Restructuring of the Danish pork industry: The role of mergers and takeovers, 1960–2010

This article examines the origins and effects of the evolution of the Danish pork industry characterised by three main merger waves resulting in 43 realised mergers and takeovers. The findings illuminate – in contrast to the traditional strategically motivated rationale – that the majority of the mergers were realised by cooperatives due to the inability to give the pig farmers competitive yearly refunds vis-à-vis local competitors, to financial difficulties or to the lack of investment capability of one of the merging parties. Despite a high-risky strategy, mergers and takeovers became the preferred consolidation mean due to capital constrains and the ‘close’ ownership structure of the cooperatives. Moreover, the study demonstrates that the outcomes of the M&A activities were generally positive.     

Living in a bubble: potential gains from flexible water management policies

We study Swedish implementation of the European Union’s Water Framework Directive, and compare the current implementation strategy with more flexible ‘bubble’ schemes, where measures can be traded among various locations within the same river system to reach the overall environmental target. Two different Swedish river systems, the Mörrum system with small-scale hydropower plants, and the Ångerman system with larger plants, are studied. We find that the environmental benefits that current policies are likely to accomplish could be achieved at well under half the cost in the Mörrum system, and at less than a tenth of the cost in the Ångerman system.     

The Social Dimension: convergence or diversification of IR in the Single European Market?

The discussions raised in the theories of convergence and diversification of industrial relations are again becoming relevant due to the Single European Market and the proposals coming from the EC-Commission regarding a common EC regulation and harmonisation of the European labour market. How far the EC-development will imply an internationalisation of European industrial relations is analysed here.     

Estimating New-Keynesian Phillips curves: A full information maximum likelihood approach

The New-Keynesian Phillips curve has recently become an important ingredient in monetary policy models. However, using limited information methods, the empirical support for the New-Keynesian Phillips curve appear to be mixed. This paper argues, by means of Monte Carlo simulations with a simple New-Keynesian sticky price model, that single equations methods, e.g. GMM, are likely to produce imprecise and biased estimates. Then, it is argued that estimating the model with full information maximum likelihood (FIML) is a useful way of obtaining better estimates. Finally, a version of the model used in the Monte Carlo simulations is estimated on U.S. data with FIML and although the pure forward-looking New-Keynesian Phillips curve is rejected, a version with both forward- and backward-looking components provides a reasonable approximation of U.S. inflation dynamics.     

Credit Risk Versus Capital Requirements under Basel II: Are SME Loans and Retail Credit Really Different?

Under Basel II, retail and SME credit (R&SME) receive special treatment because of a supposedly smaller exposure to systemic risk. Most research on this issue has been based on parameterized credit risk models. We present new evidence by applying Carey's (Carey, Mark. “Credit Risk in Private Debt Portfolios.” Journal of Finance 53, no. 4 (1998), 1363–1387.) nonparametric Monte-Carlo resampling method to two banks' complete loan portfolios. By exploiting that a sub-sample of all borrowers has been assigned an internal rating by both banks, we can compare the credit loss distributions for the three credit types, and compute both economic and regulatory capital under Basel II. We also test if our conclusions are sensitive to the definitions of R&SME credit. Our findings show that R&SME portfolios are usually riskier than corporate credit. Special treatment under Basel II is thus not justified. JEL classification: C14, C15, G21, G28, G33.     

Revisiting a Social Constructionist Approach to Crisis Communication– Investigating Contemporary Crises in China

ABSTRACT

The current study provides a social constructionist approach to crisis communication in the Chinese context. Crisis communication is viewed as a form of strategic communication, involving multiple stakeholders in situations that are dependent on context, space and time. This approach provides a much-needed path for investigating and understanding crisis communication practices in contemporary China. The distinct Chinese context for crisis communication, with both an authoritarian government structure and a digital transformation of society, challenges theories originally developed in the Western countries. To address this issue, this study proposes a three-theme analytical framework to examine crisis communication practices in the Chinese context: (1) an audience (or stakeholder) orientation—focusing sense-making, (2) a proactive and interactive approach—focusing communication, and (3) a community—focused approach—focusing a long-range precrisis perspective.     

Trust and Brand Recovery Campaigns in Crisis: Findus Nordic and the Horsemeat Scandal

The aim of this study is to describe and analyze a transboundary crisis, focusing on crisis communication from the perspective of an involved major corporation. More concretely, the intent is to increase understanding of how Findus Nordic in Sweden managed the crisis communication response and repair of its trust and corporate brand during and after the horsemeat scandal in 2013. The case study is based on a theoretical framework that consists of three theories or concepts: transboundary crisis, image repair strategy, and rhetorical arena. Findus Nordic followed its corporate values and applied a consistent image repair strategy: denial and blame shifting towards the supplier Comigel in an extremely multivocal arena. This strategy was supplemented with responsibility evasion. Towards the end of the public crisis, Findus Nordic used the crisis as an opportunity to recover their position and started a campaign that had a positive impact on trust and the corporate brand. The launch of the campaign was very fast and might have been dangerous. However, according to the analysis, the success of the campaign may be explained as a consequence of its sensemaking and auto-communicative approach.     

Unequal Labour Market Impacts of COVID-19 in Sweden — But Not Between Women and Men

Intereconomics - So, when asked if men and women in the Swedish labour market have been differently affected by the COVID-19 pandemic, our overall conclusion would have to be “no”.     

Value Creation and Category Management through Retailer–Supplier Relationships

Abstract

This article discusses category management interactions in supplier–retailer relationships based on conceptual insights about value in business markets. Much category management literature has studied supplier–retailer relationships, but despite value creation being central to category management the conceptual approach is often the power-trust controversy. Based on value concept, category management and supplier–retailer relationship literature this study develops a model and hypotheses of retailer perceived benefits and sacrifices from category management collaboration. The article proposes that closer supplier-retailer interactions through the category management process hold the potential for increased value creation through application of complementary information resources, an improved coordination of tactical efforts, and an alignment of category aims and strategies explicitly linked to retailers' value systems. Further, the perceived necessity of trust in these relationships meshes with retailers' perceived sacrifices regarding negotiation power and full control of category marketing variables, thus establishing a trade-off for retailers between benefits and sacrifices.     

Theoretical Perspectives on the Internationalization of Firms

The purpose of this article is to build a coherent framework of the four main theories relating to the internationalization of firms, in order to facilitate better business teaching and research. Yet, theories of the internationalization of firms are broad and rest on different underlying assumptions. With the purpose of clarifying the potential for integration of partial theories and fragments in a more logically connected theoretical area, this article offers a meta‐theoretical overview of four perspectives within international business economics: Research and its related background, basic assumptions, study area, and implications of the theories in the internationalization of the firm.