Determinants of cash holdings in Finnish industrial sector: measuring the impact of financial crisis 2007- 2010

This thesis studies cash and short term investments to net assets ratio of Finnish industrial companies during financial crisis, and how different firm specific and macro economical variables affect cash and short term investments. The data consists of quarter level interim reports. Regression analysis was used to find out the effects of different variables. Regression models were formed based on previous studies on cash holdings. It was found that firms studied held more cash during financial crisis than before it. Cash and short-term investments acted as substitute of net working capital. Leverage had a positive and significant relationship to cash and short term investment ratio. It was also found out that firms have a target cash and short term investments ratio.

Possibilities and challenges in utilization of information provided by Industrial Internet applications

Global digitalization has affected also industrial sector. A trend called Industrial Internet has been present for some years and established relatively steady position in businesses. Industrial Internet is also referred with the terminology Industry 4.0 and in consumer businesses IoT (Internet of Things). Eventually, trend consists of many traditionally proven technologies and concepts, such as condition monitoring, remote services, predictive maintenance and Internet customer portals. All these technologies and information related to them are estimated to change the rules of business in industrial sector. This may result even a new industrial revolution. This research has its focus on Industrial Internet products, services and applications. The study analyses four case companies and their digital service offerings. According to this analysis the comparison of these services is done to find out if there is still space for companies to gain competitive advantage through differentiation with these state of the art solutions. One of the case companies, Case Company Ltd., is working as a primary case company and a subscriber of this particular research. The research and results are analyzed primarily from this company’s perspective and need. In empirical part, the research clarifies how Case Company Ltd. has allocated its development resources through last five years. These allocations in certain categories are then compared to other case companies’ current customer offering and conclusions are made how the approach of different companies differ from each other. Existing theoretical knowledge of Industrial Internet is about to find its shape. In this research we take a look how the case company analysis and findings correlate with the existing knowledge and literature of the topic.

Kustannustehokkuuteen tähtäävä alihankinnan kehittäminen

Työn tavoitteena oli kehittää metalliteollisuusyrityksen tarpeisiin menetelmä jolla alihankintaa kehitetään kustannustehokkuustavoitteita vastaavaksi. Selkeillä ja avoimilla toimintaperiaatteilla pyritään luomaan edellytykset alihankintaverkoston yritysten kehitykselle ja tehokkaalle osto- ja tuotantopäätöstoiminnalle. Tarve kehittää konepajayrityksen alihankintana teetettävää osavalmistusta on syntynyt kasvu- ja tulostavoitteista. Työn toimeksiantaja, metsäteollisuuden koneenrakennuksen lopputuotevalmistaja, pyrkii selkeyttämään sisäistä tuotantoaan ja nostamaan kapasiteettiaan valmiiden tuotteiden osalta. Näihin tavoitteisiin olennaisena osana kuuluu ydinosaamiseen keskittyminen ja alihankinnan suhteellinen lisääminen. Näin ollen alihankintaprosesseja on kehitettävä toimiviksi ja tehokkaiksi. Työssä on laadittu yrityksen tarpeisiin soveltuva toimintamalli, tavoiteasetannan mukaiseen alihankinnan kehittämiseen. Alihankinnan keskittäminen tuoteryhmittäin on pitkällä aikavälillä molempia osapuolia hyödyttävä valinta. Mallin toimenpiteiden avulla alihankinnan keskittämisellä saavutetaan etuja kustannustehokkuudessa, joustavuudessa sekä alihankintakentän selkeytymisessä.

Remote Condition Monitoring and Asset Management in Offshore Power Systems

Condition monitoring systems for physical assets are constantly becoming more and more common in the industrial sector. At the same time an increasing portion of asset monitoring systems are being remotely supported. As global competitors are actively developing solutions for condition monitoring and condition-based maintenance, which it enables, Wärtsilä too feels the pressure to provide customers with more sophisticated condition-based maintenance solutions. The main aim of this thesis study is to consider Wärtsilä remote condition monitoring solutions and how they relate to similar solutions from other suppliers and end customers’ needs, in the context of offshore assets. A theoretical study is also included in the thesis, where the concepts of condition monitoring, condition-based maintenance, maintenance management and physical asset management are introduced.

