Corporate Governance in European Banks: Essays on Bank Ownership

Banks are important as they have a central role in the financial system, where funds are channelled either through financial intermediaries, such as banks, or through financial markets, hence promoting growth in any economy. Recently, we have been reminded of the drawbacks of the central role of banks. The current financial crisis, which started out as a sub-prime mortgage crisis in the US, has become a global financial crisis with substantial impact on the real economy in many countries. Some of the roots to the current financial crisis can be sought in the changing role of banks and in bank corporate governance. Moreover, the substantial revitalising measures taken have been justified by the central role of banks. Not only are banks important, they are also very special. The fact that banks are regulated in conjunction with greater opacity, make bank corporate governance different from corporate governance in non-bank companies. Surprisingly little is, however, known about bank corporate governance, in particularly, in a European setting. Hence, the objective of this doctoral thesis is to provide new insights in this research area by examining banks from 37 different European countries. Each of the three essays included in the doctoral thesis examines a particular aspect of bank corporate governance. In the first essay the interaction between the regulatory environment a bank operates in and its ownership structure is explored. Indicators of the severity of the moral hazard problem induced by the deposit insurance system and implicit too-big-to-fail government guarantee, particular features of deposit insurance systems as well as legal protection of shareholders, legal origin of a country and level of integration to the European community are used in the analysis. The empirical findings confirm previous findings on the link between legal protection of shareholders and ownership structure. Moreover, they show that differences in deposit insurance system features can explain some of the differences in ownership structure across European banks. In the second essay the impact of management and board ownership on the profitability of banks with different strategy is examined. The empirical findings suggest that the efficiency of these two particular corporate governance mechanisms varies with the characteristics of the agency problem faced by the bank. More specifically, management ownership is important in opaque non-traditional banks, whereas board ownership is important in traditional banks, where deposit insurance reduces the monitoring incentives of outsiders. The higher profitability does, however, go together with higher risk. In the third essay the profitability and risk of commercial, savings and cooperative banks are compared. The empirical findings suggest that distinct operational and ownership characteristics rather than only the mere fact that a bank is a commercial, savings or cooperative bank explain the profitability and risk differences. The main insight from the three essays is that a number of different aspects should be addressed simultaneously in order to give the complexity of bank corporate governance justice.

Basic Income Grant in Namibia, a Viewpoint on the Proposal and on the Work of the BIG Coalition

This thesis studies the basic income grant proposal in Namibia. The proposal suggests a monthly grant of N$100 (approximately 10€) to all those Namibian citizens who do not receive the state pension. This thesis concentrates on the Basic Income Grant (BIG) Coalition and on its work. The formation and transformation of the coalition during the time period between 2003 and 2009 is analyzed with the help of data collected during two field work periods in 2008 and 2009. The data includes interviews, newspaper articles, observations and other background material. The analysis of this material is mainly conducted from organizational viewpoint. The final part of the thesis applies the results to the theory of Mosse, whose propositions about policy and practice will be discussed in relation to the basic income grant pilot project. The thesis argues that social legitimacy has been a vital resource for the work of the BIG Coalition and it has sought for it in various ways. The concept of social legitimacy originates from the resource dependence perspective of Pfeffer and Salancik, who propose that organizations are dependent on their environments, and on the resources provided by the surrounding environment. This thesis studies the concept of social legitimacy in the context of resource dependence theory. Social legitimacy is analyzed in the relations between the coalition and its environment, in the formation of the coalition, in the responses towards criticism, and finally in relation to the propositions concerning policy and practice. The work of the coalition in the pilot project will be analyzed through the propositions of Mosse concerning policy and practice. The results will describe and analyze key events in the formation of the BIG Coalition from the South African proposal until the end of the basic income pilot project. This BIG pilot project conducted in 2008-2009 is one of the most well-known activities of the coalition. The clashes between the coalition and its environment will be analyzed through four case studies. It will be shown that the project has been conducted in order to gain more legitimacy to the basic income grant proposal. The conclusion questions the legitimacy of the BIG Coalition as a research and development organization, and requests for more transparent research on the basic income proposal in Namibia.

