGXFH D FRPSOLPHQWDU WKHRU ZLWK D QDWXUDO
VFLHQFH IRXQGDWLRQ WR WKH VWXG RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV ZLWKLQ WKH GLVFLSOLQH
RI VXSSO FKDLQ PDQDJHPHQW ,W VHHNV WR GHPRQVWUDWH WKDW E VWXGLQJ FRPSHWLWLRQ IURP
DQ HFRORJLFDO SHUVSHFWLYH QHZ LQVLJKWV WKDW JR DERYH DQG EHRQG WKRVH WKDW RULJLQDWH IURP
HFRQRPLFV DQG PDUNHWLQJ DORQH FDQ EH DGGHG WR WKH WKHRU RI FRPSHWLWLRQ ZLWKLQ WKH
VXSSO FKDLQ PDQDJHPHQW GRPDLQ
+DYLQJ SUHVHQWHG DUJXPHQWV IRU WKH IRXQGDWLRQDO WKHRUHWLFDO

60. EDVLV RI WKLV WKHVLV WKH
IROORZLQJ VHFWLRQ JRHV RQ WR GHVFULEH EULHIO WKH EDVLF WHUPV DQG FRQFHSWV XVHG ZLWKLQ WKH
HFRORJ WKHRU DQG FRQVHTXHQWO ZLWKLQ WKLV WKHVLV ZRUN
7HUPV DQG NH FRQFHSWV
:KLOH VHYHUDO FRQFHSWV UHODWLQJ WR EXVLQHVV HFRORJ DQG VWUDWHJ XVDJH DUH XWLOL]HG ZLWKLQ
WKLV WKHVLV FRQFHSWV WKDW FDQ EH UHJDUGHG DV JHQHULF HJ YDOXH DUH DOVR XVHG $V VXFK WKH
PHDQLQJV RI WKHVH FRQFHSWV PD WDNH XS GLIIHUHQW FRQQRWDWLRQV IURP ZKDW WKH DUH
QRUPDOO DVVXPHG WR EH 7KLV VHFWLRQ DLPV WR FODULI WKH PDLQ WHUPV FRQFHSWV DQG SRVVLEO
SUHVHQW GHILQLWLRQV WR WKH WHUPV XVHG LQ WKH WKHVLV

61. 6HUYLFH
$FFRUGLQJ WR *U|QURRV

62. WKH VHUYLFH FRQFHSW FDQ EH GLVWLQJXLVKHG LQ DW OHDVW WKUHH
GLIIHUHQW ZDV ZLWKLQ OLWHUDWXUH VHUYLFH DV DQ DFWLYLW VHUYLFH DV D FXVWRPHU¶V YDOXH
FRQVXPSWLRQ SHUFHSWLRQ DQG VHUYLFH DV D SURYLGHU¶V YDOXH SURYLVLRQ SHUFHSWLRQ 7KH LGHD RI
VHUYLFH DV DQ DFWLYLW LV WKDW VHUYLFH LV QRW SHUIRUPHG VROHO IRU WKH SXUSRVH RI REWDLQLQJ
YDOXH EXW IRU WKH SXUSRVH RI VXSSRUWLQJ H[WDQW DFWLYLWLHV WKDW D FXVWRPHU PLJKW EH HQJDJHG
LQ )RU H[DPSOH D FKLOG FDUH ZRUNHU SHUIRUPV WKH VHUYLFH DFWLYLW RI DWWHQGLQJ WR DQG
PLQGLQJ FOLHQWV¶ FKLOGUHQ ZKLOH WKH DUH DZD DW ZRUN RU VFKRRO 6HUYLFH DV D YDOXH
FRQVXPSWLRQ SHUVSHFWLYH DQG DV D YDOXH SURYLVLRQ SHUFHSWLRQ EDVLFDOO FRQQRWHV WKH VDPH
LGHD ZKLFK LV UHODWHG WR WKH FRQVXPSWLRQ DQG FUHDWLRQ RI YDOXH DOEHLW IURP WKH GLIIHUHQW
SHUVSHFWLYHV RI WKH FXVWRPHU DQG WKH EXVLQHVV RUJDQL]DWLRQ LH WKH VHUYLFH SURYLGHU
*U|QURRV

63. $ VHUYLFH FDQ DOVR EH GHILQHG DV D WDQJLEOH RU LQWDQJLEOH LWHP WKDW FDQ EH HLWKHU ERXJKW RU
VROG DQG ZKRVH FRQVXPSWLRQXWLOL]DWLRQ SURGXFHV D FKDQJH LQ WKH FRQGLWLRQ RI D JRRG
PDWHULDO RU SHUVRQ 2QH RI WKH PDMRU IXQFWLRQV RI D VXSSO FKDLQ LV WR FRQYHUW UDZ PDWHULDOV
WR ILQLVKHG JRRGV ZKLFK SURYLGH YDOXH IRU HQGFXVWRPHUV %HDPRQ *RQJ HW DO

64. 7KXV E GHILQLWLRQ WKH VXSSO FKDLQ SURYLGHV D YDOXH FUHDWLRQ VHUYLFH IRU HQG XVHUV
DQG FXVWRPHUV 7KLV FRUUHVSRQGV WR WKH LGHD RI VHUYLFH DV D YDOXH SURYLVLRQ DFWLYLW LQ
ZKLFK WKH VXSSO FKDLQ FDUULHV RXW D VHUYLFH WR LWV FXVWRPHUV E FUHDWLQJ YDOXH WKDW HQDEOHV
WKHP WR IHHO EHWWHU RII WKDQ EHIRUH *U|QURRV

65. +RZ WKH DYDLODELOLW DQG XVH RI
VHUYLFH LQIOXHQFHV WKH FRPSHWLWLRQ DORQJ VXSSO FKDLQV DQG FRQVHTXHQWO WKH YDOXH WKDW
VXSSO FKDLQ FUHDWHV IRU LWV HQGFXVWRPHUV LV LPSRUWDQW WR WKH FRQFHSWXDOL]DWLRQ RI VXSSO
FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ
$OVR ZLWKLQ WKH FRQWH[W RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ VHUYLFH DV DFWLYLW DV
H[SODLQHG DERYH

66. FDQ EH RQH RI WKH QXPHURXV IRFL RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV ,Q
WKDW VHQVH LW VHUYHV D VLPLODU SXUSRVH DV UHVRXUFHV ZKLFK DUH DVVHWV UHTXLUHG E VXSSO
FKDLQV LQ RUGHU WR HQDEOH WKHP FRQWLQXH WKHLU YDOXH FUHDWLRQ DFWLYLW 6R VHUYLFH FDQ EH
WDNHQ WR KDYH PXOWLSOH UROHV ZLWKLQ WKH FRQWH[W RI FRQFHSWXDOL]DWLRQ RI FRPSHWLWLRQ
EHWZHHQ VXSSO FKDLQV YLD WKH HFRORJLFDO QLFKH WKHRU RI FRPSHWLWLRQ +HQFH VHUYLFH FDQ EH
VHHQ LQ WZR GLIIHUHQW ZDV DV D UHVRXUFH LQSXWWHG IRU YDOXH FUHDWLRQ DQG DV DQ DFWLYLW
QHFHVVDU IRU FUHDWLRQ RI WKH YHU VDPH YDOXH
,QWHUDFWLRQ
,QWHUDFWLRQ LV WKH PDLQ FRQFHSW XVHG WR FRQFHSWXDOL]H FRPSHWLWLRQ LQ WKLV WKHVLV ,W LV WKH
FRQQHFWLRQ RU UHODWLRQVKLS EHWZHHQ WZR RU PRUH HQWLWLHV :LWKLQ WKLV ZRUN LW UHSUHVHQWV WKH
LGHD RI D KHDG WR KHDG PHHWLQJ RI VXSSO FKDLQV IURP ZKLFK YDULRXV DVVRFLDWLRQV PD
UHVXOW HJ FROOXVLRQ FRRSHUDWLRQ DQG LQWHJUDWLRQ ,QWHUDFWLRQ LQ WKLV WKHVLV LV WKH FRQWDFW
EHWZHHQ WZR RU PRUH VXSSO FKDLQV DW D JLYHQ SRLQW ZKLFK FDUU RXW VLPXOWDQHRXV XVH RI D
IDFLOLW VHUYLFH RU SURGXFW RIIHUHG E D VHUYLFH SURYLGHU DW ZKRVH ORFDWLRQ WKH VXSSO FKDLQV
FRQYHUJH 8VXDOO WKH VHUYLFH SURYLGHU RIIHUV D VHUYLFH WKDW LV XVHG XS RU FRQVXPHG E WKH
VXSSO FKDLQ IRU WKH SXUSRVH RI FUHDWLQJ YDOXH IRU LWV HQG FXVWRPHUV ,Q WKLV WKHVLV WKH
LQWHUDFWLRQ WKDW UHVXOWV LQ FRPSHWLWLRQ DQG XVXDOO EURXJKW DERXW E VFDUFLW RI FULWLFDO
UHVRXUFHV LV RI LQWHUHVW 7KXV LQWHUDFWLRQ FDQ EH GHILQHG DV «´WKH VLPXOWDQHRXV XVH RI D
FRPPRQ UHVRXUFH VHUYLFH RU SURGXFW E WZR RU PRUH VXSSO FKDLQV HVVHQWLDO IRU LWV

67. FRQWLQXHG H[LVWHQFH DQG IRU WKH SXUSRVH RI REWDLQLQJ YDOXH IRU HQG FXVWRPHUV´ %HFDXVH WKH
DFWLRQ RI RQH HQWLW FDQ HLWKHU EH GHWULPHQWDO RU EHQHILFLDO WR RWKHU HQWLWLHV DW VXFK SRLQWV
LQWHUDFWLRQ EHWZHHQ HQWLWLHV DOORZV IRU DQ XQGHUVWDQGLQJ RI KRZ FRPSHWLWLRQ PD DULVH
IURP WKH LQWHUDFWLRQV WKDW WDNH SODFH DW VXFK SRLQWV ,QWHUDFWLRQ FDQ EH DIIHFWHG E
HQYLURQPHQWDO IDFWRUV WKDW LPSDFW QRW RQO WKH VXSSO FKDLQV EXW DOVR WR DQ H[WHQW
GHWHUPLQH WKH NLQG RI LQWHUDFWLRQV WKDW WDNH SODFH EHWZHHQ WKHP
9DOXHYDOXH FUHDWLRQ
'HVSLWH WKH FRQVLGHUDEOH DPELJXLW VXUURXQGLQJ WKH WHUP YDOXH LW LV KRZHYHU SRVVLEOH WR
XQGHUVWDQG YDOXH EDVHG RQ WKH SRSXODU H[SUHVVLRQ ³YDOXH SURSRVLWLRQ´ GHYHORSHG E
0F.LQVH R %RZHU DQG *DUGD

68. DQG SRSXODUL]HG ZLWKLQ WKH PDUNHWLQJ OLWHUDWXUH
7UHDF DQG :LHUVHPD

69. GHILQH WKH YDOXH SURSRVLWLRQ DV WKH LPSOLFLW SURPLVH DQ
RUJDQL]DWLRQ PDNHV WR LWV FXVWRPHUV WR GHOLYHU D SDUWLFXODU FRPELQDWLRQ RI VWDQGDUGV
YDOXH

70. 7KLV ³VWDQGDUGV´ FDQ WKXV EH H[SODLQHG DV D FRPELQDWLRQ RI VHYHUDO SURGXFW RU
VHUYLFH YLUWXHV WKDW DUH GHHPHG LPSRUWDQW WR WKH FXVWRPHU VXFK DV SULFH TXDOLW UDQJH LH
YDULHW

71. FRQYHQLHQFH HWF 1HYHUWKHOHVV YDOXH KHUH LV IXUWKHU H[WHQGHG IRU DFFRXQWDELOLW
SXUSRVHV WR PHDQ WKH XWLOLW RI D SURGXFW RU VHUYLFH SHU XQLW RI FRVW WR WKH HQG XVHU RI WKH
SURGXFW RU VHUYLFH 7KHUHE SXWWLQJ D SULFH RQ YDOXH 7KLV LQ RWKHU ZRUGV LV WKH HFRQRPLF
UHODWLRQVKLS EHWZHHQ FRVW FRQYHQLHQFH TXDOLW DQG DOO WKH RWKHU ³VWDQGDUGV´ SURPLVHG
FXVWRPHUV DV PHQWLRQHG DERYH 7KLV LGHD LV QRW PXFK GLIIHUHQW IRU VXSSO FKDLQV DV
FUHDWLQJ YDOXH LV VHHQ DV WKH SXUSRVH RI VXSSO FKDLQV 0HQW]HU

72. +RZHYHU WKLV LV
GRQH LQ D ZD WKDW VXJJHVWV WKDW YDOXH SDVVHG RQ WR FXVWRPHUV WKDW VXUSDVV FRPSHWLWRUV¶
YDOXH RIIHULQJV HVVHQWLDOO PDNHV XS WKH FRPSHWLWLYH DGYDQWDJH RI WKDW VXSSO FKDLQ +HQFH
WKH SURFHVV RI YDOXH FUHDWLRQ E DQG DORQJ VXSSO FKDLQV LV HVVHQWLDO WR LWV DFKLHYHPHQW RI D
FRPSHWLWLYH DGYDQWDJH 6FDWWHUHG DORQJ LWV OHQJWK VXSSO FKDLQV ZLOO FRQYHUJH DW VXFK
SRLQWV ZKHUH WKH DUH DEOH WR XWLOL]H UHVRXUFHV IRU WKH FUHDWLRQ RI YDOXH IRU HQG FXVWRPHUV
7KXV WKH XQGHUVWDQGLQJ RI YDOXH FUHDWLRQ IRU RXU SXUSRVH ZLWKLQ WKLV WKHVLV FDQ WDNH WZR
SHUVSHFWLYHV ZLWK UHVSHFW WR FRPSHWLWLYH DGYDQWDJH ± FRPSHWLWLRQEDVHG DGYDQWDJH DQG D
VRPHZKDW RSSRVLWH WHUP FRPSHWLWLRQIUHH YDOXH.
RPSHWLWLRQ IUHH YDOXH
RPSHWLWLRQIUHH YDOXH LV YDOXH FUHDWHG E VXSSO FKDLQV LQ ZKLFK WKHUH LV QR FRQVFLRXV
FRPSHWLWLYH LQWHUDFWLRQ FRPSHWLWLRQ

73. IURP RQH HQG RI WKH VXSSO FKDLQ WR WKH RWKHU ZLWK
RWKHU UHODWHG VXSSO FKDLQV % VLPSO FDUULQJ RXW WKH UHTXLUHG DFWLYLWLHV RI ORJLVWLFV RI
JRRGV DQG VHUYLFHV IURP SRLQW WR SRLQW DORQJ WKH VXSSO FKDLQ YDOXH FDQ EH VDLG WR EH
FUHDWHG WR WKH HQG XVHU
RPSHWLWLRQ EDVHG YDOXHDGYDQWDJH
RPSHWLWLRQEDVHG YDOXH LV RQH WKDW LV EDVHG RQ WKH LGHD WKDW FRPSHWLWLYH DGYDQWDJH LV
DFKLHYHG DV DQ RXWFRPH RI KHDGWRKHDG FRPSHWLWLRQ DQG XVH RI VFDUFH FULWLFDO UHVRXUFHV
EHWZHHQ WZR RU PRUH VLPLODU VXSSO FKDLQV $V D FRQVHTXHQFH RI WKLV YDOXH ZKLFK LV
FUHDWHG IURP WKLV LQWHUDFWLYH SURFHVV LV VXEVHTXHQWO SDVVHG RQ WR HQGFXVWRPHUV
)RU XVH LQ WKLV UHVHDUFK ZRUN FRPSHWLWLRQEDVHG YDOXH LV DGRSWHG ZKLFK FRQQRWHV WKH LGHD
WKDW YDOXH LV FRQVWDQWO EHLQJ FUHDWHG DQG DGGHG WR SURGXFWV ZLWKLQ DQG DORQJ WKH VXSSO