Challenges and Means for the Front End Activities of Software Development

The front end of innovation is regarded as one of the most important steps in building new software products or services, and the most significant benefits in software development can be achieved through improvements in the front end activities. Problems in the front end phase have an impact on customer dissatisfaction with delivered software, and on the effectiveness of the entire software development process. When these processes are improved, the likelihood of delivering high quality software and business success increases. This thesis highlights the challenges and problems related to the early phases of software development, and provides new methods and tools for improving performance in the front end activities of software development. The theoretical framework of this study comprises two fields of research. The first section belongs to the field of innovation management, and especially to the management of the early phases of the innovation process, i.e. the front end of innovation. The second section of the framework is closely linked to the processes of software engineering, especially to the early phases of the software development process, i.e. the practice of requirements engineering. Thus, this study extends the theoretical knowledge and discloses the differences and similarities in these two fields of research. In addition, this study opens up a new strand for academic discussion by connecting these research directions. Several qualitative business research methodologies have been utilized in the individual publications to solve the research questions. The theoretical and managerial contribution of the study can be divided into three areas: 1) processes and concepts, 2) challenges and development needs, and 3) means and methods for the front end activities of software development. First, the study discloses the difference and similarities between the concepts of the front end of innovation and requirements engineering, and proposes a new framework for managing the front end of the software innovation process, bringing business and innovation perspectives into software development. Furthermore, the study discloses managerial perceptions of the similarities and differences in the concept of the front end of innovation between the software industry and the traditional industrial sector. Second, the study highlights the challenges and development needs in the front end phase of software development, especially challenges in communication, such as linguistic problems, ineffective communication channels, a communication gap between users/customers and software developers, and participation of multiple persons in software development. Third, the study proposes new group methods for improving the front end activities of software development, especially customer need assessment, and the elicitation of software requirements.

Pk-yritysten ja korkeakoulujen (teknologia) T&K&I yhteistyön kehittäminen teollisuuden toimialoilla

The aim of this work is to develop entrepreneurship in university technology side. The means of SMEs is made in collaboration with the research development and innovation projects. At the same time supporting and enabling the growth of SMEs, the internationalization of higher education and increase student’s employability in SMEs. The aim is to create new startup companies with the help of co-operation both SMEs and universities, especially assist companies find the successor generation of change by improving interaction between the parties. The new growth oriented entrepreneurial business creation with help of SMEs will be seen more business supporting and opening more opportunities. Portfolio Entrepreneurship is a form of the company’s growth, even the size of company does not change so much. Portfolio Entrepreneurship is an alternative for entrepreneurs which do have possibilities to expand, but they do like keep it as family business. Variety can be seen in expansion if the SMEs have common interest to do so. Co-made projects, between SMEs and universities, are seen to be significantly affecting the wellbeing of society as a whole, and eve international level. Co-operation is considered to be also affected the quality of learning and teachers’ professional development. higher education supports the change of the supports to innovation when it is done with SMEs. Research material has been collected by interviewing the experts, who have already distinguished themselves in their field. Problem focused interviews as method gave the ways how the university students and SMEs can proceed and promote on industrial sector.

Palveluliiketoiminnan kehittäminen tuoteorientoituneessa teollisuuden yrityksessä