"Four Ways of Writing the City" : St. Petersburg-Leningrad as a Metaphor in the Poetry of Joseph Brodsky

The present study discusses the theme of St. Petersburg-Leningrad in Joseph Brodsky's verse works. The chosen approach to the evolving im-age of the city in Brodsky's poetry is through four metaphors: St. Petersburg as "the common place" of the Petersburg Text, St. Petersburg as "Paradise and/or Hell", St. Petersburg as "a Utopian City" and St. Petersburg as "a Void". This examination of the city-image focusses on the aspects of space and time as basic categories underlying the poet's poetic world view. The method used is close reading, with an emphasis on semantical interpretation. The material consists of eighteen poems dating from 1958 to 1994. Apart from investigating the spatio-temporal features, the study focusses on exposing and analysing the allusions in the scrutinised works to other texts from Russian and Western belles lettres. Terminology (introduced by Bakhtin and Yury Lotman, among others) concerning the poetics of space in literature is employed in the present study. Conceptions originating from the paradigm of possible worlds are also used in elucidating the position of fictional and actual chronotopes and heroes in Brodsky's poetry. Brodsky's image of his native city is imbued with intertextual linkings. Through reminiscences of the "Divine Comedy" and Russian modernists, the city is paralleled with Dante's "lost and accursed" Florence, as well as with the lost St. Petersburg of Mandel'shtam and Akhmatova. His city-image is related to the Petersburg myth in Russian literature through their common themes of death and separation as well as through the merging of actual realia with the fictional worlds of the Petersburg Text. In his later poems, when his view of the city is that of an exiled poet, the city begins to lose its actual world referents, turning into a mental realm which is no longer connected to any particular geographical location or historical time. It is placed outside time. The native city as the homeland in its entirety is replaced by another existence created in language.

Idealähtöistä koulualgebraa : IDEAA-opetusmallin kehittäminen algebran opetukseen peruskoulun 7. luokalla

This research is based on the problems in secondary school algebra I have noticed in my own work as a teacher of mathematics. Algebra does not touch the pupil, it remains knowledge that is not used or tested. Furthermore the performance level in algebra is quite low. This study presents a model for 7th grade algebra instruction in order to make algebra more natural and useful to students. I refer to the instruction model as the Idea-based Algebra (IDEAA). The basic ideas of this IDEAA model are 1) to combine children's own informal mathematics with scientific mathematics ("math math") and 2) to structure algebra content as a "map of big ideas", not as a traditional sequence of powers, polynomials, equations, and word problems. This research project is a kind of design process or design research. As such, this project has three, intertwined goals: research, design and pedagogical practice. I also assume three roles. As a researcher, I want to learn about learning and school algebra, its problems and possibilities. As a designer, I use research in the intervention to develop a shared artefact, the instruction model. In addition, I want to improve the practice through intervention and research. A design research like this is quite challenging. Its goals and means are intertwined and change in the research process. Theory emerges from the inquiry; it is not given a priori. The aim to improve instruction is normative, as one should take into account what "good" means in school algebra. An important part of my study is to work out these paradigmatic questions. The result of the study is threefold. The main result is the instruction model designed in the study. The second result is the theory that is developed of the teaching, learning and algebra. The third result is knowledge of the design process. The instruction model (IDEAA) is connected to four main features of good algebra education: 1) the situationality of learning, 2) learning as knowledge building, in which natural language and intuitive thinking work as "intermediaries", 3) the emergence and diversity of algebra, and 4) the development of high performance skills at any stage of instruction.