74. FKDLQ LH IURP XSVWUHDP DOO WKH ZD GRZQVWUHDP WR WKH HQG FXVWRPHUV 7KLV KRZHYHU ZLOO
RQO DSSO WR FHUWDLQ VXSSO FKDLQV WKDW FDUU RXW WKHVH WSHV RI YDOXHDGGLQJ SURFHVVHV $V
VXFK WKH VWUXJJOH WR FRQWLQXRXVO FUHDWH YDOXH IRU HQG FXVWRPHUV GHSLFWV WKH HVVHQFH RI
LQWHUDFWLRQ RI VXSSO FKDLQV DQG FRQVHTXHQWO WKH FRPSHWLWLRQ IRU OLPLWHG UHVRXUFHV WKDW
WDNHV SODFH EHWZHHQ RQH VXSSO FKDLQ DQG DQRWKHU.
6XSSO FKDLQ
0DGH XS DV D FRPELQDWLRQ RI IRXU GLIIHUHQW PDQDJHULDO GLVFLSOLQHV RSHUDWLRQV
PDQDJHPHQW SXUFKDVLQJ ORJLVWLFV DQG PDUNHWLQJ

75. VXSSO FKDLQ LV WKH QHWZRUN RI
RUJDQL]DWLRQV LQYROYHG WKURXJK XSVWUHDP DQG GRZQVWUHDP OLQNDJHV LQ WKH GLIIHUHQW
SURFHVVHV DQG DFWLYLWLHV WKDW SURGXFH YDOXH LQ WKH IRUP RI JRRGV DQG VHUYLFHV IRU HQG
FXVWRPHUV KULVWRSKHU

76. 7KLV GHILQLWLRQ GHSLFWV WKH JHQHUDO RXWORRN RI D VXSSO FKDLQ LQ WHUPV RI LWV GHVFULSWLRQ
SURFHVVHV DQG JRDO :KLOH VXSSO FKDLQV PD KDYH DOZDV H[LVWHG ZLWKLQ WKH FRQWH[W RI VSRW
PDUNHW LQWHUIDFHV WKHVH RSHQ PDUNHW LQWHUDFWLRQV 3HWHUVRQ

77. DUJXHV ZHUH JHQHUDOO
GLVLQWHJUDWHG $QG JRHV RQ WR HPSKDVL]H WKDW WKH XVH RI PDQDJHPHQW WHFKQLTXHV DQG WKH
RSWLPL]DWLRQ RI FROOHFWLYH SHUIRUPDQFH LQ FUHDWLQJ GLVWULEXWLQJ DQG VXSSRUWLQJ ILQLVKHG
SURGXFWV E VXSSO FKDLQ PHPEHUV « DVVRFLDWLRQ RI FXVWRPHUV DQG VXSSOLHUV

78. FUHDWHV WKH
GLIIHUHQFH FKDUDFWHULVWLF RI ZKDW ZH QRZ UHIHU WR DV WKH LQWHJUDWHG VXSSO FKDLQ
7KLV WKHVLV LGHQWLILHV ZLWK WKH LGHD RI LQWHJUDWHG VXSSO FKDLQV IRU REYLRXV UHDVRQV DQG
GRHV WKDW ZLWKLQ WKH FRQWH[W RI WKH DSSOLFDWLRQ RI VXFK OHDUQLQJ HJ 'HU DQG 1REHRND
'H 9ULHV DQG %ULMGHU 0DVRQ-RQHV DQG 7RZLO

79. 3DUW RI WKH GLVWLQFWLRQ RI WKH DSSOLHG DVSHFWV RI WKH VXSSO FKDLQ SKHQRPHQRQ HPDQDWHV
IURP VWUDWHJ OLWHUDWXUH DQG 3RUWHU¶V YDOXH FKDLQ 7KH YDOXH FKDLQ FRQFHSW GLVDJJUHJDWHV WKH
VXSSO FKDLQ LQWR VWUDWHJLFDOO UHOHYDQW YDOXH DGGLQJ DFWLYLWLHV IURP ZKLFK LW JDLQV
FRPSHWLWLYH DGYDQWDJH E SHUIRUPLQJ WKHP EHWWHU DQG FKHDSHU WKDQ WKH FRPSHWLWLRQ
KULVWRSKHU

80. )LJXUH 6XSSO FKDLQ XQLW RI DQDOVLV
,I YDOXH DGGLQJ DFWLYLWLHV SHUIRUPHG DORQJ WKH VXSSO FKDLQ GR RIIHU FRPSHWLWLYH DGYDQWDJH
WKHQ 3RUWHU¶V PRGHO FRQVLGHUV WKH RXWVRXUFLQJ RI WKRVH DFWLYLWLHV $V VXFK 3RUWHU¶V YDOXH
Raw material
Value input/ material conversion
Finished product

81. FKDLQ PRGHO SURYLGHV DQ DOWHUQDWLYH YLHZ WR :LOOLDPVRQ¶V

82. WUDQVDFWLRQ FRVW WKHRU RQ
WKH PRWLYDWLRQ IRU RXWVRXUFLQJ
+RZHYHU WKLV WKHVLV ZRXOG JR IXUWKHU WR GHOLQHDWH WKH VXSSO FKDLQ LQ WKDW D VXSSO FKDLQ
EHJLQV ZKHUH UDZ PDWHULDOV IRU D FHUWDLQ ILQLVKHG SURGXFW DUH VRXUFHG DQG HQGV ZKHUH WKH
ILQLVKHG SURGXFW LV WDNHQ SRVVHVVLRQ RI E WKH HQG XVHU )LJXUH

83. ,W GHSLFWV D VXSSO FKDLQ
ZKHUH YDOXH DGGLWLRQV WR WKH UDZ PDWHULDOV DFFXPXODWH RYHU LWV PRYHPHQW WKURXJK WKH
VXSSO FKDLQ WKDW UHVXOW HLWKHU LQ D WRWDOO QHZ SURGXFW RU RQH ZKLFK LV FRQVLGHUDEO
GLIIHUHQW IURP WKH PDMRU UDZ PDWHULDOV XVHG DW WKH WRS RI WKH VXSSO FKDLQ.
6XSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ
6XSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ FDQ PHDQ GLIIHUHQW WKLQJV WR GLIIHUHQW
UHVHDUFKHUV 7KH ILUVW WKLQJ IRU PRVW WKDW FRPHV WR PLQG ZKHQ FRQIURQWHG ZLWK WKH WLWOH
³VXSSO FKDLQ FRPSHWLWLRQ´ LV WKH LGHD RI LQWUDVXSSOFKDLQ FRPSHWLWLRQ 7KLV LV D VXSSO
FKDLQ FRPSHWLWLRQ PRGH WKDW HVVHQWLDOO RFFXUV EHWZHHQ VLPLODU PHPEHUV RI D JLYHQ VXSSO
FKDLQ $FFRUGLQJ WR =KDQJ

84. WKLV VRUW RI FRPSHWLWLRQ WHQGV WR UHYROYH DURXQG LQWUD
VXSSO FKDLQ DFWLYLWLHV VXFK DV GLVWULEXWLRQ QHWZRUN GHVLJQ LQYHQWRU PDQDJHPHQW DQG
SURGXFWLRQ FRRUGLQDWLRQ
$QRWKHU LGHD RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ LV RQH WKDW VHHPV WR SURPRWH
VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ PXFK IXUWKHU GRZQVWUHDP WR WKH VWDWXV RI
PDUNHW FRPSHWLWLRQ %DR

85. %DVHG RQ WKLV LGHD RI VXSSO FKDLQ YV VXSSO FKDLQ
FRPSHWLWLRQ WKH PDUNHW UHPDLQV WKH IRFXV RI WKH FRPSHWLWLRQ EHWZHHQ WZR RU PRUH VXSSO
FKDLQV DV WKH LQHYLWDEO RIWHQ HQG XS LQ WKH VDPH PDUNHWV +HUH FRPSHWLQJ VXSSO FKDLQV
DUH VDLG WR EH LQGHSHQGHQW DQG EULQJ VLPLODU SURGXFWV WR WKH PDUNHW
+RZHYHU LW LV RQ WKH EDVLV RI 5LFH DQG +RSH¶V

86. DFNQRZOHGJHPHQW RI FRPSHWLWLRQ
EHWZHHQ VXSSO FKDLQV DQG ZKLFK LGHQWLILHG YLD D 'HOSKL VWXG WKUHH PRGHOV WKURXJK
ZKLFK VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ LV FRQFHSWXDOL]HG ZLWKLQ EXVLQHVV SUDFWLFH
WKDW PRUH HPSKDVLV LV SODFHG 5LFH DQG +RSH

87. FRQFOXGHG WKDW WKH SKHQRPHQRQ RI
VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ FRXOG DFWXDOO WDNH WKUHH IRUPV WKH FKDQQHO
PDVWHU IRUP WKH FKDLQ ZHE IRUP DQG WKH FKDLQ RUJDQLVP IRUP :VRFNL HW DO

88. 7KH FRPSHWLWLRQ EDVHG RQ WKH FKDQQHO PDVWHU IRUP GHSLFWV D VFHQDULR ZKHUH FRPSHWLWLRQ
ZLOO GHSHQG RQ WKH DELOLWLHV RI WKH VLQJOH PRVW SRZHUIXO PHPEHU RI WKH VXSSO FKDLQ DV WKH
GHWHUPLQH WKH WHUPV RI WUDGH DFURVV WKH HQWLUH VXSSO FKDLQ $Q H[DPSOH RI VXFK VXSSO
FKDLQV LQFOXGHV PRVW ODUJH DXWRPRELOH DQG DLUFUDIW PDQXIDFWXUHUV
7KH FKDLQ ZHE IRUP RI FRPSHWLWLRQ GHSLFWV D VFHQDULR RI FRPSHWLWLRQ LQ ZKLFK LQGLYLGXDO
ILUPV ZLWKLQ D VXSSO FKDLQ FRPSHWH ZLWK LQGLYLGXDO ILUPV IURP WKH FRPSHWLQJ VXSSO
FKDLQ EDVHG RQ WKHLU UHVSHFWLYH VXSSO FKDLQV¶ FDSDELOLWLHV 7KLV IRUP RI FRPSHWLWLRQ LV
TXLWH YRODWLOH IRU FRPSHWLWLRQ SXUSRVHV EHFDXVH LW VXJJHVWV D PRGHO FRQVLVWLQJ RI LQWHUILUP
UHODWLRQVKLSV WKDW DUH FRQWLQXDOO FKDQJLQJ VKDSH GLPHQVLRQ DQG PHPEHUVKLS DV
LQGLYLGXDO PHPEHUV FDQ EH PHPEHUV RI VHYHUDO RWKHU VXSSO FKDLQV :VRFNL HW DO

89. 7KH ,7FRPSXWHU WHFKQRORJ LQGXVWU ZRXOG EH ODUJHO FKDUDFWHULVWLF RI WKLV IRUP RI
FRPSHWLWLRQ
7KH FKDLQ RUJDQLVP FDQ EH VDLG WR EH GLUHFWO RSSRVLWH WR WKH FKDLQ ZHE IRUP LQ WKH VHQVH
WKDW ZKLOH WKH VXSSO FKDLQ FRPSHWHV DV VHYHUDO VLQJOH HQWLWLHV LQ WKH ODWHU FRPSHWLWLRQ

90. ZLWKLQ WKH IRUPHU LV H[SHFWHG WR EH FDUULHG RXW ZLWK WKH FRPSHWLQJ VXSSO FKDLQV DFWLQJ DV
LQWHJUDWHG VXSSO FKDLQV WKDW FRPSHWH DV VLQJOH ZKROH XQLWV ,W LV WKLV WKLUG IRUP RI
FRPSHWLWLRQ WKDW LV FORVHVW WR ZKDW WKLV VWXG UHFRJQLVHV DV VXSSO FKDLQ YV VXSSO FKDLQ
FRPSHWLWLRQ DQG RQH ZKLFK DQ DWWHPSW DW RSHUDWLRQDOL]DWLRQ LV PDGH $Q LPSRUWDQW
FKDUDFWHULVWLF RI WKLV IRUP RI FRPSHWLWLRQ LV LWV ODFN RI D VLQJOH GRPLQDQW ILUP RU WKH VR
FDOOHG FKDQQHO PDVWHU 'HFLVLRQ PDNLQJ LV VKDUHG DPRQJ FRQWULEXWLQJ ILUPV DQG DV VXFK
ILUPV GHSHQG RQ WKHLU DELOLW WR FRPSOHPHQW HDFK RWKHU ZKLFK LV YLWDO WR WKH VXSSO FKDLQ¶V
FDSDFLW WR UHVROYH GLOHPPDV ZLWKLQ OHDUQLQJ VXSSO FKDLQV 3HWHUVRQ

91. )URP 6HQJH¶V

92. LGHD RI OHDUQLQJ RUJDQL]DWLRQV OHDUQLQJ VXSSO FKDLQV FDQ EH GHVFULEHG DV WKRVH
VXSSO FKDLQV WKDW DUH LQWHJUDWHG DQG SRVVHV WKH DELOLW WR OHDUQ IURP DQG UHVSRQG WR
FKDQJLQJ PDUNHW HQYLURQPHQWV 3HWHUVRQ

93. LI WKH DUH WR VXUYLYH 7KXV VXSSO FKDLQ
YV VXSSO FKDLQ FRPSHWLWLRQ KHUH LV FRPSHWLWLRQ WKDW WDNHV SODFH EHWZHHQ VXSSO FKDLQV
WKDW RSHUDWH DV DQ LQWHJUDWHG VLQJOH HQWLW DQG DV VXFK LV FDSDEOH RI WDNLQJ GHFLVLRQ VXFK DV
ZKHWKHU WR FRPSHWH RU QRW
RPSHWLWLRQ FRPSHWLWLYHQHVV DQG FRPSHWLWLYH DGYDQWDJH
RPSHWLWLYHQHVV
$V RQH RI WKH PDLQ FRQFHSWV XWLOL]HG LQ WKLV WKHVLV FRPSHWLWLYHQHVV LV WUHDWHG EHFDXVH LW LV
FRQVLGHUHG DV D IRXQGDWLRQ XSRQ ZKLFK WKH SURFHVV RI FRPSHWLWLRQ UHVWV RQ $QG WKLV LV
UHOHYDQW IRU WKH XOWLPDWH GHYHORSPHQW RI D FRQFHSWXDOL]DWLRQ RI FRPSHWLWLRQ EHWZHHQ
VXSSO FKDLQV 7KH GHILQLWLRQ RI FRPSHWLWLYHQHVV DGRSWHG E WKLV WKHVLV LV EDVHG RQ WKH LGHD
RI KR

94. ZKR EHOLHYHV WKDW FRPSHWLWLYHQHVV LV D WHUP WKDW VLJQLILHV WKH VWDWH RI
SUHSDUHGQHVV RI DQ HQWLW VD D VXSSO FKDLQ IRU LQWHUDFWLRQ FRPSHWLWLRQ

95. ZLWK RWKHU
VLPLODU VXSSO FKDLQV IRU WKH EDVLF SXUSRVH RI FRPSHWLQJ 7KXV FRPSHWLWLYHQHVV KHUH ZLOO
EH GHILQHG DV ´WKH UHODWLYH VWUHQJWK DELOLW

