Network effects: Scale development and implications for new product performance

More and more innovations currently being commercialized exhibit network effects, in other words, the value of using the product increases as more and more people use the same or compatible products. Although this phenomenon has been the subject of much theoretical debate in economics, marketing researchers have been slow to respond to the growing importance of network effects in new product success. Despite an increase in interest in recent years, there is no comprehensive view on the phenomenon and, therefore, there is currently incomplete understanding of the dimensions it incorporates. Furthermore, there is wide dispersion in operationalization, in other words, the measurement of network effects, and currently available approaches have various shortcomings that limit their applicability, especially in marketing research. Consequently, little is known today about how these products fare on the marketplace and how they should be introduced in order to maximize their chances of success. Hence, the motivation for this study was driven by the need to increase our knowledge and understanding of the nature of network effects as a phenomenon, and of their role in the commercial success of new products. This thesis consists of two parts. The first part comprises a theoretical overview of the relevant literature, and presents the conclusions of the entire study. The second part comprises five complementary, empirical research publications. Quantitative research methods and two sets of quantitative data are utilized. The results of the study suggest that there is a need to update both the conceptualization and the operationalization of the phenomenon of network effects. Furthermore, there is a need for an augmented view on customers’ perceived value in the context of network effects, given that the nature of value composition has major implications for the viability of such products in the marketplace. The role of network effects in new product performance is not as straightforward as suggested in the existing theoretical literature. The overwhelming result of this study is that network effects do not directly influence product success, but rather enhance or suppress the influence of product introduction strategies. The major contribution of this study is in conceptualizing the phenomenon of network effects more comprehensively than has been attempted thus far. The study gives an augmented view of the nature of customer value in network markets, which helps in explaining why some products thrive on these markets whereas others never catch on. Second, the study discusses shortcomings in prior literature in the way it has operationalized network effects, suggesting that these limitations can be overcome in the research design. Third, the study provides some much-needed empirical evidence on how network effects, product introduction strategies, and new product performance are associated. In general terms, this thesis adds to our knowledge of how firms can successfully leverage network effects in product commercialization in order to improve market performance.

Vältä tutkimuksen seksismiä

Kirjallisuusarvostelu

Saimaan korkeakoululiikunta - Palvelukonseptin suunnittelu, budjetointi ja toteuttaminen

Työn tavoitteena oli suunnitella korkeakoululiikunnan palvelukonsepti, jonka tärkein tehtävä on edistää korkeakoulukampuksen opiskelijoiden opiskelukykyä, hyvinvointia, terveyttä ja yhteisöllisyyttä monipuolisia liikunta- ja hyvinvonitipalveluja tuottamalla. Merkittävimmät tulokset empiriaosuudessa saatiin haastattelu- ja kyselytutkimuksilla, jotka toteutettiin korkeakoululiikuntakonseptin paikallisille käyttäjille ja kahden vertaisoppimispaikkakunnan korkeakoululiikunnan työntekijöille. Tämän aineiston ja jo olemassa olevien teoreettisten viitekehysten avulla pystyttiin suunnittelemaan paikallinen, käyttäjälähtöinen konsepti. Tutkimus sisälti myös erillisten teorioiden ja empiiristen havaintojen yhdistämistä. Työn tuloksena syntynyt palvelukonsepti toteutettiin soveltavalla tutkimuksella, missä yhdisteltiin erilaisia tutkimusmetodeja tavoitteena olleen lopputuloksen saamiseksi. Tuotoksena tässä tutkimuksessa saatiin rakennettua käyttäjälähtöinen ja monipuolinen korkeakoululiikuntakonsepti, jonka toiminta on suunniteltua ja ohjattua. Työssä esitellään myös toimenpide-ehdotukset, joilla suunniteltu liikunta- ja hyvinvointipalveluja sisältävä konsepti voidaan ottaa käyttöön.

Role of Capabilities in Purchasing and Supply Management Performance

The objective of this thesis was to study the role of capabilities in purchasing and supply management. For the pre-understanding of the research topic, purchasing and supply management development and the multidimensional, unstructured and complex nature of purchasing and supply management performance was studied in literature review. In addition, a capability-based purchasing and supply management performance framework were researched and structured for the empirical research. Due to the unstructured nature of the research topic, the empirical research is three-pronged in this study including three different research methods: the Delphi method, semi-structured interview, and case research. As a result, the purchasing and supply management capability assessment tool was structured to measure current level of capabilities and impact of capabilities on purchasing and supply management performance. The final results indicate that capabilities are enablers of purchasing and supply management performance, and therefore critical to purchasing and supply performance.