Christian-Muslim Dialogue : Perspectives of Four Lebanese Thinkers

This study describes and analyses two Lebanese Muslims and two Lebanese Christians ideas about Christian-Muslim dialogue, its nature, aims, and methods and its different dimensions, which include doctrinal, ethical, and social dimensions. On the basis of the analysis, the four thinkers contributions for promoting constructive dialogue are evaluated. The persons studied are two religious authorities, the Shiite Great Ayatollah Muhammad Husayn Fadlallah (b. 1935) and the Eastern Orthodox Metropolitan of Mount Lebanon, Georges Khodr (b. 1923), and two academic scholars, Doctor Mahmoud Ayoub (b. 1935) and Doctor, Father Mouchir Aoun (b. 1964), from the Shiite and Greek Catholic communities, respectively. The method of the study is systematic analysis. The sources consist of the four thinkers writings on Christian-Muslim relations, the most of which have been published in Lebanon in the 1990s and 2000s in the Arabic language. In their general guidelines for Christian-Muslim dialogue, the four authors do not offer any novel or unusual insights. However, their dialogue visions are multi-faceted, motivating interreligious encounter both on religious and practical grounds and clarifying the theological grounds and socio-political conditions of this endeavour. The major challenge appears to be the tension between loyalty to one s own convictions and taking into account the particular self-understanding of the other. While this tension may be ultimately unsolvable, it is obvious that linking dialogue tightly to missionary motivations or certain theological agenda imposed on the others is not conducive for better mutual understanding. As for how diverse theologies of religions affect interreligious dialogue, narrow exclusivism hardly promotes mutual knowledge and appreciation, but also inclusive and pluralistic positions have their particular dilemmas. In the end, dialogue is possible from diverse positions on theology of religions. All the authors discuss the theological themes of divine revelation, concept of God, and human condition and ultimate destiny. The two religions particular views on these issues cannot be reconciled, but the authors offer diverse means to facilitate mutual understanding on them, such as increasing mutual knowledge, questioning certain traditional condemnations, showing theological parallels between the two religions, and transcending doctrinal disagreements by stressing common religious experience or ethical concerns. Among the theological themes, especially the concept of God seems to offer possibilities for better understanding than has traditionally been the case. Significantly, all the four authors maintain that Christians and Muslims share the faith in the one God, irrespective of their disagreements about the nature of his oneness. Basic ethical principles are not discussed as widely by the four authors as might be expected, which may reflect the shared cultural background and common ethical values of the Lebanese Muslims and Christians. On this level, Christians alienation from the Islamic law appears as the most significant challenge to mutual understanding, while neighbourly love and the golden rule of ethics offer a fruitful basis for further dialogue. As for the issue of political power-sharing in Lebanon, it is clear that the proposal of an Islamic state is problematic in a country with a sizable Christian minority and a heterogeneous Muslim population. Some form of democracy seems more viable for a multireligious country, but the question remains how to retain religion as a vital force in society, which is felt to be important by all the four Lebanese authors.

Ett' varttuisi Suomenmaa : Suomalaisten kasvattaminen kulutusyhteiskuntaan kotimaisissa lyhytelokuvissa 1920-1969

The birth of the Modern Consumer Society in Finnish short films 1920-1969 The main subject of this research is Finnish short films in 1920-1969. These short films were produced by film studios for private enterprises, banks, advisory organizations, communities and the state. The evolution of short films on consumer affairs was greatly influenced by a special tax reduction system that was introduced in 1933 and lasted until 1964. The tax reduction system increased the production volumes of educational short films significantly. This study covers 342 Finnish short films, more than any other study in the field before this. The aim of this research is to examine how short films introduced Finns to modern consumer society. The cinemagoers were an excellent target group for different advisory groups as well as advertisers. Short films were used by organizations and private enterprises from very early on. In the 1920's Finns were still living in rural areas and agriculture was the dominant industry. Consumer society was still in its infancy, and the prevalent attitude to industrially produced goods was that of suspicion. From the cultural and ideological point of view the evolution of trust was one of the first steps towards the birth of the consumer society. Short films were an excellent means for helping to transform public attitudes. During the war period short films were an important means of propaganda. Short films were produced in abundance and shown for big audiences. They guided people how to survive shortages caused by the war. Even though the idea of rationalization was presented in short films somewhat in the 1920's and 1930's it became a national virtue during the war period. The idea of rationalization widened from the industry to households expecially in the late 1940's and the 1950's. New household apparati and the way in which daily chores were taken care of were presented not as luxury consumption but as a way of rationalization and saving money and effort. Banks and the advisory organizations guided the public to save their money for a specific target. Short films were use to help the public to acceps industrial goods and the notions of planning and saving. The ideological change from an agrarian society to consumer society was based on old acricultural ideas and self-sufficiency was evolved into rational and economizing consumerism. This made Finnish consumer society to value durable consumer goods and own homes. The public was also encouraged to consider their own decisions in the national context - especially after the second world war Finland laced capital, and personal savings were strongly presented as a way to help the whole nation. Modern hedonistic values were not dominant in Finland in the1950's and 1960's. Initial traces of modern hedonism can be seen in the films, but they were only marginal paths in the bigger.

