De convenientia inter legem civilem patriae et naturalem

Invocatio: B.C.D.

De collisione inter leges et mores

Invocatio: I.N.J.C.

De discrimine inter ecclesiam et rempublicam

Invocatio: Q.F.E.I.S.T.

De differentia inter coelum Dei & coelum beatorum

Invocatio: I.N.J.

De collisione inter honestum & utilitatem publicam

Invocatio: D.O.D.

Martti Simojoki : Primus inter pares

Kirjallisuusarvostelu

Conference Proceedings. Assessing Language and (Inter) cultural Competences in Higher Education. Evaluation des compétences langagières et (inter) culturelles dans l’enseignement supérieur

This epublication contains papers that were presented at the conference “Assessing Language and (Inter) cultural Competences in Higher Education” which took place at the University of Turku (Finland) on 30.8.1.9.2007. The online proceedings may be downloaded and used provided the source is acknowledged.

Research on Latvian Herrnhutism in the inter-war period

Kirjallisuusarvostelu

Subjectivity in the valuation : Case study on the Finnish biotechnology industry

The thesis combines valuation and behavioral economics literature, which is not common among the Finnish management accounting research. Furthermore, the valuation is studied in biotechnology context and those type of studies are rather rare as well. The thesis studies the valuation in the Finnish biotechnology industry. The concepts of behavioral finance are employed in the empirical part of the study to explore decision-makers’ behavior in valuation processes. The main interest of this study is to explore how subjectivity of a decision-maker affects the valuation in the biotechnology industry. The valuation is studied from two perspectives. First, what is the best valuation model for biotechnology companies suggested by the valuation literature? Second, how the valuation in biotechnology industry is done in practice and how the decision-makers subjectivity affects the valuation? The literature review aims at seeking the best valuation model. The real options were found to be the most suitable valuation model for biotechnology companies, especially in the early stages of product development. The real option’s ability to take the value of the inherent options into account results in theoretically most correct valuations. The only disadvantage is the model’s complexity when compared to other models, such as discounted cash flow models. The empirical part of the study consists of a case study, which examines the valuation practices of the Finnish biotechnology companies. When it comes to the valuation models used in practice, it was found that the companies were using rather simple valuation models, which was due to two reasons. First, the interviewees did not believe in the valuation models and second, they were familiar neither with the most sophisticated models nor with all the theoretical aspects of the models they were using. The material for the study was collected with theme interviews. Four CEO’s of highly successful Finnish biotechnology companies. Strong signs of the decision-makers’ subjectivity in valuation were observed. Most obvious were the signs of framing. Furthermore, herding, excessive optimism, and overconfidence were present. All the behavioral concepts observed most likely have a severe effect on the valuation. As a result, the valuation can easily become overly optimistic, which leads to overvalued investments and to continuation of already unprofitable projects. Framing had the strongest evidence. If the product being valued is framed successfully, the risk of overvaluation is high, thus a strong belief can justify almost any value.

Trust in inter-organisational dyadic relationships

Understanding the trust in organisations and the business relationships have been an emerging trend in past years. Researchers and executives and subject matter experts in companies have recognised the importance of managing the trust in inter-organisational relationships. Further, the interest both in academia and in business has raised an interest to under-stand dyadic relationships. The objective of this thesis was to examine trust in inter-organisational and inter-personal dyadic relationships. Trust and the dyadic relationships were analysed in information technolo-gy services and outsourcing industry. Dyads were established between the supplier company operating in the industry and its customers. The empiric part of the study was carried out by an email survey that was sent to 331 respondents resulting with effective response rate of 48.7 per cent. Statistical analyses were applied to analyse the data sample. In general, results indicated reputation, trustworthiness, capability and collaboration in dyadic trust relationships. Experience grown in duration of the relationship affected the trust positively. No drastic differences in trust were recognised when comparing supplier and customer responses.