Palvelun laatu tapahtumatuotantoyksikössä

Palvelun laatu on monimuotoinen asetelma, johon vaikuttavat palveluntarjoajan ja asiakkaan yhteistoiminta, kuten myös vuorovaikutustekijät. Kuitenkaan asiakasnäkökulmasta katsottuna palvelun laadun arviointi ei liity ainoastaan yhteen tekijään, vaan koko tuotantoprosessin aikana tapahtuviin asioihin, jota palveluntarjoaja ja asiakas yhdessä toteuttavat. Tämän tutkimuksen aihealue keskittyy siihen millainen on tapahtumatuotantoyksikön palvelun laatu, mitkä tekijät tähän vaikuttavat ja mitkä tekijät nousevat esille erityisen voimakkaina. Keskeisemmät teoriataustat liittyvät palvelun ja tavaratuotannon eroavaisuuksiin, palvelun prosessimaiseen luonteeseen, asiakasarvoon, sekä palvelun laadun eri näkökulmiin. Palvelun laatua tässä tutkimuksessa tarkastellaan mallinnetun tapahtumatuotantoyksikön palveluprosessin myötä, jonka kuvaamiseen hyödynnetään Service Blueprinting tekniikkaa. Teoriaosuudessa keskitytään tarkastelemaan palvelun laadun erilaisia malleja, joiden myötä myös tämän tutkimuksen mittaamiselle saatiin luotua oma pohja. Tutkimuksen tiedonkeruumenetelmänä käytetään aineistotriangulaatiota. Tutkimuksen ensimmäisessä vaiheessa käytetään kvantitatiivista tutkimusmenetelmää, kyselylomakkeen muodossa ja toisessa vaiheessa kvalitatiivista tutkimusmenetelmää, teema- ja puolistrukturoidun haastattelun muodossa. Tutkimuksen tulokset kertovat tapahtumatuotantoprosessin palvelu laadun tilan, sekä siihen sisältyvät vahvuudet ja heikkoudet. Myös tapahtumatuotantotyöhön vaikuttavat palvelun laadun tekijät, tuotiin esille tutkimuksen kautta.

Organizational mechanisms and conditions of individuals for knowledge sharing in post-acquisition integration

The challenges of knowledge sharing after cross-border acquisitions are widely recognised. The study took a new view to the subject by applying a two-level framework provided by the knowledge governance approach. The purpose of the study was to investigate the effects of organizational mechanisms on the conditions of individuals for knowledge sharing in post-acquisition integration context. Qualitative research methods were used in this case study. Individual interviews were performed within an international firm after a recent cross-border acquisition. The results showed that integrators, the rotation of the personnel from the acquiring firm and visits and meetings enhance the conditions at the individual level for knowledge sharing after the acquisition. Respectively, strategic change, matrix structure and foreign HRM practices challenge the conditions at the individual level for knowledge sharing in the early post-acquisition integration phase. The findings are supported by the prior research on knowledge management in acquisitions. In particular, the study enlightens how organizational level actions influence the conditions of individuals for knowledge sharing. The study suggests that organizations should adjust organizational mechanisms to support the conditions of individuals, in order to promote knowledge sharing in the early phase of the integration.

Modern Metallic Materials for Arctic Environment

This thesis is part of the Arctic Materials Technologies Development –project, which aims to research and develop manufacturing techniques, especially welding, for Arctic areas. The main target of this paper is to clarify what kind of European metallic materials are used, or can be used, in Arctic. These materials include mainly carbon steels but also stainless steels and aluminium and its alloys. Standardized materials, their properties and also some recent developments are being introduced. Based on this thesis it can be said that carbon steels (shipbuilding and pipeline steels) have been developed based on needs of industry and steels exist, which can be used in Arctic areas. Still, these steels cannot be fully benefited, because rules and standards are under development. Also understanding of fracture behavior of new ultra high strength steels is not yet good enough, which means that research methods (destructive and non-destructive methods) need to be developed too. The most of new nickel-free austenitic and austenitic-ferritic stainless steels can be used in cold environment. Ferritic and martensitic stainless steels are being developed for better weldability and these steels are mainly developed in nuclear industry. Aluminium alloys are well suitable for subzero environment and these days high strength aluminium alloys are available also as thick sheets. Nanotechnology makes it possible to manufacture steels, stainless steels and aluminium alloys with even higher strength. Joining techniques needs to be developed and examined properly to achieve economical and safe way to join these modern alloys.

