Mid Sweden University

This study makes an inquiry into algorithmic personalization through the lens of technology as a phenomenon itself. It applies Heidegger’s phenomenological method for the analysis of modern technologies explicated in his seminal essay, The Question Concerning Technology, as well as his overall phenomenological investigation into the question of Being. The study perceives algorithmic personalization not as a novelty but as a manifestation of continuity. The pervasiveness of algorithmic personalization is a result of a preceding ontological disposition that represents human beings as ‘standing-reserve’ (Bestand) or resources, i.e., digital data. The study concludes that extensive datafication of all beings through data-hungry algorithms ultimately culminates in the datafication of the Being itself. That is, data emerges as the primary clearing (Lichtung) and the principal source of intelligibility for revealing all significant and meaningful phenomena.

Purpose

This study examines the impact of digital banking adoption and the COVID-19 crisis on the profitability of Swedish banks, testing whether digital banking mitigated the pandemic’s adverse effects.

Design/methodology/approach

Using a panel dataset of Swedish banks, the study employs ordinary least squares, fixed effects (FE) and feasible generalized least squares (FGLS) models to analyze the effects of digital banking and the COVID-19 crisis on banks’ profitability. It further evaluates digital banking’s moderating role during the COVID-19 crisis.

Findings

Digital banking exhibits a modest positive association with profitability, though its economic magnitude is marginal. The COVID-19 crisis has had no significant direct impact, and digital banking does not mitigate pandemic-related profitability shocks. Moreover, past profitability and capital adequacy emerge as robust predictors of profitability.

Practical implications

These insights inform strategies for balancing technological innovation with financial stability in turbulent economies. Banks operating in advanced digital economies, like Sweden, may prioritize factors such as capital adequacy and persistent profitability during crisis times, while digitalization should be treated as part of a broader strategy rather than a single profit generator.

Originality/value

This study contributes to the literature by examining the interplay between digital banking and the COVID-19 crisis in the unique context of Sweden, offering new insights into the role of digitalization in crisis resilience and challenging prior findings on the protective effect of digital banking during economic downturns. By triangulating results across multiple estimators, the study advances methodological rigor in profitability studies, highlighting the resilience of traditional bank fundamentals over digitalization during systemic shocks.

PurposeThis paper aims to understand the impact of the adoption of Internet banking (INB) on banks' profitability. It further investigates this relationship among different age groups of customers.Design/methodology/approachA large panel data set of 19 commercial banks in Sweden over the period of 2007-2022 is used, and both static models (ordinary least squares (OLS), fixed effect (FE)) and a dynamic model (generalized method of moments (GMM)) are applied to deal with potential concerns of unobserved heterogeneity and endogeneity.FindingsThe analysis of the data reveals that the adoption of INB is positively related to banks' profitability, but the magnitude of this relationship depends on the age of the customers. In particular, the effect is most pronounced for middle-aged and older customers (45-74 years old), which is inconsistent with the common assumption that young, digitally savvy customers are the main drivers of digital value in banking.Practical implicationsThis research contributes to understanding the role of age in the digitalization-profitability link, which is relevant for bank managers and policymakers. These results imply that targeting digital services at middle-aged and older customers may be more likely to benefit banks' profitability. Additionally, policymakers can develop initiatives to facilitate digital inclusion among older age groups.Originality/valueThe paper extends previous research on the link between INB adoption and banks' profitability in one of the most digitalized societies in the world. It particularly explores the less investigated aspect of generational differences in INB adoption and its impact on bank profitability. To the best of our knowledge, this is also the first study within the Swedish context to investigate generational differences in INB adoption and its impact on banks' profitability.

PurposeThis study empirically examines the nexus between central bank interest rates and profitability of commercial banks within the specific context of Sweden.Design/methodology/approachBank-level longitudinal panel data from 20 Swedish commercial banks over the period from 2007 to 2022 are analyzed using univariate and multivariate statistical techniques, including ordinary least squares (OLS), fixed-effects models and feasible generalized least-squares (FGLS) regression, to provide robust insights into the factors influencing bank profitability.FindingsContrary to common expectations, the result of this study shows no statistically significant relationship between central bank interest rate and banks profitability in Sweden. The findings of the three models indicate that the organization-level determinants such as persistent profitability, capital adequacy, size and revenue growth, are more important than the central bank interest in explaining profitability among Swedish banks.Originality/valueThe study expands our knowledge regarding the complexities of relationship between the central banks interest rate on banks' profitability particularly in the less investigated context of Sweden. The study is also notable as it finds no significant relationship between central banks interest rate and banks profitability, which may be attributed to the large database used as well as the inclusion of many organizational level variables.

PurposeThis study aims to investigate the determinants of bank profitability in Sweden, focusing on the impact of bank-specific, macroeconomic and industry-specific factors within a regulatory and compliance framework.Design/methodology/approachThe study uses a panel data set of Swedish banks and three econometric models, ordinary least squares (OLS), fixed effects (FE) and panel-corrected standard errors (PCSE), to address unobserved heterogeneity, heteroskedasticity, contemporaneous correlation and serial autocorrelation.FindingsThe findings reveal the critical role of bank-specific factors in shaping banks' profitability, while macroeconomic and industry variables have a negligible impact. Capital adequacy emerges as a robust determinant, underscoring its regulatory significance. Lagged profitability exerts a persistent influence across models, emphasizing the role of historical performance. Banks' revenue growth also shows consistent positive and significant effects across all models. Macroeconomic variables (GDP, inflation) show negligible impacts, while monetary policy indicators (interest rates, money supply) display instability.Originality/valueThe study's originality lies in its methodological rigor and focus on Sweden, a developed yet understudied market. The study offers novel insights into how regulatory frameworks, bank strategies and macroeconomic conditions interact to shape profitability. By contrasting OLS, FE and PCSE results, the study advances methodological discourse on panel data analysis in banking, providing a template for future research in regulated financial systems. These contributions bridge theoretical, empirical and policy gaps, enriching global understanding of profitability drivers in stable, high-compliance economies.

As a contribution to research and theorizing on the economic role of new firm formation, we undertake the first ever investigation of regional employment effects of the entry of new social firms. Our study is guided by an established model of the employment effects of new firm entry over time and provides a direct comparison to the employment effects of commercial entrants. Our results show that the net employment effect of new social firms follows a wave pattern over the study’s eight-year horizon, apparently produced by the same combination of direct and indirect effects previously theorized for new commercial entrants. The results also indicate that net employment effect per social firm entrant is larger than for commercial firms. The study provides a first empirical assessment of employment creation effects of new social firms and contributes to a more nuanced theoretical understanding of employment effects across types of entrants. By specifying the economic contribution of social firms our study can open up a new track in social entrepreneurship research and provide important input to employment policy.