Labor taxation, public finance, and wage determination: evidence from OECD countries

This paper analyzes the relationship between unemployment, average effective labour tax rates and public spending in 17 OECD countries. The focus is on the degree of centralization and cooperation in wage setting. Estimation results from a dynamic time-series-cross-section model suggest that the countries where wage setting takes place at the firm level have used labour taxes less extensively in financing welfare spending, compared to countries with centralized or decentralized bargaining. This is consistent with another finding, according to which labour taxes distort the labour demand the least in the countries with firm level bargaining.     

Why do public policy-makers ignore marketing and consumer research? A case study of policy-making for alcohol advertising

Public policy-makers have been noted to sometimes ignore marketing/consumer research, even when the policy issue clearly pertains to consumption markets. We embark to identify factors that may explain policy-makers’ limited attention to marketing/consumer research, especially in cases related to consumer affairs that may have public health implications. Empirically, we focus on policy-making around the advertising of alcohol products. Having been involved in this policy-making process in Finland, we elucidate the case through an introspective narrative. We find that the factors explaining policy-makers’ limited attention to marketing/consumer research range from the decision-making characteristics of policy-makers, through inconsistent definitions for key terminology, to the fear of over-generalizing certain theories of marketing/consumer research. Regarding the latter, a key issue in the present case was that public policy-makers were unconvinced about the generic marketing theory stating that in mature markets, advertising will not increase the total consumption demand of a product category.     

Do institutional investors pay attention to customer satisfaction and why?

Extant marketing, accounting, and finance research has neglected to examine the relevance of customer satisfaction information for institutional investors, despite their potential importance. This study develops and supports a framework suggesting that firms with positive changes in customer satisfaction are more attractive to transient institutional investors than to non-transient institutional investors. We also find that the impact of customer satisfaction on transient institutional investor holdings is contingent upon firm intangible asset intensity, product-market demand uncertainty, and financial market volatility. In addition, transient institutional investor holdings at least partially mediate the effects of changes in customer satisfaction on firm abnormal return and idiosyncratic risk. Thus, transient institutional investor investments represent a mechanism through which customer satisfaction affects firm value.     

Innovation, R&D cooperation and labor recruitment: evidence from Finland

This article investigates the role played by one type of firm interaction, namely R&D cooperation, and also the acquisition of labor, in the promotion of industrial innovations. We employ a unique innovation dataset from Finland which combines firm specific information about the innovation performance of the firms along with their individual characteristics, as well as firm specific information regarding the origins of their recent labor acquisitions. Analyzing this data allows us to identify the different roles which the knowledge spillovers and labor markets play in the innovation process. Our results suggest that small firms are generally more innovative than large firms; R&D cooperation is an essential feature of innovation, but the variety of cooperation is of little importance; and labor acquisition appears to be only of limited importance for innovation.

Naturally designed for masculinity vs. femininity? Prenatal testosterone predicts male consumers' choices of gender-imaged products

In this paper, we find that a proxy of prenatal testosterone exposure (i.e., digit ratio) is a significant predictor of preferences for products that differ in perceived masculinity vs. femininity. A more masculine (feminine) digit ratio predicts choice of products that have an increasingly masculine (feminine) image. This relationship is statistically significant for male consumers, but not for females.     

Analysis of the Colorado potato beetle protection system in Finland

Invasive species, including plants, insects and other pests, are a serious threat to agricultural production and to the environment in general. Finland has traditionally had a favourable situation concerning invasives, partly due to its isolated geographical location. The situation may now be changing and one of the currently increasing threats is the Colorado potato beetle (CPB). Finland has designed a CPB protection policy incorporating a protected zone, which is commonly used to deal with invasive plant pests in other European countries. Within this zone, the randomly occurring CPB invasions are collectively fended off, to prevent the establishment of a permanent pest population and to minimise potential damage. This paper evaluates the economics of the current protection programme, comparing this to a hypothetical situation in which the current pre-emptive policy is abandoned and control relies on producers' individual reactive protection measures. The annual random pest invasions are modelled in a static stochastic framework. To date the pest has not been able to establish a permanent population in Finland. According to our analysis, the currently exercised pre-emptive policy is the cost-efficient choice at this point. The relatively low expected invasion magnitude is one of the key factors supporting the efficiency of the current system. Another reason is the fairly small damage incurred. However, when the invasions become larger and more frequent or the pest strains more cold-resistant, the future situation may change.     

