The complexity of the business network context and its effect on subsidiary relational (over-) embeddedness

Many studies have focused on the effects of MNC subsidiaries’ external relational embeddedness. Little attention has been given to its antecedents and especially to the potential effect that the business network context might have. We try to fill this gap and attempt to explain variation among subsidiaries’ degree of relational embeddedness. Our results show a strong and robust effect of the business network context – i.e. the network context in which the direct business relationships between the subsidiary and its partners are embedded – on the degree of relational embeddedness. However, contrary to previous literature, we find an inverted u-shaped relationship. We discuss our findings with regard to the issue of over-embeddedness and the literature on the strength of weak vs. strong ties.     

Retailers' management of corporate social responsibility (CSR) in their supplier relationships – does practice follow best practice?

The aim of this study is to further explore (a) the extent to which retailers deploy corporate social responsibility (CSR) best practices to ensure social and environmental sustainability in international supplier relationships and (b) the association between firm characteristics and the retailers' CSR activities in the supply chain. As a first step, the study identifies eight best practices based on earlier research and the authors' qualitative studies of IKEA. As a second step, a survey of Swedish retailers was conducted. The results of the study suggest that a significant amount of the actors in the Swedish retail sector do not follow the majority of best practice as outlined and discussed in this study. Furthermore, it is found that sector belonging has a considerable impact on the extent that a retailer follows best practice, while firm size and internationalization experience also have a significant, albeit limited, impact on retailer behavior.     

Panel estimation of state-dependent adjustment when the target is unobserved

Understanding adjustment processes has become central in economics. Empirical analysis is fraught with the problem that the target is usually unobserved. This article develops and simulates GMM methods for estimating dynamic adjustment models in a panel data context with partially or entirely unobserved targets and endogenous, time-varying persistence. In this setup, the standard first difference GMM procedure fails. Four estimation strategies are proposed. Two of them are based on quasi-differencing. The third is characterised by a state-dependent filter, while the last is an adaptation of the GMM level estimator.     

Interorganizational cost management in the exchange process

This paper explores interorganizational cost management (IOCM) practices in the exchange process. IOCM can be defined as buyers’ and suppliers’ coordinated efforts to reduce costs. Past research has primarily argued that such practices depend on component characteristics, relationship characteristics, and characteristics of the transaction. Based on a study of three buyer–supplier relationships, this article also finds variations in IOCM practices between six main activities in the exchange process. In this process, the supplier's management accounting is found to be more important than recognized by prior research. The deepest collaboration around IOCM issues and the greatest joint use of suppliers’ management accounting in the three cases typically occurs in earlier activities in the exchange process, including supplier selection, joint product design and joint manufacturing process development. In later activities in the process, during full-speed production as well as in product and manufacturing process redesign, suppliers’ managerial accounting plays a lesser role in our study.     

Guidelines issued by the consumer board: The Swedish experience

The Scandinavian countries have been concerned with the question of self-regulation over the past twenty years and their experiences demonstrate a fluid approach to the question of government intervention in the relations between consumer and business.This report highlights the movement which has taken place in Sweden from quasi private regulation by business in the sixties to the Ombudsman institution as a government supervisory agency in the seventies. Sweden itself has a very marked system of guidelines which serve as non-binding rules in informal negotiations between consumers and suppliers. Their impact is as great as that of formal rules, and examples of their use are illustrated in the article. The guidelines themselves are constantly being revised by the Consumer Board after discussion with the business community. Breach of the guidelines themselves, although not per se an offence, will probably justify an action being brought against the offending firm by the Consumer Ombudsman. The guidelines also appear to differ in their scope and number, and although severely criticized, appear to have fulfilled an important function.The report further shows that the means of negotiation and regulation are still not static: a further move towards self-regulation is being mooted, partly as a result of economic cut-backs. These proposals are, however, not yet fully developed.

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Richtlinien der Verbraucherbehörde — das schwedische Beispiel

Zusammenfassung Schweden hat als Vorreiter der Nordischen Staaten seit Anfang der siebziger Jahre sein System des Konsumentenschutzes von der Selbstkontrolle auf eines der staatlichen Kontrolle umgestellt. Dadurch ist allerdings die Selbstregulierung durch Verhaltenskodices, z.B. im Direktvertrieb, nicht gänzlich beseitigt worden. Eine größere Rolle spielen allerdings die vom Ombudsmann bzw. der Verbraucherbehörde erlassenen Verhaltensrichtlinien. Deren Funktion ist kürzlich von einer staatlichen Kommission untersucht worden, an der der Autor mitgewirkt hat. Die Kommission kommt zu einer im Prinzip positiven Einschätzung des Systems, fordert aber stärkere Berücksichtigung von Selbstregulierungsmaßnahmen auch unter budgetären Gesichtspunkten. Richtlinien werden zwischen der Behörde und den Unternehmensverbänden ausgehandelt. Rechtlich stellen sie sich nur als Empfehlungen dar, und sie binden die Unternehmen ebensowenig, wie sie den Konsumenten Rechte geben. Faktisch beinhalten sie eine Konkretisierung der generalklauselartigen Informationsgebote, Lauterkeitsregeln und Sicherheitsbestimmungen des Handelspraktikenrechts. Die Unternehmen befolgen sie meistens freiwillig. Verstöße werden vom Marktgericht in der Regel als unlauter angesehen. Inhaltlich befassen sich die Hälfte der 36 bisher erlassenen Richtlinien mit Informationsfragen, die andere Hälfte mit der Produktsicherheit. Die Regelungsdichte variiert. Nach anfänglicher Kritik vor allem von Unternehmensseite hat das System inzwischen hohe Akzeptanz gefunden.

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Ulf Bernitz is Professor of Private Law, especially Consumer and Market Law, Institute for Intellectual Property and Market Law, University of Stockholm, S-10691 Stockholm, Sweden.