The visual preferences for forest regeneration and field afforestation - four case studies in Finland

The overall aim of this dissertation was to study the public's preferences for forest regeneration fellings and field afforestations, as well as to find out the relations of these preferences to landscape management instructions, to ecological healthiness, and to the contemporary theories for predicting landscape preferences. This dissertation includes four case studies in Finland, each based on the visualization of management options and surveys. Guidelines for improving the visual quality of forest regeneration and field afforestation are given based on the case studies. The results show that forest regeneration can be connected to positive images and memories when the regeneration area is small and some time has passed since the felling. Preferences may not depend only on the management alternative itself but also on the viewing distance, viewing point, and the scene in which the management options are implemented. The current Finnish forest landscape management guidelines as well as the ecological healthiness of the studied options are to a large extent compatible with the public's preferences. However, there are some discrepancies. For example, the landscape management instructions as well as ecological hypotheses suggest that the retention trees need to be left in groups, whereas people usually prefer individually located retention trees to those trees in groups. Information and psycho-evolutionary theories provide some possible explanations for people's preferences for forest regeneration and field afforestation, but the results cannot be consistently explained by these theories. The preferences of the different stakeholder groups were very similar. However, the preference ratings of the groups that make their living from forest - forest owners and forest professionals - slightly differed from those of the others. These results provide support for the assumptions that preferences are largely consistent at least within one nation, but that knowledge and a reference group may also influence preferences.

Substance flow analysis in Finland : Four case studies on N and P flows

Nitrogen (N) and phosphorus (P) are essential elements for all living organisms. However, in excess, they contribute to several environmental problems such as aquatic and terrestrial eutrophication. Globally, human action has multiplied the volume of N and P cycling since the onset of industrialization. The multiplication is a result of intensified agriculture, increased energy consumption and population growth. Industrial ecology (IE) is a discipline, in which human interaction with the ecosystems is investigated using a systems analytical approach. The main idea behind IE is that industrial systems resemble ecosystems, and, like them, industrial systems can then be described using material, energy and information flows and stocks. Industrial systems are dependent on the resources provided by the biosphere, and these two cannot be separated from each other. When studying substance flows, the aims of the research from the viewpoint of IE can be, for instance, to elucidate the ways how the cycles of a certain substance could be more closed and how the flows of a certain substance could be decreased per unit of production (= dematerialization). In Finland, N and P are studied widely in different ecosystems and environmental emissions. A holistic picture comparing different societal systems is, however, lacking. In this thesis, flows of N and P were examined in Finland using substance flow analysis (SFA) in the following four subsystems: I) forest industry and use of wood fuels, II) food production and consumption, III) energy, and IV) municipal waste. A detailed analysis at the end of the 1990s was performed. Furthermore, historical development of the N and P flows was investigated in the energy system (III) and the municipal waste system (IV). The main research sources were official statistics, literature, monitoring data, and expert knowledge. The aim was to identify and quantify the main flows of N and P in Finland in the four subsystems studied. Furthermore, the aim was to elucidate whether the nutrient systems are cyclic or linear, and to identify how these systems could be more efficient in the use and cycling of N and P. A final aim was to discuss how this type of an analysis can be used to support decision-making on environmental problems and solutions. Of the four subsystems, the food production and consumption system and the energy system created the largest N flows in Finland. For the creation of P flows, the food production and consumption system (Paper II) was clearly the largest, followed by the forest industry and use of wood fuels and the energy system. The contribution of Finland to N and P flows on a global scale is low, but when compared on a per capita basis, we are one of the largest producers of these flows, with relatively high energy and meat consumption being the main reasons. Analysis revealed the openness of all four systems. The openness is due to the high degree of internationality of the Finnish markets, the large-scale use of synthetic fertilizers and energy resources and the low recycling rate of many waste fractions. Reduction in the use of fuels and synthetic fertilizers, reorganization of the structure of energy production, reduced human intake of nutrients and technological development are crucial in diminishing the N and P flows. To enhance nutrient recycling and replace inorganic fertilizers, recycling of such wastes as wood ash and sludge could be promoted. SFA is not usually sufficiently detailed to allow specific recommendations for decision-making to be made, but it does yield useful information about the relative magnitude of the flows and may reveal unexpected losses. Sustainable development is a widely accepted target for all human action. SFA is one method that can help to analyse how effective different efforts are in leading to a more sustainable society. SFA's strength is that it allows a holistic picture of different natural and societal systems to be drawn. Furthermore, when the environmental impact of a certain flow is known, the method can be used to prioritize environmental policy efforts.

