Hanken School of Economics
Recent publications
Microfinance institutions (MFIs) must balance financial and social goals. When these coopetitive goals are under threat, which goals do MFIs prefer? Based on the theory of myopic loss aversion, our study aims to assess the immediate effect of the 2016 demonetization in India on MFIs and their loan portfolio performance and on unintended social outcomes. Using the 2016 demonetization in India as a quasi-experiment, we find that MFIs had a lower 30-day and 90-day portfolio at risk (PAR) and implemented better client protection terms. In addition, demonetization had a small but positive effect on developing start-up enterprises and serving more clients below the poverty line. Last, we find that MFIs investing in female client education presented a lower PAR after demonetization. Overall, our study sheds light on the unintended consequences on MFIs as a result of the demonetization event, and it provides policy implications for MFIs.
Value-based pricing is known to be challenging, especially on online platforms, but is considered a superior pricing strategy. We investigate cross-platform pricing and other factors that influence perceived customer value in the context of the accommodation industry. This industry is characterized by powerful platforms (e.g., Booking.com) as well as small and medium-sized enterprises (SMEs) selling across platforms. We compare the importance of platform choice and seller history as underlying signals conveying value and thus defining pricing beyond core product attributes. Such actor-signaling-actions for value are neglected in previous research. We pay particular attention to how time-based price discrimination affects the importance of these non-core product signals. As cross-platform efforts increase the complexity of value-based pricing, we apply machine learning methods to model how SMEs can successfully predict pricing across platforms. We discuss our methodological and theoretical contributions to value-based pricing and signaling theory.
To achieve the UN Sustainable Development Goals (SDGs), a marketing ecosystem composed only of human producers, customers/consumers, and economic stakeholders is inadequate. Instead, foundational rethinking is required. The study’s purpose is to analyze some of the constraints inherent in dominant marketing ontologies for reaching the SDGs. One such foundational constraint in the dominant market ontology is human-centricity, ignoring relationships between humans, animals, and other members of the natural biotic community. Neo-animism rejects the culture (humans)-nature dichotomy. We present three contributions that we call ontological enablers to pursue the SDGs. These contributions bridge a neo-animist approach to resource integration and value cocreation in service-dominant (S-D) logic, which entails implications for researchers and managers. Future research avenues elaborate a relational resource integration and cocreation approach between people and diverse members of the entire biotic community.
This article assesses the impact of welfare state systems on the performance of economies in creating the appropriate conditions for innovation and increased competitiveness. Since the 1970s, welfare systems have been regarded as disruptive influences on economic growth. This situation was exacerbated by the intensification of globalization and the emergence of new economies, which led to the need for initiatives to promote innovation and competitiveness, not least in the EU with so many different types of welfare state. To investigate the impact of welfare state systems on innovation performance and competitiveness, we used the European Innovation Scoreboard (EIS), which is based on a variety of indicators, as well as various essential indicators proposed by EU2020 innovation, such as the number of patents and the level of education and employment. The results obtained from the performance of five welfare state clusters of European countries have shown that the most comprehensive welfare states, primarily those in the Nordic countries, have been the most successful in achieving innovation goals and have long been ranked as innovation leaders in Europe. Moreover, public resource allocation for innovation leads to a more comprehensive agenda, including employment promotion, gender equality goals, and sustainability concerns. Welfare costs seem not to reduce competitiveness. And it is competitiveness itself that encourages the development of advanced social security systems.
Contemporary society is obsessed with knowledge, leaving its less seductive counterpart, ignorance, in the shadows. However, as an expanding literature suggests, it is equally important to understand ignorance and consider its varieties. This study specifies the nature of wilful ignorance in organizations. It does so by (a) making a distinction between the will of an actor and the epistemic properties of ignorance, and showing how these two form a dynamic relationship, (b) linking wilful ignorance to its various drivers and (c) suggesting how our concept of wilful ignorance can be used in the study of organizations. Rather than reducing the phenomenon into a simple to know/to ignore dichotomy, we concentrate on its processual and dynamic nature. Moreover, we explore the complexities and ambiguity inherently involved in all knowing and ignoring as well as the role of agency in reducing the harmful effects of wilful ignorance in organizations.
