Intellectual capital, knowledge management practices and firm performance

Researchers have widely recognised and accepted that firm performance is increasingly related to knowledge-based issues. Two separately developed literature streams, intellectual capital (IC) and knowledge management (KM), have been established as the key discussions related to knowledge-based competitive advantage of the firm. Intellectual capital has provided evidence on the strategic key intangible resources of the firm, which could be deployed to create competitive advantage. Knowledge management, in turn, has focused on the managerial processes and practices which can be used to leverage IC to create competitive advantage. Despite extensive literature on both issues, some notable research gaps remain to be closed. In effect, one major gap within the knowledge management research is the lack of understanding related to its influence on firm performance, while IC researchers have articulated a need to utilise more finegrained conceptual models to better understand the key strategic value-creating resources of the firm. In this dissertation, IC is regarded as the entire intellectual capacity, knowledge and competences of the firm that can be leveraged to achieve sustained competitive advantage. KM practices are defined as organisational and managerial activities that enable the firm to leverage its IC to create value. The objective of this dissertation is to answer the research question: “What is the relationship between intellectual capital, knowledge management practices and firm performance?” Five publications have addressed the research question using different approaches. The first two publications were systematic literature reviews of the extant empirical IC and KM research, which established the current state of understanding regarding the relationship between IC, KM practices and firm performance. Publications III and IV were empirical research articles that assessed the developed conceptual model related to IC, KM practices and firm performance. Finally, Publication V was among the first research papers to merge IC and KM disciplines in order to find out which configurations could yield organisational benefits in terms of innovation and market performance outcomes.

On the innovation capacity of technologyrelated knowledge-intensive business services. A case study of the technology and engineering consulting (TEC) sector in Singapore

Even though the research on innovation in services has expanded remarkably especially during the past two decades, there is still a need to increase understanding on the special characteristics of service innovation. In addition to studying innovation in service companies and industries, research has also recently focused more on services in innovation, as especially the significance of so-called knowledge intensive business services (KIBS) for the competitive edge of their clients, othercompanies, regions and even nations has been proved in several previous studies. This study focuses on studying technology-based KIBS firms, and technology andengineering consulting (TEC) sector in particular. These firms have multiple roles in innovation systems, and thus, there is also a need for in-depth studies that increase knowledge about the types and dimensions of service innovations as well as underlying mechanisms and procedures which make the innovations successful. The main aim of this study is to generate new knowledge in the fragmented research field of service innovation management by recognizing the different typesof innovations in TEC services and some of the enablers of and barriers to innovation capacity in the field, especially from the knowledge management perspective. The study also aims to shed light on some of the existing routines and new constructions needed for enhancing service innovation and knowledge processing activities in KIBS companies of the TEC sector. The main samples of data in this research include literature reviews and public data sources, and a qualitative research approach with exploratory case studies conducted with the help of the interviews at technology consulting companies in Singapore in 2006. These complement the qualitative interview data gathered previously in Finland during a larger research project in the years 2004-2005. The data is also supplemented by a survey conducted in Singapore. The respondents for the survey by Tan (2007) were technology consulting companies who operate in the Singapore region. The purpose ofthe quantitative part of the study was to validate and further examine specificaspects such as the influence of knowledge management activities on innovativeness and different types of service innovations, in which the technology consultancies are involved. Singapore is known as a South-east Asian knowledge hub and is thus a significant research area where several multinational knowledge-intensive service firms operate. Typically, the service innovations identified in the studied TEC firms were formed by several dimensions of innovations. In addition to technological aspects, innovations were, for instance, related to new client interfaces and service delivery processes. The main enablers of and barriers to innovation seem to be partly similar in Singaporean firms as compared to the earlier study of Finnish TEC firms. Empirical studies also brought forth the significance of various sources of knowledge and knowledge processing activities as themain driving forces of service innovation in technology-related KIBS firms. A framework was also developed to study the effect of knowledge processing capabilities as well as some moderators on the innovativeness of TEC firms. Especially efficient knowledge acquisition and environmental dynamism seem to influence the innovativeness of TEC firms positively. The results of the study also contributeto the present service innovation literature by focusing more on 'innovation within KIBs' rather than 'innovation through KIBS', which has been the typical viewpoint stressed in the previous literature. Additionally, the study provides several possibilities for further research.

