THE ROLE OF DYNAMIC CAPABILITIES IN THE INTERNATIONALIZATION OF MEDIUM SIZED FINNISH MANUFACTURING FIRMS - A case for Sormat Oy

A rapidly changing business environment has necessitated most small and medium sized enterprises with international ambitions to reconsider their sources of competitive advantage. To survive in the face of a changing business environment, firms should utilize their dynamic organizational capabilities as well as their internationalization capabilities. Firms develop a competitive advantage if they can exploit their unique organizational competences in a new or foreign market and also if they can acquire new capabilities as a result of engaging in foreign markets. The acquired capabilities from foreign locations enhance the existing capability portfolio of a firm with a desire to internationalize. The study combined the research streams of SME organizational dynamic capability and internationalization capability to build a complete picture on the existing knowledge. An intensive case study was used for empirically testing the theoretical framework of the study and compared with the literature on various organizational capability factors and internationalization capabilities. Sormay Oy was selected because it is a successful medium sized company operating in Finland in the manufacturing industry which has a high international profile. In addition, it has sufficient rate of growth in sales that warrants it to engage internationally in matters such as, acquisitions, joint ventures and partnerships. The key findings of the study suggests that, medium sized manufacturing firms have a set of core competences arising from their organizational capabilities which were identified to be employee know how and relationship with stakeholders which aid the firm in its quest for attaining competitive advantage, ensuring production flexibility and gaining benefits present in a network. In addition, internationalization capabilities were identified under both the RAT test and CAT test whereby the primary findings suggests that, firms that outperform their competitors produce products that meet specific customer and country requirements, foresee the pitfalls of imitation brought about by the foreign local companies and members of a particular network through joint ventures, acquisitions or partnerships as well as those firms that are capable to acquire new capabilities in the foreign markets and successfully use these acquired capabilities to enhance or renew their capability portfolio for their competitive advantage. Additional significant findings under internationalization capabilities were discovered whereby, Sormay Oy was able to develop a new market space for its products despite the difficult institutional environment present in Russia.

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.

Colloquial Finnish in Subtitles – a Survey on the British Situation Comedy Peep Show

The use of dialects in audiovisual texts is increasing, but the use of standard language in Finnish subtitles is still the prevalent norm and seldom flouted. This may not be in the best interest of the audience as the way the characters speak – their idiolects – is very important for the atmosphere of the audiovisual text and widely used to give the characters personalities and background. This thesis studies whether the viewing experience could be enhanced by taking the characters’ idiolects into account in subtitling. The study was executed as a survey, and the respondents were recruited from social media and an university of applied sciences. A total of 113 respondents were divided into two groups: the experimental group (n=59) and the control group (n=54). Both groups were shown an excerpt of the British situation comedy Peep Show, but with different subtitles. In the experimental subtitles, three characters were given a written idiolect with a level of colloquial language corresponding to the spoken idiolect of the character, while the control subtitles followed the norm of using standard language. The questionnaire contained background questions, a Likert-scale question and open questions. The quantitative responses were analysed statistically through cross tabulation and Mann–Whitney U test or Kruskal-Wallis test (CI=95%, α=0,05). The results showed a statistically significant difference in keeping track on which of the characters was speaking for the benefit of the experimental subtitles. In the other items no statistically significant difference was found between the groups. In the open questions the use of colloquial language was mostly commented favourably.

PROTECTING TRADE SECRETS IN LITIGATION - THE IMPACT OF ARTICLE 9 OF THE EU TRADE SECRET DIRECTIVE ESPECIALLY ON FINNISH LAW

In November 2013 the European Commission issued the “Proposal for a Directive on the European Parliament and of the Council on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure” (referred to as “TSD”). The TSD offers minimum harmonisation and aims at promoting sharing of knowledge, and the exploitation of innovations on the Internal Market. The European Parliament adopted the TSD on April 14, 2016 and the EU Member States will have two years to implement it. The TSD includes a harmonised definition of a trade secret that builds on the definition provided in Article 39 of the TRIPS Agreement. Moreover, it also ensures the freedom of expression and information and the protection of whistle-blowers. Appropriate means of actions and remedies against unlawful acquisition, use and disclosure of trade secrets are also included, such as provisional and pecuniary measures, injunctions and corrective measures or allocation of damages. This study examines the protection of trade secrets in the course of litigation regulated in Article 9 of the TSD. Currently, the protection of trade secrets within the EU is fragmented especially in this regard, which makes companies reluctant to resort to litigation when a trade secret has unlawfully been misappropriated or it is suspected that a trade secret is being misused. The regulations in Article 9 expand only to the hearing in court. Such protection is welcomed and a step in the right direction. However, in my study I have found that in order for the protection to be sufficient there is a need to further establish measures to protect trade secrets during the entire process, from the filing of the claim to the end when the judgement is given. Consequently, I also discuss different measures that could be used to strengthen the protection of trade secrets before the hearing in court, as evidence are gathered.

