Modelling the simultaneous effects of intellectual capital and knowledge management on the organisational performance of Finnish companies

The aim of this study was to contribute to the current knowledge-based theory by focusing on a research gap that exists in the empirically proven determination of the simultaneous but differentiable effects of intellectual capital (IC) assets and knowledge management (KM) practices on organisational performance (OP). The analysis was built on the past research and theoreticised interactions between the latent constructs specified using the survey-based items that were measured from a sample of Finnish companies for IC and KM and the dependent construct for OP determined using information available from financial databases. Two widely used and commonly recommended measures in the literature on management science, i.e. the return on total assets (ROA) and the return on equity (ROE), were calculated for OP. Thus the investigation of the relationship between IC and KM impacting OP in relation to the hypotheses founded was possible to conduct using objectively derived performance indicators. Using financial OP measures also strengthened the dynamic features of data needed in analysing simultaneous and causal dependences between the modelled constructs specified using structural path models. The estimates were obtained for the parameters of structural path models using a partial least squares-based regression estimator. Results showed that the path dependencies between IC and OP or KM and OP were always insignificant when analysed separate to any other interactions or indirect effects caused by simultaneous modelling and regardless of the OP measure used that was either ROA or ROE. The dependency between the constructs for KM and IC appeared to be very strong and was always significant when modelled simultaneously with other possible interactions between the constructs and using either ROA or ROE to define OP. This study, however, did not find statistically unambiguous evidence for proving the hypothesised causal mediation effects suggesting, for instance, that the effects of KM practices on OP are mediated by the IC assets. Due to the fact that some indication about the fluctuations of causal effects was assessed, it was concluded that further studies are needed for verifying the fundamental and likely hidden causal effects between the constructs of interest. Therefore, it was also recommended that complementary modelling and data processing measures be conducted for elucidating whether the mediation effects occur between IC, KM and OP, the verification of which requires further investigations of measured items and can be build on the findings of this study.

The advancement of innovations in communications industry: A case study of Russian Post company

The purpose of this study is to provide a project aimed on solving the problem of advancement of innovations for Russian Post company that is the main actor on the Russian postal service market. This project is constructed through gathering and scrutinizing two essential informational packages, with first being precise information about Russian Post business processes and structure in order to find out the weak spots and hindering forces, and the second being benchmarking analysis of product and service portfolio of company's peers in Europe and Australia in order to evaluate existing experience and gather additional sources that can facilitate the advancement of innovations. These informational packages are studied and sent through the matrix analysis that must highlight customer and technical requirements which emphasize the innovativeness and problem-solving purpose of the project and lay stress on the assuring characteristics that must to be met in order to advance the project. The project itself is aimed on providing Russian Post company with several solutions, both managerial and engineering, which are aimed on easing problem-solving processes and lay the foundation for continuous innovation and value increase for Russian Post company, its partners and its customers. Project's payback period is been calculated as well.

A year after Crimea: continuity and change of Finnish-Russian relations reflected in the views of the government officials of Finland and Russia

This thesis discusses the dynamism of bilateral relations between Finland and Russia and their interconnection with wider EU-Russia relations in the sight of the recent conflict in Ukraine. In particular, incorporation of Crimea in the territory of Russia in March 2014 is believed to have triggered a series of disputes between the European Union and Russia and thus, have impacted the course of the bilateral Finnish-Russian relations. The study leans on a premise that there are some historical traditions and regularities in the Finnish foreign policy course towards Russia which make the bilateral Finnish-Russian relations special. These traditions are distinguished and described in the book “Russia Forever? Towards Pragmatism in Finnish/Russian relations” (2008) edited by H. Rytövuori-Apunen. Assuming that the featured traditions take place in modern relations between Finland and Russia, the aim of the thesis is to find out how these traditions reappear during the year shaped by the events in Ukraine. In order to do that, author follows the timeline of happenings around the Ukraine crisis starting with Crimea’s referendum on independence, and exams the way these events were commented on and evaluated by the key government officials and political institutions of Finland and Russia. The main focus is given to the Finnish official discourse on Russia during the study period. The data collection, consisting of mostly primary sources (ministerial press releases and comments, statements, speeches and blog posts of individual policy makers) is processed using the thematic analysis supported by the content analysis. The study reveals that the consequences of the Ukraine crisis have brought, among others, complications to the economic cooperation between Finland and Russia, and have stimulated the increased attention of the Finnish decision makers to the country’s security questions. As a result, the character and importance of some historical regularities of the Finnish foreign policies on Russia, like the Continental Dilemma, have taken new shape.