A decade of research has produced substantial results but the theorization of memorable tourism experience, often drawing on positive and environmental psychology, remains fuzzy and fragmented. Adopting state-of-the art practices, this study systematically reviews, synthesizes, and integrates the extant body of knowledge across multiple literature streams on memorable tourism experience. Our review indicates that research in this field has a geographical bias, largely neglects negative experiences, and mainly employs quantitative methods. We identify several gaps in the literature and propose the following seven recommendations for future research: (1) caution when using the memorable tourism experience scale; (2) the need for cross-cultural studies; (3) positive and negative dimensions in conceptualizing memorable tourism experience; (4) overcoming the limitations of self-report measures; (5) engaging in mixed methods research; (6) integrating suppliers' perspectives; and (7) combining theories, concepts, and disciplines. This study serves as a foundation for researchers and provides a holistic understanding of memorable tourism experience. K E Y W O R D S antecedents, memorable tourism experience, outcomes, positive psychology, systematic review
In this study, we develop a definition and a framework for ecosystem transformation. We suggest a circular model of four main mechanisms to provide an alternative explanation of ecosystem evolvement. Interview data are used to develop a model that integrates value creation logics at its core with evolutionary mechanisms. An emphasis on firm-specific technology development sets in motion strategic and technological engagement by other firms in the ecosystem. This comes about through firms that take responsibility for change and actors that adopt new ecosystem roles to drive the whole ecosystem towards transformation around new value propositions. This signifies that disruptive innovation and technological advancement in response to market needs drive ecosystem transformation through new value creation. Our comprehensive framework offers an outline for further research in the domain of ecosystem transformation.
Reality‐enhancing technologies such as augmented reality and virtual reality are rapidly becoming a part of everyday life. Seizing this moment, we set out a research agenda for studying the psychological mechanisms underpinning consumer experiences with these new technologies, structured around four application areas: (1) delivering innovative offerings, (2) supporting sustainability and consumer well‐being interventions, (3) balancing value cocreation and privacy concerns, and (4) achieving new modes and means of impact. For each area, we identify research directions that can guide the development and use of reality‐enhancing technologies for the realization of next‐generation consumer experiences. We explicitly balance potential advantages and disadvantages, thus encouraging researchers and practitioners to prioritize developing the “purpose” of these technologies, by focusing on the psychological mechanisms that underlie their use, over the technological development of their “pixels.” In this way, we guide the impactful development of reality‐enhancing technologies for applications with significance for consumers and firms.
Blockchain technology has seen increasingly important practical applications. The literature has expanded greatly in the past four to five years. One area that has seen significant application and growth is in supply chain management—which includes transportation and logistics. The growth of this literature has also resulted in several literature reviews—each has specific scope and emphasis. Of the growing number of literature review and bibliometric analysis studies, the focus has ranged from understanding application cases, themes, trends, and methodologies. Theoretical developments and theorizing have been limited for supply chain management in general and even more limited for sustainable supply chains. Arguably, much of the current research has been relatively atheoretical—a lack of theory development and theory application. Hence, we conclude the existing blockchain research discourse has been centered around application and less around the theory. As a sub-discipline, the nexus of blockchain and supply chain management is still in the early developmental stages. Using a critical synthesis review of the literature, this paper focuses on the most popular theories that have been applied to explain blockchain adoption and implementation within supply chains—how each theory explains the motivations, formalizes the organizational process around the acceptance of blockchain technology, and predicts the outcomes of blockchain-supported business models. Current theoretical gaps and potential future theorizing are discussed. Potential theories that have been used for other technologies (i.e., the internet of things) which have not been applied to the blockchain context are provided and discussed. The comprehensive and systematic theory review has important theoretical and managerial implications for both academia by advancing multiple academic disciplines and practice with insights into actual acceptance and usage of blockchain and other disruptive technologies.