Työn tavoitteina oli (1) laatia prosessimalli teollisuuden palveluliiketoiminnan mahdollisuuksien kartoittamiseen sekä (2) rakentaa tuoteorientoituneelle yritykselle soveltuva palveluliiketoimintapolku, jota seuraamalla tunnistettu palveluliiketoiminnan potentiaali pystytään muuntamaan tulokselliseksi liiketoiminnaksi. Diplomityö toteutettiin Savonia-ammattikorkeakoulun hallinnoiman LEKA-hankkeen palveluliiketoiminnan tutkimusalueelle Pohjois-Savon teollisuusyrityssektorin tarpeet huomioiden. Työn teoreettisessa osiossa tarkasteltiin teollisuuden palveluliiketoiminnan perusteita, palveluliiketoiminnan kehittämistä tuoteorientoituneen yrityksen näkökulmasta sekä tunnettuja palvelujen kehittämisprosesseja ja työkaluja erityisesti konseptoinnin osalta. Empiirinen osuus keskittyi palveluliiketoiminnan kehittämiseen tapaustutkimuskohteena toimineessa tuoteorientoituneessa yrityksessä. Tutkimuksen tuloksena syntyi tapauskohtaisesti räätälöityvä konseptointiprosessimalli työkaluineen. Asiakkaat, työntekijät ja verkostokumppanit osallistuttavalla prosessilla palveluliiketoiminnan mahdollisuudet pystytään selvittämään luotettavasti riskit minimoiden. Lisäksi työn tuloksena luotiin tuoteorientoituneille yrityksille soveltuva palveluliiketoiminnan kehittämispolku, jossa palvelukonseptit toimivat alustana polun eri vaiheissa tehtäville päätöksille ja valinnoille sekä tarvittaville muutostoimenpiteille.

Syntyykö Suomeen puulaaksoja - Suomen puutuoteteollisuuden pk-yritysten tila ja tulevaisuus