Failure modes of passive decay heat removing safety systems of modern nuclear power plants

The purpose of this master’s thesis is to gain an understanding of passive safety systems’ role in modern nuclear reactors projects and to research the failure modes of passive decay heat removal safety systems which use phenomenon of natural circulation. Another purpose is to identify the main physical principles and phenomena which are used to establish passive safety tools in nuclear power plants. The work describes passive decay heat removal systems used in AES-2006 project and focuses on the behavior of SPOT PG system. The descriptions of the main large-scale research facilities of the passive safety systems of the AES-2006 power plant are also included. The work contains the calculations of the SPOT PG system, which was modeled with thermal-hydraulic system code TRACE. The dimensions of the calculation model are set according to the dimensions of the real SPOT PG system. In these calculations three parameters are investigated as a function of decay heat power: the pressure of the system, the natural circulation mass flow rate around the closed loop, and the level of liquid in the downcomer. The purpose of the calculations is to test the ability of the SPOT PG system to remove the decay heat from the primary side of the nuclear reactor in case of failure of one, two, or three loops out of four. The calculations show that three loops of the SPOT PG system have adequate capacity to provide the necessary level of safety. In conclusion, the work supports the view that passive systems could be widely spread in modern nuclear projects.

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.

Assessing the Role of Vocabulary Breadth and Depth in Reading Comprehension: A Quantitative Study of Finnish EFL Learners

In this MA thesis, Finnish learners of English were studied in order to examine the relationship between second language vocabulary size, vocabulary depth, and reading comprehension. In addition, given the well-established connection between vocabulary size and reading comprehension, the second aim of the study was to see whether assessing vocabulary depth could add another dimension in predicting and explaining reading comprehension proficiency. Two groups were studied: the first group consisted of 39 Finnish upper secondary school students (the TOKA group) whereas the second group consisted of 19 university students of English at the University of Turku (the YLI group). Thus, comparisons were made between the results of a less advanced and a very advanced group of English learners, which was the third aim of the study. The participants in both groups filled in a background information form and took three tests: a multiple-choice reading comprehension test, a multiple-choice vocabulary size test, and a test designed to elicit information on learners’ depth of vocabulary knowledge of certain English words. The data were analysed using statistical methods. The results of the study show that the scores on the three tests were positively correlated in both study groups as well as in the two groups together. However, the correlations were higher in the TOKA group and in the two groups in total than in the YLI group. When examining the variance in reading comprehension test scores explained by vocabulary size and vocabulary depth, the figures of explained variance were again higher in the TOKA group and in the two groups in total than in the YLI group. When it comes to the results of the YLI group, vocabulary depth did not indeed seem to add any explained variance into the explanation of reading comprehension test scores. Based on the results of the study, it seems that vocabulary size and depth have a less significant role in the reading comprehension skills of more advanced learners of English. When looking at the less advanced TOKA group, on the other hand, vocabulary size and depth seem to be clear indicators of reading proficiency. In addition, the test results of the YLI group were clearly more uniform than those of the TOKA group. The variance in the test results of the TOKA group was large.

Capital structure of Finnish firms – Estimating the effects of firm characteristics on capital structure