Protecting Trade Secrets In Litigation The Impact of Article 9 of The EU Trade Secret Directive Especially on Finnish Law

In November 2013 the European Commission issued the “Proposal for a Directive on the European Parliament and of the Council on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure” (referred to as “TSD”). The TSD offers minimum harmonisation and aims at promoting sharing of knowledge, and the exploitation of innovations on the Internal Market. The European Parliament adopted the TSD on April 14, 2016 and the EU Member States will have two years to implement it. The TSD includes a harmonised definition of a trade secret that builds on the definition provided in Article 39 of the TRIPS Agreement. Moreover, it also ensures the freedom of expression and information and the protection of whistle-blowers. Appropriate means of actions and remedies against unlawful acquisition, use and disclosure of trade secrets are also included, such as provisional and pecuniary measures, injunctions and corrective measures or allocation of damages. This study examines the protection of trade secrets in the course of litigation regulated in Article 9 of the TSD. Currently, the protection of trade secrets within the EU is fragmented especially in this regard, which makes companies reluctant to resort to litigation when a trade secret has unlawfully been misappropriated or it is suspected that a trade secret is being misused. The regulations in Article 9 expand only to the hearing in court. Such protection is welcomed and a step in the right direction. However, in my study I have found that in order for the protection to be sufficient there is a need to further establish measures to protect trade secrets during the entire process, from the filing of the claim to the end when the judgement is given. Consequently, I also discuss different measures that could be used to strengthen the protection of trade secrets before the hearing in court, as evidence are gathered.

Translation – The fifth language skill? A comparison of the role of translation in Finnish lukio and the International Baccalaureate Diploma Programme

This study attempts to answer the question “Should translation be considered a fifth language skill?” by examining and comparing the use of translation as a language learning and assessment method in the national Finnish lukio curriculum and the curriculum of the International Baccalaureate Diploma Programme (IBDP). Furthermore, the students’ ability to translate and their opinions on the usefulness of translation in language learning will be examined. The students’ opinions were gathered through a questionnaire that was given to 156 students studying in either lukio or the IBDP in Turku and Rovaniemi. I present and compare the role of translation in selected language teaching and learning methods and approaches, and discuss the effectiveness of translation as a language learning method and an assessment method. The theoretical discussion provides the basis for examining the role of translation as a language learning method and an assessment method in the curricula and final examinations of both education programs. The analysis of the two curricula indicated that there is a significant difference in the use of translation, as translation is used as a language learning method and as an assessment method in lukio, but is not used in either form in the IB. The data obtained through the questionnaire indicated that there is a difference in the level of language competence between the lukio and IB students and suggested that the curriculum in which the student studies has some effect on his/her cognitive use of translation, ability to translate and opinions concerning the usefulness of translation in language learning. The results indicated that both groups of students used translation, along with their mother tongue, as a cognitive language learning method, and, contrary to the expectations set by the analysis of the two curricula, the IB students performed better in the translation exercises than lukio students. Both groups of students agreed that translation is a useful language learning method, and indicated that the most common dictionaries they use are bilingual Internet dictionaries. The results suggest that translation is a specific skill that requires teaching and practice, and that perhaps the translation exercises used in lukio should be developed from translating individual words and phrases to translating cultural elements. In addition, the results suggest that perhaps the IB curriculum should include the use of translation exercises (e.g., communicative translation exercises) in order to help students learn to mediate between languages and cultures rather than learn languages in isolation from each other.

A longitudinal study on the lexical sophistication and sentence length in Finnish upper secondary school students’ English compositions.

The aim of the present study was to find out the level of lexical sophistication and the mean length of sentences used in compositions written by Finnish upper secondary school students of English. In addition, the present study investigated the possible relationship between the two abovementioned variables. The study at hand was longitudinal: as data, a set of 50 compositions were collected in 2014 from the same writers both in the first and the final year of upper secondary school, 25 in the first year and 25 in the final year. In the analysis, an internet-based program called VocabProfile was utilized in order to find out the lexical sophistication of the investigated students. To find out the mean length of sentence and the relationship between these two, I used Microsoft Excel. Findings of the present study include a minor decrease in the use of less frequent vocabulary and a slight increase in the use of the two most frequently appearing thousand words of English: both of these changes were 1.99 percentage points. As for the mean length of sentence, it grew by 1.28 words during upper secondary school. As for the relationship between the two variables, no clear correlations could be found. It became, however, relatively clear that the topic of the composition might have an effect on the results. Thus more research is needed to fully see the effect of lexical sophistication and mean length of sentence on one another. In addition, future research would benefit greatly if all investigated students wrote on the same topic.

A recent change in size distribution of blue mussels (Mytilus edulis) in the western part of the Gulf of Finland

Markus Öst & Mikael Kilpi