Kuopio, view from the Puijo Hill

London : Methuen & Co. Ltd 1915

The resource-based view of the firm - resources, capabilities and sustainable competitive advantage

The main objective of this research paper was to synthesize, integrate and analyze the theoretical foundation of the resource-based view of the firm on sustainable competitive advantage. Accordingly, this research was a literature research employing the methodology of interpretative study of concept and unobtrusive measures. The core and majority of the research data was gathered from the major online journal databases. Only peer-reviewed articles from highly-esteemed journals on the subject of competitive advantage were used. The theoretical core of the research paper was centred on resources, capabilities, and the sustainability dilemma of competitive advantage. Furthermore, other strategic management concepts relating to the resource-based view of the firm were used with reference to the research objectives. The resource-based view of the firm continues to be a controversial but important are of strategic management research on sustainable competitive advantage. Consequently, the theoretical foundation and the empirical testing of the framework needs further work. However, it is evident that internal organizational factors in the form of resources and capabilities are vital for the formation of sustainable competitive advantage. Resources and capabilities are not, however, valuable on their own - competitive advantage requires seamless interplay and complementarity between bundles of resources and capabilities.

BUSINESS CONCEPTS OF MOBILE VALUE-ADDED SERVICES FROM OPERATOR’S POINT OF VIEW

Tämä diplomityö on tehty Lappeenrannassa Telecom Business Research Centerin 5T-projektiin liittyen. Työssä tutkitaan matkaviestinnän lisäarvopalveluiden liiketoimintakonsepteja operaattoreiden näkökulmasta. Lisäarvopalvelut laajentavat operaattoreiden palveluvalikoimaa. Niiden osuuden telekommunikaatioalan yritysten ja erityisesti operaattoreiden tuotoista on ennustettu kasvavan huomattavasti. Työn tärkeimpänä tavoitteena on tuoda uusia näkökulmia ja lisätä ymmärrystä lisäarvopalveluiden liiketoimintakonseptin rakentamisprosessista. Tätä tietämystä käytetään edesauttamaan työn empiirisessä osuudessa tutkitun Content Gateway -tuotteen liiketoimintaa. Tarjoamalla nopean liitynnän ja laskutuskanavan ulkopuolisten palveluntarjoajien ja operaattorin välille tämä tuote mahdollistaa operaattorille ja palveluntarjoajille lisäarvopalveluiden liiketoiminnan käynnistämisen. Lisäarvopalveluiden arvonluontiprosessi vaatii lukuisia yhteistyötä tekeviä osapuolia, joiden yhteistoiminta on dynaamista ja tiedonvälitys avointa, interaktiivista ja nopeaa. Arvonluontiin liittyy myös monia konvergoituvia kehityssuuntia. Perinteinen arvoketjuajattelu on riittämätön uuteen, verkottuneeseen toimintaympäristöön ja sen tilalle on tullut modernimpi arvoverkostomalli. Arvoverkosto luo kilpailuetunsa muita verkostoja vastaan jakamalla resurssit ja kompetenssit optimaalisesti ja liittämällä strategisen ja operationaalisen johtamisen kulttuurit toisiinsa. Tässä työssä verrataan arvoverkoston teoreettisia tavoitteita kahteen lisäarvopalveluiden liiketoimintakonseptiin. Näistä ensimmäinen, i-mode –niminen konsepti on valittu vertailuun edistyksellisyytensä ja tulevaa kehitystä ennakoivien ominaispiirteidensä vuoksi. Toinen esimerkkikonsepti on rakennettu edellä mainitun Content Gateway -tuotteen ympärille. Tutkimus sisältää mm. liikekumppaneiden hankinnan, ansaintalogiikoiden ja verkostojen johtamisen analysoinnin. Työn tuloksena on saatu ohjeita siihen, miten operaattori voi rakentaa tällaista konseptia ja mitä seikkoja tulee ottaa huomioon erityisesti sanomapalveluihin liittyvässä liiketoiminnassa.

Business potential evaluation of wireless local area networks: Teleoperator’s view

The objective of the thesis was to evaluate business potential of wireless local area networks (WLAN, Wireless LAN). At first, the scope of business potential evaluation of technology was introduced. Next, a general framework of business potential evaluation of technology based on literature was presented. In addition, convergence of cellular networks and data networks was studied in order to get an insight of current situation of mobile telecommunications industry. Finally, wireless local area networks business potential was evaluated. A wireless local area network is a data communication system, which combines data connectivity with mobility and is implemented in unlicensed frequency bands, allowing new business opportunities to emerge. The main markets of WLAN are corporate networks, public area networks and access networks. At the moment the penetration of WLAN terminals is low which derives to low demand of wireless LAN services. In addition, unlicensed spectrum forces the teleoperators to set the service price relatively low. The business potential is in integrating wireless LANs to cellular networks and in offering value added services to end users. The future of wireless LAN is to be complementary network to cellular networks. In this vision cellular networks provide voice and low data services and broadband wireless networks enable multimedia services.