One of the most disputable matters in the theory of finance has been the theory of capital structure. The seminal contributions of Modigliani and Miller (1958, 1963) gave rise to a multitude of studies and debates. Since the initial spark, the financial literature has offered two competing theories of financing decision: the trade-off theory and the pecking order theory. The trade-off theory suggests that firms have an optimal capital structure balancing the benefits and costs of debt. The pecking order theory approaches the firm capital structure from information asymmetry perspective and assumes a hierarchy of financing, with firms using first internal funds, followed by debt and as a last resort equity. This thesis analyses the trade-off and pecking order theories and their predictions on a panel data consisting 78 Finnish firms listed on the OMX Helsinki stock exchange. Estimations are performed for the period 2003–2012. The data is collected from Datastream system and consists of financial statement data. A number of capital structure characteristics are identified: firm size, profitability, firm growth opportunities, risk, asset tangibility and taxes, speed of adjustment and financial deficit. A regression analysis is used to examine the effects of the firm characteristics on capitals structure. The regression models were formed based on the relevant theories. The general capital structure model is estimated with fixed effects estimator. Additionally, dynamic models play an important role in several areas of corporate finance, but with the combination of fixed effects and lagged dependent variables the model estimation is more complicated. A dynamic partial adjustment model is estimated using Arellano and Bond (1991) first-differencing generalized method of moments, the ordinary least squares and fixed effects estimators. The results for Finnish listed firms show support for the predictions of profitability, firm size and non-debt tax shields. However, no conclusive support for the pecking-order theory is found. However, the effect of pecking order cannot be fully ignored and it is concluded that instead of being substitutes the trade-off and pecking order theory appear to complement each other. For the partial adjustment model the results show that Finnish listed firms adjust towards their target capital structure with a speed of 29% a year using book debt ratio.

Adapting to a team of host culture domination: Experiences of Finnish and British expatriates

International teams are permanent features of the global market, and multinational companies cannot ignore them. This thesis discusses an individual’s adaptation to a team of host culture domination by looking at the experiences of Finnish and British expatriates. The research question is: How does a foreigner adapt to a Finnish-British team where all the other members are from the local culture? The theoretical framework of this thesis consists of theories on multicultural teamwork and Finnish and British cultures. Based on theories, the impact of diversity on teamwork and whether it improves or deteriorates a team’s performance is unclear but the idea of multicultural teams is not just to live with cultural differences but to use and benefit of them. The main differences between Finnish and British cultures are in management styles and level of hierarchy. Still, these two cultures seem to be very similar. This is a qualitative study and expert interviews were used as a method for data collection. The results of the empirical research showed that Finns and Brits have differences in decision-making, level of hierarchy and communication. None of the informants saw the challenges that they have faced to result from being the only representative of a foreign culture – they only perceived them resulting from the characteristics of the host culture. In addition, all the informants had to change their habits and behaviour in the host culture in order to fit into the new culture and to become a part of the team. However, all the informants saw advantages in cross-cultural teams. Based on this thesis, team members from the host culture do not value cultural differences and they seem to be an issue only for the team member from the minority culture. It seems that a Finn or a Brit adapts to a Finnish-British team where the host culture dominates by changing their own behaviour in order to become a part of the team – even though people often see their own culture’s methods and habits as the right ones. Finnish and British cultures seem to be similar in fundamental issues like views and attitudes, which could mean that it is fairly easy for a Finn to get used to working in a British team and vice versa. Even though there are many challenges in cross-cultural and bi-cultural teams, there are even more advantages.

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.

Foreign direct investment motives and location decision factors under economic recession: Three cases of Finnish FDI in Portugal

The purpose of this thesis was to study how uncertainty in economic conditions of the FDI host country affects location decision of an investment, and what kinds of motives are behind the investment decision to a country in economic recession, in this case Portugal. The country has attracted foreign direct investment steadily, but it is evident that most multinational firms and investors tend to be more interested in emerging economies in general. The aim was to find out also which host country specific advantages are important in this kind of cross-border investment and which factors are important for an FDI to succeed under economic uncertainty at the host country. The study was done by analyzing three Finnish case companies: a private equity and real estate investment firm Pontos Group, A wave energy technology research and development company AW Energy and NSN, Nokia Solutions and Networks, a global telecommunications company. The research was done empirically, by interviewing experts on the subject, mainly persons representing these companies. In addition relevant articles, journals and content from case companies’ web-pages is used for the desk research regarding the topic. The results of this thesis showed that the FDIs with strategic asset-seeking investments seem most profitable FDI types under uncertain economic conditions. This kind of investments aim to strengthen the company’s long-term strategy, including the time after recession. Firm-specific ownership advantages that bring competitive advantage proved out to be important under these circumstances, as well as first-mover advantages and externally created assets such as government promotional policies regarding FDI incentives. Also the location was considered suitable for resource- or efficiency seeking motives, based on the lowered price level at the host country. Problems were related mainly to financing, but as foreign companies receive financing usually from their home countries, the economic recession of the host country does not have significant effect for FDI decision, according to this study