Supporting knowledge creation and sharing in the early phases of the strategic innovation process

The driving forces of technology and globalization continuously transform the business landscape in a way which undermines the existing strategies and innovations of organizations. The challenge for organizations is to establish such conditions where they are able to create new knowledge for innovative business ideas in interaction between other organizations and individuals. Innovation processes continuously need new external stimulations and seek new ideas, new information and knowledge locating more and more outside traditional organizational boundaries. In several studies, the early phases of the innovation process have been considered as the most critical ones. During these phases, the innovation process can emerge or conclude. External knowledge acquirement and utilization are noticed to be important at this stage of the innovation process giving information about the development of future markets and needs for new innovative businessideas. To make it possible, new methods and approaches to manage proactive knowledge creation and sharing activities are needed. In this study, knowledge creation and sharing in the early phases of the innovation process has been studied, and the understanding of knowledge management in the innovation process in an open and collaborative context advanced. Furthermore, the innovation management methods in this study are combined in a novel way to establish an open innovation process and tested in real-life cases. For these purposes two complementary and sequentially applied group work methods - the heuristic scenario method and the idea generation process - are examined by focusing the research on the support of the open knowledge creation and sharing process. The research objective of this thesis concerns two doctrines: the innovation management including the knowledge management, and the futures research concerning the scenario paradigm. This thesis also applies the group decision support system (GDSS) in the idea generation process to utilize the converged knowledge during the scenario process.

Competitor Information andCompetitive Knowledge Management in a Large Industrial Organization

Thisthesis supplements the systematic approach to competitive intelligence and competitor analysis by introducing an information-processing perspective on management of the competitive environment and competitors therein. The cognitive questions connected to the intelligence process and also the means that organizational actors use in sharing information are discussed. The ultimate aim has been to deepen knowledge of the different intraorganizational processes that are used in acorporate organization to manage and exploit the vast amount of competitor information that is received from the environment. Competitor information and competitive knowledge management is examined as a process, where organizational actorsidentify and perceive the competitive environment by using cognitive simplification, make interpretations resulting in learning and finally utilize competitor information and competitive knowledge in their work processes. The sharing of competitive information and competitive knowledge is facilitated by intraorganizational networks that evolve as a means of developing a shared, organizational level knowledge structure and ensuring that the right information is in the right place at the right time. This thesis approaches competitor information and competitive knowledge management both theoretically and empirically. Based on the conceptual framework developed by theoretical elaboration, further understanding of the studied phenomena is sought by an empirical study. The empirical research was carried out in a multinationally operating forest industry company. This thesis makes some preliminary suggestions of improving the competitive intelligence process. It is concluded that managing competitor information and competitive knowledge is not simply a question of managing information flow or improving sophistication of competitor analysis, but the crucial question to be solved is rather, how to improve the cognitive capabilities connected to identifying and making interpretations of the competitive environment and how to increase learning. It is claimed that competitive intelligence can not be treated like an organizational function or assigned solely to a specialized intelligence unit.

Enterprise Portal as a Knowledge Management Tool in a Global Forest Products Company

Tietojohtaminen on osoittautunut nykypäivänä organisaatioiden yhdeksi suurimmaksi haasteeksi. Haasteena ei vain ole se tiedon määrä mitä tulisi hallita, vaan pikemminkin tiedonhallinta toimii yritykselle kilpailuetuna globaalissa yritysmaailmassa. Tämän työn tavoitteena on tutkia yritysportaalin soveltuvuutta tiedonhallintaan globaalissa metsäteollisuusyrityksessä. Lisäksi tavoitteena on selvittää portaalin sovittamista kullekin käyttäjäryhmälle case yrityksessä. Työn teoriaosassa on käsitelty tiedonhallinnan monimuotoisuutta ja vaikeutta kuvata sitä yksiselitteisesti. Lisäksi käyttäjäryhmien ja käyttäjäprofiilien määrittämiseen vaikuttavia seikkoja on selvitetty tässä osassa. Empiirinen osa käsittelee case-yritystä ja sen suhdetta tiedonhallintaan sekä tämän kaltaisen tiedonhallinnan työvälineen käyttöön. Työstä saatujen tulosten perusteella voidaan todeta yritysportaalin soveltuvan hyvin tiedonhallintaan monimutkaisessakin yrityksessä. Portaali muuttaa yrityksen liiketoimintaprosesseja läpinäkyvämmiksi, kun bisneskriittistä tietoa tarjotaan yhdessä paikassa.