Hazard Risk Management in Large Nordic Companies' Operations in Russia

The objective of this research was to describe how Nordic companies manage hazard risks in their operations in Russia and how the local business environment is considered to affect the hazard risks. Research methods used in this research were literature review and expert interviews. Twelve Nordic industrial companies operating in different fields of industry were interviewed. Large Nordic companies typically guide risk management centralized from the parent company on behalf of the whole company group and the risk management standards and policies are integrated in all subsidiaries. Parent companies typically control hazard risk management in Russia by regular risk management reporting, auditing the Russian sites and by training local managers and employees to risk management work. Many companies have experienced several losses in the first years of operating in Russia before the risk management policies have been implemented in Russian subsidiaries. The companies have learned to take local characteristics better into account by experience and most companies are quite satisfied with their current risk management standards in Russia. The interviews indicate that companies experience especially the poor quality of infrastructure, some features in Russian organizational culture and high level of criminality to increase hazard risks in Russia. However, understanding these features and risks in the business environment makes the management of these risks possible. Risks related to infrastructure can be managed in advance by decreasing dependencies of infrastructure and considering the infrastructure quality already when planning the business operations. Also good local network is often considered critical in order to overcome the complications related to infrastructure. Russian personnel has typically different attitude towards risk management than Nordic personnel and neglecting safety and maintenance and concealing losses is more typical in Russia. By training and guiding the local personnel risk management and safety work and desired ways of actions these risks can be decreased. Criminality risks are often managed to certain extent by investing in security, increasing supervising and paying attention to reliability of the employees and other interest groups of the company.

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Kirjallisuusarvostelu

Pienen kokoluokan CHP-tuotannon kannattavuus kunnallisen lämpölaitoksen yhteydessä

Fossiiliset polttoainevarannot ovat ehtymässä. Nykyisen talouskasvumme perustuessa fossiilisten polttoaineiden kestämättömään käyttöön, on energiantuotantorakenteen muututtava. Euroopan Unioni on asettanut tavoitteet uusiutuvan energian osuuden lisäämiseksi. Näistä syistä johtuen kiinnostus uusiutuvaa energiaa ja hajautettua energiantuotantoa kohtaan on kasvanut viime aikoina. Tämän globaalin ilmiön rinnalla yhteiskuntarakenteen muutos Suomessa on johtanut tilanteeseen, jossa taloudellinen aktiviteetti kasvukeskusten ulkopuolella on hiipumassa. Loogisena ratkaisumallina on syntynyt hankkeita kuten Keski-Karjalan Kehitysyhtiö Oy:n Puhos 2013 - ympäristöalasta uutta liiketoimintaa - hanke. Tämä työ on Puhos 2013 - hankkeeseen tilattu tutkimus, jonka tavoitteena on puuta ja biokaasua polttoaineenaan käyttävän mikroturbiinitekniikkaan pohjautuvan pienen kokoluokan CHP tuotannon kannattavuuden selvittäminen kunnallisen lämpölaitoksen yhteydessä. Tutkimuksessa selvitettiin aluksi pienen kokoluokan CHP tuotannon kannattavuuteen vaikuttavat tekijät, jonka jälkeen opittua tietoa sovellettiin Kiteen Lämmön Arppentien lämpölaitoksen tapaukseen. Kiteen Lämmön taloudellisen kannattavuuden ohella tutkimuksessa huomioitiin uusien liiketoiminta mahdollisuuksien syntyminen alueelle. Käytetyt tutkimusmenetelmät olivat kvalitatiivinen analyysi ja perinteinen investoinnin kannattavuuslaskenta. Tutkimuksen tuloksena muodostettiin strategia, joka maksimoi molemmat edellä mainitut kannattavuuden näkökulmat. Kehitetyn strategian Kiteen Lämmön tulosta maksimoiva osuus muodostuu oman käyttösähkön tuottamisen aloittamisesta Arppentien lämpölaitoksella 30 kWe mikroturbiinilla käyttäen polttoaineena Bio10 Oy:n toimittamaa biokaasua. Uusien liiketoiminta mahdollisuuksien synty alueelle mahdollistetaan puolestaan kehittämällä puun kaasutukseen perustuva modulaarinen CHP laitos yhteistyössä Mekrijärven tutkimusaseman ja suomalaisten laitevalmistajien kanssa.

Pikavipit – Kuluttajien riistoa vai tiukan valvonnan alla olevaa liiketoimintaa?