96. WKDW LV QHHGHG WR HQJDJH DQG SRVVLEO ZLQ LQ
D FRPSHWLWLRQ DJDLQVW ULYDOV´
RPSHWLWLYH DGYDQWDJH
7KH SULQFLSOH RI FRPSHWLWLYH DGYDQWDJH DUJXHV WKDW RUJDQL]DWLRQV FDQ RQO EH VXFFHVVIXO LI
LWV SURGXFWV DQG VHUYLFHV KDYH D FRPSHWLWLYH HGJH RYHU WKRVH RI LWV ULYDOV +RZHYHU
FRPSHWLWLYH DGYDQWDJH KDV EHHQ DQDO]HG IURP DOPRVW HYHU VSHFWUXP RI WKH EXVLQHVV XQLW
LQ OLWHUDWXUH 7KH LGHD RI FRPSHWLWLYH DGYDQWDJH WKXV FRQYHV GLIIHUHQW YLHZSRLQWV DQG DV
VXFK WKHUH LV FRQIXVLRQ DV WR ZKDW DFWXDOO LV FRPSHWLWLYH DGYDQWDJH
)RU WKH SXUSRVH RI WKLV ZRUN FRPSHWLWLYH DGYDQWDJH ZLOO EH GHILQHG DV « ³WKH DGYDQWDJH LQ
YDOXH WHUPV D ILUP FUHDWHV IRU LWVHOI DQG LWV FXVWRPHUV WKDW HVVHQWLDOO DFFUXH IURP WKH
LQWHUDFWLRQ FRPSHWLWLRQ

97. ZLWK RWKHU ILUPV´
RPSHWLWLRQ
7KLV LV WKH PDLQ FRQFHSW RI WKLV WKHVLV ZRUN DQG WKH SXUSRVH IRU ZKLFK DQ DOLJQPHQW ZLWK
LWV FRUUHODWHV FRPSHWLWLYHQHVV DQG FRPSHWLWLYH DGYDQWDJH

98. LV QHFHVVDU 7KLV WKHVLV
SURSRVHV WKH LGHD RI LQWHUDFWLRQ EHWZHHQ VXSSO FKDLQV DQG WULHV WR DUJXH EDVHG RQ WKLV WKDW
FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV ZLOO HVVHQWLDOO HPDQDWH IURP WKH LQWHUDFWLRQ RI WZR RU
PRUH RI VXFK VWUXFWXUHV DV VXSSO FKDLQV HTXDOO VWULYLQJ IRU VLPLODU RU VKDUHG UHVRXUFHV
7KHUHIRUH FRPSHWLWLRQ LQ WKLV WKHVLV LV WDNHQ WR EH «´ WKH UHVXOWLQJ VWUXJJOH IRU UHVRXUFHV

100. HVVHQWLDO IRU WKH FRQWLQXHG H[LVWHQFH GHYHORSPHQW DQG VXSHULRU YDOXH FUHDWLRQ DELOLWLHV RI
VXSSO FKDLQV DV D UHVXOW RI WKHLU LQWHUDFWLRQ RYHUODS

101. DW WKH SRLQW RI FULWLFDO UHVRXUFH
DYDLODELOLW´
1LFKH VXSSO FKDLQ

102. *ULQQHOO

103. ZDV ILUVW WR UHIHU WR D VSHFLH¶V SRVLWLRQ LQ WKH HFRORJLFDO HQYLURQPHQW DV LWV
QLFKH DQG VLPSO GHILQHG WKH QLFKH DV WKH OLPLWHG UDQJH RI HFRORJLFDO YDULDEOHV WKDW DUH
FDSDEOH RI VXVWDLQLQJ D SRSXODWLRQ ZLWKRXW LPPLJUDWLRQ 7KLV GHILQLWLRQ ZDV ODWHU
PRGLILHG E +XWFKLVRQ

104. WR LQFOXGH WKH QXPHURXV GLPHQVLRQV ZLWKLQ WKH
HQYLURQPHQW WKDW FDQ DFW WR DIIHFW WKH VXUYLYDO RI D VSHFLHV LQFOXGLQJ LWV LQWHUDFWLRQ ZLWK
RWKHU VSHFLHV +HQFH LW LV WKH VSDFH ZLWKLQ WKH HQYLURQPHQW RFFXSLHG E D VSHFLHV WKDW
SHUPLWV JURZWK 7KH WHUP ZDV VXEVHTXHQWO XVHG WR LQFOXGH WKH WZR GLVWLQFW FRQFHSWV LW
VHHPV WR GHILQH 9DQGHUPHHU KDVH DQG /HLEROG

105. 7KLV GHVFULSWLRQ FRYHUV WKH
*ULQQHOO

106. DQG +XWFKLVRQ

107. GHILQLWLRQV RQ WKH RQH KDQG DQG WKH (OWRQ

108. GHILQLWLRQ ZKLFK GHILQHV WKH QLFKH LQ WHUPV RI LWV UHODWLRQVKLS WR RWKHU VSHFLHV RQ WKH RWKHU
KDQG 7KDW LV WR VD LW GHVFULEHV WKH IXQFWLRQDO UROH RI D VSHFLHV LQ WKH FRPPXQLW ZLWK
UHJDUGV WR LWV WURSKLF LQWHUDFWLRQV 7KLV VWXG LQWHQGV WR FRPELQH WKHVH WZR SHUVSHFWLYHV RI
WKH LGHD RI D QLFKH JLYHQ WKH LGHD WKDW WKH QLFKH FKDUDFWHUL]HV WKH UROH RI DQ HQWLW IRU
H[DPSOH DV LQ DQ RUJDQL]DWLRQ RU SRSXODWLRQ RI RUJDQL]DWLRQV ZLWKLQ D ODUJHU FRPPXQLW
HQYLURQPHQW 3RSLHODU] DQG 1HDO

109. ,Q UHODWLRQ WR FRQFHSWXDOL]LQJ FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV WKH QLFKH RI D VXSSO
FKDLQ FDQ EH VDLG WR EH WKH SDUWLFXODU VHW RI UHVRXUFHV LQFOXGLQJ HQYLURQPHQWDO FRQGLWLRQV

110. WKDW DQ LQGLYLGXDO VXSSO FKDLQ H[SORLWV IRU LWV FRQWLQXHG EXVLQHVV VXUYLYDO DQG LWV HIIHFWV
RQ RWKHU VXSSO FKDLQV 7KLV FDQ LQFOXGH VSHFLILF UHVRXUFHV VXFK DV VXSSOLHUV RULJLQDO
HTXLSPHQW PDQXIDFWXUHUV DVVHWV VNLOOV ODERU

111. WHFKQRORJ UDZ PDWHULDOV FRPSHWHQFH
DQG HQYLURQPHQWDO GQDPLFV HJ RLO DQG FXUUHQF SULFH IOXFWXDWLRQV
1LFKHV FDQ EH GHVFULEHG DV IXQGDPHQWDO RU UHDOL]HG $ IXQGDPHQWDO QLFKH GHILQHV DOO VHW RI
FRQGLWLRQV LQFOXGLQJ HQYLURQPHQWDO

112. LQ ZKLFK VXUYLYDO DQG FRQVHTXHQWO JURZWK LV
PDLQWDLQHG +DQQDQ DQG )UHHPDQ

113. 2Q WKH RWKHU KDQG D UHDOL]HG QLFKH LV WKH
FRQVWULFWHG UDQJH RI FRQGLWLRQV IRUFHG XSRQ D VXSSO FKDLQ DV D UHVXOW RI HLWKHU LQWHUDFWLRQ
RU WKH VXUURXQGLQJ HQYLURQPHQWDO IDFWRUV
1LFKH EUHDGWK DQG 1LFKH RYHUODS
1LFKH EUHDGWK DQG QLFKH RYHUODS DUH WZR YHU FHQWUDO WHUPV WR HFRORJ 1LFKH RYHUODS LV
VLPSO GHILQHG WR PHDQ WKH MRLQW XVH RI UHVRXUFHV E WZR RU PRUH VSHFLHV ROZHOO DQG
)XWXDPD

114. 2Q WKH RWKHU KDQG QLFKH EUHDGWK GHILQHV WKH UDQJH RI HQYLURQPHQWDO
UHVRXUFHV XSRQ ZKLFK D VSHFLHV H[LVWV 0LOQH DQG 0DVRQ

115. ,W UHIHUV WR DQ HQWLW¶V
YDULDQFH LQ UHVRXUFH XWLOL]DWLRQ +DQQDQ DQG )UHHPDQ

116. :LWKLQ WKLV WKHVLV ZRUN QLFKH RYHUODS LV WKH VLPXOWDQHRXV PHHWLQJ RI WZR RU PRUH VXSSO
FKDLQV DW D JLYHQ UHVRXUFH SRLQW IRU SXUSRVHV RI WDNLQJ DGYDQWDJH RI D VHUYLFH D SURGXFW RU
D UHVRXUFH 7KH EUHDGWK RI D VXSSO FKDLQ¶V QLFKH ZLOO WKHUHIRUH LQFOXGH DOO WKH VHUYLFHV
UHVRXUFHV SURGXFWV HWF WKDW D VXSSO FKDLQ UHTXLUHV WR FRQWLQXH LWV H[LVWHQFH 1LFKH

117. EUHDGWK LV GLUHFWO UHODWHG WR QLFKH RYHUODS 7KH H[SHFWHG UHODWLRQ EHWZHHQ WKH WZR WHUPV LV
WKH EDVLV XSRQ ZKLFK WKH FRQFHSWXDOL]DWLRQ RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV LV
XQGHUWDNHQ ZKLFK LV RQH RI GLUHFW FRUUHODWLRQ LH WKH ODUJHU WKH QLFKH EUHDGWK WKH ODUJHU
WKH UHVXOWLQJ RYHUODS
1H[W WKH SRVLWLRQLQJ RI WKH WKHVLV ZLWKLQ OLWHUDWXUH LV GLVFXVVHG
3RVLWLRQLQJ DQG WDUJHW RI WKH WKHVLV
6XSSO FKDLQ PDQDJHPHQW DV D GLVFLSOLQH LV NQRZQ WR EH FRQYHQLHQWO VHSDUDWHG DORQJ
PDQDJHPHQW RSHUDWLRQDO DV ZHOO DV DFDGHPLF OLQHV DV VXFK LW LV LPSRUWDQW WKDW WKLV VWXG
FRQWULEXWHV WRZDUGV WKHVH GLIIHUHQW LQWHUHVWV %HLQJ DQ DFDGHPLF DVVLJQPHQW WKLV VWXG
DOVR LQWHQGV WR VKRZ IRU PDQDJHUV DQG SUDFWLWLRQHUV WKH SRWHQWLDO IRU IXUWKHU GHYHORSPHQW
LQ WKH GLVFLSOLQH RI VXSSO FKDLQ PDQDJHPHQW HVSHFLDOO ZLWK UHVSHFW WR VXSSO FKDLQ YV
VXSSO FKDLQ FRPSHWLWLRQ ,W VHHNV ZDV WR VWUDWHJLFDOO PD[LPL]H WKH HIILFLHQF RI
PDQDJHUV¶ VXSSO FKDLQV E GHWHUPLQLQJ WKRVH VXSSO FKDLQV WKDW DUH VLPLODU WR WKHLUV LQ
WHUPV RI FULWLFDO UHVRXUFHV XVH HVWLPDWLQJ KRZ WKH DIIHFW WKHLU RSHUDWLRQV DQG HYHQWXDOO
WKHLU ERWWRPOLQH
)LJXUH )RFXV RI WKH WKHVLV
+HQFH WKLV WKHVLV LV SRVLWLRQHG ZLWKLQ WKH VXSSO FKDLQ PDQDJHPHQW GLVFLSOLQH LH VHHNLQJ
WR GHYHORS WKH FRQFHSW RI VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ IURP D VXSSO FKDLQ
PDQDJHPHQW SRLQW RI YLHZ
+RZHYHU WKLV WKHVLV GUDZV PXFK RI LWV OLWHUDWXUH IURP WKH HFRORJ HFRQRPLFV DQG VWUDWHJ
GLVFLSOLQHV %HFDXVH VXSSO FKDLQ PDQDJHPHQW WRXUFKHV XSRQ DOO EXVLQHVV SURFHVVHV DORQJ
WKH VXSSO FKDLQ DV VXJJHVWHG E RRSHU HW DO

118. /DPEHUW

119. VXSSO FKDLQ
PDQDJHPHQW FDQ EH H[DPLQHG WKURXJK WKH GLIIHUHQW UHODWHG WKHRULHV
^ƵƉƉůLJ ĐŚĂŝŶ
ŵĂŶĂŐĞŵĞŶƚ
ĐŽŶŽŵŝĐƐͬ
^ƚƌĂƚĞŐLJ
ĐŽůŽŐŝĐĂů
EŝĐŚĞ
dŚĞŽƌLJ
^
ŽŵƉ͘

120. 7KH ILHOG RI HFRQRPLFV LV SUREDEO WKH GLVFLSOLQH ZLWK WKH PRVW VWXGLHV RI WKH FRQFHSW RI
FRPSHWLWLRQ HJ VHH 0F1XOW

121. $ORQJ ZLWK WKH VWXG RI FRPSHWLWLRQ FRPHV WKH VWXG
RI WKH FRUUHODWHV RI FRPSHWLWLRQ FRPSHWLWLYHQHVV DQG FRPSHWLWLYH DGYDQWDJH 7KHVH
FRQFHSWV HPERG WKH LGHD RI ULYDOU LQ ZKDW LV VHHQ DV FRPSHWLWLRQ $OO WKUHH DUHDV GUDZQ
XSRQ )LJXUH

122. IRU WKH IXUWKHU GHYHORSPHQW RI WKH FRPSHWLWLRQ FRQFHSW EHWZHHQ VXSSO
FKDLQV RIIHU LPSRUWDQW LQIOXHQFHV 7KH ILHOG RI HFRORJ ZDV LQVWUXPHQWDO WR WKLV VWXG DV LW
LV IURP WKLV ILHOG WKDW WKH GLIIHUHQW LGHDV WKDW VKDSH WKH ZD EXVLQHVV FRPSHWLWLRQ LV FDUULHG
RXW WRGD PRVWO HPDQDWH IURP LQ FRQWHPSRUDU DV ZHOO DV WUDGLWLRQDO WHUPV HJ /RWND

123. 7KH HFRQRPLFV GLVFLSOLQH ZKRVH IRFXV RQ FRPSHWLWLRQ VWLOO UHPDLQV WKH HIILFLHQF LQ
DOORFDWLRQ RI UHVRXUFHV *RZG

124. DOORZV XV WR VHH IURP HFRORJ DQG ELRORJ

125. WKDW
FRPSHWLWLRQ RU FRPSHWLWLRQ HQWLWLHV DUH DOVR KLJKO LPSDFWHG E YDOXH DQG WKH HQYLURQPHQW
ZLWKLQ ZKLFK FRPSHWLWLRQ WDNHV SODFH $QG VXSSO FKDLQ PDQDJHPHQW SURYLGHV WKH
SODWIRUP XSRQ ZKLFK VXFK ERUURZLQJ IURP RWKHU GLVFLSOLQHV PD EH HIILFLHQWO DGDSWHG
7KH WHUPV FRPSHWLWLRQ FRPSHWLWLYHQHVV DQG FRPSHWLWLYH DGYDQWDJH FRPPDQG ZLGH
PHQWLRQ ZLWKLQ VXSSO FKDLQ PDQDJHPHQW OLWHUDWXUH DQG RIWHQ ZLWK PXFK FRQIXVLRQ
EHWZHHQ WKHP :LWKLQ PDQDJHPHQW VWUDWHJ %DUQH

