Jukka Sihvonen

Structuring servitization-related research

Purpose The purpose of this paper is to organize and connect past research from different servitization-related scholarly communities. Design/methodology/approach This study reviews more than 1,000 articles by combining author co-citation and qualitative content analyses. Findings The structure and boundaries of the field are mapped, and the characteristics of the three identified servitization-related communities are assessed qualitatively. These three communities are product-service systems, solution business, and service science. The findings demonstrate that a narrow range of theories and qualitative methods dominate in existing research. Originality/value Through the lens of the sociology of science, this review critically evaluates servitization-related research and offers a list of themes that are considered important to the future development of the field. Regarding future research, the main recommendations are as follows: increasing the use of well-established theories from adjacent mature fields, borrowing ideas from different research communities to stimulate knowledge accumulation within and across communities, and reducing the level of description while increasing the number of confirmatory, quantitative, and longitudinal research designs. Finally, the development of formal structures for socialization (e.g. conferences and special issues) could allow the field to achieve a greater degree of scientific maturity and would influence the direction and pace of the development of servitization-related research.

Forward-Looking Monetary Policy Rules and Option-Implied Interest Rate Expectations

This paper examines the association between option‐implied interest rate distributions and macroeconomic expectations in the context of a forward‐looking monetary policy rule. We presume that market participants view the policy rule as a guide to the path of future policy rates and price interest rate options in accordance with the policy rule fundamentals. Using data from the UK, we confirm that Libor expectations implied by option prices are consistent with the policy rule variables. The results demonstrate that changes in the distributional form of Libor expectations are strongly associated with changes in the expected inflation and output gaps and financial uncertainty.

The Cheapest-to-Deliver Premium: Theory and Evidence

This paper provides a theoretical and empirical investigation of the impact of bond futures trading on the price of the underlying bond. Using data from German government bond and futures markets, it is found that cheapest-to-deliver bonds trade on a premium that decreases towards zero as the bonds become ineligible for delivery. Based on this observation, an equilibrium model is developed that describes the theoretical underpinnings of the premium. Consistent with the model, the premium is found to be positively related to bond’s relative cheapness in delivery, value as collateral, the amount of physical deliveries, and time to delivery.

When Bernanke Talks, the Markets Listen: The Case of the First FOMC Press Conference on Monetary Policy

This note examines minute-by-minute reactions of the US interest rate and stock markets to the first Federal Open Market Committee press conference on monetary policy. Volatility and volume effects during the press conference are shown to be less pronounced but more lasting than those observed immediately after the release of the monetary policy statement. Market responses during the press conference are found to be deterministic and originate from questions and answers pertaining to future monetary policy and the state of the economy. These findings are in line with the clarification objective of the Feds new communication framework.A visual presentation of the results is available on the authors Web site.