Business Benefits of Content Management

Hyvällä sisällönhallinnalla on mahdollista vaikuttaa myönteisesti liiketoiminnalliseen tulokseen, jos sisällönhallinnan eri vaikutusmahdollisuudet tunnistetaan. Kun organisaatiossa syntyvä tieto on vapaasti saatavilla, ja sitä voidaan tulkita ja hyödyntää erilaisiin tarpeisiin, tietojärjestelmän avulla voidaan vauhdittaa kehitystä ja uuden tiedon löytämistä. Tiedon keskeisin tehtävä on kehittää ja parantaa organisaation osaamista, jolloin pitää olla tietoa siitä, mitä, miksi ja kuinka tietoa on käytetty organisaatiossa. Kaiken liiketoimintaprosesseissa tuotetun tiedon kohdalla pitäisi miettiä kolmea tiedonhallinnan osa-aluetta: tiedon luontia, hallintaa ja hyödyntämistä. Tavoitteena on saavuttaa yrityksen määrämuotoisen tietopääoman paras mahdollinen hallinta.Työssä kuvataan sitä, mitä sisällönhallinta on, sen eri tasoja, sen käsitteellistä sijoittumista tietämyksenhallintaan, sisällönhallinnan järjestelmiä ja niiden merkitystä liiketoimintaprosesseissa. Lisäksi tarkastellaan niitä syitä, joiden vuoksi yritykset kiinnostuvat organisaatiossa olevan määrämuotoisen tiedon sisällönhallinnasta. Lopuksi analysoidaan, millaisia voivat olla liiketoiminnalliset, kilpailulliset tai rahalliset tavoitteet, joita asetetaan sisällönhallinnan tietojärjestelmäprojektille. Työn tueksi on haastateltu neljän suomalaisen suuryrityksen sisällönhallinnan tietojärjestelmäprojektin asiantuntijoita. Heidän kommenttejaan on analysoitu ja niiden perusteella on tehty johtopäätöksiä niistä syistä, joiden vuoksi yritykset yleensä sijoittavat resurssejaan sisällönhallintaan.

Projektisapuolten vaatimukset kolmannen sukupolven matkaviestinverkon rakentamisprojektin knowledge management -järjestelmälle

Projektin johtaminen informaatioaikakaudella merkitsee, yhä useammassa tapauksessa, virtuaalisen verkoston tietämyksen hallitsemista ja johtamista. Kolmannen sukupolven matkaviestinverkon rakentaminen on virtuaaliverkostoa hyväkseen käyttävä projekti, joka koostuu lukuisista osapuolista.Matkaviestinverkkoprojektien laajentuminen ja kilpailun kiristyminen alalla ovat nostaneet knowledge management -järjestelmien kysyntää. Kysyntä kohdistuu voimakkaimmin järjestelmiin, joiden avulla matkaviestinverkkotoimitusprojektin kaikki toiminnot pystytään käsittelemään yhdessä järjestelmässä. Tämän tutkimuksen pääasiallisena tavoitteena on ollut selvittää keskeisimmät vaatimukset kolmannen sukupolven matkaviestinverkon rakentamisprojektin knowledge management ?järjestelmälle. Tutkimus toteutettiin kirjallisuuden ja avoimien teemahaastattelujen avulla, käyttäen kvalitatiivisiä tutkimusmenetelmiä.Haastattelut osoittivat, että tärkeimmät vaatimukset kolmannen sukupolven matkaviestinverkkoja rakentavan projektiorganisaation knowledge management -järjestelmälle ovat: 1. Knowledge management -järjestelmän tulee toimia keskitettynä tietovarastona.2. Projektissa käsiteltävään tietoon on pystyttävä porautumaan vähintään prosessi- ja paikkatietoon pohjautuvista näkökulmista. 3. Pääsyn knowledge management -järjestelmään tulee olla mahdollista kaikille projektin osapuolille.4. Pääsyn knowledge management -järjestelmään tulee olla mahdollista mistä tahansa ja mihin kellonaikaan tahansa.5. Knowledge management -järjestelmän käyttöliittymän tulee olla mahdollisimman yksinkertainen. Järjestelmän tulee olla yhteydessä organisaatioiden muihin järjestelmiin.