Suomalaisten yritysten vapaaehtoinen sosiaalinen vastuu : Sidosryhmäviitekehys yritysten ja ulkoisten sidosryhmien edustajien näkemyksissä

Corporate social responsibility (CSR) is no longer only an issue of companies but a concern shared by e.g. the European Union, the International Labour Organization, labour market organizations and many others. This thesis examines what kind of voluntary corporate social responsibility exceeding the minimum level set in the legislation can be expected from the Finnish companies. The research was based on the interviews of some representatives of Finnish companies and of external stakeholders. Earlier Finnish empirical research on the topic has solely analysed the stakeholder thinking and the ethics of the views of the company representatives. The views of the external stakeholders brought ht up a much more versatile perspective on the voluntary corporate social responsibility of the companies. That is the particular surplus value of this research. This research, founded on stakeholder thinking, evaluated what kind of starting points and ideas on responsibility the views of the representatives of the companies and the external stakeholders were based on the voluntary social responsibility. Furthermore, the research also investigated how their views about the corporate social responsibility indicated the benefits achieved on the cooperative actions with different partners - for example companies, communities and public administration. To fulfil the aims of the research, the following questions were used as part tasks in mapping the basic foundations and starting points expressed by the representatives of the companies and the external stakeholders: 1) How do laws, directions concerning social responsibility of companies, and opinions and demands of the stakeholders guide and affect the voluntary corporate social responsibility? 2) How can companies assume voluntary corporate social responsibility in addition to their core functions and without compromising their profitability, and how does, for example, the tightening competition affect the possibility of taking responsibility? 3) What kind of ethic and moral foundations is the corporate social responsibility based on? 4) What kind of roles can companies have in securing and promoting the well-being of citizens in Finland and on the global market as one subsystem of the society? The views on the voluntary corporate social responsibility of nine big companies, one medium-sized company and one small company, all considered responsible pioneer companies, were studied with surveys and half-structured theme interviews between 2003 and 2004. The research proceeded as a theory-bounded study. The empirical material and the previous stakeholder thinking theories (Takala 2000b, Vehkaperä 2003) guided the thesis and worked abductively in interplay with each other during the research process. (Tuomi, Sarajärvi 2002.) The aims and the methods of the research and the themes of the interviews were defined on the basis of that information. The aims of the research were surveyed qualitatively with the strategy of a multiple case study. Representatives from nine big peer companies and nine external stakeholders were interviewed with half-structured themes between 2004 and 2005. The external stakeholders and the peer companies were chosen with the "thinking" of theoretical replication by Yin, according to which the views of the representatives of those groups would differ from those of the pioneer companies and also from those of each others. The multiple case study supports analysing the internal cohesion of the views of different groups and comparing their differences, and it supports theoretical evaluation and theory-building as well. (Yin 2003.) Another reason for choosing the external stakeholders was their known cooperation with companies. The spoken argumentations of the company and stakeholder representatives on the voluntary social responsibility of the companies were analysed and interpreted in the first place with an analytic discourse analysis, and the argumentations were classified allusively into the stakeholder discourses in three of the part tasks. In the discourse analysis, argumentations of the speech is seen to be intervowen with cultural meanings. (Jokinen, Juhila 1999.) The views of the representatives of the pioneer companies and the external stakeholders were more stakeholder-orientated than the views of the representatives of the peer companies. For the most part, the voluntary corporate social responsibility was seemingly targeted on single, small cooperation projects of the companies and external stakeholders. The pioneer companies had more of those projects, and they were participating in the projects more actively than the peer companies were. The significant result in this research was the notion that, in particular, the representatives of the pioneer companies and external stakeholders did not consider employing and paying taxes to be enough of reciprocal corporate social responsibility. However, they still wanted to preserve the Finnish welfare model, and the interviewees did not wish major changes in the present legislation or the social agreements. According to this study, the voluntary corporate social responsibility is motivated by ethical utilitarianism which varied from very narrow to very wide in relation to benefits achieved by companies and stakeholders (Velasquez 2002, Lagerspetz 2004). Compared with the peer companies, more of the representatives of the pioneer companies and of external stakeholders estimated that companies in their decision-making and operations considered not only the advantages and the benefits of the owners and other internal stakeholders, but also those of the external stakeholders and of the whole society. However, all interviewees expressed more or less strongly that the economic responsibility guides the voluntary responsible actions of the companies in the first place. This kind of utilitarian foundation of behaviour appeared from this research was named as business-orientated company moral. This thesis also presents a new voluntary corporate social responsibility model with four variables on the stakeholder discourses and their distinctive characteristics. The utilitarian motivation of a company s behaviour on their operations has been criticized on the grounds that the end justifies the means. It has also been stated that it is impossible to evaluate the benefits of the utilitarian type of actions to the individuals and the society. It is expected however that companies for their part promote the material and immaterial well-being of the individuals on the global, national and local markets. The expectations are so strong that if companies do not take into account the ethical and moral values, they can possibly suffer significant financial losses. All stakeholders, especially consumers, can with their own choices promote the responsible behaviour of the companies. Key words: voluntary corporate social responsibility, external stakeholders, corporate citizenship, ethics and morality, utilitarianism, stakeholder discourses, welfare society, globalisation