Towards sustainable transport: A comparison of demographic and behavioural characteristics of Finnish and international car sharing users

Strong evidence suggests that the climate is changing and that these changes are largely caused by human activities. A consensus exists among researchers that human activity is causing global warming and that actions to mitigate global warming need to be taken swiftly. The transportation sector, which relies heavily on fossil fuel burning and primarily oil, is one of the big contributors to air pollution problems at local, regional and global levels. It is the fastest growing source of greenhouse gas emissions and is estimated to be responsible for nearly a quarter of global energyrelated carbon dioxide emissions. Car sharing is a mobility solution encouraging its users to decrease private car usage in favour of communal transit and environmental goals. The idea of car sharing originates from the aspiration to decrease personal car ownership and to reduce vehicle distance travelled. This thesis seeks to complement the understanding of Finnish car sharing users and their usage through better categorization. Through better categorization and segmentation of Finnish car sharing users the thesis seeks to provide information for improved marketing insight. Research is done on the demographic and behavioural characteristics of Finnish car sharing users and they are compared with international findings about the characteristics of International car sharing users. The main research problem is Are Finnish car sharing users similar to international ones? A theoretical research framework on the determinants of individual car sharing usage is built based on international research about demographic and behaviouristic characteristics. After this a quantitative survey is performed to the customers of a Finnish car sharing organization. The data analysed in the thesis consist out of 532 answers received from the car sharing organizations customers. The data is analysed with descriptive and other exploratory methods, which create an understanding of Finnish car sharing users. At the end of the analysis the demographic and behavioural characteristics of Finnish car sharing users are compared with international ones. The research findings of the thesis indicate that the demographic and behavioural characteristics of Finnish car sharing usage largely follow those of their international counterparts. Thanks to the thesis results the car sharing organization is able to better target their customers through improved marketing insight.

Test Anxiety, Coping, Gender and Academic Performance in English Exams: A Study of Finnish Upper Secondary School Students

In this MA thesis, test anxiety related to English exams among Finnish upper secondary school students was studied. In addition, the ways students try to cope with test anxiety were investigated. The purpose of the study was to investigate gender differences in test anxiety, the effects of test anxiety on academic performance and relationships between test anxiety, academic performance and coping strategies. Test anxiety and coping strategies were analysed as scores of questionnaire responses. Coping strategies comprised of three categories – task-orientation and preparation, seeking social support and avoidance. Academic performance was analysed as teacher ratings of general performance in English exams. In total 67 subjects were studied. The subjects were Finnish general upper secondary school students. The data were collected by using online questionnaires. This data were mainly quantitative, but also qualitative elements were included. The quantitative data were analysed by using statistical methods. The results showed that females experienced statistically significantly more test anxiety than males. In addition, a statistically significant correlation was found between test anxiety levels and academic performance ratings of the subjects: the higher the test anxiety score, the lower the academic performance rating. A meaningful correlation was found between test anxiety and seeking social support as a coping strategy: a higher test anxiety score was related to using social support as a coping strategy. However, no relationships were found between academic performance and the three coping strategies when quantitative and qualitative data were analysed. Therefore, different coping strategies per se did not seem to be related to academic performance, but instead it was assumed that the effectiveness of coping strategies is dependent on individual differences. In order to obtain more generalisable results and to gain more understanding of test anxiety and coping with it, a larger number of subjects form different areas of Finland and of different ages could be examined in future studies. Moreover, cross-national and cross-cultural studies could provide valuable information. As a practical recommendation for educational purposes, the results of this study indicated that a more individualised approach is needed.