126. GLIIHUHQWLDWHV EHWZHHQ WKUHH
WSHV RI FRPSHWLWLRQ LQFOXGLQJ LQGXVWULDO RUJDQL]DWLRQ KDPEHUOLQLDQ DQG 6FKXPSHWHULDQ
FRPSHWLWLRQ ,QGXVWULDO RUJDQL]DWLRQ FRPSHWLWLRQ LV IRFXVHG RQ WKH VWUXFWXUH RI WKH
LQGXVWU 'HYHORSHG E 0DVRQ

127. DQG %DLQ

128. DQG LQ ZKLFK FRPSHWLWLRQ LV
GHWHUPLQHG E WKH VWUXFWXUH RI WKH LQGXVWU ZLWKLQ ZKLFK D ILUP FRPSHWHV 6R VWUXFWXUH ZDV
DQ LPSRUWDQW UHPRYH IURP WKLV OLWHUDWXUH
RPSHWLWLYHQHVV IURP DQ HFRQRPLFV SRLQW RI YLHZ LPSOLHV WUDGH VXUSOXVHV DQG LVVXHV
UHODWLQJ WR *'3 SHU FDSLWD WKDW DUH UHIOHFWHG DW WKH FRXQWU OHYHO )DJHUEHUJ
)DMQ]OEHU 7VRQ .UXJPDQ

129. $FFRUGLQJ WR 3RUWHU

130. WKH LGHD RI
FRPSHWLWLYHQHVV LV PRVW IXQFWLRQDO DW WKH ILUP OHYHO VLQFH WKH PDNH XS WKH FRPSHWLWLYH
EDVH IRU WKH FRPSHWLWLYHQHVV RI D QDWLRQ :LWKLQ VXSSO FKDLQ PDQDJHPHQW OLWHUDWXUH
PXFK RI WKH GLVFXVVLRQ VXUURXQGLQJ DGYHUVDU UHYROYHV DURXQG FRPSHWLWLYHQHVV DV
HYLGHQFHG E WKH VFDQW OLWHUDWXUH RQ KHDGWRKHDG FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV
RPSHWLWLYH DGYDQWDJH KDV EHHQ DQDO]HG IURP DOPRVW HYHU VSHFWUXP RI WKH EXVLQHVV XQLW
LQ OLWHUDWXUH 7KH LGHD RI FRPSHWLWLYH DGYDQWDJH WKXV FRQYHV GLIIHUHQW YLHZSRLQWV DQG DV
VXFK WKHUH LV FRQIXVLRQ DV WR ZKDW DFWXDOO LV FRPSHWLWLYH DGYDQWDJH 7KH VWUDWHJVWUDWHJLF
PDQDJHPHQW OLWHUDWXUH ZKLFK KDV EHHQ PRVW FRQFHUQHG ZLWK WKH LVVXH RI FRPSHWLWLYH
DGYDQWDJH DWWHPSWV WR H[SODLQ WKH SHUIRUPDQFH RI ILUPV ZLWK WKH KSRWKHVLV WKDW VXSHULRU
SHUIRUPDQFH RFFXUV IURP FRPSHWLWLYH DGYDQWDJH 'HU DQG 6LQJK

131. 7KLV FRPSHWLWLYH
DGYDQWDJH DFFRUGLQJ WR WKH VWUDWHJLF OLWHUDWXUH LV JHQHUDOO REWDLQHG E YDOXH FUHDWLRQ
3RUWHU %UDGHQEXUJHU DQG 6WXDUW

132. ZKLFK PD FRPH DERXW WKURXJK D YDULHW RI
PHDQV HJ UHVRXUFH DGYDQWDJHV WHFKQRORJ PDUNHW VKDUH HWF
%DVHG RQ WKH DERYH UHVROYLQJ WKH LQFRQJUXLW ZLWKLQ OLWHUDWXUH RI WKH WKUHH FRPSRQHQWV
HVSHFLDOO DV LW FRQFHUQV VXSSO FKDLQV ZDV YLWDO WR WKH VWXG 7KLV OLWHUDWXUH VWUHDP ZDV
FHQWUDO WR DFKLHYLQJ WKLV 7KH HFRORJLFDO QLFKH WKHRU ZDV LQVWUXPHQWDO LQ SURYLGLQJ D
SODWIRUP XSRQ ZKLFK D FRQFHSWXDOL]DWLRQ FRXOG EH DWWHPSWHG 7KH H[SORUDWRU QDWXUH RI
WKH UHVHDUFK WULHV WR FRQQHFW H[LVWLQJ NQRZOHGJH LQ OLWHUDWXUH WR FXUUHQW NQRZOHGJH DQG
HYHQWV ZLWKLQ SUDFWLWLRQHU FLUFOHV 7KH WKHVLV IROORZV D FHUWDLQ SURJUHVVLRQ IURP OLWHUDWXUH
UHYLHZ WR FRQFHSWXDOL]DWLRQ DQG ILQDOO WR FDVH VWXG 7KH ILJXUH LV H[WHQGHG WR GHSLFW WKH

133. UHODWLRQVKLS EHWZHHQ WKH WKHRUHWLFDO DQFKRUV RI WKLV WKHVLV DV ZHOO DV WKH ORFDWLRQ RI RULJLQDO
SDSHUV ZLWKLQ WKDW IUDPHZRUN ILJXUH

134. 5HDOLWLHV RI FRPSHWLWLRQ IRU VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ GHYHORSPHQW DUH
VHHQ WKURXJK WKH OHQVHV RI WKH HFRORJLFDO QLFKH WKHRU RI FRPSHWLWLRQ YLD LWV FRQFHSWV RI
RYHUODS DQG QLFKH EUHDGWKV
)LJXUH 5HODWLRQVKLS EHWZHHQ WKH WKUHH WKHRUHWLFDO GRPDLQV
(FRORJ
'RPDLQ
(FRQRPLFVVWUDWHJ
'RPDLQ
RPSHWLWLRQ UHDOLW
RPSHWLWLYH
$GYDQWDJH
RPSHWL
WLYHQHVV
ULWLFDO
5HVFRXUFHV
6HUYLFHV
(FRORJLFDO
1LFKH WKHRU
RPSHW
LWLRQ
,QWHUDFWLRQ RPSHW
LWLRQ
RRSHUDWLRQ
ROOXVLRQ RRSHWLWLRQ
,,,
,
,,
,9
6XSSO FKDLQ
'RPDLQ
%RXQGDU RI VWXG

135. 7KLV FRPSHWLWLRQ LV PRVWO EDVHG RQ FULWLFDO UHVRXUFHV WKDW LQGLYLGXDOV VSHFLHV

136. QHHG WR
VXUYLYH 7KXV DQFKRULQJ RQ WKLV SHUVSHFWLYH LW LV XVHIXO WR FRQFHSWXDOL]H ULYDO VXSSO
FKDLQV DV FRPSHWLQJ VSHFLHV ZKLFK QHHG FULWLFDO UHVRXUFHV DQG VHUYLFHV WR VXUYLYH LQ
EXVLQHVV 7KLV OHDGV WR DQ LQWHUDFWLRQ RI VXSSO FKDLQV DW SRLQWV ZKHUH WKHVH FULWLFDO
VHUYLFHV DQG UHVRXUFHV DUH SURYLGHG 7KH FRQVHTXHQW UHODWLRQVKLS WKDW HQVXHV EHWZHHQ WKH
VXSSO FKDLQV WKDW KDSSHQ WR LQWHUDFW DW WKHVH SRLQWV LV PRVWO RQH RI FRPSHWLWLYH
LQWHUDFWLRQ +RZHYHU DV GHSLFWHG E WKH ILJXUH FROODERUDWLYH DQG FRRSHUDWLYH
LQWHUDFWLRQV DUH DOVR SRVVLEOH )RU FRPSHWLWLRQ WR RFFXU VXSSO FKDLQV PXVW EH H[DFWO
VLPLODU LQ WKH XWLOL]DWLRQ RI UHVRXUFHV DQG VHUYLFHV ZKLOH WKLV LV XVXDOO UDUH LQ UHDOLW LW LV
KRZHYHU SRVVLEOH 7KH VWUXFWXUH RI WKH WKHVLV LV GHVFULEHG QH[W
6WUXFWXUH RI WKH WKHVLV
3DUW RI WKLV GLVVHUWDWLRQ ZRUN KDV EHHQ SXEOLVKHG LQ UHIHUHQFHV ,,9 OLVWHG LQ FKDSWHU 7KH
PDLQ SDUW RI WKH WKHVLV LV RUJDQL]HG DV IROORZV
%DFNJURXQG WR WKH WKHRUHWLFDO H[SOLFDWLRQV RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV DQG LWV
FRQQHFWLRQ WR RXWVRXUFLQJ DQG SDUDGLJP VKLIWV LQ LQQRYDWLRQ DQG WHFKQRORJ DUH SUHVHQWHG
LQ KDSWHU ZKLOH DOVR GHYHORSLQJ D YLHZ SRLQW RI VXSSO FKDLQV ZLWK UHVSHFW WR VSHFLHV
FRPSHWLWLRQ ,Q KDSWHU D EULHI OLWHUDWXUH RI WKH WKHRU XSRQ ZKLFK WKH FRQFHSW RI
LQWHUDFWLRQ XVHG LQ WKLV WKHVLV LV H[SORUHG DQG D FRQFHSWXDOL]DWLRQ RI VXSSO FKDLQ YV
VXSSO FKDLQ FRPSHWLWLRQ LV EULHIO XQGHUWDNHQ ,Q KDSWHU WKH YDULRXV PHWKRGV XVHG
ZLWKLQ WKLV WKHVLV DUH UHYLHZHG 7KHVH PHWKRGV VSDQ TXDQWLWDWLYH DV ZHOO DV TXDOLWDWLYH
WHFKQLTXHV LQFOXGLQJ KRZ DQ RSHUDWLRQDOL]DWLRQ RI VXSSO FKDLQ YV VXSSO FKDLQ
FRPSHWLWLRQ LV FDUULHG RXW KHUH
)LJXUH 6WUXFWXUH RI WKH WKHVLV
,QWURGXFWLRQ
/LWHUDWXUH
2YHUYLHZ
7KHRUHWLFDO
)UDPHZRUN
0HWKRGV
5HVXOWV
RQFOXVLRQ
3DSHU ,
RQWHQW
$QDOVLV
([HJHVLV
3DSHU ,,
/LWHUDWXUH
5HYLHZ
3DSHU ,,,
0RGHO
'HYHORSPHQW
3DSHU ,9
DVH VWXG

137. ,Q KDSWHU VXPPDULHV DQG UHVXOWV RI WKH SDSHUV WKDW PDNH XS WKLV WKHVLV ,,9

138. DUH
SUHVHQWHG $OVR D VXPPDU RI JHQHUDO UHVXOWV RI WKH WKHVLV DQG SURSRVDO RI FRQWULEXWLRQV
DUH SUHVHQWHG KDSWHU SUHVHQWV D EULHI GLVFXVVLRQ DQG JRHV RQ WR RXWOLQH LPSOLFDWLRQV IRU
UHVHDUFK DQG PDQDJHPHQW DQG ILQDOO DYHQXHV IRU IXUWKHU UHVHDUFK EULQJV WKH WKHVLV WR D
FRQFOXVLRQ 7KH VWUXFWXUH RI WKH H[HJHVLV DQG LWV UHODWLRQ WR WKH SDSHUV ,,9 DUH LOOXVWUDWHG
E ILJXUH
/LPLWDWLRQV RI WKH VWXG
$FFRUGLQJ WR 6NMRWW/DUVHQ HW DO

139. GHPDQG PDQDJHPHQW SURFXUHPHQW SURGXFWLRQ
GLVWULEXWLRQ DQG UHWXUQV PDNH XS WKH EDVLF VXSSO FKDLQ SURFHVVHV :LWK UHVSHFW WR WKHVH
WZR EDVLF OLPLWDWLRQV DUH REVHUYHG DQG QHHG WR EH DFNQRZOHGJHG ZLWK UHJDUGV WR WKLV VWXG
RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV %HFDXVH VXSSO FKDLQ SURFHVVHV DUH NQRZQ WR EH
QRWRULRXVO FRPSOH[ HJ 0HQW]HU HW DO /DPEHUW DQG 3RKOHQ

140. GHDOLQJ ZLWK
VXFK FRPSOH[LW LQYROYHV REWDLQLQJ GDWD WKDW UHIOHFW WKLV LQWHQVLW LQ VXSSO FKDLQV )LUVW
SUREOHP HQFRXQWHUHG ZLWKLQ WKH VWXG UHIOHFWHG WKH ODFN RI GDWD WR VWXG VXFK D FRQFHSW DV
VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ ,Q DWWHPSWV WR DFTXLUH GDWD IRU WKH VWXG ZKLFK
EDVLFDOO LQYROYHG GDWD IURP WKH XVH IUHTXHQFLHV RI FULWLFDO VHUYLFH SURYLGHUV HJ ORJLVWLFV
FHQWHUV RULJLQDO HTXLSPHQW PDQXIDFWXUHUV

141. RU FULWLFDO UHVRXUFHV DW D JLYHQ SURYLGHUV¶ SRLQW
DORQJ WKH VXSSO FKDLQ $W PDQ RI VXFK SRLQWV ZKHUH GDWD ZDV VRXJKW WKHUH ZHUH FODLPV RI
LQDYDLODELOLW RI GDWD UHTXHVWHG ZKLOH RWKHUV DOOHJHG WR KDYH FODVVLILHG VXFK GDWD DV VHQVLWLYH
GDWD 7KLV VLWXDWLRQ FRQVHTXHQWO LQIRUPHG WKH GHFLVLRQ RI WKH PDLQ PHWKRG XVHG LQ WKH
RSHUDWLRQDOL]DWLRQ RI FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV LQ WKLV VWXG :KLOH WKH XVH RI
VLPXODWHG GDWD LV IURZQHG DW LQ PDQ TXDUWHUV GDWD VLPXODWLRQ PHWKRGRORJ UHSUHVHQWV
WKH RQO ZD PRGHOV FDQ EH WHVWHG DQG YDOLGDWHG HJ VHH *DUULGR

142. 6HFRQG WKHUH LV DOZDV DQ LPSOLFLW ULVN LQYROYHG ZKHQHYHU FRQFHSWV DUH ERUURZHG IURP
RWKHU UHODWHG RU VRPHWLPHV XQUHODWHG GLVFLSOLQHV IRU WKH SXUSRVH RI UHDFKLQJ VLPLODU JRDOV
,Q WKLV VWXG WKHRU IURP HFRORJ LV DSSOLHG WR EXVLQHVV DQG VXSSO FKDLQ PDQDJHPHQW LQ
SDUWLFXODU :KLOH VXFK D ERUURZLQJ KDV QRW EHHQ SUHYLRXVO FDUULHG RXW EHWZHHQ VXFK
GLVFLSOLQHV LQ OLWHUDWXUH IRU WKH SXUSRVH RI FRQFHSWXDOL]LQJ FRPSHWLWLRQ WKHUH LV VXSSRUW LQ
WKH IDFW WKDW

143. WKH SULQFLSOHV RI FRPSHWLWLRQ ZKHWKHU DSSOLHG WR HFRORJLFDO RU EXVLQHVV
FRPSHWLWLRQ UHPDLQ XQLYHUVDO +HQGHUVRQ

144. 7KH ZD DQG PDQQHU FRPSHWLWLRQ LV
GHVFULEHG LQ ELRORJLFDO VFLHQFHV KDYH EHHQ NQRZQ WR GHSLFW EXVLQHVV FRPSHWLWLRQ TXLWH
DFFXUDWHO

145. 2SSRUWXQLWLHV IRU WKHRU EXLOGLQJ ZLWKLQ D GLVFLSOLQH DUH IXQGDPHQWDOO
UHODWHG WR GLIIHUHQW UHVHDUFK SDUDGLJPV *LRLD DQG 3LWUH