Sähköinen asiakaspalautetieto osana yrityksen tietopääomaa (knowledge management)

Sähköinen asiakaspalautetieto osana yrityksen tietopääomaaAsiakaspalaute osana yrityksen tietopääomaa mahdollistaa pysyvän kilpailuedun luomisen yritykselle. Kilpailuetua voidaan saavuttaa seuraavilla osa-alueilla: Asiakaspalautetiedon avulla yritys voi kehittää nykyisiä tuotteita ja/tai palveluita entistä asiakaslähtöisemmiksi. Uusien liiketoiminta-alueiden löytyminen on myös mahdollista asiakaspalautetiedon avulla. Sekä uusien liiketoimintojen että nykyisten liiketoimintojen osalta asiakaspalautetiedolla voidaan lisätä asiakasuskollisuutta ja sen avulla voidaan käynnistää asiakasdialogeja. Yrityksen hakiessa kilpailuetua asiakaspalautejärjestelmän avulla on kiinnitettävä huomiota nykyisen teorian tuottamaan kriteeristöön. Kriteeristöstä nousee esille seuraavat osa-alueet: asiakaspalautteen lähteet, asiakaspalautekanavat, asiakaspalautteen käsittelymenetelmät ja asiakaspalautteen prosessointi yrityksessä. Empiria antaa viitteitä siitä, että yrityksen kannattaa yhdistää suoranpalautteen järjestelmänsä ja asiakastyytyväisyysmittaaminen yhdeksi kokonaisuudeksi. Tämä kokonaisuus kannattaa toteuttaa sähköisesti ja yrityksen kannattaa käyttää sitä jatkuvasti.Sähköisen asiakaspalautejärjestelmän kerätessä palautteen antajien yhteystiedot on yrityksen mahdollista luoda uusi sähköinen media.

Utilizing social media in software documentation and knowledge management

This Master’s thesis studies the possibilities that social media tools can bring to help knowledge management in software development companies. It will introduce the most popular tools of social media and their usage possibilities in companies, not forgetting the possible downsides. One relevant aspect in this study is to investigate the possibilities of social media to help converting existing tacit knowledge into explicit. The purpose of the work is to create a proposal of social media utilization for a mid-sized software company, which has not utilized social media tools before. To be able to create the proposal, employees of the company are interviewed and a survey is executed to analyze the current situation. In addition a pilot project for trying out new social media tools is executed. The final result of this thesis introduces a tailored solution for the target company to start utilizing social media in its documentation and knowledge sharing processes. This new solution consists of multiple individual suggestions that are categorized and prioritized based on the significance and benefit that they bring to the company.

Diagnosing and developing knowledge management capability –Knowledge management capability in UPM-Kymmene Wood Oy

The purpose of this case study is to clarify how KM (knowledge management) capability is constructed through six different activities and to explore how this capability can be diagnosed and developed in the three case organizations. The study examines the knowledge management capability of the three factories in UPM-Kymmene Wood Oy, a major Finnish plywood producer. Forest industry is usually considered to be quite hierarchical. The importance of leveraging employee skills and knowledge has been recognized in all types of organizations – including those that mainly deal with tangible resources. However, the largest part of empirical knowledge management literature examines KM in so called knowledge-intensive or knowledge-based organizations. This study extends existing literature by providing an in depth case study into assessment and development of KM activities in these three organizations with little awareness of the KM discourse. This subject is analyzed through literature review, theoretical analysis and empirical research in the case organizations. The study also presents a structured method for evaluating KM activities of a company and for diagnosing the main weaknesses that should be developed in order to achieve KM excellence. The results help in understanding how knowledge management capability is constructed and provide insight into developing and exploiting it within an organization.

Evaluating the Maturity of Data Management Practices in a Major Energy Provider Company

Data is the most important asset of a company in the information age. Other assets, such as technology, facilities or products can be copied or reverse-engineered, employees can be brought over, but data remains unique to every company. As data management topics are slowly moving from unknown unknowns to known unknowns, tools to evaluate and manage data properly are developed and refined. Many projects are in progress today to develop various maturity models for evaluating information and data management practices. These maturity models come in many shapes and sizes: from short and concise ones meant for a quick assessment, to complex ones that call for an expert assessment by experienced consultants. In this paper several of them, made not only by external inter-organizational groups and authors, but also developed internally at a Major Energy Provider Company (MEPC) are juxtaposed and thoroughly analyzed. Apart from analyzing the available maturity models related to Data Management, this paper also selects the one with the most merit and describes and analyzes using it to perform a maturity assessment in MEPC. The utility of maturity models is two-fold: descriptive and prescriptive. Besides recording the current state of Data Management practices maturity by performing the assessments, this maturity model is also used to chart the way forward. Thus, after the current situation is presented, analysis and recommendations on how to improve it based on the definitions of higher levels of maturity are given. Generally, the main trend observed was the widening of the Data Management field to include more business and “soft” areas (as opposed to technical ones) and the change of focus towards business value of data, while assuming that the underlying IT systems for managing data are “ideal”, that is, left to the purely technical disciplines to design and maintain. This trend is not only present in Data Management but in other technological areas as well, where more and more attention is given to innovative use of technology, while acknowledging that the strategic importance of IT as such is diminishing.