Profit repatriation of a Polish subsidiary from tax planning point of view of an international corporation

The main purpose of this study was to examine and compare the possibilities of profit repatriation from the point of view of tax planning of an international corporation, in such a case that a Finnish parent company has a subsidiary in Poland. The main research problem was divided into two sub research problems: 1) to examine concepts and principles of international taxation and tax planning from the point of view of international corporations and 2) to discuss the main features of Polish Companies-, Accounting- and Tax Act from the point of view a Finnish parent company. The research method of this study is mainly decision making, comparative analysis. In this study have been discussed the possibilities of international profit repatriation for supporting the decision making of the management of a Finnish parent company. In addition different repatriation possibilities have been compared. In this study has been noticed that a Finnish parent company can repatriate profit of its Polish subsidiary either directly as dividends or by using indirect methods such as interests, royalties, management fees and transfer pricing of goods. The total tax burden of dividends is heavier than the tax burden of indirect methods. It was also concluded that during the last years the Polish legislation has been renewed in order to prevent hidden dividend distribution. This has been done by implementing new rules of transfer pricing and thin capitalization.

Corporate Social and Regional Responsibility - The View of Small and Medium-sized Enterprises

The objective of this research was to understand and describe what corpo-rate social and regional responsibility is in SMEs and define the meaning of these concepts to the community and region. Corporate social respon-sibility (CSR) creates a basis for regional responsibility. Regional respon-sibility is a new concept and this research examines it from SMEs’ view-point. This is a theoretical research and the aim is to create a theoretical framework of SMEs’ corporate social and regional responsibility. This framework supports the future research on the subject. The research results show that CSR of SMEs is practical, informal and dependent on the scarce resources of SMEs. CSR is a complex and deep concept and SMEs have their own way of interpreting it. It can be stated that CSR-practises in SMEs are closely connected to employment, envi-ronment, community and supply chain. The challenge is to find motivation to socially and regionally responsible behaviour in SMEs. Benefiting from responsible behaviour and the attitude of SME’s owner-manager are the key reasons for SMEs to involve in CSR and regional responsibility. The benefits of this involvement are for example improved image, reputation and market position. CSR can also be used in SMEs as risk management tool and in cost reduction. This study indicates also that creation of strate-gic partnerships, local government participation, a proper legal system and financial support are the basic issues which support CSR of SMEs. This research showed that regional responsibility of SMEs includes active participation in regional strategy processes, L&RED initiatives and regional philanthropy. For SMEs regional responsibility means good relationships with the community and other related stakeholders, involvement in L&RED initiatives and acting responsibly towards the operating environment. In SMEs’ case this means that they need to understand the benefits of this kind of involvement in order to take action and participate. As regional responsibility includes the relationships between firm and the community, it can be stated that regional responsibility extends CSR’s view of stakeholders and emphasises both, the regional stakeholders and public-private partnerships. Community engagement and responsible be-haviour towards community can be seen as a part of SMEs’ social and regional responsibility. This study indicates that social and regional re-sponsibility of SMEs have a significant influence on the community and region where they are located. Better local and regional relationships with regional and community actors are the positive impacts of social and re-gional responsibility of SMEs. Socially and regionally responsible behav-iour creates a more positive environment and deepens the involvement of SMEs to community and L&RED initiatives.

A Diagnostic view of the Genetics of CASADIL

Cerebral autosomal dominant arteriopathy with subcortical infarcts and leukoencephalopathy (CADASIL, OMIM #125310) is an inherited vascular disease. The main symptoms include migraineous headache, recurrent strokes and progressive cognitive impairment. CADASIL is caused by mutations in the NOTCH3 gene which result in degeneration of vascular smooth muscle cells, arteriolar stenosis and impaired cerebral blood flow. The aims of this study were assessment of the genetic background of Finnish and Swedish CADASIL patients, analysis of genetic and environmental factors that may influence the phenotype, and identification of the optimal diagnostic strategy. The majority of Finnish CADASIL patients carry the p.Arg133Cys mutation. Haplotype analysis of 18 families revealed a region of linkage disequilibrium around the NOTCH3 locus, which is evidence for a founder effect and a common ancestral mutation. Despite the same mutational background, the clinical course of CADASIL is highly variable between and even within families. The association of several genetic factors with the phenotypic variation was investigated in 120 CADASIL patients. Apolipoprotein E allele 4 was associated with earlier occurrence of strokes, especially in younger patients. Study of a pair of monozygotic twins with CADASIL revealed environmental factors which may influence the phenotype, i.e. smoking, statin medication and physical activity. Knowledge of these factors is useful, since life-style choices may influence the disease progression. The clinical CADASIL diagnosis can be confirmed by detection of either the NOTCH3 mutation or granular osmiophilic material by electron microscopy in skin biopsy, although the sensitivity estimates have been contradictory. Comparison of these two methods in a group of 131 diagnostic cases from Finland, Sweden and France demonstrated that both methods are highly sensitive and reliable.