Metsäteollisuus on tullut Suomeen ulkomaisen pääoman ja tietotaidon avulla vajaat kaksisataa vuotta sitten. Se on toiminut melkein koko jatkosodan jälkeisen ajan suojatussa ympäristössä ja ulkomaisesta kilpailusta riippumattomassa toimintaympäristössä. Kuten Porter ja muut ovat todistaneet, tällainen toimintaympäristö ei kehitä kansainvälisesti kilpailukykyistä teollisuutta globaaleilla markkinoilla. Liittyminen Euroopan unioniin ja sittemmin Euroopan rahaliittoon saattoi puunjalostusteollisuuden täysin uudenlaiseen kilpailutilanteeseen. Sama tapahtui myös alan pk-yrityksille, jotka olivat joutuneet toimimaan heikosti kilpailluilla raaka-ainemarkkinoilla. Tutkimus on tulevaisuudentutkimus, jossa tutkimusongelmia lähestytään kolmen teorian avulla. Porterin klusteriteoria tarjoaa mahdollisuuden arvioida metsäteollisuutta sekä kokonaisuutena että toimivana monimuotoisena organisaationa, jossa kustannukset ja hinta muodostuvat arvoketjun toimijoiden osakustannuksista. Bionomiateoria eli darvinistinen talousteoria testaa suomalaisen puunjalostusteollisuuden pk-yritysten kilpailukykyä ja paineita hakeutua edullisemmille toiminta- alueille. Evoluutioteoria tarkastelee sukupolvenvaihdoksen problematiikkaa. Sukupolvenvaihdoksen onnistuminen muodostuu puutoimialan elämän ja kuoleman kysymykseksi. Tämä on etenkin pk-yrityksiä kohtaava ongelma. Asiaa selvitettiin Mauno Rintalan suorittamalla kyselytutkimuksella Puuteollisuusyrittäjien jäsenistön keskuudessa. Ongelma johtuu suurista sodan jälkeen syntyneistä ikäluokista. Nämä vuosina 1945– 50 syntyneet ovat siirtymässä eläkkeelle vuosien 2005 ja 2015 välillä. Kyseisissä ikäluokissa yritystiheys on noin kaksi kertaa suurempi kuin sen jälkeisissä ikäluokissa. Suoritetun kyselyn sekä muiden suomalaisten ja kansainvälisten tutkimusten perusteella näyttää siltä, että eläkkeelle siirryttäessä vain noin 30 %:lla yrityksistä on jatkaja tiedossa suvusta tai lähipiiristä. Tämä merkitsee sitä, että 70 % eläköityvän ikäluokan omistamista yrityksistä poistuu pysyvästi markkinoilta. Suomessa poistuma merkitsee noin 40 % koko yritysvarannosta eli noin 80 000 yritystä. Tilastot toimivien yritysten määrästä ovat kuitenkin hyvin ristiriitaisia, joten todellista määrää on mahdoton arvioida. Noin suuren määrän poistuminen markkinoilta uhkaa jo hyvinvointivaltion perusrakenteita. Tutkimustulos edellyttää nopeita toimenpiteitä teollisten pkyritysten pelastamiseksi ja säilyttämiseksi Suomessa. Sukupolvenvaihdoksen onnistuminen on tässä prosessissa ensiarvoisessa asemassa. Kaikkien edellä mainittujen yritysten poistuminen markkinoilta edellyttäisi noin 400 000 uuden yrityksen perustamista, koska ainoastaan noin 20 % yrityksistä selviää ensimmäiset kolme vuotta. Tutkimukseen perustuen esitetään prosessimalli sukupolvenvaihdoksen suorittamiseksi. Suomen tärkeimmissä kilpailijamaissa valtioiden metsäomistus on määräävässä asemassa. Meillä metsät ovat yksityisessä omistuksessa ja vain pieni osa valtion omistuksessa. Puumarkkinat toimivat markkinatalouden ehdoilla ilman valtion ohjausta. Ongelmaksi on kehittymässä puun saanti. Metsänomistus on sukupolvien myötä hajaantunut hyvin pieniksi metsälöiksi. Nykyiset metsänomistajat asuvat kaupungeissa ja ovat pääosin palkkatyössä. He eivät ole samalla tavoin riippuvaisia puutuloista kuin heidän esi-isänsä. Metsäverotuksen uudistuminen lisää puun saannin epävarmuutta. Se on muuttumassa pinta-alaverotuksesta puun myynnin verotukseen. Puun myynti on vilkasta ennen järjestelmien vaihtumista ja vähäisempää sen jälkeen. Myös näitä ongelmia on pyritty ratkomaan uudenlaisen metsänomistusmallin avulla. Puuteollisuus on hyvin vanha teollisuudenala. Raaka-aine muodostaa määräävän osan kustannuksista. Muutokset ovat hitaita ja todelliset innovaatiot pitkäkestoisia. Uusia innovaatioita tapahtuu harvoin. Kannattavuutta parannetaan tuoteprosessien ja arvoketjujen kehittämisen kautta. Yhteiskunnan osuus alan kehittämisessä ja säilyttämisessä on ratkaiseva. Asioiden moninaisuus tekee tutkimuksen vaikeaksi, mutta sitäkin tärkeämmäksi kansantalouden kannalta. Tällaisissa suurissa murroksissa korostuu kaikkien päättävien tahojen henkinen valmius ja tahto tehdä oikeita ratkaisuja oikeaan aikaan.

