Climate for conflict management,exposure to workplace bullying and work engagement: a moderated mediation analysis

The present study investigates a potential preventive factor in relation to workplace bullying. Specifically, we examine how climate for conflict management (CCM) may be related to less bullying, increased work engagement, as well as whether CCM is a moderator in the bullying engagement relationship. The study was based on a cross-sectional survey among employees in a transport company (N = 312). Hypotheses were tested simultaneously in a moderated mediation analysis which showed that bullying and job engagement were related (H1), CCM was related to less reports of bullying (H2), CCM was related to work engagement (H3) and that CCM was indirectly related to job engagement through bullying (H4), but only when CCM was weak (H5). That is, CCM moderated the relationship between bullying and work engagement in that this relationship only existed when CCM was low. The present study contributes to theory within this research field by showing that organizational measures may not only prevent bullying, but may also affect how employees react when subjected to bullying. Furthermore, the effect of climate in relation to bullying may be down to the narrow bandwidth facet of CCM. The study informs employers how they may act to prevent bullying while also reducing the potential negative outcomes of those cases of bullying that inevitably will show up from time to time.     

The Infusion of Relational Market Obligations into the Austrian Agenda—Some Lessons Learned from Economic Sociology

Given its dictum of market equilibrium, economics in general obviously does poorly in shouldering market dynamics. Pervading obligatory traits of the market (other than mere dyadic contracting) is yet another area where not much attention is devoted. Whereas the Austrian agenda fills the first of these voids in a most sophisticated manner, its current discourse appears as oblivious concerning the manner in which market exchange transforms into relational interconnected obligations. That is to say, exchange is hardly understood as an indispensable facet of durable market obligations such as relationships 'constituting the market', but exclusively as immediate entrepreneurial arbitrage. Apart from an outright peculiar failure to recognize some of its own roots in this regard this omission unnecessarily delimits the manner in which Austrians can proceed and deepen their market analysis. The principal idea of this paper is to scrutinize the manner in which relational market obligations can be introduced into Austrian reasoning by drawing on ideas from within economic sociology. Max Weber's dictum on market openness takes on a particular role in this regard. An adjacent contribution strived for is to let this scrutiny foreshadow the manner in which such a partial reconciliation of market ideas from within economic sociology and Austrian economics could proceed.     

What Determines Real Exchange Rates? The Nordic Countries

The model derived in this paper yields testable implications concerning the long‐run co‐movements of real exchange rates, relative labor productivity, the trade balance and terms of trade. Countries with relatively higher output growth, trade deficits or improved terms of trade are found to have more appreciated real exchange rates, with the main channel of transmission working through the relative price of nontraded goods. Exogenous terms‐of‐trade shocks are found to be the most important determinant of long‐run movements in the real exchange rate for Denmark and Norway, while demand shocks account for most of the long‐run variance in the real exchange rate for Finland and Sweden.     

Life Insurance Liabilities at Market Value: An Analysis of Insolvency Risk, Bonus Policy, and Regulatory Intervention Rules in a Barrier Option Framework

This article takes a contingent claim approach to the market valuation of equity and liabilities in life insurance companies. A model is presented that explicitly takes into account the following: (i) the holders of life insurance contracts (LICs) have the first claim on the company's assets, whereas equity holders have limited liability; (ii) interest rate guarantees are common elements of LICs; and (iii) LICs according to the so‐called contribution principle are entitled to receive a fair share of any investment surplus. Furthermore, a regulatory mechanism in the form of an intervention rule is built into the model. This mechanism is shown to significantly reduce the insolvency risk of the issued contracts, and it implies that the various claims on the company's assets become more exotic and obtain barrier option properties. Closed valuation formulas are nevertheless derived. Finally, some representative numerical examples illustrate how the model can be used to establish the set of initially fair contracts and to determine the market values of contracts after their inception.     

The Abuse of the “Confident Consumer” as a Justification for EC Consumer Law

A reference to the need to create confident cross-border consumers who can contribute to the strengthening of the internal market has often been used as one of the main arguments for EC consumer policy and legislation. The argument has been presented in order to justify both the creation of a minimum safety net for consumers (the minimum confidence argument) and the current turn towards more total harmonisation of consumer protection (the harmonised confidence argument). In the paper these lines of argument are critically evaluated with reference to common sense knowledge about the behaviour of consumers as well as on the basis of Eurobarometer data concerning consumer confidence. In this light the substantive minimum harmonisation measures which have been justified with reference to the need for promoting consumer confidence seem only to a limited extent relevant with respect to the creation of such confidence. The current turn towards total harmonisation most certainly cannot be justified in this way. Other substantive measures, facilitating the access to a counterparty, would be more important in order to create consumer confidence in cross-border shopping, but the Community has almost systematically avoided adopting such measures.     

Price uncertainty and the effect of capital costs in a point in-point out inventory investment

This paper analyzes a point in-point out inventory investment under price uncertainty. The optimal quantity is determined by maximizing the expected value of the investor's risk preference function, which is a function of profit. Using an exponential risk preference function, the adjustment in the optimal quantity stemming from a change in the interest rate is investigated. The main conclusion is that the sign of the adjustment depends both on how profit is expressed and on the type of price distribution applied. Contrary to what is assumed in conventional managerial control practices, a rise in the interest rate might lead to an increase in the optimal quantity when present value serves as a measure of profit.     

Co-branding on industrial markets

During the last decade branding has developed to be one of the main focus areas in consumer marketing. In the industrial marketing area there has only been limited attention to this phenomenon. In this paper we focus on how co-branding can be used on industrial markets to increase value. Through an empirical study of professional purchasers' attitudes towards co-branding activities between two companies, we explore the potential of this strategy.     