Creatine and entrepreneurship

Creatine is a nitrogenous organic acid which supplies energy to body cells and enhances physical performance. Using the Young Finns Study combined with the Finnish Linked employer-employee data we show that quantities of creatine measured in 1980 prior to labour market entry affect entrepreneurial success as measured by capital income accumulation over the period 1993–2010 (in particular for females). However, we do not find evidence that creatine affects the propensity to become an entrepreneur. Our study contributes to the emerging literature on biomarkers and entrepreneurship.     

Straddling between paradigms: A naturalistic philosophical case study on interpretive research in management accounting

This paper analyses interpretive research in management accounting from the perspective of naturalistic philosophy of science. We focus on the relation of interpretive research to the subjective/objective dichotomy appearing in the methodological literature of the social sciences. In management accounting research, it is often routinely assumed that interpretive studies, following the reasoning by Burrell and Morgan [Burrell, G., & Morgan. G. (1979). Sociological paradigms and organisational analysis. London: Heinemann], are based on subjectivism only. The major purpose of this paper is to give flesh to the existing debates around the nature of interpretive research with the help of in depth analysis of one example of such research in management accounting. Since abstract and general philosophical arguments are often used merely to cloud more relevant case specific issues concerning the focus of explanation and the nature of empirical evidence offered, our analysis aims at providing conceptual tools for articulating with greater precision what is being asserted in a given study. The specific target of the examination is the interpretive study by Dent [Dent, J. F. (1991). Accounting and organisational cultures: A field study of the emergence of a new organisational reality. Accounting, Organisations and Society, 16, 693–703], which is one of the highly appreciated and extensively quoted pieces of research picked from the interpretive management accounting literature. Our analysis indicates that though there certainly are, and needs to be, unique subjectivist features in interpretive studies as compared to more ‘objectivist’ approaches, there are also important similarities, and that the view of sociological paradigms as necessarily mutually exclusive does not hold water. Hence interpretive research straddles between paradigms. As we argue that interpretive studies, in addition to including subjectivist elements, also encompass objectivist features, we invert the typical social theory critique of ‘scientific’ (management) accounting research that it cannot be an objective ‘mirror of reality’ by claiming that interpretive studies cannot be exclusively subjectivist and still they remain theoretically relevant. Our philosophically tuned analysis explicates how concepts from different paradigms, such as interpretations, understanding meanings, and causality, can successfully co-exist and co-operate within a single study.     

Revisiting the paradox of whether retail buyers behave more like consumers or industrial purchasers: the case of price discounts

Marketing Letters - A long-lasting debate in marketing literature is whether retail buyers who purchase consumer products behave like consumers or like industrial purchasing managers. We address...     

Struggles in organizational attempts to adopt new branding logics: the case of a marketizing university

Recent research underlines that strong branded identities are created through co-creational processes in which multiple stakeholders are actively involved and brand identities are matched with cultural, political, and economic forces in society. However, there is a lack of in-depth research into how organizations attempt to adopt new branding logics. To address this research gap, we conduct a study of a university that is rebranding itself in accordance with a new market-oriented, service-dominant logic. While harmonic value co-creation between the brand and stakeholders is emphasized in an earlier literature, our study shows that attempts to adopt these logics trigger contradictory and adversarial interpretations among stakeholders about the role and identity of the focal actor vis-à-vis their own. We conclude that adopting new branding logics involves struggles and dynamics of power and resistance, which have passed unnoticed in earlier research. Resistance is not only targeted toward the brand's symbolic meanings and conducted by marginal consumer groups to enhance their own identities. Rather, it can also be targeted toward the tangible resource roles that stakeholders are expected to assume vis-à-vis the brand, and conducted by various stakeholder resistors – with the outcome of undermining and shifting the essence of the brand itself.