146. (YHQ WKRXJK GLIIHUHQW
GLVFLSOLQHV DUH JXLGHG E GLIIHUHQW SDUDGLJPDWLF ZRUOG YLHZV SRVVLELOLWLHV H[LVW ZLWKLQ
RWKHU GLVFLSOLQHV IRU GHYHORSPHQW
$OWKRXJK D FDVH VWXG VLQJOH-explanatory-exploratory case

147. ZDV FDUULHG RXW LQ RUGHU WR
YDOLGDWH FRPSHWLWLRQ DV EHLQJ FDUULHG IRUZDUG DW LQWHUDFWLRQ SRLQWV D PRUH HODERUDWH FDVH
VWXG LQ WHUPV RI WKH QXPEHU RI FDVHV

148. ZDV QRW SRVVLEOH GXH WR WLPH DQG UHVRXUFH
OLPLWDWLRQV +RZHYHU WKH GHSWK RI WKH FDVH VWXG FDUULHG RXW PDNHV XS IRU WKLV OLPLWDWLRQ
LQ WKH IDFW WKDW WKH FDVH VSDQQHG WKUHH GLIIHUHQW LQGHSHQGHQW RUJDQL]DWLRQV ZKLFK DUH
FRQQHFWHG E WKH FDVH RUJDQL]DWLRQ 7KXV LW SURYLGHV VXIILFLHQW GDWD WR HVWDEOLVK WKH
SRVVLELOLW DQG FRQGLWLRQV XQGHU ZKLFK VXSSO FKDLQV PD FRPSHWH DW LQWHUDFWLRQ SRLQWV
VXFK DV ORJLVWLFV FHQWHUV

149. 6833/ +$,16 3$5$',*0 6+,)76 $1' 203(7,7,21
5HFHQW DGYDQFHV LQ WHFKQRORJ FRPPXQLFDWLRQ DQG WUDQVSRUWDWLRQ KDV FKDQJHG WKH ZD
FRPSHWLWLRQ VWUDWHJLHV DUH LPSOHPHQWHG DFURVV ILUPV DQG RUJDQL]DWLRQV *DWWRUQD
6DKLQ DQG 5RELQVRQ

150. 6RXUFLQJ IURP GLVWDQW FRVWHIILFLHQW DUHDV FKRLFH RI VXSSOLHUV
DQG GLIIHUHQW SULQFLSOHV RI VXSSO FKDLQ PDQDJHPHQW HJ MXVW LQ WLPH DUH FRQWLQXDOO
EHLQJ FRQVLGHUHG DQG UHFRQVLGHUHG DV SDUW RI JHQHUDO FRPSDQ VWUDWHJ ,Q HIIHFW VXSSO
FKDLQ VWUDWHJ KDV EHFRPH VQRQPRXV ZLWK EXVLQHVV VWUDWHJ DORQJ WKH VXSSO FKDLQ HJ
0F/DUHQ HW DO

151. 7KHVH FKDQJHV PDLQO FRPH DERXW DV D UHVXOW RI WKH PRYHPHQW RI
LQIRUPDWLRQ IURP GLIIHUHQW SDUWV RI WKH VXSSO FKDLQ WR ZKHUH LW LV DFWXDOO LQSXWWHG DQG
WUDQVODWHG WR SURGXFWLRQ FDSDFLW GHPDQG IXOILOOPHQW WLPHO UHVSRQVH HWF HJ VHH /HH
DQG :KDQJ

152. 7KLV KDV VHUYHG WR GHSLFW WKH VXSSO FKDLQ DV D UDSLGO FKDQJLQJ
SKHQRPHQRQ WKDW UHVSRQGV WR WKH FKDQJHV LQ QRW RQO WKH EXVLQHVV HQYLURQPHQW EXW DOVR
LQ WKH LQIRUPDWLRQ HQYLURQPHQW ,QIRUPDWLRQ HQYLURQPHQW GHSLFWV WKH VHWWLQJ ZKHUH WKH
XVH RI LQIRUPDWLRQ WHFKQRORJ LV HPSORHG WR GLVVHPLQDWH DQG VKDUH GDWD EHWZHHQ VXSSO
FKDLQ PHPEHUV DQG DV VXFK FDQ EH YLUWXDO 2Q WKH RWKHU KDQG WKH EXVLQHVV HQYLURQPHQW
UHSUHVHQWV WKH UHDOP RI DOO WDQJLEOH IDFWRUV LQIOXHQFLQJ WKH RSHUDWLRQV RI DQ RUJDQL]DWLRQ
HJ VXSSOLHUV FXVWRPHUV FRPSHWLWRUV GLVWULEXWRUV LQGXVWU WUHQGV UHJXODWLRQV
VWDNHKROGHUV WHFKQRORJLFDO GHYHORSPHQW HWF

153. 7KXV LQ WKLV UDSLGO FKDQJLQJ EXVLQHVV HQYLURQPHQW ZLGHVSUHDG VWDQGDUGL]DWLRQ HDVH RI
PRYHPHQW HDV FRPPXQLFDWLRQ DELOLWLHV JOREDOL]DWLRQ HWF

154. ILUPV ZLOO KDYH WR FRPSHWH
EXW VXFK FRPSHWLWLRQ ZLOO QRW WDNH SODFH E SLWFKLQJ SURGXFW DJDLQVW SURGXFW RU FRPSDQ
DJDLQVW FRPSDQ UDWKHU WKH VXSSO FKDLQ ZLOO FRQVWLWXWH WKH EDVLV XSRQ ZKLFK FRPSHWLWLRQ
E FRPSDQLHV ZLOO EH EDVHG KULVWRSKHU

155. 0RUHRYHU LW LV DOVR DQ H[SHFWHG ORJLFDO
FRQVHTXHQFH WKDW DV WKH FRPSHWLWLRQ JURZV VR ZLOO WKH FRPSOH[LW RI WKH VXSSO FKDLQV
2YHU WKH ODVW IHZ GHFDGHV RU VR WKHUH KDV EHHQ D VVWHPDWLF FDXVHHIIHFW UHODWLRQVKLS
EHWZHHQ WKH DGYDQFHV LQ WHFKQRORJ DQG WKH SUROLIHUDWLRQ RI VXSSO FKDLQV XS WR WKH SRLQW
ZKHUH VXSSO FKDLQV QRZ UHSUHVHQW D FRPSHWLWLRQ SODWIRUP 7HFKQRORJ FRQWLQXH WR KDYH
VLJQLILFDQW LPSDFW RQ VXSSO FKDLQV KDVH DQG /HLEROG /HH DQG :KDQJ
ROH HW DO

156. LQ WHUPV RI FRPPXQLFDWLRQ HJ HOHFWURQLF GDWD LQWHUFKDQJH (',

157. UDGLR
IUHTXHQF LGHQWLILFDWLRQ 5),'

158. WHFKQRORJ IDVWHU PHDQV RI UHDFKLQJ IDUWKHU ORFDWLRQV HWF
PDNH FRRUGLQDWLRQ DQG LQWHJUDWLRQ IDVWHU DQG HDVLHU
,W WKHUHIRUH JRHV ZLWKRXW VDLQJ WKDW WKHUH LV DQ XQGHUOLQJ UHODWLRQVKLS EHWZHHQ WKH
DGYDQFHPHQW LQ WKH WHFKQRORJ ZH VHH WRGD DQG WKH IRUP RI FRPSHWLWLRQ ZKLFK ZH DUH
EHJLQQLQJ WR H[SHULHQFH ZKLFK WHQGV WR PDQLIHVW LWVHOI ZLWKLQ WKH VXSSO FKDLQ %XW WKHUH
KDV EHHQ D GHDUWK RI PDWHULDO RQ WKH DFWXDO QDWXUH RI VXSSO FKDLQ YV VXSSO FKDLQ
FRPSHWLWLRQ ZLWKLQ VXSSO FKDLQ PDQDJHPHQW $ SUREDEOH UHDVRQ IRU WKLV LV WKH DSSDUHQW
ODFN RI SXUSRVH LQ WKH FRPSHWLWLRQ RI VXSSO FKDLQV :K ZRXOG VXSSO FKDLQV QHHG WR
FRPSHWH DQZD
% LWV YHU QDWXUH VXSSO FKDLQ PDQDJHPHQW LV VHJUHJDWHG DQG IUDJPHQWHG PDQDJHULDOO
6DXQGHUV 6WRUH HW DO

159. DQG HYHQ RSHUDWLRQDOO LQ WKH VHQVH WKDW LW LV
IXQFWLRQDOO RSSRVLWH WR YHUWLFDO LQWHJUDWLRQ LH VXSSO FKDLQV DUH KRUL]RQWDOO LQWHJUDWHG
7KLV KDV OHG WR WKH SRSXODUL]DWLRQ RI WKH RXWVRXUFLQJ VWUDWHJ ZLWKLQ WKH SUDFWLFH RI VXSSO
FKDLQ PDQDJHPHQW %DVHG RQ WKH WKHRU RI WUDQVDFWLRQ FRVW DQDOVLV :LOOLDPVRQ

161. JHQHUDOO RXWVRXUFLQJ VHHNV WR ORZHU RYHUDOO WUDQVDFWLRQ FRVW DQG E H[WHQVLRQ ORZHU RYHUDOO
FRVW DQG LQFUHDVH RYHUDOO TXDOLW *OREHUPDQ DQG 9LQLQJ

162. +RZHYHU LW KDV EHHQ
DUJXHG WKDW LW LV LPSRVVLEOH WR VVWHPDWLFDOO LQFUHDVH TXDOLW ZKLOH GHFUHDVLQJ FRVW DW WKH
VDPH WLPH HJ 0pQDUG

163. 7KH PDLQ LVVXH RI FRQWHQWLRQ ZLWKLQ RXWVRXUFLQJ LV WKH
UHODWLYH FRVW RYHU WKH VLJQLILFDQFH RI VNLOO VSHFLDOW :LOOLDPVRQ

164. 7KXV ZH OHDUQ IURP
OLWHUDWXUH RQ RXWVRXUFLQJ WKDW D GHILQLWLRQ RI FRUH DQG QRQFRUH DFWLYLWLHV DUH QHFHVVDU LQ D
EXVLQHVV FRQFHUQ 0F,YRU

165. RUH FRPSHWHQFLHV DUH WKH FROOHFWLYH OHDUQLQJ LQ WKH
RUJDQL]DWLRQ RI KRZ WR FRRUGLQDWH DQG LQWHJUDWH SURGXFWLRQ DELOLWLHV DQG WHFKQRORJ
3UDKDODG DQG +DPHO

166. ,W LV WKH QRQFRUH DFWLYLWLHV WKDW ILUPV VKRXOG RXWVRXUFH
PDLQWDLQLQJ WKH FRUH FRPSHWHQFLHV LQKRXVH
1RZ LI LW ZHUH RQO WKH FRUH DFWLYLWLHV WKDW ZHUH UHVSRQVLEOH IRU RU ZKLFK GHWHUPLQHG WKH
SHUIRUPDQFH RI D ILUP WKHQ WKH FRQFHSW RI RXWVRXUFLQJ ZKHWKHU FRUH RU QRQFRUH
DFWLYLWLHV ZRXOG QRW PDNH PXFK VHQVH 5DWKHU LW LV EHFDXVH PDQ RI WKH DFWLYLWLHV WKDW DUH
RXWVRXUFHG E ILUPV DQG RUJDQL]DWLRQV PDNH VLJQLILFDQW FRQWULEXWLRQV LQ PDQ FDVHV

167. WR
WKH SHUIRUPDQFH RI D ILUP¶V ERWWRPOLQH 7KDW LV ZK RXWVRXUFLQJ VHHPV WR KDYH JURZQ LQ
VWHDG UHFRJQLWLRQ DV KDV VXSSO FKDLQ PDQDJHPHQW EHFDXVH WKH DUH HVVHQWLDOO
FRPSOLPHQWDU 7KLV VXFFHVV LV LPSOLHG WR PHDQ WKDW WKH ILUP LV LQ JRRG VWDQGLQJ ZLWK LWV
XOWLPDWH FXVWRPHUV DW OHDVW ILQDQFLDOO VSHDNLQJ

168. 7KLV FRXOG YHU ZHOO EH DGYDQFHG DV D
UHDVRQ ZK VXSSO FKDLQV FRPSHWH 7KH FRRUGLQDWLRQ RI WKH RXWVRXUFHG DFWLYLWLHV DQG WKH
UHODWLRQVKLS EHWZHHQ VXSSOLHUV DQG FXVWRPHUV XQGHUOLH WKH FRPSHWLWLYHQHVV RI D VXSSO
FKDLQ 7KH IUDPHZRUN LQ ILJXUH LOOXVWUDWHV D KSRWKHWLFDO PRGHO RI WKH DVVRFLDWLRQ
EHWZHHQ RXWVRXUFLQJ DQG FRPSHWLWLRQ IURP GLIIHUHQW GHFLVLRQ VFHQDULRV DQG KRZ WKLV LV
UHODWHG WR FRPSHWLWLYHQHVV FRPSHWLWLRQ DQG FRPSHWLWLYH DGYDQWDJH
)LJXUH $VVXPSWLRQV IURP SUHYLRXV UHVHDUFK RQ WKH DVVRFLDWLRQ EHWZHHQ RXWVRXUFLQJ DQG
FRPSHWLWLRQ
1HDU YHUWLFDOO LQWHJUDWHG
6SHFLDOL
]DWLRQ
RPSHW
LWLRQ
RPS
$GYDQWDJH
RUHQRQ
FRUH
DFWLYLW
'HFLVLRQ
2XWVRXUFLQJ
1R
2XWVRXUFLQJ
RPSHWL
WLYHQHVV
(QG FXVWRPHU
9DOXH FUHDWHG
3RVVLEOH RPSHWLWLRQ
SRLQW
RPSHWLWLRQ
1R RXWVRXUFLQJ FRPSHWLWLYHQHVV RU FRPSHWLWLRQ
2XWVRXUFLQJ ZLWK IXOO FRPSHWLWLRQ
1R RXWVRXUFLQJ ZLWK QR FRPSHWLWLRQ1R RXWVRXUFLQJ ZLWK VRPH FRPSHWLWLRQ
2XWVRXUFLQJ ZLWK FRPSHWLWLYHQHVV

169. $V FDQ EH REVHUYHG IURP WKH ILJXUH WKHUH DUH GLIIHUHQW ZDV RI JHWWLQJ WR WKH HQGFXVWRPHU
$V VXFK WKHVH GLIIHUHQW URXWHV RIIHU GLIIHUHQW YDOXH WR WKH HQGFXVWRPHU $ GHILQLWLRQ RI
FRUHQRQ FRUH DFWLYLWLHV DOORZV ILUPV WR GHFLGH ZKDW DFWLYLWLHV ZLOO EH RXWVRXUFHG XVXDOO
QRQFRUH DFWLYLWLHV

170. %HFDXVH RXWVRXUFLQJ UHTXLUHV VSHFLDOL]DWLRQ VNLOOV WKH SRLQW RI
VSHFLDOL]DWLRQ LH VHUYLFH SURYLGHU

171. FDQ EHFRPH D SRLQW ZKHUH FRPSHWLWLRQ PRVW IUHTXHQWO
RFFXUV DORQJ VXSSO FKDLQV JLYHQ WKH FULWLFDOLW RI WKH UHVRXUFH EHLQJ VRXJKW DQG H[SHUWLVH
RI WKH VHUYLFH SURYLGHU $V VXFK PXOWLSOH SRLQWV RI FRPSHWLWLRQ PD DULVH DORQJ WKH VXSSO
FKDLQ 7KXV D SRLQW RI VSHFLDOL]DWLRQ LV DQ DFWLYLW SRLQW WKDW FDQ EH OLQNHG WR KRUL]RQWDO
VXSSO FKDLQV
1RWZLWKVWDQGLQJ WKLV LI VXSSO FKDLQV DUH WR FRPSHWH WKHQ WKLV VWXG VXJJHVWV WKDW WKH
FKURQRORJLFDO UHODWLRQVKLS EHWZHHQ FRPSHWLWLRQ FRPSHWLWLYHQHVV DQG FRPSHWLWLYH
DGYDQWDJH EH FRQVLGHUHG 7KLV UHODWLRQVKLS GHYHORSHG LQ ,,