Towards sustainable Iron- and steelmaking with economic optimization

The iron and steelmaking industry is among the major contributors to the anthropogenic emissions of carbon dioxide in the world. The rising levels of CO2 in the atmosphere and the global concern about the greenhouse effect and climate change have brought about considerable investigations on how to reduce the energy intensity and CO2 emissions of this industrial sector. In this thesis the problem is tackled by mathematical modeling and optimization using three different approaches. The possibility to use biomass in the integrated steel plant, particularly as an auxiliary reductant in the blast furnace, is investigated. By pre-processing the biomass its heating value and carbon content can be increased at the same time as the oxygen content is decreased. As the compression strength of the preprocessed biomass is lower than that of coke, it is not suitable for replacing a major part of the coke in the blast furnace burden. Therefore the biomass is assumed to be injected at the tuyere level of the blast furnace. Carbon capture and storage is, nowadays, mostly associated with power plants but it can also be used to reduce the CO2 emissions of an integrated steel plant. In the case of a blast furnace, the effect of CCS can be further increased by recycling the carbon dioxide stripped top gas back into the process. However, this affects the economy of the integrated steel plant, as the amount of top gases available, e.g., for power and heat production is decreased. High quality raw materials are a prerequisite for smooth blast furnace operation. High quality coal is especially needed to produce coke with sufficient properties to ensure proper gas permeability and smooth burden descent. Lower quality coals as well as natural gas, which some countries have in great volumes, can be utilized with various direct and smelting reduction processes. The DRI produced with a direct reduction process can be utilized as a feed material for blast furnace, basic oxygen furnace or electric arc furnace. The liquid hot metal from a smelting reduction process can in turn be used in basic oxygen furnace or electric arc furnace. The unit sizes and investment costs of an alternative ironmaking process are also lower than those of a blast furnace. In this study, the economy of an integrated steel plant is investigated by simulation and optimization. The studied system consists of linearly described unit processes from coke plant to steel making units, with a more detailed thermodynamical model of the blast furnace. The results from the blast furnace operation with biomass injection revealed the importance of proper pre-processing of the raw biomass as the composition of the biomass as well as the heating value and the yield are all affected by the pyrolysis temperature. As for recycling of CO2 stripped blast furnace top gas, substantial reductions in the emission rates are achieved if the stripped CO2 can be stored. However, the optimal recycling degree together with other operation conditions is heavily dependent on the cost structure of CO2 emissions and stripping/storage. The economical feasibility related to the use of DRI in the blast furnace depends on the price ratio between the DRI pellets and the BF pellets. The high amount of energy needed in the rotary hearth furnace to reduce the iron ore leads to increased CO2 emissions.

Quality, Productivity and Economy in Welding Manufacturing - Case Study: West Africa

This thesis studies quality, productivity and economy in welding manufacturing in West African states such as Ghana, Nigeria and Cameroon. The study consists of two parts: the first part, which forms the theoretical background, reviews relevant literature concerning the metal and welding industries, and measurement of welding quality, productivity and economy. The second part, which is the empirical part, aims to identify activities in the metal manufacturing industries where welding is extensively used and to determine the extent of welding quality, productivity and economy measurements in companies operating in the metal manufacturing industries. Additionally, the thesis aims to identify challenges that companies face and to assess the feasibility of creating a network to address these issues. The research methods used in the empirical part are the case study (qualitative) method and the survey (quantitative) method. However, the case study method was used to elicit information from companies in Ghana, while the survey method was used to elicit information from companies in Nigeria and Cameroon. The study considers important areas that contribute to creating awareness and understanding of the current situation of the welding industry in West Africa. These areas include the metal manufacturing industrial sector, metal products manufactured, metal production and manufacturing systems deployed, welding quality, productivity and economy measurement systems utilized, equipment and materials on the markets, general challenges facing companies in welding operations, welding technology programs and research in local universities, and SWOT analysis of the various West African states. The notable findings indicate that majority of the companies operate in the constructionindustrial sector. Also, majority of the companies are project manufacturing oriented, thus provide services to customers operating in the growing industries such as the oil and gas, mining, food and the energy industry. In addition, only few companies are certified under standards such as ISO 9001, ISO 3834, and OHSAS 18001. More so, majority of the companies employ manual welding technique, and shielded metal arc welding (SMAW) as the commonly used welding process. Finally, welder salary is about € 300 / month as of June 2013 and the average operations turnover of medium to large companies is about € 5 million / year as at 2012. Based on analysis of the results of the study, it is noted that while welding activities are growing, the availability of cheap labor, the need for company and welder qualification and certification, and the need to manufacture innovative products through developmental projects (transfer of welding expertise and technology) remain as untapped opportunities in the welding industry in the West African states. The study serves as a solid platform for further research and concludes with several recommendations for development of the West African welding industry.