This article examines corporate social responsibility (CSR) through the lens of political ontology. We contend that CSR is not only a discursive mean of legitimization but an inherently ontological practice through which particular worlds become real. CSR enables the politics of place-making, connecting humans and nonhumans in specific territorial configurations in accordance with corporate needs and interests. We discuss three CSR mechanisms of singularization that create a particular corporate ontology in place: (1) community engagements that form ‘stakeholders’; (2) CSR standards and certifications that produce singular sustainable environments; and (3) CSR reporting that erases ontological conflicts and enables the singularized representation (of the environment and the community) to travel to other locations of the corporate world. We argue that these ontological CSR practices obscure the pluriverse of other world and place-making practices that would create different kinds of sustainabilities based on less extractive and non-corporate ways of being in place.
The metaverse has been heralded as a next frontier for fueling strategic business opportunities. At the same time, recent months have witnessed explosive volatility in the market potential of proposed metaverse offerings. As a result, businesses are struggling to set a meaningful strategic course through an uncharted and rapidly changing landscape. We argue that the success of developing and scaling the metaverse as a vibrant new business ecosystem is largely dependent on the understanding that it is a unified and immersive reality where the physical and synthetic customer experiences seamlessly converge. For this to work, businesses and their customers need to be able to suspend their disbelief that synthetic elements are inherently false. We therefore consider the metaverse as a differentiated experience by exploring the promise and perils of falsity. We discuss how businesses can strategically embrace falsity by harnessing its intended, as well as mitigating its unintended, consequences, as they maneuver through major technological challenges in capturing customer value. We offer a diverse set of examples that illustrate how these strategies translate into managerial actions to competitively succeed in this new reality.
In this paper, we examine the nature and limits of violence by way of a comparison of the physical violence and online violation, in terms of their form, structure and effects. We explore similarities and dissimilarities in what precedes the event, perpetrator intentions and motivations, the forms and types of violence, the medium through which they are delivered, who they are directed towards, the technologies and processes deployed, and their impacts. We argue that it is problematic to restrict the concept of ‘violence’ to intended physical acts that cause harm, because non-physical, psychological, emotional and other forms of non-(directly)physical violence may be equally or even more impactful. Our discussion draws, illustratively, on research, including our own, on both ‘domestic violence’ and ‘revenge pornography’, with the latter an example of the growing numbers of relatively new forms of representational and psychological forms of violence. These are important political, policy and practical concerns, not only with the spread of violence, abuse and violation with and through digital technologies, but also as examples of differing ways in which these can be, and are, constructed, within academic, policy and popular media debates.
Sustainability is a global trend that requires balancing environmental, social, and financial concerns. Issues related to social and environmental responsibility have attracted growing research interest in the research domains on small businesses and large multinational companies, but they are yet to be explored in the context of internationalized small and medium-sized enterprises (SMEs), which experience the liabilities of foreignness and smallness but whose share of and impact on the world economy are growing. This study connects entrepreneurial decision-making with business responsibility and explores the effects of effectual decision-making logic on responsible business practices (RBPs) and their outcomes in the context of internationalized SMEs. The empirical part of the study was based on the survey data from a sample of 179 Finnish SMEs. The results obtained via linear regression modeling showed that a more pronounced effectual logic can lead to more RBPs in internationalized SMEs. The RBPs, in turn, were found to have a positive impact on the competitive performance of these SMEs, thus serving as mediators. This study contributes to the literature on responsible decision-making in both the research areas of internationalization of SMEs and small business responsibility.
This paper critically interrogates the usefulness of the concept of violence regimes for social politics, social analysis, and social theory. In the first case, violence regimes address and inform politics and policy, that is, social politics, both around various forms of violence, such as gender-based violence, violence against women, anti-lesbian, gay and transgender violence, intimate partner violence, and more widely in terms of social and related policies and practices on violence and anti-violence. In the second case, violence regimes assist social analysis of the interconnections of different forms and aspects of violence, and relative autonomy from welfare regimes and gender regimes. Third, the violence regime concept engages a wider range of issues in social theory, including the exclusion of the knowledges of the violated, most obviously, but not only, when the voices and experiences of those killed are unheard. The concept directs attention to assumptions made in social theory as incorporating or neglecting violence. More specifically, it highlights the significance of: social effects beyond agency; autotelic ontology, that is, violence as a means and end in itself, and an inequality in itself; the relations of violence, sociality and social relations; violence and power, and the contested boundary between them; and materiality-discursivity in violence and what is to count as violence. These are key issues for both violence studies and social theory more generally.