172. SURSRVHV WKDW FRPSHWLWLRQ EH
FDUULHG RXW LQ WKH PDQQHU GHVFULEHG LQ WKH ILJXUH DERYH ZKHUH FRPSHWLWLYHQHVV LV ILUVW
REWDLQHG WKHQ FRPSHWLWLRQ LV XQGHUWDNHQ DQG ILQDOO DQ FRPSHWLWLYH DGYDQWDJH LV DFKLHYHG
7KH ILJXUH LOOXVWUDWHV H[DPSOHV RI WKH URXWHV WKDW PD EH WDNHQ E GLIIHUHQW VXSSO FKDLQV
LQ RUGHU WR PHHW WKH YDULHG SUHIHUHQFHV RI GLIIHUHQW HQGFXVWRPHUV ,I VXSSO FKDLQV GHFLGH
QRW WR FRPSHWH EXW RXWVRXUFH WKHQ WKH PD GHFLGH WR WDNH DQ RI WKH URXWHV WKDW DYRLG
FRPSHWLWLRQ % EHLQJ KRUL]RQWDOO LQWHJUDWHG WKHUH LV WKXV DQ LQEXLOW QHHG IRU
VSHFLDOL]DWLRQ FDSDELOLWLHV DORQJ VXSSO FKDLQV ZKLFK ILUPV DUH SDUW RI 6SHFLDOL]DWLRQ
EUHHGV H[SHUWLVH DQG H[SHUWLVH LQFUHDVHV HIILFLHQF $QG EHFDXVH WKH FRQYLFWLRQ KHUH LV WKDW
WKH FRQFHSW RI FRPSHWLWLRQ GRHV QRW H[LVW LQ LVRODWLRQ LH WR VD WKHUH LV D SXUSRVH WR
FRPSHWLWLRQ DQG WKHUH LV D SURFHVV RI JHWWLQJ WR WKH SRLQW ZKHUH DQ HQWLW LV YLDEOH HQRXJK
WR XQGHUWDNH VXFK FRPSHWLWLRQ 7KHUHIRUH WKHUH LV D QHHG WR LGHQWLI WKH FKURQRORJLFDO
UHODWLRQVKLSV WKDW H[LVW EHWZHHQ FRPSHWLWLRQ DQG LWV FRUUHODWHV 7KH IROORZLQJ VHFWLRQ
GHOYHV LQWR WKH GLVFXVVLRQ RI SDUDGLJPV DQG KRZ WKH PLJKW DIIHFW WKH ZD FRPSHWLWLRQ LV
FDUULHG RXW
KDQJLQJ SDUDGLJPV RI FRPSHWLWLRQ
,W LV QRZ FRPPRQ NQRZOHGJH WKDW WKH WUDGLWLRQDO PRGHV RI FRPSHWLWLRQ LH FRPSHWLWLRQ
EDVHG VROHO RQ SURGXFWV LQFOXGLQJ EUDQG QDPHV FRPSDQLHV LQFOXGLQJ WUDGHPDUNV DQG
FRXQWULHV LQFOXGLQJ WKHLU WHFKQRORJLFDO UHSXWDWLRQV KDV EHHQ ZLWK XV IRU FHQWXULHV ,W LV
DOVR IDPLOLDU XQGHUVWDQGLQJ WKDW WKH FXUUHQW OHYHO RI WHFKQRORJLFDO DFKLHYHPHQW LQFOXGLQJ
FRPPXQLFDWLRQ DQG WUDQVSRUWDWLRQ DSSDUHQW WRGD KDV QHYHU EHHQ UHDFKHG DQ WLPH LQ
KLVWRU 7KXV GUDZLQJ IURP WKH FRQQHFWLRQ EHWZHHQ WHFKQRORJLFDO DGYDQFHPHQW RI
PDQNLQG DQG FRPSHWLWLRQ WKH TXHVWLRQ DULVHV GR FRPSHWLWLRQ SDUDGLJPV FKDQJH
DFFRUGLQJ WR WHFKQRORJLFDO GHYHORSPHQW RU YLFH YHUVD
$ SDUDGLJP LV D IXQGDPHQWDO PRGHO RU IUDPH RI UHIHUHQFH XVHG WR RUJDQL]H REVHUYDWLRQV
DQG UHDVRQLQJ %DEELH

173. 7KH DUH RIWHQ GLIILFXOW WR UHFRJQL]H DQG WKHUHIRUH LPSOLFLW
DQG WDNHQ IRU JUDQWHG
+RZHYHU .XKQ

174. LV HVSHFLDOO QRWDEOH IRU WKH GHYHORSPHQW RI WKH WHUP µSDUDGLJP
VKLIW¶ ZKHUH D SDUDGLJP LV GHILQHG DV
««³XQLYHUVDOO UHFRJQL]HG VFLHQWLILF DFKLHYHPHQWV WKDW IRU D WLPH SURYLGH PRGHO SUREOHPV DQG
VROXWLRQV WR D FRPPXQLW RI SUDFWLWLRQHUV´ S [

176. 3DUDGLJPV WKXV H[WRO WKH SUREOHP VROYLQJ FKDUDFWHULVWLFV RI D GLVFLSOLQH 7HVWHG DQG WULHG
SUREOHP VROYHUV LH SDUDGLJPV DUH FKDUDFWHULVWLFDOO SUHVHQW LQ PDWXUH GLVFLSOLQHV
5HVHDUFK SDUDGLJPV FDQ WKHUHIRUH EH WDNHQ WR PHDQ WKH GLIIHUHQW DSSURDFKHV WR VROYLQJ
SUREOHPV HPSORHG E PHPEHUV RI WKDW SDUDGLJP UHVHDUFKHUV

177. WKDW FRQWLQXHV WR SURYLGH
VROXWLRQV WR VXFK SUREOHPV
7KH LGHD WKDW GLIIHUHQW VFLHQWLVWV KROG GLIIHUHQW ZRUOG YLHZ OHQVHV WKURXJK ZKLFK WKH
XQGHUVWDQG DQG HYHQ DWWHPSW WR VROYH SUREOHPV ZLWKLQ WKDW ZRUOG YLHZ LV FRPPRQO
DFFHSWHG ZLWKLQ UHVHDUFK FLUFOHV $V VXFK .XKQ

178. FULWLFL]HV WKH LGHD WKDW VFLHQWLVWV DUH
REMHFWLYH IUHHWKLQNLQJ VFHSWLFV $QG WKXV DWWHPSWV WR FRQYH WKH JHQHUDO LGHD WKDW
VFLHQWLVWV OLYH ZLWKLQ FHUWDLQ JLYHQ SDUDGLJPV DQG FDQ VROYH SUREOHPV ZLWKLQ WKLV
SDUDGLJP :KHQ VFLHQWLVWV ZLWKLQ D JLYHQ SDUDGLJP FDQ QR ORQJHU H[SODLQ DQG VROYH
SUREOHPV ZLWKLQ WKDW SDUDGLJP RU H[KLELW LQDGHTXDFLHV ZLWKLQ WKDW SDUDGLJP D FULVLV VWDJH
KDV EHHQ UHDFKHG DIWHU ZKLFK WKH HPHUJHQFH RI D QHZ SDUDGLJP DULVHV DQG ZKHQ WKLV
KDSSHQV D SDUDGLJP VKLIW LV VDLG WR KDYH RFFXUUHG .XKQ

179. 7KXV 3DUDGLJP VKLIWV DUH
PRUH GXH WR LQDGHTXDFLHV LQ H[LVWLQJ PRGHOV XVHG WR VROYH D SDUWLFXODU SKHQRPHQRQ $V
VXFK HYHQ WKRXJK LW LV QRW SRVVLEOH WR DFNQRZOHGJH WZR LQFRPPHQVXUDEOH SDUDGLJPV
VLPXOWDQHRXVO FRPELQLQJ PHWKRGV DQG WHFKQLTXHV ZLWKLQ D VLQJOH SDUDGLJP LV IHDVLEOH
/LQFROQ DQG *XED

180. :KLOH .XKQ

181. GLG QRW LQWHQG WKDW D SDUDGLJP EH IL[HG WKH RULJLQDO LGHD RI HYROYLQJ
SDUDGLJPV ZHUH PHDQW WR EH IOH[LEOH +RZHYHU D WUHQG LV SHUFHSWLEOH ZKHUH SDUDGLJPV DUH
FRQWLQXRXVO EHLQJ UHILQHG UHGHILQHG DQG H[WHQGHG .RVFKPDQQ

182. IRU SURORQJHG XVH
7KLV GHIHDWV WKH RULJLQDO LGHD RI IOH[LELOLW RI SDUDGLJPV ZKLFK FDQ FKDQJH ZKHQHYHU QHZ
DSSURDFK SURYHV VXSHULRU $V VXFK WKHUH LV QR ZD RI ILQGLQJ RXW KRZ ORQJ DQ DYHUDJH VKLIW
IURP RQH SDUDGLJP WR DQRWKHU ZRXOG WDNH )URP WKH IRUHJRLQJ WKH TXHVWLRQ RI D FDXVH
HIIHFW UHODWLRQVKLS EHWZHHQ WHFKQRORJLFDO GHYHORSPHQW HVSHFLDOO LQ FRPPXQLFDWLRQ DQG
WUDQVSRUWDWLRQ DQG SDUDGLJP VKLIWV GHI DQ DQVZHUV :KLOH LW LV EHOLHYHG WKDW
WHFKQRORJLFDO UHYROXWLRQV RU FKDQJHV LQ SDUDGLJP RFFXU HYHU HDUV 3HUH]

183. IRUFHV WKDW DUH LQHUWLDO LQ QDWXUH PDNH WKH VRFLRLQVWLWXWLRQDO IUDPHZRUN UHVLVWDQW WR
FKDQJH DQG VORZ WR DGDSW WR QHZ VLWXDWLRQV H[FHSW ZKHQ XQGHU SUHVVXUH 7KXV DFFRUGLQJ
WR 3HUH]

184. WKHUH LV D PLVPDWFK EHWZHHQ D WHFKQRORJLFDO UHYROXWLRQ DQG WKH WLPH LW
WDNHV WKH HQWLUH VVWHP IROORZ VXLW DERXW HDUV 7KH VXEMHFW RI SDUDGLJP VKLIW LV WKH
IRFXV RI SDSHU , ZKLFK VRXJKW WR GHFLSKHU ZKHWKHU D SDUDGLJP VKLIW KDG WDNHQ SODFH ZLWKLQ
FRPSHWLWLRQ DQG FRPSHWLWLYHQHVV OLWHUDWXUH 7KHUHIRUH HYHQ WKRXJK WKHUH LV QR HVWDEOLVKHG
IRROSURRI PHWKRG RI GHWHUPLQLQJ KRZ ORQJ D JLYHQ SDUDGLJP ZLOO ODVW LW LV EHOLHYHG KHUH
WKDW LW LV WHFKQRORJLFDO GHYHORSPHQW WKDW GHWHUPLQHV WKH EDVLV XSRQ ZKLFK FRPSHWLWLRQ
WDNHV SODFH DQG LQ WKH ORQJ UXQ WKH SDUDGLJP XQGHU ZKLFK VXFK FRPSHWLWLRQ ZLOO RFFXU $
FODVVLF H[DPSOH LV WKH WHOHFRPPXQLFDWLRQV LQGXVWU ZKHUH DV D UHVXOW WKH IDVW SDFH RI
LQFUHDVLQJ WHFKQRORJLFDO NQRZKRZ WKH EDVLV RI FRPSHWLWLRQ KDV VKLIWHG DW OHDVW WLPHV LQ
WKH ODVW GHFDGH HJ VHH 1XQHV DQG %UHHQH

185. 6XSSO FKDLQ DV DQ HQWLW
6XSSO FKDLQ PDQDJHPHQW LQYROYHV WKH PRYHPHQW RI JRRGV LQIRUPDWLRQ DQG FDVK DFURVV D
QHWZRUN PDGH XS RI VXSSOLHUV PDQXIDFWXUHUV GLVWULEXWRUV DQG FXVWRPHUV 7KH VRPHZKDW
QDwYH YLHZ RI VXSSO FKDLQ PDQDJHPHQW LV WR DVVXPH WKDW HDFK DQG HYHU DFWLYLW LQ WKH
VXSSO FKDLQ LV DV LPSRUWDQW DV WKH RWKHU +RZHYHU LQ UHDOLW D VWUDWHJLF YLHZ RI VXSSO

186. FKDLQ PDQDJHPHQW LV XVXDOO WDNHQ IRU SUDFWLFDO SXUSRVHV % VWUDWHJLF YLHZ LV PHDQW WKDW
LQ WKH SODQQLQJ RI WKH VXSSO FKDLQ DFWLYLWLHV RQO YHU VWUDWHJLF SDUWQHUV VXSSOLHUV
VHUYLFHV SURYLGHUV HWF DUH FRQVLGHUHG DQG FRQVXOWHG IRU SXUSRVH RI VXSSO FKDLQ
LQWHJUDWLRQ 7KH SXUSRVH RI LQWHJUDWLRQ ZLWKLQ WKH VXSSO FKDLQV LV WR FUHDWH DQG
VQFKURQL]H SURFHVVHV IODZOHVVO DFURVV WKH VXSSO FKDLQ VXFK WKDW FRPSHWLWRUV FDQQRW YHU
HDVLO UHSOLFDWH $QGHUVRQ DQG .DW] /XPPXV HW DO

187. 6WUDWHJLFDOO WZR WSHV RI LQWHJUDWLRQ DUH UHFRJQL]HG LQ OLWHUDWXUH

188. 7KH FRRUGLQDWLQJ DQG
VQFKURQL]LQJ RI SKVLFDO IORZV EHWZHHQ FXVWRPHUV PDQXIDFWXUHUV DQG VXSSOLHUV 7UHQW
DQG 0RQF]ND

189. 7KLV WSH RI FRRUGLQDWLRQ LV XVXDOO LQ WKH IRUZDUG GLUHFWLRQ

190. 7KH
FRRUGLQDWLRQ RI LQIRUPDWLRQ DQG GDWD IURP FXVWRPHUV VXSSOLHUV DQG VHUYLFH SURYLGHUV
XVXDOO LQ WKH UHYHUVH GLUHFWLRQ RI WKH VXSSO FKDLQ 7UHQW DQG 0RQF]ND

191. 7KHVH
DFWLYLWLHV DOORZ IRU WKH IORZ RI LQIRUPDWLRQ JRRGV DQG ILQDQFHV EHWZHHQ PXOWLSOH ILUPV
DORQJ WKH VXSSO FKDLQ LQ RUGHU WR FRRUGLQDWH DFWLYLWLHV LQ DQ HIILFLHQW PDQQHU +DQGILHOG
DQG 1LFKROV

192. $Q LQWHJUDWHG VXSSO FKDLQ UHGXFHV FRVWV DQG FUHDWHV YDOXH IRU WKH
FRPSDQ WKH VXSSO FKDLQ SDUWQHUV DQG WKH HQG FXVWRPHUV 7KXV LQWHJUDWLRQ KDV EHHQ
GHVFULEHG DV RQH RI WKH NH IDFWRUV LQ DFKLHYLQJ VXSSO FKDLQ LPSURYHPHQW DQG
SHUIRUPDQFH 5RPDQR 9DQ GHU 9DDUW DQG 9DQ 'RQN