Fuzzy subgroups, algebraic and topological points of view and complex analysis

Fuzzy subsets and fuzzy subgroups are basic concepts in fuzzy mathematics. We shall concentrate on fuzzy subgroups dealing with some of their algebraic, topological and complex analytical properties. Explorations are theoretical belonging to pure mathematics. One of our ideas is to show how widely fuzzy subgroups can be used in mathematics, which brings out the wealth of this concept. In complex analysis we focus on Möbius transformations, combining them with fuzzy subgroups in the algebraic and topological sense. We also survey MV spaces with or without a link to fuzzy subgroups. Spectral space is known in MV algebra. We are interested in its topological properties in MV-semilinear space. Later on, we shall study MV algebras in connection with Riemann surfaces. In fact, the Riemann surface as a concept belongs to complex analysis. On the other hand, Möbius transformations form a part of the theory of Riemann surfaces. In general, this work gives a good understanding how it is possible to fit together different fields of mathematics.

Small scale energy production in Helsinki Metropolitan area in emission trading point of view

Emission trading with greenhouse gases and green certificates are part if the climate policy the main target of which is reduce greenhouse gas emissions. The carbon dioxide and fine particle emissions of energy production in Helsinki Metropolitan area are calculated in this study. The analysis is made mainly by district heating point of view and the changes of the district heating network are assessed. Carbon dioxide emissions would be a bit higher, if the district heating network is expanded, but then the fine particle emissions would be much lower. Carbon dioxide emissions are roughly 10 % higher, if the district heating network is expanded at same rate as it has in past five years in the year 2030. The expansion of district heating network would decrease the fine particle emissions about 40 %. The cost of the expansion is allocated to be reduction cost of the fine particle emissions, which is considerably higher than the traditional reduction methods costs. The possible new nuclear plant would reduce the emissions considerably and the costs of the nuclear plant would be relatively low comparing the other energy production methods.

Earnings Management Shareholders point of view

This paper studies the relationship of earnings management and investors. Analysis of incentives reveals that most of them are opportunistic in nature. Unfortunately the investor would need insider information to distinguish between different forms of earnings management. Investors in some countries seem to devalue earnings when government body has signaled that earnings management might be involved, unfortunately without a clear signal the behavior seems reverse among non-institutional investors.

Success of service-intensive manufacturing firms - resource-based view

The main objective of this study is to examine the relationships between resources, competitive advantage and firm success. The study focuses, on one hand, on the financial performance of service-intensive manufac-turing firms against competitors with a lower service intensity and, on the other hand, on the resources as drivers for competitive advantage and success. The purpose of the theoretical part is to link the study in the field of the strategy research. The empirical part of the study is based on the quantitative analyses of the survey data collected from 50 major suppliers of industrial machinery and transportation equipment in Europe and North America. Results indicate that service-intensive manufacturing firms have performed better and their performance has been more stable vis-à-vis their peers. The main resources that differentiate service-intensive manufacturing firms from their non-service intensive competitors are service strategy and service-oriented top management. The analyses on the VRIO resources produced only a limited amount of information and solely service-centred culture appeared to be a rent generating resource.

SME internationalisation from a network perspective : an empirical study on a Finnish-Greek business network

The study examines the internationalisation process of a contemporary SME firm and explores the impact of its business network on this development. The objective of the study is to understand SME internationalisation and its dynamics from a network perspective. The purpose of this research project is to describe and explore the development process of a firm and its business network by identifying the changes, critical events and influence factors that form this development. It is a qualitative case study, which focuses on a Finnish focal firm and its respective business network as it expands into the Greek market. It is a longitudinal research process, which covers a period of time from 1994 to 2004. The empirical study concentrates on the paper trading and converting business. The study builds on the network theory and the framework provided by Johanson and Mattsson's (1988) model on network internationalisation. The incremental internationalisation theories and network theories form the theoretical focus. The research project is organised according to a process view. The focal firm evolves from a domestically-oriented small subsidiary into an internationally experienced company, which has activities in several market areas and numerous business networks in various market segments and product categories. The findings illustrate the importance of both the domestic and foreign business network context in a firm's internationalisation process. The results of the study suggest theoretical modifications on a firm's internationalisation process by broadening the perspective and incorporating the strategic context of a firm. The findings suggest that internationalisation process is a non-linear process, which does not have a deterministic order in its development. The findings emphasise the significance of relational networks, both managerial and entrepreneurial, for establishing position in foreign markets. It implies that a firm's evolution is significantly influenced by its business network and by critical events. Business networks gain coherence due to common goals and they use accumulated capabilities to exploit market opportunities. The business network sets constraints and provides opportunities, which makes the related decision making strategically important. The firm co-evolves with its business network. The research project provides an instrumental case study with a description of an SME internationalisation process. It contributes to existing knowledge by illustrating dynamics in an international business network and by pinpointing the importance of suppliers, customers, partners, ownerships and competition to the internationalisation process.