Apple's financial success: The precariousness of power exercised in global value chains

The topic of this paper is the Apple Inc business model and how, in a financialized world, the success of this business model is represented by what we term financial ‘point values’. Our argument is that there is a tendency to promote specific point valuation multiples as measures of success, but these values, by their nature, do not reveal the contingent and variable nature of the power relations exercised in and along global supply chains. Firms such as Apple exploit their resources and capabilities to ‘create value’ but also exercise power to recalibrate relationships with suppliers in the value chain to secure ‘value capture’ for financial transformation. Value capture is an active ingredient that can help inform our understanding of the fragility of the Apple business model value proposition and frame a critical argument regarding the precarious nature and sustainability of Apple's substantial profit margins.     

Building traits for organizational resilience through balancing organizational structures

This paper describes and explains how balancing organizational structures can build traits for organizational resilience. Organizational resilience is a holistic and complex concept. In this paper, we move beyond focusing on sudden and disruptive events in favour of anticipating the unexpected in daily organizing. Organizational resilience is understood here as building traits of risk awareness, preference for cooperation, agility and improvisation and is analysed by means of a longitudinal qualitative case study. The paper contributes to the field by showing how balancing organizational structures can foster organizational resilience traits. We show that power distribution and normative control can create preparedness for unexpected events and foster action orientation at the same time as supporting organizational alignment.     

The manager's dilemma: a conceptualization of online review manipulation strategies

Online evaluations are one of the most important innovations in tourism in recent years, often combining a review/rating (business-specific evaluation) and a ranking (inter-business comparison). As online reputation determines economic success, tourism managers may be tempted to manipulate online content. This paper presents the results from a qualitative study involving 20 hotel managers in southern Sweden, and their perspectives on manipulation. Results confirm that there exists a wide range of review manipulation strategies, many of which are difficult to control. Even though only few managers appear to systematically manipulate, online evaluations represent a significant challenge for businesses, as they introduce direct competition and foster consumer judgement cultures. It is postulated that managers will increasingly find themselves in a Prisoner's dilemma, representing a situation where engaging in manipulation is the most rational choice in an increasingly competitive market situation.     

Joint Production of Food and Wildlife: Uniform Measures or Nature Oases?

Intensive agriculture is often bad for wildlife. Does this imply that a goal to boost wildlife on agricultural land is best met through a general reduction in intensity? We argue that such an approach may not be optimal, since cost functions for provision of wildlife on agricultural land may be non-convex, due to fixed costs associated with such provision. This implies that, even when farms are identical, it may be preferable to split them into groups of high providers and low providers. We test our hypothesis in a study of the optimal management of mown grasslands in southern Sweden, where the two products are silage and successful reproduction of ground-nesting birds, and the variable controlled by the farmer is the date of the first mowing. We show that the optimal solution is likely to involve some farmers maintaining profit-maximizing practices while other—identical—farmers delay their first mowing significantly. The superiority of such split solutions may have major implications for agricultural policy.     

Dancing Spreads: Market Assessment of Contagion from the Crisis in the Euro Periphery based on Distress Dependence Analysis

The crisis in the eurozone periphery has so far affected markets substantially more than the size of the countries in the region would suggest. Data on direct exposures and simple correlations also fail to explain the cross-border impact of the crisis. Following Segoviano (2006), this paper uses distress dependence analysis to measure market assessment of contagion risks from Greece and Ireland to the rest of Europe during the peaks of the crises in these countries. The results provide insights to possible contagion risks through cross-border negative feedback loops between sovereigns and banking sectors in Europe that help explain the severe impact of the crisis.     

Start-ups and employment dynamics within and across sectors

We use a decade of longitudinal data on start-ups and employment in Swedish regions to analyze the effect of start-ups on subsequent employment growth. We extend previous analyses by decomposing the effect of start-ups on total employment change into within- and cross-sector effects. We find that start-ups in a sector influence employment change in the same as well as in other sectors. The results illustrate that the known S-shaped pattern can be attributed to the different effects of start-ups in a sector on employment change in the same sector and in others. Start-ups in a sector have a positive impact on employment change in the same sector. The effects on employment change in other sectors may be negative or positive, and depend on the sector under consideration. In particular, start-ups in high-end services deviate from manufacturing and low-end services in that they have significant negative impacts on employment change in other sectors. The findings are consistent with the idea that start-ups are a vehicle for change in the composition of regional industry.     

Nonlinear taxation and punishment

The paper analyzes nonlinear tax schedules that are identified by maximizing a welfare function represented by a weighted summation of net utilities over a set of n  ≥ 3 differing individuals. It is demonstrated that some of the feasible and Pareto efficient tax schedules that satisfy self-selection can only be identified by maximizing a welfare function of the above form if (at least) one of the individuals in the economy is assigned a negative weight.     

Co‐owned Local Government Organisations: Conditions for Strategy Development

Local governments tend to join resources and create co‐owned organisations to solve the supply of public services. From a strategic perspective on local government cooperation, this paper analyses the conditions for strategy development in a co‐owned municipal organisation. The empirical data stem from a longitudinal case study of a Swedish provider of water and sewerage services. We show that difficulties in formulating and agreeing upon strategies are not dependent on the structural form. Instead, there is an intrinsic dilemma when municipalities are to create a joint strategy at the same time as each municipality is sovereign to decide on all local matters.     

The compulsory public pension and the demand for life insurance: the case of Sweden, 1884–1914

We employ cost‐of‐living surveys, business archives, and firm data to examine the impact of the compulsory pension on the demand for life insurance in Sweden from 1884 to 1914—a period that covers the implementation of the first public compulsory old‐age pension reform and the take‐off of industry life insurance. As predicted on the basis of the contemporary literature on crowding‐out effects, we find that the compulsory pension reduced the demand for life insurance. Our panel‐data analysis of lapse rates on insurance policies shows a significant crowding‐out effect of pension payments. We conclude that the introduction of the general compulsory pension had a crowding‐out effect on households’ holdings of insurance policies.