194. $QG DV RUJDQL]DWLRQV
DORQJ WKH VXSSO FKDLQ DFKLHYH EHWWHU DQG KLJKHU LQWHJUDWLRQ DPRQJ WKHPVHOYHV WKH EHJLQ
WR IXQFWLRQ OLNH D VHDPOHVV XQLW +RZHYHU LQ RUGHU WR FRQVLGHU ILUPV ZLWKLQ D JLYHQ VXSSO
FKDLQ DV DQ HQWLW DQ DUUDQJHPHQW ZKLFK IRUPDOL]HV WKH LQWHURUJDQL]DWLRQDO VQHUJLF
HIIRUWV DPRQJ VXSSO FKDLQ PHPEHUV PXVW EH UHDFKHG $FNHUPDQQ

195. 7KH LGHD RI
VXSSO FKDLQ RUJDQL]DWLRQV IXQFWLRQLQJ DV D VLQJOH HQWLW LV LPSRUWDQW IRU WKH RQZDUG
RSHUDWLRQDOL]DWLRQ RI WKH VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ FRQFHSW 7KH DUJXPHQW
KHUH LV WKDW LI VXFK RUJDQL]DWLRQV RI D VXSSO FKDLQ IXQFWLRQ DV D XQLW WKH DUH DOVR DEOH WR
FRPSHWH DV D XQLW DQG WKDW WKLV ORJLF RI HFRORJLFDO VSHFLHV FDQ DOVR EH HIIHFWLYHO DSSOLHG WR
VXSSO FKDLQV $V DQ HQWLW WKH VXSSO FKDLQ FDQ VHHN WR RSWLPL]H LWV VXSSO FKDLQZLGH
RSHUDWLRQV ZLWK LQSXW IURP WKH PRVW LPSRUWDQW VWUDWHJLF PHPEHUV RI WKH FKDLQ
6XSSO FKDLQ FRPSHWLWLRQ DV VSHFLHV FRPSHWLWLRQ
+DUODQG

196. DVVHUW WKDW IRXU PDLQ FRQQRWDWLRQV WR VXSSO FKDLQ PDQDJHPHQW FDQ EH
LGHQWLILHG 7KH LQWHUQDO VXSSO FKDLQ WKDW PRYHV JRRGV DQG LQIRUPDWLRQ EHWZHHQ WKH ILUP
DQG LWV H[WHUQDO DIILOLDWHV WKH GDGLF PDQDJHPHQW RI D VHULHV RI GDGLF UHODWLRQVKLSV
EHWZHHQ WKH ILUP DQG LPPHGLDWH VXSSOLHUV PDQDJHPHQW RI D VXSSO FKDLQ LQFOXGLQJ D
VXSSOLHU D VXSSOLHU¶V VXSSOLHU D FXVWRPHU DQG D FXVWRPHU¶V FXVWRPHU DQG WKH
PDQDJHPHQW RI D QHWZRUN RI LQWHUFRQQHFWHG RUJDQL]DWLRQV SURYLGLQJ JRRGV DQG VHUYLFHV WR
HQG FXVWRPHUV 7KH LGHD RI D VXSSO FKDLQ LQ WKLV VWXG IDOOV LQWR WKH WKLUG FDWHJRU DQG DV
VXFK VXSSO FKDLQV DUH FRQFHLYHG DV EXVLQHVV XQLWV LQ LWV HQWLUHW WKDW DUH FDSDEOH RI
GHFLGLQJ ZKHWKHU WR FRPSHWH RU FDUU RXW VRPH RWKHU IRUP RI VWUDWHJ %DVHG RQ WKH
HFRORJLFDO QLFKH WKHRU VXSSO FKDLQV DUH OLNHQHG WR VSHFLHV LQ WKH IROORZLQJ ZDV
,W LV D IDFW WKDW FRPSHWLWLRQ EHWZHHQ VSHFLHV RFFXU IURP D GHPDQG IRU OLPLWHG UHVRXUFHV
)RU VSHFLHV WR VXUYLYH LW PXVW FRQWLQXDOO VHHN WR UHSOHQLVK LWVHOI LQ WHUPV RI LWV UHVRXUFHV
7KLV LV QR GLIIHUHQW IRU VXSSO FKDLQV WKDW DUH FRQWLQXRXVO VHHNLQJ ZDV RI FUHDWLQJ EHWWHU
YDOXH IRU HQG FXVWRPHUV DQG WULQJ WR UHGXFH FRVW DW WKH VDPH WLPH

197. RPSHWLWLRQ EHWZHHQ VSHFLHV FDQ WDNH SODFH EHWZHHQ LQGLYLGXDO VSHFLHV DQG FDQ DOVR WDNH
SODFH EHWZHHQ JURXSV RU DVVHPEODJHV RI GLIIHUHQW VSHFLHV 7KLV LV DOVR WKH FDVH ZLWK VXSSO
FKDLQV ZKHUH FRPSHWLWLRQ LV SRVVLEOH EHWZHHQ LQGLYLGXDO PHPEHUV RI D VXSSO FKDLQ HJ
2(0V ORJLVWLFV ILUPV HWF ELGGLQJ WR ZLQ D FHUWDLQ FRQWUDFW DV ZHOO DV EHWZHHQ VXSSO
FKDLQV DV ZKROH HQWLWLHV ZKLFK LV WKH IRFXV RI WKLV VWXG
$ WKLUG NH VLPLODULW EHWZHHQ VSHFLHV DQG VXSSO FKDLQV DV D VLQJOH HQWLW LQYROYHV WKHLU
YXOQHUDELOLW WR WKH VXUURXQGLQJ HQYLURQPHQW 0XFK RI HFRORJ DQG LWV DSSOLFDWLRQ DUHDV
ZLWKLQ PDQDJHPHQW IRFXV RQ WKH LQIOXHQFH RI HQYLURQPHQWDO IHDWXUHV RQ WKH VXUYLYDO RI
VSHFLHV 7KH PRVW LPSRUWDQW FKDUDFWHULVWLF RI WKH HQYLURQPHQW LV LWV XQFHUWDLQW %HFDXVH
WKH HQYLURQPHQW ZLWKLQ ZKLFK VSHFLHV PXVW OLYH DQG VXUYLYH LV FRQVWDQWO FKDQJLQJ LWV
VWUXFWXUDO FKDUDFWHULVWLFV DUH LPSRUWDQW IRU WKH JURZWK DQG GHYHORSPHQW RI VSHFLHV 7KLV LV
QR GLIIHUHQW IRU WKH VXSSO FKDLQ HQWLW ,Q RUGHU WR IXOO HVSRXVH WKH HFRORJLFDO QLFKH
FRQFHSW RI FRPSHWLWLRQ WKH VLPLODULW RI FRPSHWLQJ VXSSO FKDLQV ZLWKLQ D JLYHQ LQGXVWU LV
QHFHVVDU DQG VXIILFLHQW WR FDUU RQ VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ 1HFHVVDU
LQ WKDW FRPSHWLWLRQ EHWZHHQ VXSSO FKDLQV LQ D SDUWLFXODU LQGXVWU VKRXOG EH VWURQJHU WKDQ
WKH FRPSHWLWLRQ EHWZHHQ WZR VXSSO FKDLQV IURP WZR GLIIHUHQW LQGXVWULHV DQG VXIILFLHQW
EHFDXVH WKH FRPSHWLWLRQ FRHIILFLHQW EHWZHHQ FRPSHWLQJ VXSSO FKDLQV RI D JLYHQ LQGXVWU
PXVW EH ,Q WKLV VHQVH D FRQQHFWLRQ EHWZHHQ VSHFLHV LQ LWV SRVLWLRQ ZLWKLQ WKH HFRORJLFDO
QLFKH WKHRU DQG VXSSO FKDLQV LQ LWV SRVLWLRQ LQ VXSSO FKDLQ FRPSHWLWLRQ FDQ EH PDGH

198. 7+(25(7,$/ %$.*5281'
%XVLQHVV RUJDQL]DWLRQV DUH WSLFDOO YDULDEOH IRU D ZLGH YDULHW RI VWUXFWXUDO EHKDYLRUDO DQG
PDQDJHULDO FKDUDFWHULVWLFV 7KLV YDULDWLRQ UHSUHVHQWV DQ RQJRLQJ SX]]OH IRU VWUDWHJ DQG
HFRQRPLF JHRJUDSK VFKRODUV LQ VWXGLQJ TXHVWLRQV OLNH ZK ILUPV H[LVW DQG ZK WKH DUH
VR GLIIHUHQW :KLOH WKH SUR[LPDWH FDXVH RI WKH GLIIHUHQFHV DPRQJ LQGLYLGXDO RUJDQL]DWLRQV
UHPDLQ SRRUO XQGHUVWRRG WKLV YDULDWLRQ LV YHU PXFK HYLGHQW ZLWKLQ WKH SKHQRPHQRQ RI
VXSSO FKDLQV DV DQ LPSOLFDWLRQ RI WKH YDULDWLRQ DPRQJ ILUPV DQG WKH FRPSHWLWLRQ VHW WR
WDNH SODFH EHWZHHQ WKHP ,Q RUGHU WR DGHTXDWHO LQYHVWLJDWH FRPSHWLWLRQ EHWZHHQ VXSSO
FKDLQV D VWURQJ WKHRUHWLFDO EDVLV IRU WKH SURSRVLWLRQ RI FRQFHSWXDOL]DWLRQ RIIHUHG LQ WKLV
WKHVLV LV QHFHVVDU DV PXFK DV LW LV LPSRUWDQW 7KLV FKDSWHU EULHIO UHYLHZV WKH WKHRUHWLFDO
SUHPLVH XSRQ ZKLFK VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ LV FRQFHSWXDOL]HG DQG
IXUWKHU JRHV RQ WR FODULI WKH PHFKDQLVP JRYHUQLQJ WKH SUDFWLFH RI VXSSO FKDLQ YV VXSSO
FKDLQ FRPSHWLWLRQ EDVHG RQ WKH LWV FRQFHSWXDOL]DWLRQ RI LQWHUDFWLRQ
(FRORJLFDO 1LFKH 7KHRU
(FRORJ LV WKH VFLHQWLILF VWXG RI WKH UHODWLRQ RI OLYLQJ RUJDQLVPV WR HDFK RWKHU DQG WR WKHLU
VXUURXQGLQJV %HJRQ HW DO

199. ,W LV D WHUP XVHG WR GHVFULEH WKH SRVLWLRQ RI D VSHFLHV
ZLWKLQ DQ HFRVVWHP 6WXGLHV RI HFRORJLFDO UHVSRQVHV WR HQYLURQPHQWDO IOXFWXDWLRQV
FRPPRQO DQDO]H HQYLURQPHQWDO LPSDFWV LQGHSHQGHQWO RI HDFK RWKHU LQ HFRORJ
KRZHYHU LQWHUDFWLRQV EHWZHHQ VSHFLHV WKHPVHOYHV DQG ZLWK WKH HQYLURQPHQW EDVHG RQ
UHVRXUFH DVVRFLDWLRQV DUH IXQGDPHQWDO WR WKH VWXG RI QLFKH ZLWKLQ HFRORJ
7KH PHFKDQLVP WKDW FRQWUROV WKH SUROLIHUDWLRQ RI VSHFLHV LQ D FRPPXQLW LV H[WHQVLYHO
GHEDWHG DORQJ WZR FRQFHSWXDO SHUVSHFWLYHV ZLWKLQ HFRORJ LH WKH QLFKHDVVHPEO
SHUVSHFWLYH 0DF$UWKXU DQG /HYLQV 7RNHVKL

200. DQG WKH GLVSHUVDODVVHPEO
QHXWUDO

201. SHUVSHFWLYH %HOO +XEEHO

202. 7KH QLFKH DVVHPEO DSSURDFK WR VWXGLQJ VSHFLHV YDULDWLRQ DQG FRPPXQLW VWUXFWXUH
DVVHUWV WKDW GLIIHUHQW VSHFLHV DUH DEOH WR OLYH WRJHWKHU LQ FRPPXQLWLHV RQO LI WKH GLIIHU
VXIILFLHQWO LQ WKH ZD WKH FRQVXPH UHVRXUFHV 9DQ 'NH

203. 7KLV YLHZ UHVWV RQ WKH
SULQFLSOH RI FRPSHWLWLYH H[FOXVLRQ DOVR NQRZQ DV *DXVH¶V ODZ RI FRPSHWLWLYH H[FOXVLRQ
ZKLFK VWDWHV WKDW QR WZR RUJDQLVPV LQ D VLQJOH VSHFLHV FDQ RFFXS SUHFLVHO WKH VDPH QLFKH
RU H[LVW RQ H[DFWO WKH VDPH UHVRXUFHV 7KH IXQGDPHQWDO H[SODQDWLRQ RI WKLV ODZ OLHV LQ WKH
IDFW WKDW H[SORLWDWLRQ RI D OLPLWHG UHVRXUFH OHDGV WR LWV GHSOHWLRQ WKXV WKH JURZWK RI WKH
SRSXODWLRQ LQHYLWDEO OHDGV WR GHFUHDVHG UHVRXUFH OHYHO ZKLFK VXEVHTXHQWO EHFRPHV
LQDGHTXDWH WR VXVWDLQ IXUWKHU JURZWK 7KLV ODZ WKHUHIRUH EULQJV WKH GLVFXVVLRQ RI
HFRORJLFDO QLFKHV WR WKH IRUH
6HYHUDO IRUPXODWLRQV RI WKH QLFKH FRQFHSW DUH FRPPRQO XVHG LQ OLWHUDWXUH )RU LQVWDQFH
WKH FRQFHSW RI WKH QLFKH DV DQ HFRORJLFDO IXQFWLRQ RI VSHFLHV LV EDVHG RQ WKH LGHD WKDW HDFK
VSHFLHV LQ DQ HFRVVWHP WHQGV WR FDUU RXW D VSHFLILF IXQFWLRQ LQ RUGHU WR PDLQWDLQ FHUWDLQ
HFRVVWHP GQDPLFV ZLWKLQ WKDW VVWHP 3ROHFKRYi DQG 6WRUFK

204. 'HYHORSHG DV D
FRPPXQLW FHQWULF FRQFHSW LW VWUHVVHV WKH IXQFWLRQDO DWWULEXWHV RI VSHFLHV DQG WKHLU
FRUUHVSRQGLQJ IHHGLQJ OHYHO ZLWKLQ DQ HFRVVWHP 1LFKH DV D GHVFULSWLRQ RI VSHFLHV
UHTXLUHPHQW LQ D FRPPXQLW RQ WKH RWKHU KDQG LV D YLHZ ZKLFK VHHV WKH QLFKH DV WKH DUHD

205. WKDW HQDEOHV WKH VSHFLHV WR WDNH LQ UHTXLUHPHQWV HJ IRRG WHPSHUDWXUH HWF

206. WKDW PDNH LW
SRVVLEOH IRU LW WR VXUYLYH ,W VKRXOG EH QRWHG WKDW WKHVH IRUPXODWLRQV RI WKH QLFKH DUH
URXJKO FRQFHSWXDOL]HG DORQJ WKH OLQHV RI (OWRQ

207. DQG *ULQQHOO

208. ¶V GHILQLWLRQV RI
QLFKH UHVSHFWLYHO (OWRQ

209. GHILQHG WKH QLFKH LQ WHUPV RI WKH IXQFWLRQ SHUIRUPHG E D
VSHFLHV LQ WKH FRPPXQLW RU KDELWDW LQ ZKLFK LW LV D PHPEHU ZKLOH *ULQQHOO