Education export as a form of knowledge transfer : The potential of Finnish education export in Chile

Knowledge transfer is a complex process. Knowledge transfer in the form of exporting education products from one system of education to another is particularly complicated, because each system has been developed in a particular context to meet the requirements seen as relevant at each time. National innovation systems are often seen to form an essential framework within which the development of a country, its economy and level of knowledge are considered and promoted. These systems are orientated towards the future, and as such they also provide a framework for the knowledge transfer related to the development of education. In the best of circumstances they are able to facilitate and boost this transfer both from the viewpoint of the provider and the recipient. The leading thought and the idea of the study is that education export is a form of knowledge transfer, which is illustrated by the existing models included. The purpose of this study is to explore, analyze and describe the factors and phenomena related to education export, and more specifically, those related to the experiences and potential of Finnish education export to Chile. For better understanding, of the multiplicity of the issue involved, the current status of education export between Finland and Chile and he existing efforts within the Finnish innovation network will be outlined as well as new forms of co-operation between Finland and Chile in educational matters explored. Several countries have started to commercialize their education system in order to establish themselves as emerging education exporters. Moreover, the demand for education reform is accurate in many developing countries. This offers a good match between Finland and Chile to be the example countries of the research. The main research findings suggest that there are several business areas in education export. These include degrees in education, training services and education technologies for example The factors that influence education export can be divided into four groups, including academic, cultural, political and economic aspects. Challenges to overcome include the lack of product or services to be sold, lack of market and cultural knowledge of the buyer country, financing and lack of suitable pricing model. National innovation systems could be seen as enabling entities for successful education export. The extensive networks that national innovation systems aim to form, could operate as a basis for joining the forces in selling knowledge as well as receiving knowledge in a constructive way.

The role of customer perspective in organizational renewal. A comparative case study of knowledge-intensive business services.

The objective of this thesis was to study organizational renewal from the customer orientation perspective. Customer orientation is divided into customer relationship management and customer knowledge, which both are important components of customer related organizational renewal capabilities. The study was conducted in knowledge intensive business service firms, which are required to renew their strategy, operations and processes constantly in order to gain and sustain competitive advantage. In the empirical research, two companies were studied, both offering services to their customers. The analysis was done in two phases; first each case was analyzed individually and then the cases were compared in a cross-case analysis. The most important finding was that customer orientation is considered important but it is not being utilized for organizational renewal in full capacity.

The Role of Universities in the Triple Helix model of innovation management within the biotechnology industry, Case example: Turku Science Park Network

Biotechnology has been recognized as the key strategic technology for industrial growth. The industry is heavily dependent on basic research. Finland continues to rank in the top 10 of Europe's most innovative countries in terms of tax-policy, education system, infrastructure and the number of patents issued. Regardless of the excellent statistical results, the output of this innovativeness is below acceptable. Research on the issues hindering the output creation has already been done and the identifiable weaknesses in the Finland's National Innovation system are the non-existent growth of entrepreneurship and the missing internationalization. Finland is proven to have all the enablers of the innovation policy tools, but is lacking the incentives and rewards to push the enablers, such as knowledge and human capital, forward. Science Parks are the biggest operator in research institutes in the Finnish Science and Technology system. They exist with the purpose of speeding up the commercialization process of biotechnology innovations which usually include technological uncertainty, technical inexperience, business inexperience and high technology cost. Innovation management only internally is a rather historic approach, current trend drives towards open innovation model with strong triple helix linkages. The evident problems in the innovation management within the biotechnology industry are examined through a case study approach including analysis of the semi-structured interviews which included biotechnology and business expertise from Turku School of Economics. The results from the interviews supported the theoretical implications as well as conclusions derived from the pilot survey, which focused on the companies inside Turku Science Park network. One major issue that the Finland's National innovation system is struggling with is the fact that it is technology driven, not business pulled. Another problem is the university evaluation scale which focuses more on number of graduates and short-term factors, when it should put more emphasis on the cooperation success in the long-term, such as the triple helix connections with interaction and knowledge distribution. The results of this thesis indicated that there is indeed requirement for some structural changes in the Finland's National innovation system and innovation policy in order to generate successful biotechnology companies and innovation output. There is lack of joint output and scales of success, lack of people with experience, lack of language skills, lack of business knowledge and lack of growth companies.