To Integrate Or Not: A Comparison of the English Skills of Finnish Students in Mainstream Education and Content and Language Integrated Learning

The objective of the thesis was to study the possible linguistic differences of English of Finnish mainstream students and Finnish students following content and language integrated learning (CLIL), in terms of the given language test. The difference of test results between the test groups was further analyzed in more detail. The research was carried out by comparing the 9th grade students of the Finnish comprehensive school (the mainstream group) and CLIL students of the 9th grade of the Finnish comprehensive school (the CLIL group). The comparison was based on the national language test for the 9th grade students of the Finnish comprehensive school 2006 (A-English), produced by Sukol-Palvelu, owned by the Federation of Foreign Language Teachers in Finland SUKOL. The mainstream group of the present study consisted of 30 students, whereas the CLIL group included 27 students. Testing was carried out in spring 2007. The test results of the mainstream group (average of 64.1% out of the maximum score) were consistent with the results of the national average (63.9%). The average score of the CLIL students for the present study was 83.3% out of the maximum score. The results of the two groups in question were rather similar in the tasks measuring the skill of listening comprehension, in addition to one of the reading comprehension tasks. Moreover, a particular task with requirements of cultural and reactional skills produced results rather similar between the test groups. The differences between the results of the mainstream group and the CLIL group were most evident in three particular tasks. In general, the CLIL group performed clearly better than the mainstream group in the task measuring the knowledge of the polite conversational manners of the English-speaking world and in the tasks with requirements of lexical and structural knowledge of English. However, the writing task resulted in the most evident difference of results between the groups. In other words, the CLIL students of the present study were clearly more capable of producing English language with more varied vocabulary and more complex structures than the mainstream students. Thus, it might be argued whether the CLIL programme is to enhance the students´ performance in the productive skill of writing in particular. As a result, it might be useful to consider the possibilities of the CLIL programme in developing certain linguistic skills of the mainstream students of English as well.

Pientuulivoimaloiden markkinapotentiaalin arviointi Suomessa ja globaalisti

Työn tavoitteena on selvittää pientuulivoimaloiden markkinapotentiaali Suomessa sekä muualla maailmassa, ja kartoittaa alalla toimivat kilpailijat. Tarkoituksena on myös arvioida kuinka tilanne tulee jatkossa kehittymään ja, mitkä ovat Hafmex Windforce Oy:n mahdollisuudet kilpailla kyseisillä markkinoilla. Lisäksi tarkastelun kohteena on selvittää millä edellytyksillä pientuulivoimaloita voidaan liittää paikalliseen sähkönjakeluverkkoon. Työssä on myös esitelty kaupallisten tuulivoimaloiden perusperiaatteita, sekä tällä hetkellä käytössä olevaa teknologiaa. Tarkemmin on keskitytty pientuulivoimaloiden toiminnan periaatteisiin. Työn teoriapohjassa tarkastellaan markkinatutkimuksen suorittamisen erityispiirteitä, markkinapotentiaalin määrittämiseen liittyviä käsitteitä ja kilpailija-analyysin suorittamista. Teoriaosa perustuu alan kirjallisuudesta, lehtiartikkeleista sekä internetistä kerättyyn materiaaliin.

Suomalaisen osakeindeksiportvolion hajauttaminen asuinkiinteistöihin

Tässä tutkielmassa tarkastellaan suomalaisen sijoitusportfolion hajauttamista asuinkiinteistöihin. Tutkielman tavoitteena on selvittää, pystyykö hajauttamisella tehostamaan portfoliota sekä tutkia kaupungin ja kokoluokan merkitystä kiinteistöihin hajauttamisessa. Tutkimusaineisto koostuu Suomen osakemarkkinoita kuvaavista toimialaindeksistä sekä asuinkiinteistöindekseistä. Asuinkiinteistöt ovat jaoteltu sekä kaupungeittain että kokoluokittain. Tutkimusaineisto on aikaperiodilta 1988Q3-2008Q3. Tutkimustulosten mukaan kiinteistöihin hajauttamisella voidaan tehostaa portfoliota. Varsinkin pienemmillä tuottotasoilla kiinteistöihin sijoitetaan merkittävästi. Korkeammilla tuottovaatimuksilla kiinteistösijoitus ei tuonut lisäarvoa portfolion hajautukseen.