The Role of Commitment Devices in Budgeting

We administer an experiment to investigate a commitment device in the form of an unobservable commitment regarding a superior's acceptance rule for a subordinate's budget request. We find that unobservable commitment, when exogenously imposed, diminishes superiors' propensity for costly norm enforcement. The results for an endogenous treatment are similar except that those superiors who choose unobservable commitment only occasionally use the commitment device in a manner consistent with norm enforcement. Our interpretation of the results is that unobservable commitment decreases the emotional response to unfair behavior and that information asymmetry accentuates this effect. Copyright © 2014 John Wiley & Sons, Ltd.     

Critical events in time and space when cooperation turns into competition in business relationships

This study aims to improve our understanding of the processes of critical events in time and space that lead from cooperation to competition in dyadic business relationships. Within the business network approach there has recently been a call for research into both time and competition, and research combining both is novel. The study identifies and analyzes critical events in time, their connections with each other and the inner and outer space related to each event. The empirical study is based on four qualitative cases. The findings contribute to existing research by presenting several new perspectives on events and spaces, which improves our understanding of time and process in business networks. Business relationships may evolve from cooperation to competition through chronological events involving information sharing, sales-related and opportunistic activities. In space, these events mostly relate to the focal business relationships, the individual companies and third parties, such as customers.     

Communicative skills that support value creation: A study of B2B interactions between customers and customer service representatives

Although interaction has been acknowledged as central in value creation there is still a lack of empirical studies on how value creation is accomplished in practice, and in particular how communicative skills support customers' value creation. The purpose of this paper is therefore to generate a deeper understanding of how customer service representatives' communicative skills in conversations with customers support customers' value creation. We argue that value creating processes correspond to customers' roles as “feelers”, “thinkers” and “doers”. Accordingly, value creation involves three interdependent elements, an emotional, a cognitive and a behavioral. Based on a qualitative research design, drawing on an empirical study of 80 telephone conversations between customers and customer service representatives in a business-to-business context, the paper demonstrates three communicative skills that are essential in supporting customers' value creation: attentiveness, perceptiveness and responsiveness. The findings show how employees, by means of these communicative skills support customers' value creation. Attentiveness supports cognitive elements of the customers' value creating processes, whereas perceptiveness supports value creation in terms of cognitive, behavioral and emotional aspects. Finally, responsiveness supports the customer's cognitive as well as behavioral value creation.     

Exploring the Optimal Design of an Employer-Sponsored Sickness-Disability Compensation Insurance Plan When Sickness Presenteeism Is Penalized

We explore the impact of presenteeism, absenteeism, and shirking on the optimal design of an employer-sponsored sickness-disability compensation insurance plan when the employer penalizes sickness presenteeism. We assume an employee's health follows a simple multistate model with a “severely ill” sickness state. To combat absenteeism, the employer randomly verifies an employee's claim of sickness. However, to combat presenteeism, we also introduce the new concept of a presenteeism penalty whereby employees who are found to be at work in the “severely ill” sickness state are sent home and receive a penalized sick pay that is lower than the normal sick pay. Thus sick employees must decide whether to stay at home and receive a sick pay or go to work sick and run the risk of being sent home and penalized. We further assume (1) employees are risk-averse utility maximizers, (2) each employee has a strategy for staying home or working while sick that maximizes his or her lifetime expected discounted utility, and (3) an employee's strategy is unknown to the employer. The primary plan design factors that affect an employee's lifetime expected discounted utility and the employer's discounted expected accounting profits over an employee's working lifetime are the sick pay, the presenteeism penalty, and two health check probabilities. Volterra integral equations are used to derive expressions for an employee's lifetime expected discounted utility and the employer's expected discounted accounting profits over an employee's lifetime under various employee strategies. Laplace transforms are used to derive asymptotic expressions for the solutions to these integral equations. These asymptotic solutions are used to explore the impact of these factors on the optimal sickness compensation insurance plan design.     

