Socio-technical regimes and heterogeneous capabilities: the Swedish pulp and paper industry's response to energy policies

Based on a study of policy-induced changes in the Swedish pulp and paper industry, this paper follows a process of socio-technical regime destabilisation. Results from the study show that in industries where established firms have significant power, processes of endogenous renewal are more likely to destabilise established regimes than processes based on niche solutions. Further, the study shows how policy measures aimed to destabilise the current regime may result in different responses, owing to the different capabilities of individual firms. The analysis suggests that heterogeneous capabilities within established industries provide possibilities for policy makers to initiate change.     

Corporate Environmental Citizenship Variation in Developing Countries: An Institutional Framework

This study focuses on why some companies in developing countries go beyond environmental regulations when implementing their corporate environmental social responsibilities or citizenship behavior. Drawing mainly upon the new institutional theory, this study develops a conceptual framework to explain three institutional factors: companies’ market orientations, industrial characteristics, and corporate identities. Accordingly, we suggest that companies from developing countries that are oriented to markets in developed countries, operate in highly concentrated industries, and have missionary identities adopt corporate environmental citizenship behavior by going beyond environmental regulations. The study also discusses the theoretical, policy, and managerial implications of the conceptual framework.     

Ambiguous framings of political consumerism: means or end,product or process orientation?

For dealing with various societal problems, ‘political’/‘ethical’/‘responsible’ consumerism is often discussed as an effective democratic and participatory tool. However, political consumerism – along with its tools, such as product labelling – is often conceived and discussed in oversimplified ways. Instead, the tension between scientific complexity, knowledge uncertainty and a codified, standardized label involves extensive political strategy, interest conflicts and simplified framings of the consumers’ roles as political decision makers. The purpose of this paper is to analyse how criteria for organic food labelling have been simplified, or framed, within various versions of political consumerism in policy debates. The more general purpose is to examine variations of what consumerism may entail theoretically and practically. Examples are chosen of organic food labelling in the US. The analysis is based on framing theory. The first distinction is made between framings surrounding the extrinsic and intrinsic values of consumerism (i.e. consumer empowerment towards an external goal, or as an overriding principle of democracy). The second distinction is between product‐ and process‐oriented consumerism (i.e. consumer empowerment with regard to the purchased goods or concerning the ‘invisible’ production and disposal processes). These distinctions may facilitate critical examinations of criteria, processes and communication of consumer‐related policies.     

Firm competition and incentive pay: Rent seeking at work

Empirical evidence shows that competition among firms generates steep incentives inside firms. Incentive pay stimulates productive investments but may generate inefficient rent-seeking investments. I show that competition reduces firms’ profits and thereby the inefficient investments, which makes steep incentives attractive.     

“Why Don’t Consumers Care About CSR?”: A Qualitative Study Exploring the Role of CSR in Consumption Decisions

There is an unresolved paradox concerning the role of corporate social responsibility (CSR) in consumer behavior. On the one hand, consumers demand more and more CSR information from corporations. On the other hand, research indicates a considerable gap between consumers’ apparent interest in CSR and the limited role of CSR in purchase behavior. This article attempts to shed light on this paradox by drawing on qualitative data from in-depth interviews. The findings show that the evaluation of CSR initiatives is a complex and hierarchically structured process, during which consumers distinguish between core, central, and peripheral factors. This article describes these factors in detail and explains the complexity of consumers’ assessment of CSR. These insights then serve as a basis for discussing the theoretical and managerial implications of the research findings. To this end, the article contributes to a better understanding of the role of CSR in consumption decisions.     

Unemployment and gang crime: can prosperity backfire?

In this paper, we study how unemployment affects gang crime. We examine a model of criminal gangs and suggest that a substitution effect between petty crime and severe crime is at work. In the model, non-monetary valuation of gang membership is private knowledge. Thus, the leaders face a trade-off between less crime per member in large gangs and more crime per member in small gangs. A decrease in unemployment may result in a switch from a large gang that requires petty crime to a small gang that requires severe crime.     

Judiciaries in corrupt societies

Recent empirical work shows that judicial dependence can explain high levels of corruption. This paper examines how the dependence of judiciaries influences corruption at different levels of the government in a model where the central government, low-level officials, and the judiciary are corrupt. In the model, the central government sells offices to low-level officials and demands ex-post payments enforced by the judiciary. Because an independent judiciary can rule against the central authority and accept bribes from stealing low-level officials, it reduces corruption at the higher level of government but promotes corruption at the lower level. Therefore, even if highly corrupt, an independent judiciary may reduce total corruption.     

Evaluating early warning indicators of banking crises: Satisfying policy requirements

Ideally, early warning indicators (EWI) of banking crises should be evaluated on the basis of their performance relative to the macroprudential policy maker’s decision problem. We translate several practical aspects of this problem — such as difficulties in assessing the costs and benefits of various policy measures, as well as requirements for the timing and stability of EWIs — into statistical evaluation criteria. Applying the criteria to a set of potential EWIs, we find that the credit-to-GDP gap and a new indicator, the debt service ratio (DSR), consistently outperform other measures. The credit-to-GDP gap is the best indicator at longer horizons, whereas the DSR dominates at shorter horizons.     

Firm‐Level Competition and Exchange Rate Exposure: Evidence from a Global Survey of Firms

We examine the effect of competition on exchange rate exposure using survey data from 55 countries. We find that exposure increases with the intensity of competition. Exposure is higher when firms face price competition in international and domestic product markets and when rivals compete using an unfair financial advantage. Furthermore, competition is a leading determinant of exposure, dominating the usual determinants. Exposure also increases with several determinants not previously empirically examined, such as firm‐level financial constraints. These results hold for small, large, foreign‐involved, and purely domestic firms. Finally, import‐only firms have higher exposure than export‐only firms. Our survey results are likely to capture exposure before firms’ hedging actions.     

Management in the “neo-paternalistic organization”: The case of worksite health promotion at Scania

This paper proposes a qualitative study of Work Site Health Promotion (WHP) at the large Swedish producer of trucks and buses, Scania. While the concept of WHP implies that it is employees’ improved health at work that is strived for, we suggest that its main area of intervention is neither the work environment, nor what employees do at work, but employees’ lifestyles. To capture the potential of WHP for the management of organization, we introduce the concept of “neo-paternalistic organizational control.” By this term we want to draw attention to how WHP shares paternalistic approaches’ tendency of disregarding the professional-private divide, while also drawing attention to how this extra-professional control dimension is at once less intrusive and more discriminatory than what is traditionally referred to as paternalism in the literature on managerial control.