Business relatedness and performance: a study of managerial perceptions

Understanding of business relatedness and performance effects is the foundation of any diversification decision, but we have limited knowledge of how managers consider relatedness. This study identified relatedness classes and performance effects using perceptual survey data from top industrial executives. Four classes with significant variable differences were found: high, technology, customer, and low relatedness. Technology relatedness had a strong positive performance effect and high relatedness had a negative effect. The findings confirm that perceptions are multidimensional, but may include five key factors rather than the previously identified attribute categories of product–markets, resources, and value chains. Contributions to diversification literature are discussed. Copyright © 2006 John Wiley & Sons, Ltd.     

“Social force majeure” — A new concept in Nordic consumer law

Empirical research from various countries indicates that overindebtedness of consumers is, to a considerable extent, attributable to unexpected changes in the consumer's situation caused by illness, unemployment, and other such circumstances. It is therefore relevant to discuss whether and in what way such circumstances should be taken into account in the rules of private law. In Nordic (especially Finnish) legislation, mainly from the 1980s, there are several provisions which provide for mitigation of sanctions against a defaulting consumer if the delay is caused by illness, unemployment, etc. Such rules are contained, inter alia, in the legislation on consumer credit and on interest on delayed payments.On the basis of these provisions as well as some practices developed by the consumer authorities, a general principle of social force majeure is seen to be evolving. This doctrinal principle would enable the courts and other decision-makers to take into account unfavourable changes in the consumer's health, work, housing, and family situation in cases not regulated by specific legislation, e.g., by giving the consumer the right of withdrawal from burdensome contracts in such circumstances or to protect his right to retain electricity and telephone connections in spite of his temporary payment difficulties. The principle is expected to carry increasing weight in the future, especially in the practice of the consumer authorities. Strong arguments speak in favour of the general acceptance of such a principle.

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Wirtschaftliche Unmöglichkeit aus sozialen Gründen — eine neue Rechtsfigur in den Nordischen Staaten

Zusammenfassung Empirisch-rechtssoziologische Untersuchungen aus verschiedenen Ländern kommen zu dem Ergebnis, daß Verschuldung und Zahlungsunfähigkeit von Verbrauchern zu einem großen Teil auf unerwartete Umweltänderungen zurückzuführen sind, etwa Krankheit, Arbeitslosigkeit und ähnliches. Es ist deshalb wichtig zu diskutieren, ob und in welcher Weise solche Umstände bei der Anwendung von Privatrechtsvorschriften berücksichtigt werden sollen. In den Nordischen Staaten, insbesondere in Finnland, gibt es seit den achtziger Jahren gesetzliche Vorschriften, die eine Abmilderung von Sanktionen gegen in Verzug geratene Schuldner vorsehen, wenn der Verzug auf Krankheit, Arbeitslosigkeit usw. zurückgeht. Diese Regeln finden sich im Recht des Konsumentenkredits und der Verzugszinsen. Auf der Basis dieser Vorschriften entwickelt sich eine neue Rechtsfigur der wirtschaftlichen Unmöglichkeit aus sozialen Gründen. Dieser Grundsatz würde es Gerichten und anderen Entscheidungsträgern ermöglichen, nachteilige Veränderungen der Gesundheit, Arbeitswelt, Haushalt und Familie des Verbrauchers auch in noch nicht gesetzlich geregelten Bereichen zu berücksichtigen, z.B. durch Gewährung eines Auflösungsrechts bei übermäßig belastenden Verträgen oder durch Schutz seines Rechts auf Versorgung mit Elektrizität und Telefon trotz zeitweiliger Zahlungsschwierigkeiten. Es wird erwartet, daß sich dieses Prinzip in Zukunft verstärkt durchsetzen wird, insbesondere in der Praxis von Verbraucherschutzbehörden. Wichtige Argumente sprechen für die allgemeine Anerkennung dieses Prinzips.

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Thomas Wilhelmsson is Professor of Civil and Commercial Law at the Institute of Private Law, Faculty of Law, University of Helsinki, Vuorikatu 5, SF-00100 Helsinki, Finland, and a member of the Finnish Market Court.     

Wood Fuel or Carbon Sink? Aspects of Forestry in the Climate Question

This paper discusses and contrasts two mainroles of forestry in light of the debate on theglobal climate. As the main problem is relatedto the increases of the CO₂-concentrationin the atmosphere, forests may be viewed aspart of the alleviation of the problem throughtheir function as (i) a source of biomass forenergy production, which may replace fossilfuels and thus indirectly reduceCO₂-emissions, and as (ii) carbon storage,since a growing forest extracts atmosphericCO₂ and fixes it as carbon in biomass. Inthe Scandinavian forestry, logging residues areincreasingly being used for energy production.In this paper the value of forests as a sourceof bioenergy is added to the traditional timbervalue. Formulated as a joint production modelwithin the Faustmann framework, the effect ofthis addition on the optimal rotation length isdiscussed. Based on data for spruce, thedominant species in the Scandinavian forestry,it is demonstrated that the rotation length isshortened compared to the standard Faustmannmodel. Shorter rotation length implies lesscarbon storage. Therefore, in this modelwithout explicit regard to the social carbonstorage value of the forest, the gains in termsof the climate problem from utilisation offorest biomass for energy production are beingdiminished by the value of reduced carbonstorage. The carbon value of the forest is thenadded to complete the model, with the effect ofincreasing the rotation length, a result thatis well known in the literature. Finally, theempirical effects of the interaction of thesetwo climate-related value elements of theforest are discussed.