210. GHVFULEHG WKH QLFKH DV WKH JHRJUDSKLFDO ORFDWLRQ ZKHUH DYDLODEOH UHVRXUFHV DOORZ VSHFLHV WR
JURZ DQG FUHDWH OLIH $ WKLUG IRUPXODWLRQ RI WKH QLFKH UHIHUV WR WKH FRQFHSW DV WKH SRVLWLRQ
RI D VSHFLHV LQ LWV KDELWDW 7KLV LGHD RI WKH QLFKH GHYHORSHG E +XWFKLVRQ

211. HQFRPSDVVHV ERWK IRUPXODWLRQV GLVFXVVHG DERYH E FRPELQLQJ WKH HFRORJLFDO UHTXLUHPHQWV
RI WKH VSHFLHV *ULQQHOOLDQ

212. ZLWK WKH IXQFWLRQDO UROH RI WKH VSHFLHV ZLWKLQ LWV HQYLURQPHQW
(OWRQLDQ

213. )URP +XWFKLVRQ¶V SRLQW RI YLHZ WKH QLFKH LV QGLPHQVLRQDO DQG GQDPLF GXH WR WKH RQ
JRLQJ FRQVWUDLQ WKH SUHVHQFH RI RQH VSHFLHV H[HUWV RQ DQRWKHU YLD LQWHUDFWLRQ +HQFH WKH
SRVLWLRQ RI D VSHFLHV ZLWKLQ WKLV PXOWLGLPHQVLRQDO LH HQYLURQPHQWDO FRQGLWLRQV WKDW
FKDUDFWHUL]H WKH UDQJH ZLWKLQ ZKLFK VSHFLHV FDQ H[LVW

214. HFRVVWHP LV FRQWLQXDOO PRGLILHG
$FFRUGLQJ WR WKH HFRORJLFDO QLFKH WKHRU HFRORJLFDOO VLPLODU VSHFLHV FRH[LVW E YLUWXH RI
WKHLU QLFKH GLIIHUHQFHV 7KXV ZLWKLQ WKLV SHUVSHFWLYH VSHFLHV DUH HFRORJLFDOO GLIIHUHQW DQG
LW LV WKLV GLIIHUHQFH EHWZHHQ WKHP WKDW GULYHV QLFKH VHSDUDWLRQ $QG E GHILQLQJ WKH QLFKHV
RI VSHFLHV LW LV SRVVLEOH WR GHWHUPLQH KRZ VLPLODU WKH DUH EHFDXVH VSHFLHV LQWHUDFW QRW RQO
ZLWK RQH DQRWKHU EXW DOVR ZLWK WKHLU UHVRXUFH HQYLURQPHQWV
7KH DOWHUQDWLYH DSSURDFK WR VWXGLQJ VSHFLHV YDULDWLRQWKH GLVSHUVDODVVHPEO SHUVSHFWLYH
LV EDVHG RQ WKH LGHD WKDW FRPPXQLWLHV DUH RSHQ QRQHTXLOLEULXP DVVHPEODJHV WKDW DUH RQO
ZHDNO FRPSHWLWLYH 9DQ 'NH

215. $FFRUGLQJ WR +XEEHOO

216. FRPPXQLWLHV DUH
³WKURZQ WRJHWKHU E FKDQFH KLVWRU DQG UDQGRP GLVSHUVDO´ $V VXFK +XEEHOO

217. PDLQWDLQV WKDW VSHFLHV YDULDWLRQ SDWWHUQV FDQ EH H[SODLQHG E VSHFLHV VLPLODULW UDWKHU WKDQ
WKHLU GLIIHUHQFHV 7KLV LPSOLHV WKDW VSHFLHV DUH HFRORJLFDOO HTXLYDOHQW ZLWK UHJDUGV WR ELUWK
PLJUDWLRQ DQG GHDWK UDWHV +HQFH VWRFKDVWLFLW SODV DQ LPSRUWDQW UROH ZLWKLQ WKLV
SHUVSHFWLYH 7KH JHQHUDO SUHPLVH RI HFRORJ FRQVLVWV RI D GRPDLQ DQG VHYHQ SULPDU
GRFWULQHV 6KHLQHU DQG :LOOLJ

218. DV LOOXVWUDWHG LQ )LJXUH $FFRUGLQJ WR 6KHLQHU DQG
:LOOLJ

219. IXQGDPHQWDO SULQFLSOHV FDQ EH RI WZR JHQHUDO WSHV WKRVH WKDW DUH XQLTXH WR
WKH KRPH GRPDLQ DQG WKRVH WKDW DUH JHQHUDO DQG FDQ EH VKDUHG ZLWK RWKHU GRPDLQV
$ XQLTXH IXQGDPHQWDO SULQFLSOH ZLWKLQ D GRPDLQ PXVW PHHW RQH RI WZR FULWHULD

220. ,W LV
HLWKHU VKDUHG E PDQ FRQVWLWXHQW WKHRULHV ZLWKLQ WKH GRPDLQ LQFOXVLRQDU UXOH

221. RU

222. LW LV
UHTXLUHG IRU GLIIHUHQWLDWLQJ FRPSHWLQJ JHQHUDO WKHRULHV H[FOXVLRQDU

223. ,I DQ HVVHQWLDO
SULQFLSOH LV VKDUHG ZLWK DQRWKHU GRPDLQ LW PXVW EH DV D UHVXOW RI WKH VLPLODULW RI WKH
PHFKDQLVP IURP DQRWKHU GRPDLQ DQG KDYH GRPDLQVSHFLILF FDXVDO VLJQLILFDQFH FDXVDO

224. $V
VXFK WKLV PHDQV WKDW D SULQFLSOH WDNHQ XQFKDQJHG IURP DQRWKHU GRPDLQ GRHV QRW QHHG WR
EH VSHFLILHG ZLWKLQ D WKHRU 6KHLQHU DQG :LOOLJ

225. 7DEOH 3ULQFLSOHV RI (FRORJ
6RXUFH 6KHLQHU DQG :LOOLJ

226. :KLOH WKH QLFKH KDV UHFHLYHG ZLGHVSUHDG DWWHQWLRQ LQ QXPHURXV HPSLULFDO HFRORJLFDO
VWXGLHV HJ 9DQ 9DOHQ 0DF$UWKXU DQG /HYLQV 7RNHVKL KDVH DQG
/HLEROG

227. LW KDV DOVR EHHQ H[WHQVLYHO DSSOLHG LQ PDQDJHPHQW VWXGLHV HJ DUUROO
+DQQDQ DQG )UHHPDQ %DXP

228. DQG SDUWLFXODUO ZLWKLQ WKH ILHOG RI VWXG
UHIHUUHG WR DV RUJDQL]DWLRQDO HFRORJ WR GHVFULEH WKH SRVLWLRQ RI DQ RUJDQL]DWLRQ LQ D
FRPPXQLW RI ILUPV ,W KDV WKXV JURZQ WR FRQVWLWXWH D SURPLQHQW VRFLRORJLFDO WKHRU RI WKH
HYROXWLRQ RI SRSXODWLRQV RI RUJDQL]DWLRQV $OWKRXJK WKH VWXG RI RUJDQL]DWLRQDO HFRORJ
IRFXVHV RQ WKH HYROXWLRQ RI D SRSXODWLRQ RI RUJDQL]DWLRQV LH KRZ RUJDQL]DWLRQV
PDWHULDOL]H GHYHORS DQG JR H[WLQFW WKH QLFKH FRQFHSW LV DOVR DSSOLHG WR D ZLGH YDULHW RI
RUJDQL]DWLRQDO DUHDV LQFOXGLQJ FRPSHWLWLRQ +DQQDQ HW DO

229. DUJXH WKDW WKH QLFKH RI
DQ RUJDQL]DWLRQ LV WKH ORFXV RI FRPSHWLWLRQ OHJLWLPDWLRQ DQG VHOHFWLRQ 0RVW DSSOLFDWLRQ RI
HFRORJLFDO WKHRU ZLWKLQ VRFLRORJ WHQG WR HTXDWH QLFKH RYHUODS ZLWK FRPSHWLWLRQ
0F3KHUVRQ 3RGROQ 6WXDUW +DQQDQ HW DO

230. HW HFRORJLVWV UHSHDWHGO
VWDWH WKDW FRPSHWLWLRQ RFFXUV ZKHUH QLFKHV RYHUODS RQO WR D SDUWLDO H[WHQW $OOH
2GXP

231. $QG DV VXFK QLFKH RYHUODS SHU VH QHHG QRW QHFHVVLWDWH FRPSHWLWLRQ WKH
RQO FUHDWH D SRWHQWLDO IRU FRPSHWLWLRQ LH WKH FUHDWH VLWXDWLRQV WKDW PDNH FRPSHWLWLRQ
SRVVLEOH +RZHYHU LQ VLWXDWLRQV ZKHUH UHVRXUFHV DUH VFDUFH WKHUH LV D KLJK OLNHOLKRRG WKDW
RYHUODS RI QLFKHV FDQ OHDG WR FRPSHWLWLRQ
7KH 2UJDQL]DWLRQDO HFRORJ FRQFHSW FDQ EH VDLG WR UHYROYH DURXQG WZR VLPLODU EXW GLVSDUDWH
LGHDV LH HQYLURQPHQWDO VHOHFWLRQ DQG RUJDQL]DWLRQDO DGDSWDWLRQ 2Q WKH RQH KDQG
RUJDQL]DWLRQDO HFRORJ EHOLHYHV LQ WKH VRFLRORJLFDO LGHD WKDW RSSRUWXQLWLHV DQG FRQVWUDLQWV
DUH LQH[WULFDEO OLQNHG WR RUJDQL]DWLRQV¶ ORFDWLRQV LQ D VRFLDO VWUXFWXUH 'REUHY HW DO

232. 7KLV LV PRVWO FRQFHUQHG ZLWK WKH HQYLURQPHQWDO FRQGLWLRQV ZLWKLQ WKH QLFKH LWVHOI ,Q WKDW
UHVSHFW +DZOH¶V

233. SULQFLSOH RI FRPSHWLWLYH LVRPRUSKLVP KDG HDUOLHU DUJXHG WKDW WKH
GLYHUVLW RI RUJDQL]DWLRQDO IRUPV UHIOHFWHG WKH GLYHUVLW RI HQYLURQPHQWV 7KH DFWXDO
PHFKDQLVP EHKLQG WKH LGHD RI FRPSHWLWLYH LVRPRUSKLVP DOOXGHV WR HQYLURQPHQWDO
VHOHFWLRQ ZKLFK LV WKH FHQWUDO YLHZ ZLWKLQ RUJDQL]DWLRQDO HFRORJ DQG ZKLFK FRQWHQGV WKDW
6HYHQ SULQFLSOHV RI HFRORJ
2UJDQLVPV DUH GLVWULEXWHG LQ VSDFH DQG WLPH LQ D KHWHURJHQHRXV PDQQHU
,QFOXVLRQ

234. 2UJDQLVPV LQWHUDFW ZLWK WKHLU DELRWLF DQG ELRWLF HQYLURQPHQWV ,QFOXVLRQ

235. 7KH GLVWULEXWLRQV RI RUJDQLVPV DQG WKHLU LQWHUDFWLRQV GHSHQG RQ FRQWLQJHQFLHV
([FOXVLRQ

236. (QYLURQPHQWDO FRQGLWLRQV DUH KHWHURJHQHRXV LQ VSDFH DQG WLPH DXVDO

237. 5HVRXUFHV DUH ILQLWH DQG KHWHURJHQHRXV LQ VSDFH DQG WLPH DXVDO

238. $OO RUJDQLVPV DUH PRUWDO DXVDO

239. 7KH HFRORJLFDO SURSHUWLHV RI VSHFLHV DUH WKH UHVXOW RI HYROXWLRQ DXVDO

241. FRPSHWLQJ RUJDQL]DWLRQV VXUYLYH RQO RQ WKH IRXQGDWLRQ RI WKHLU ILW ZLWK WKH SUHYDLOLQJ ORFDO
HQYLURQPHQWDO FRQGLWLRQV 7KXV RUJDQL]DWLRQDO HFRORJ FDQ EH VDLG WR EH EDVHG RQ WKH LGHD
RI HQYLURQPHQWDO VHOHFWLRQ 2Q WKH RWKHU KDQG QRW DOO VFKRODUV VHHP WR EH LQ DJUHHPHQW RQ
WKH LGHD )RU LQVWDQFH DUJXPHQWV ZLWKLQ RUJDQL]DWLRQDO HFRORJ UHMHFW WKH LGHD RI VHOHFWLRQ
DV SUHVFULEHG E FRPSHWLWLYH LVRPRUSKLVP DQG LQVWHDG EDVH RUJDQL]DWLRQDO HFRORJ RQ WKH
QRWLRQ WKDW RUJDQL]DWLRQV SRVVHV WKH DELOLW WR DGDSW WR KLVWRULFDO FLUFXPVWDQFHV +DQQDQ
DQG )UHHPDQ

242. FKDOOHQJH WKH LGHD RI LVRPRUSKLVP ZKHUH RUJDQL]DWLRQV DUH SHUFHLYHG
DV UDWLRQDO IOH[LEOH DQG TXLFN DGDSWHUV WR FKDQJLQJ HQYLURQPHQWDO FLUFXPVWDQFHV YHU
PXFK OLNH FRPSOH[ DGDSWLYH VVWHPV ZKLFK KDV EHHQ SURSRVHG IRU VWXGLQJ VXSSO FKDLQ
FRPSHWLWLRQ VHH /DQJGRQ DQG 6LNRUD

243. 5DWKHU WKH DUJXH WKDW RUJDQL]DWLRQV DUH
LQHUW DQG WKDW WKH LPSOHPHQWDWLRQ RI IXQGDPHQWDO FKDQJHV ZLWKLQ WKHVH RUJDQL]DWLRQV FDQ
SUHVHQW VHYHUH WKUHDWV WR WKHLU VXUYLYDO +DQQDQ DQG )UHHPDQ

244. 7KH DOVR IDFH
LQWHUQDO DQG H[WHUQDO LQFOXGLQJ HQYLURQPHQWDO

245. SUHVVXUHV WR VXFFHVV %HFDXVH
RUJDQL]DWLRQV DUH KLJKO GHSHQGHQW RQ WKH HQYLURQPHQW LQ ZKLFK WKH DUH DFWLYH DQG WKH
RSSRUWXQLWLHV WKDW WKLV HQYLURQPHQW SURYLGHV LW IROORZV WKDW WKH RUJDQL]DWLRQ¶V FRPSHWLWLYH
SRZHU LV D IXQFWLRQ RI WKH UHVRXUFH

246. RSSRUWXQLWLHV DYDLODEOH ZLWKLQ WKH VXSSO FKDLQ
VVWHPV LQ ZKLFK LW RSHUDWHV 7KXV WKLV SUHVHQWV RUJDQL]DWLRQ WKHRU DQG WKH RUJDQL]DWLRQ
RUJDQL]DWLRQ DQG WKH RUJDQL]DWLRQHQYLURQPHQW UHODWLRQV DV D IRXQGDWLRQ RI RUJDQL]DWLRQDO
HFRORJ ZKLFK LQ WXUQ UHVWV RQ WKH QDWXUDO VFLHQFH GLVFLSOLQH RI HFRORJ
7KH DWWUDFWLRQ RI WKLV VWXG WR WKH QLFKHDVVHPEO SHUVSHFWLYH OLHV LQ WKH LGHD WKDW LW YLHZV
WKH HQYLURQPHQW QLFKH

247. DV EHLQJ OLPLWHG LQ WHUPV RI UHVRXUFHV DQG DV VXFK VWUHVVHV
FRPSHWLWLRQ DV WKH GULYLQJ IRUFH RI FRPPXQLW RUJDQL]DWLRQ 9DQ 'NH