Competitive dynamics,strategic consistency,and organizational survival

This study investigates strategic consistency in competitive behavior. We construct a logically consistent evolutionary model, providing a causal argument to link a level of strategic consistency to long‐term organizational survival. According to our results, strategic consistency seems to be related to both organizational survival and the most efficient change over time concerning the key elements of a firm's strategy. One of the benefits of the model is that some of the components and processes may be manipulated through experimental or simulation interventions. This means that the model can be formally tested in future studies and managers can use it to fine‐tune patterns of competitive behavior. Copyright © 2008 John Wiley & Sons, Ltd.     

Interest Rate Risk Management in Major Finnish Firms

The interest rate policies of Finnish firms appear risk aversive, but hedging decisions are influenced by market view. Managers find they can forecast trends in interest rate development, and employ the forecasts in the choice of debt and hedging instruments. The use of risk assessment methods and hedging instruments are related to firm size but not to leverage. Most frequently employed hedging instruments are interest rate swaps and forward rate agreements. The respondents find their firms' interest rate risk management is successful, but performance is seldom measured against an explicitly defined benchmark.     

Further evidence on the credit view: the case of Finland

The present paper provides further empirical evidence on the credit view (i.e., bank credit availability has a positive impact on macroeconomic activity) by investigating the case of Finland. The Finnish economy suffered a severe recession in the early 1990s that was marked by widespread banking crisis and extensive government intervention. Using monthly data for the 1980–1996 period, unrestricted and restricted vector autoregression (VAR) models with GDP, money supply, consumer prices, bank credit, and exports were estimated. It is found that, while money supply had the largest effect on economic output, bank credit exhibited a fairly strong effect on output that exceeded price effects for the most part. Exports had little impact on fluctuations in GDP but did help to explain industrial output changes over time. Based on these results, it is concluded that there is empirical support for the credit view in Finland. By implication, government intervention in Finland to restore safety and soundness during the banking crisis likely limited further damage to the macroeconomy associated with disruption of credit intermediation services.     

Testing Segment Stability: Insights from a Rural Tourism Study

The majority of earlier segmentation studies have focused on finding segmentation solutions rather than on applying the results to practice, and testing the viability of the results. In this study a unique opportunity is used to test how the segmentation solutions of an earlier rural tourism segmentation study conducted in 2009 represent rural tourist segments in 2011, and how well rural tourists can relate to the segments found in the earlier study by using multiple choice questions. Also, different segmentation methods are compared regarding their accuracy to identify the segments. These results show that the four segments identified in the earlier study continue to exist two years later as respondents are able to relate to the segments quite well. However, segment sizes are crucially different and there is some overlap between segments. Travel motivations measured using binary scale produce more accurate segments than motivations measured using a Likert-type scale.     

How well does a national newspaper reporting system profile drowning?

In Finland, the Finnish Association for Swimming Instruction and Life Saving (SUH) and Statistics Finland (SF) both provide nationwide data on unintentional drowning. The SUH database relies on rapid reporting from a newspaper clipping service and additional local police information, whereas the SF database relies on the later release of the death certificate information, which is based on extensive medico-legal investigation. The aim of the study was to explore the main differences between the SUH and SF databases for drowning and to evaluate the capacity of the former to characterize drowning events in Finland from 1998 to 2000. Computerized files of death certificates tabulated by SF were linked with the SUH database by deterministic methods. SF and SUH databases allowed the identification of 704 and 567 unintentional drownings, respectively, giving an unintentional drowning rate of 4.5 and 3.6/100?000 per year. Of the 704 drownings described by SF, 418 (59.4%) were also found in the SUH database. The SUH database markedly underreported drowning fatalities in certain settings, such as bath, ditch and swimming pool drownings; fall- and land-traffic-related drownings; and drownings occurring in South Finland. The narrative text of SUH drownings contributed limited information to characterize the drowning events. It was concluded that the newspaper-based SUH data provide more timely data on individual drownings but are not representative of all drownings. Conversely, the SF vital statistics data are more accurate but may take up to 2 years to become available. Both SUH and SF data provide little detailed information on drowning events. A multidisciplinary national surveillance system for drowning is necessary to provide more accurate and timely drowning data, analyse risk factors and design follow-up studies for developing and monitoring prevention strategies.