Towards Inter-organizational Working Capital Management

Working capital is an investment which is tied up into the inventories and accounts receivable and which is released with accounts payable. Due to the current business landscape with tightened financial conditions and finance markets, organizations emphasize efficient working capital management. With efficient working capital management, a company can reduce the need of finance, free up cash, increase profitability, improve liquidity, increase the efficiency of operations, and decrease (financing) costs. From the perspective of an individual company, efficient working capital management means decreasing inventory levels by shortening the cycle time of inventories, decreasing accounts receivable by shortening the trade credit terms and effective collection procedures, and increasing the level of accounts payable by paying the suppliers later. From an inter-organizational perspective, however, working capital should not be sub-optimized by a single company but holistic view to working capital management through the supply chain should be adopted to create value and improve performance together. The purpose of this research is to take academic research as well as practical management towards inter-organizational working capital management. The thesis discusses the benefits as well as mechanisms of working capital management in the inter-organizational context and has two main objectives: (1) to examine the effect of inter-organizational working capital management on performance in the value chain context and (2) to develop models of working capital management for internal as well as inter-organizational value chains. The results of the archival research conducted in the value chain of the pulp and paper industry and the value chain of the automotive industry indicate that companies can increase relative profitability by managing working capital comprehensively by taking into account all three components, and holistically though the value chain. Companies in the value chain benefit from different strategies in working capital management depending on the position of the company in the value chain. This can be taken into account in inter-organizational working capital management. The effects of inter-organizational working capital management actions on the financing costs of working capital were studied via simulations. Simulations also show that the value chain and individual companies benefit from an inter-organizational view to working capital management. Inter-organizational working capital management actions include for example: shortening the cycle time of inventories, reducing product costs, shifting inventories, shortening payment terms, and considering the cost of capital. The thesis also provides solutions for the practical requirements for tools to control working capital. The design science part of the research introduces the adjusted cash conversion cycle (ACCC) model for internal value chains, as well as models for working capital management in the inter-organizational value chain context: the working capital management model (WCMM) and the financial cycle time model (FCTM) designed in corporation and product levels respectively. This research contributes to literature on working capital management and interorganizational accounting. The research gives a holistic, inter-organizational view to the management of working capital. It advances the knowledge in working capital management on operational level, increases knowledge in the recently risen theme of supply chainoriented, collaborative working capital management, combines management accounting research with supply chain management research, and contributes to the demand of practical inter-organizational accounting methods. In addition, the research has strong practical focus as new managerial methods are introduced.

Tietoperusteinen päätöksenteon prosessi

Yhteiskunnan tietovaltaistumisen seurauksena ovat julkisten organisaati-oiden toimintaympäristöt monimutkaistuneet ja luoneet haasteita tiedon käyttämiselle päätöksenteon prosessissa sekä sen tukena. Tämän tutki-muksen aiheena oleva tietoon perustuva päätöksenteon prosessi sekä sen vaiheiden sujuvuus ovat strategisesti merkittäviä kaikessa päätöksen-teossa. Tutkimus toteutettiin kvalitatiivisena tutkimuksena, jonka empiirinen osuus suoritettiin tapaustutkimuksena kunnallisessa organisaatiossa. Haastatteluaineisto kerättiin kunnallisen päätöksenteon ylintä päätäntävaltaa käyttäviltä kaupunginvaltuutetuilta. Tutkimuksen mukaan tietoperusteisen päätöksenteon prosessin vaiheita ovat tavoitteen ja päämäärän asettaminen, vaihtoehtojen asettaminen, vaihtoehtojen ja niiden vaikutuksien arvioiminen, päätöksen tekeminen sekä päätöksen vaikutuksien arvioiminen. Tiedon käyttäminen keskittyy vaihtoehtojen asettamiseen sekä vaihtoehtojen ja niiden vaikutuksien arvioimiseen tiedon hankkimisen ja hyödyntämisen kautta. Monitahoisuus ja -ulotteisuus sekä subjektiivisuus ja kontekstisidonnaisuus vaikuttavat merkittävästi tietoperusteisen päätöksenteon prosessin vaiheisiin.