Increased digitalization enabled innovation and practical examples from the retail industry have captured the attention of marketing scholars, with rapid development in the academic field. The pace of change has significantly accelerated during the Covid-19 crisis. In seeking to (1) investigate the unique characteristics of digitalization enabled retail business model innovation, (2) understand how does digitalization influences changes to the retail business model innovation dimensions, and (3) identify the areas for future research related to retail business model innovation, this study systematically reviews the literature. Employing four databases, a sample of 170 articles were chosen. Based on bibliometric and network analysis and visualization, the major researchers, articles, and topics were rigorously identified. Finally, the results revealed the unaddressed issues in this research area. The study ends with theoretical and managerial implications.
Heterogeneity and complicated processes, risk of information leakage, and higher costs are some of the challenges that stem from third-party involvement in business transactions. This study proposes a novel mechanism to address the shortcomings of third-party-dependent transactions in the context of international trade. Moreover, we provide business process modeling, deployed in a business transaction scenario, to furnish a deeper perspective on the working of the mechanism based on Business Process Model and Notation (BPMN) 2.0 standards and guidelines. By analyzing and identifying blockchain roles and capabilities, this study proposes a blockchain technology-based letter of credit (BTLC), which is a mechanism providing letters of credit (LCs) that incorporate the benefits of blockchain and smart contracts.
As AI and ML technologies are increasingly incorporated into products, there is a need to understand the role of these incorporations in enhancing performance. This study uses new types of methodology related to textual data analysis to explore the question of whether there is a difference between market sentiments—and consequently marketing and business performance—when it comes to communicating either AI or ML. We test and confirm the hypothesis that AI rather than ML attracts more positive sentiments in the marketplace. Additionally, we find that AI is mostly used when the discussion centers on innovativeness, and that discussions concerning collaboration in these technologies attract more positive sentiments. We further contribute methodologically by leveraging textual data available online on the titles of web-page contents and the results of the Vader sentiment analysis to test our hypothesis. We conclude that, to enhance business performance, firms should communicate using AI-related vocabulary especially when the topic is innovativeness and collaboration.
Forests, and the politics around them, are posited both as a cause of and solution to the contemporary ecological crisis. This paper explores how rights to forest and rights of forest conceptualisations can re-articulate, and potentially challenge, the problematic dominance of capitalist forest politics in Northern Finland and beyond. Conceptually, the paper combines the debates on rights-to-nature and rights-of-nature. Rights-to-nature is concerned with how people can access and use nature to support their lives. Rights-of-nature, meanwhile, highlights the nature’s intrinsic value and the rights of indigenous peoples. Combining the two perspectives might allow imagining politics of nature that is both ecologically and socially just. Empirically, the paper studies forest politics in Tornio River valley in Northern Finland through an ethnographic case study. The rights-to-nature conceptualisation associates locally with the existing use rights and ownership rights. Rights-to-nature may guarantee access to a forest, but it does not guarantee its existence. Rights-of-nature, meanwhile, associates with strong conservation, nature’s power, and indigenous land rights. However, also the rights-of-nature conceptualisation is unlikely to challenge the gradual degradation of most Northern forests, as these “boring” forests lack both recognised human stewardship and intrinsic value. Thus, in the study area the rights conceptualisations do not decisively challenge the existing forest politics, even if the framings can acquire a more radical content. Overall, this paper shows that transnational rights discourses and conceptualisations entangle with local common senses. Factoring in the local understandings is essential for re-articulating politics of nature that could receive broad local support.
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Gyöngyi Kovács
  • Supply Chain Management and Social Responsibility
Johanna Gummerus
  • Department of Marketing
Tore Strandvik
  • Department of Marketing
Gunnar Rosenqvist
  • Department of Finance and Statistics
Anne Rindell
  • Department of Marketing
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