Diffusion of organisational innovations: an empirical test of an analytical framework

Alänge, Jacobsson, and Jarnehammar (1998) presented an analytical framework for studying the diffusion of organisational innovations, based on the developments in literature on technical innovations and their diffusion. The aim of this paper is to examine the validity of the framework. Two exploratory case studies were carried out on the diffusion of the organisational innovation TQM. The case studies showed that the framework is a useful tool for studying the diffusion of organisational innovations. However, factors such as learning processes on a national and international level and the role of fads need further consideration. In addition, factors needed for a long-term commitment such as boards and owners and internal political and cultural systems need to be further investigated. The paper also presents a model for analysing the different phases in a diffusion process.     

Material Distortion of Economic Behaviour and Everyday Decision Quality

Misleading information and unfair commercial practices have to be viewed against the background of what consumers otherwise do, i.e., what their purchase decisions look like when no misleading information or no unfair commercial practices are in place. This article provides some of this background by studying how consumers sample information when making an in-store purchase decision. This was done by an eye-tracking study which reveals to what extent consumers succeed in purchasing the products that best meet their purchase intentions when only a representative amount of misleading information is present. The study shows that decisions were suboptimal in relation to what the consumers claimed they wanted to purchase. Only in one product category did consumers in this study actually look at products that were slightly better than average, and as a result, they mainly selected products that were just as often poor as good. If the proportion of bad purchase decisions based on misleading information is small enough, perhaps it might be better to direct the authors’ attention to other ways of improving the decision environments that consumers encounter. In addition, the eye-tracking study provides some insight into how consumers sample information when making an in-store purchase decision. The present data show that consumers invested on average of less than 1 s to look at products.     

New Technology-Based Firms In Sweden - A Study Of Their Direct Impact On Industrial Renewal

The purpose of this paper is to analyse some of the ways in which new tcchnology-bascd firms (NTBFs), started after 1975, have contributed to the process of industrial renewal in Sweden. For this purpose, we have developed a novel way of operationalizing the concept of NTBFs and of identifying the population of such companies in Sweden. The method relies heavily on unique data on the educational background of the firm's staff. We found that NTBFs constitute a relatively small but growing phenomenon in Sweden. Although small in magnitude, the firms have contributed to industrial renewal by increasing the knowledge-intensity and science base of Swedish industry and industry-related services. They have also contributed somewhat to the redirection of the knowledge base in Sweden in favour of skills which are central to the innovation process in growth sectors, primarily computer science skills.     

The transformation between exploration and exploitation applied to inventors of packaging innovations

While the inventor is often the driver of an invention in the early stages, he/she needs to move between different social networks for knowledge in order to create and capture value. The main objective of this research is to propose a literature-based framework based on innovation network theory and complemented with C–K theory, in order to analyze the invention/innovation process of inventors and the product concepts in a packaging industry context. Empirical input from three case studies of packaging inventions and their inventors is used to elaborate the suggested framework.The article identifies important gaps in the literature of innovation networks. This is addressed through a theoretical framework based on network theories, complemented with C–K theory for the product design level. The strength-of-ties dimension of the theoretical framework suggests, in agreement with the mainstream literature and the cases presented, that weak ties are required to access the knowledge related to exploration networks and strong ties are required to utilize the knowledge in the exploitation network. The transformation network is an intermediate step acting as a bridge where entrepreneurs can find required knowledge. The transformation network is also an intermediate step where entrepreneurs find financing and companies interested in commercializing inventions.     

Swedish preschool children's experience of food

Focus group interviews were carried out at 12 preschools. The aim was to investigate children's perceptions and experiences of food, and the possibility of using focus group techniques with children aged 3–5 years. A total of 103 children participated. The children associated food and eating with rules and norms. Most children described these rules and norms as well as what they were and were not allowed to do. They knew very well the difference between acceptable and non‐acceptable mealtime behaviour, and were especially aware of what they were not allowed to do. When children were asked to rate foods they ‘disliked’, they spoke instead about their favourite foods. They did not categorize food as good or bad, as adults often do, but as ‘food’ and ‘non‐food’, for example, sweets were not food. The method used in this study, the focus group interview, was judged to be a useful tool for exploring how children think about and jointly reflect upon food.