How to design a financial market experimentation: The qualitative approach

2025-03-24T00:56:03-05:00

This article aims at strengthening financial literature by providing a qualitatively inspired experimental protocol for analyzing the influence of emotions and cognitive and behavioral biases on the decision-making of individual investors. Most studies in this field generally rely on a quantitative approach, which is restricted to demonstrating cause-and-effect relationships based on large sample sizes, without actually analyzing the psychological reality of individual investors. Consequently, the literature shows a growing interest in the use of qualitative methodologies to better understand the financial decision-making process. However, laboratory experimentation must be based on a well-designed experimental protocol, so that other researchers can replicate the experiment with a precise understanding of the set-up and conditions. Accordingly, this article details the fundamental principles of experimental protocol design, based on existing literature. We then propose the practical set-up of an experiment on financial markets, using qualitative tools such as questionnaires, semi-directive interviews and a focus group. The article demonstrates the advantages of the qualitative approach in understanding the emotional and cognitive influence on the decision-making process. This methodology and the protocol offer a more precise analysis of people's psychological reality, often ignored by quantitative approaches.

Disruptive innovation in global markets: Cross-industry differences in the impact of rising Chinese competitors

2025-06-25T02:44:25-05:00

The purpose of this paper is to assess the differential impact across 30 global industries of disruptive innovation from Chinese companies. The paper presents a model of disruptive innovation to identify the conditions under which Chinese competitors can win a substantial share of global markets at the expense of incumbents. Analysing data on the market share gains by Chinese companies among the top five competitors in each industry between 2006 and 2018 we show there are marked differences both in the extent of disruption and the speed with which this occurs. Based on case study evidence, the inter-industry differences appeared to be largely explained by a mix of the product and industry characteristics that influenced competitive efficacy of strategies commonly used by leading Chinese companies. We suggest that the threat of ongoing global market disruption from Chinese competitors should not be underestimated, not least because it is backed by well-developed, dynamic capabilities in cost and accelerated innovation and in accessing, absorbing and leveraging technologies and knowledge being generated throughout the world.

International Journal of Social and Administrative Sciences

How to design a financial market experimentation: The qualitative approach

Disruptive innovation in global markets: Cross-industry differences in the impact of rising Chinese competitors