"Elämää yhdellä siivellä lentäen" : Suomessa asuvien Chilen pakolaisten ja heidän jälkeläistensä historiatietoisuus

The starting point of this study was to find out how the historical consciousness manifest in conceptions and experiences of Chilean refugees and their descendants. The previous research of historical consciousness has shown that powerful experiences such as the revolution and being a refugee may have an effect on historical consciousness. The purpose of this study is to solve how those experiences in the past have influenced Chilean refugees and their descendant s interpretations of the present and expectations for the future. The research material was collected by interviewing four Chilean refugees that escaped to Finland in years 1973 1976 and four young adults who represent the second generation. All second generation interviewees were born in Finland and their other parent or both parents were Chilean refugees. The two groups were not in a family relation to each other. The empirical part of the research was made by qualitative methods. The research material was collected by the method of focused interview and it was analysed by the qualitative data analysis software Atlas.ti 6.0. Content analysis was the main research tool. The previous theory of historical consciousness and the study questions was used to create the seven categories that manifest historical consciousness. The seven categories were biographical memory, collective memory, experiences of living between two cultures, idea of man, the essence of history and the reason for living, value conceptions and expectations of the future. Content analysis was based on those categories. Subcategories were based on the research material and were created during the analysis. The results of this study were made up of categories. The study revealed that experiences of revolution and of being a refugee has a significant role in the historical consciousness of the Chilean refugees. It became evident in their biographical memory being separated in three parts, in their values and in the belief of possibility of an individual to govern her own life. The second generation was also exposed to their parent s experiences in the past. The collective trauma in their parent s past has been part of their life indirectly and has affected the way they think of themselves, their concepts and their place in the present world. The active and regular retrospection in Finland by Chilean adults and special Gabriela Mistral club activities has played a big part in the construction of their historical consciousness.

Use of Customer Information: An Ethnography in Service Development

Service researchers have repeatedly claimed that firms should acquire customer information in order to develop services that fit customer needs. Despite this, studies that would concentrate on the actual use of customer information in service development are lacking. The present study fulfils this research gap by investigating information use during a service development process. It demonstrates that use is not a straightforward task that automatically follows the acquisition of customer information. In fact, out of the six identified types of use, four represent non usage of customer information. Hence, the study demonstrates that the acquisition of customer information does not guarantee that the information will actually be used in development. The current study used an ethnographic approach. Consequently, the study was conducted in the field in real time over an extensive period of 13 months. Participant observation allowed direct access to the investigated phenomenon, i.e. the different types of use by the observed development project members were captured while they emerged. In addition, interviews, informal discussions and internal documents were used to gather data. A development process of a bank’s website constituted the empirical context of the investigation. This ethnography brings novel insights to both academia and practice. It critically questions the traditional focus on the firm’s acquisition of customer information and suggests that this focus ought to be expanded to the actual use of customer information. What is the point in acquiring costly customer information if it is not used in the development? Based on the findings of this study, a holistic view on customer information, “information in use” is generated. This view extends the traditional view of customer information in three ways: the source, timing and form of data collection. First, the study showed that the customer information can come explicitly from the customer, from speculation among the developers or it can already exist implicitly. Prior research has mainly focused on the customer as the information provider and the explicit source to turn to for information. Second, the study identified that the used and non-used customer information was acquired both previously, and currently within the time frame of the focal development process, as well as potentially in the future. Prior research has primarily focused on the currently acquired customer information, i.e. within the timeframe of the development process. Third, the used and non-used customer information was both formally and informally acquired. In prior research a large number of sophisticated formal methods have been suggested for the acquisition of customer information to be used in development. By focusing on “information in use”, new knowledge on types of customer information that are actually used was generated. For example, the findings show that the formal customer information acquired during the development process is used less than customer information already existent within the firm. With this knowledge at hand, better methods to capture this more usable customer information can be developed. Moreover, the thesis suggests that by focusing stronger on use of customer information, service development processes can be restructured in order to facilitate the information that is actually used.