Pikavippi on nykykäsityksen mukaan vakuudeton, lyhytaikainen, euromääräisesti pienehkö luotto, joka hankitaan yleensä joko tekstiviestillä tai Internetissä täytettävällä hakemuksella. Luotto maksetaan hakijan tilille asiakkaan suostuttua luotontarjoajan ehtoihin luottotietojen tarkistuksen jälkeen. Tutkielmassa on selvitetty millainen oli lainsäädännöllinen lähtötilanne, kun pikavipit tulivat markkinoille. Lisäksi halusin selvittää lainsäätäjän toimia alaa kohtaan, sekä selvittää ovatko pikaluotot koronkiskontaa tai ovatko ne sitä joskus olleet. Tutkielma toteutettiin lainopillista ja de lege ferenda – menetelmiä käyttäen. Lainsäätäjä on tehnyt kaksi merkittävää lainmuutospakettia pikaluottoja kohtaan erityisesti kuluttajansuojan parantamiseksi. Pikaluotot eivät ole täyttäneet missään vaiheessa koronkiskonnan tunnusmerkistöä. Jos maksamattomat luotot päätyvät oikeuteen perittäviksi niin perintäkulut muodostuvat lain asettamien taulukkohintojen mukaisesti, vaikka kuluttajasta saattaa tuntua kohtuuttomalta maksaa suuria perintäkuluja. Mikäli pikaluotot kielletään, siirtynevät lyhytaikaisten pienluottojen markkinat ainakin osittain pimeille markkinoille tai tarjolle tulee lakia kiertäviä korvaavia lainatuotteita.

Improving product profitability control in continuous IT-services

The target of the thesis is to improve product profitability control in continuous IT-services. Accurate product cost accounting and correctly allocated revenues are a necessity for good product profitability control. The focus of the study is on costs and revenues that are not traced directly to services. The thesis is focused on revenue allocations as revenue allocation methods have not been used in the case company before. In order to achieve the target revenue allocation methods, which improve the product profitability accounting and control, are presented. The research methods used in the thesis are literature review and empirical case study. The research approach is constructive. The theoretical part is composed of literature and articles that create a base for the empirical part. Internal interviews describe the current situation in the company and based on it development actions are planned. The part of the empirical case study is seen mostly in the limitations as the research is limited to concern only one department in the company. Problems in the revenue tracing are caused by customer specific services and lack of service definitions because of which the revenues are not traced correctly. Methods to allocate revenues are presented in the thesis and stand-alone revenue allocation method is the most suitable one because it is fair and it can be modified. Approximate product profitability analysis is done in the thesis and the results of it indicate that some services are profitable and some unprofitable.

Eväitä ja ideoita matkailun visuaaliseen tutkimukseen

Kirjallisuusarvostelu

Information integration and its impacts on logistics performance - Using information technology and systems to facilitate information integration

Fast changing environment sets pressure on firms to share large amount of information with their customers and suppliers. The terms information integration and information sharing are essential for facilitating a smooth flow of information throughout the supply chain, and the terms are used interchangeably in research literature. By integrating and sharing information, firms want to improve their logistics performance. Firms share information with their suppliers and customers by using traditional communication methods (telephone, fax, Email, written and face-to-face contacts) and by using advanced or modern communication methods such as electronic data interchange (EDI), enterprise resource planning (ERP), web-based procurement systems, electronic trading systems and web portals. Adopting new ways of using IT is one important resource for staying competitive on the rapidly changing market (Saeed et al. 2005, 387), and an information system that provides people the information they need for performing their work, will support company performance (Boddy et al. 2005, 26). The purpose of this research has been to test and understand the relationship between information integration with key suppliers and/or customers and a firm’s logistics performance, especially when information technology (IT) and information systems (IS) are used for integrating information. Quantitative and qualitative research methods have been used to perform the research. Special attention has been paid to the scope, level and direction of information integration (Van Donk & van der Vaart 2005a). In addition, the four elements of integration (Jahre & Fabbe-Costes 2008) are closely tied to the frame of reference. The elements are integration of flows, integration of processes and activities, integration of information technologies and systems and integration of actors. The study found that information integration has a low positive relationship to operational performance and a medium positive relationship to strategic performance. The potential performance improvements found in this study vary from efficiency, delivery and quality improvements (operational) to profit, profitability or customer satisfaction improvements (strategic). The results indicate that although information integration has an impact on a firm’s logistics performance, all performance improvements have not been achieved. This study also found that the use of IT and IS have a mediocre positive relationship to information integration. Almost all case companies agreed on that the use of IT and IS could facilitate information integration and improve their logistics performance. The case companies felt that an implementation of a web portal or a data bank would benefit them - enhance their performance and increase information integration.