TAXATION AND CENTRALISED WAGE SETTING: THE CASE OF ENDOGENOUS LABOUR SUPPLY

The implications of centralised wage setting for the relationship between taxation, wages and employment are studied allowing for endogenous adjustment in work hours. We show that centralisation promotes wage moderation, makes wages and employment less sensitive to changes in wage taxation and reduces the hours worked. With an individual supply of working hours, a wage tax can even improve employment if wage setting is centralised and marginal utility from a public good is sufficiently high. Moreover, if a profit tax is used to finance public expenditure, higher tax reduces wages and improves employment.     

No-till technology: benefits to farmers and the environment? Theoretical analysis and application to Finnish agriculture

We assess theoretically and empirically the private profitabilityand social desirability of conventional tillage and no-tillwhen crop yields, production costs and nutrient and herbiciderunoff damages are taken into account. Based on Finnish experimentaldata, no-till provides higher social and private profit thanconventional tillage for barley but not for oats and wheat,for which the production cost advantage of no-till does notcompensate for lower yields in the private optimum. As regardssocial returns, no-till provides slightly better overall environmentalperformance but, given the existing valuation of nutrient andherbicide runoff damage, this is not enough to give no-tillan advantage in oats and wheat cultivation. Thus, the key factorsdetermining the private and social profitability of no-tilland conventional tillage are yields and production costs ratherthan environmental performance.     

Consumer trust in animal farming practices – exploring the high trust of Finnish consumers

Trust in animal farming is a complex phenomenon and it is expressed in heterogeneous ways in different cultural contexts. Nordic countries are typically known as high‐trust societies in terms of food issues. Based on group interviews among Finnish consumers, this paper explores how citizen–consumers express trust and distrust regarding animal farming practices and whether it is possible to identify different forms of trust among different consumer groups. The foundations of emotional trust in animal farming have been weakening due to urbanization and the structural change in agriculture. Ordinary shoppers responded to this situation by transferring responsibility for farm animal welfare to public authorities, relying on habitual policy‐generated trust in animal farming. In contrast, gastronomes and organic consumers actively cultivated their emotional trust in livestock production by creating new kinds of contacts to farming. Gastronomes, organic consumers and vegetarians especially acknowledged the complexity of the claims made in farm animal welfare politics. As trust in food has arguably become a subject of active negotiation in Finland, the foundations for the habit‐based policy‐generated trust may be partly weakening, creating more space for the politicizing of food issues and the developing of alternative sources for regaining trust in food production.     

Aligning the Mindset and Capabilities within a Business Network for Successful Adoption of Smart Services

This paper explores the synchronized change of mindset and capability within a business network that is driven by the adoption and provision of smart services. The research is implemented as an empirical multi‐case study, and the primary data include interviews and observations in seven globally operating firms. The findings identify two categories of barriers and three categories of alignment needs to successful adoption of smart services. The study combines the institutional theory and dynamic capability perspectives to make three main contributions to the research of service innovation for an improved understanding of the determinants of successful field‐level adoption of smart services. The results show that firms need to align the change of logic and capabilities within the organization and the business network to succeed in the adoption of smart services.     

The Significance of the New Venture's First Sale: The Impact of Founders' Capabilities and Proactive Sales Orientation

Initial sale success in the market with a new product is a critical milestone for a new venture. Failure at the introduction stage of a new product could have lethal consequences for the venture. In the present study, the authors investigate the role of a new venture company's first successful sale in the venture's future commercial success. The authors develop and test a model of the impact of the founders' entrepreneurial and commercial capabilities and proactive sales orientation on the significance of the first sale and sales growth of a new venture. Using survey data and partial least squares estimation, the results reveal that the founders' commercial capabilities have a positive effect on proactive sales orientation, while their entrepreneurial capabilities positively moderate the effect of commercial capabilities. Further, the results reveal that a proactive sales orientation positively affects the significance of the first sale and that value‐based selling approach positively moderates the effect of proactive sales orientation. Finally, the results reveal that the significance of the first sale is positively related to sales growth. Thus, the authors conclude that combining the founders' commercial and entrepreneurial capabilities strengthens proactive sales orientation and that, in turn, a proactive sales orientation particularly increases the significance of the first sale when new venture companies practice value‐based selling. Research has convincingly demonstrated proactive selling behavior to be one of the most powerful predictors of sales performance. Value‐based selling is a sales approach to identify, quantify, communicate, and verify value of a new product to the customer. Our findings suggest that founders who possess both strong commercial and entrepreneurial capabilities engage considerably more in proactive sales practice as compared with founders that only possess strong commercial capabilities. Hence, rather than hiring specific sales expertise, founders should develop their proactive, value‐selling capabilities.     

Working time and labour demand in Finnish manufacturing: short-run and long-run effects

The effect of changes in the standard working time on employment and average hours is studied using pooled data from five Finnish manufacturing industries. The model is an error correction model, which makes it possible to separate short-run, reductions in standard hours increase employment. There is evidence that the long run effect of working time on employment has changed over time. In the 1970s reductions in hours have had positive long-run employment effects, but in the 1980s the positive short-run impact has been neutralized in the long run. Changes in standard hours do not influence the utilization rate of labour, which is defined as the ratio of overtime hours to standard hours. In the short run, the utilization rate is influenced by output changes.     

Conversational use of genres in managerial meetings

This article addresses the question of how the concept of genre, defined as a linguistically realized activity type, can be applied to the study of organizational discourse. In particular, the authors show how and for what practical purposes managers invoke genres in meetings. The data of the study consist of video-recorded company-internal meetings and the methodology is based on ethnomethodological conversation analysis. In the empirical analysis the authors show how genres are used as resources for joint understanding and for conducting a particular conversational action in a meeting, namely proposing a solution to a problem. The study highlights the importance of genre knowledge in managerial meetings and the practical nature of this knowledge.     

The Role of Fashion Brand Authenticity in Product Management: A Holistic Marketing Approach

This study explores the multidimensional construct of brand authenticity and the effect of each component on brand attachment, brand commitment, and brand loyalty by focusing on fashion brands in sporting goods. For this study, two global sports brands, Nike and Adidas, were selected, and brand stimuli (cartoons with scenarios) were designed based on a qualitative analysis of brand cases. A total of 207 usable responses were obtained from Korean consumers who had purchased the selected brands. The findings show that fashion brand authenticity consisted of seven factors: authority, fashionability, consistency, innovativeness, sustainability, origin, and heritage. Of these factors, authority, fashionability, innovativeness, and sustainability were significant predictors of brand attachment, and authority, consistency, and innovativeness were significant predictors of brand loyalty. There were differences in the effects of brand authenticity on brand attachment and brand commitment between Nike and Adidas. From a managerial and holistic marketing perspective, implications are suggested regarding the importance of managing brand authenticity in product innovation and management approaches.     

Strategic behavior in a service industry

A model of service duopoly is formulated, where the arrival of customers and their service time in the firm are stochastic. The firms first choose the service capacity, and given the capacity they then choose the price in a Bertrand competition. Capacity choices have a negative externality on the competitor, since increased capacity in one firm decreases its expected full price (price plus cost of waiting) and leads to a flow of customers from the other firm. If the firms choose capacities strategically, it is optimal to underinvest compared to the non‐strategic case, but this result may arise in different ways. By underinvesting the firms commit themselves to longer queues (lower quality) to relax price competition. Copyright © 2002 John Wiley & Sons, Ltd.