Evaluating and improving demand forecast practices for B2B and B2C sectors

Demand forecasting is one of the fundamental managerial tasks. Most companies do not know their future demands, so they have to make plans based on demand forecasts. The literature offers many methods and approaches for producing forecasts. Former literature points out that even though many forecasting methods and approaches are available, selecting a suitable approach and implementing and managing it is a complex cross-functional matter. However, it’s relatively rare that researches are focused on the differences in forecasting between consumer and industrial companies. The aim of this thesis is to investigate the potential of improving demand forecasting practices for B2B and B2C sectors in the global supply chains. Business to business (B2B) sector produces products for other manufacturing companies. On the other hand, consumer (B2C) sector provides goods for individual buyers. Usually industrial sector have a lower number of customers and closer relationships with them. The research questions of this thesis are: 1) What are the main differences and similarities in demand planning between B2B and B2C sectors? 2) How the forecast performance for industrial and consumer companies can be improved? The main methodological approach in this study is design science, where the main objective is to develop tentative solutions to real-life problems. The research data has been collected from a case company. Evaluation and improving in organizing demand forecasting can be found in three interlinked areas: 1) demand planning operational environment, 2) demand forecasting techniques, 3) demand information sharing scenarios. In this research current B2B and B2C demand practices are presented with further comparison between those two sectors. It was found that B2B and B2C sectors have significant differences in demand practices. This research partly filled the theoretical gap in understanding the difference in forecasting in consumer and industrial sectors. In all these areas, examples of managerial problems are described, and approaches for mitigating these problems are outlined.

IT-toimittajan valinta pk-yrityksissä

Työssä tutkitaan pk-yritysten IT-toimittajan valintaan liittyviä tekijöitä. Tutkimuksella on kolme tavoitetta, jotka ovat tutkia tekijöitä, jotka liittyvät pk-yrityksen IT-toimittajan valintaan, mitkä tekijät ovat tärkeimmät IT-toimittajan valinnassa ja kuinka valinta IT-toimittajasta tehdään. Työ on tapaustutkimus, joka koostuu teoreettisesta kirjallisuusselvityksestä ja empiirisestä tapaustutkimuksesta. Empiirisen aineiston hankintaan on käytetty kvalitatiivista menetelmää. Tutkimustavoitteiden saavuttamiseksi suoritettiin kymmenen teemahaastattelua tutkimukseen mukaan valittujen kymmenen pk-yritysten kanssa. Haastattelut analysoitiin käyttäen sisällönanalyysiä, jossa käytettiin kirjallisuusselvityksen pohjalta valittuja kuutta eri näkökulmaa. Näkökulmiksi valittiin ostokäyttäytyminen, liiketoimintahyödyt, organisaation vaikutus, IT-toimittajasta koettu arvo, yrityksen IT-valmiudet ja IT-toimittajan ominaisuudet. Tutkimuksen perusteella IT-toimittajan valintaan liittyviä tekijöitä ovat yrityksen toimiala, ikä ja koko; organisaation resurssit, rakenne ja IT-osaaminen; IT-toimittajan tarjooma, ominaisuudet ja myyntitaidot; henkilökohtaiset suhteet, kuulopuheet ja sattumat. Tärkeimmiksi tekijöiksi IT-toimittajan valinnassa nousivat toimittajan nopeus reagoida asiakkaan tarpeisiin ja toimittajan luotettavuus. IT-toimittajat valitaan pk-yrityksissä vaihtelevasti joko kilpailuttamalla, tuttavuussuhteen, kuulopuheen tai tuntuman perusteella. IT-toimittajan valinnan tärkeys tulee korostumaan tulevaisuudessa pk-yrityksissä, jotka tulevat kukin toimialakohtaisesti kohtaamaan digitalisaation tuomat haasteet ja mahdollisuudet. Pk-yritysten tulisi keskittyä löytämään IT-toimittaja, joka auttaa heitä tulevaisuudessa kehittämään IT:tä yhä enemmän tukemaan heidän liiketoimintaa ja luomaan uusia mahdollisuuksia.

Static waves in corporate space : characterizing oscillating trading patterns in New York stock exchange

Various researches in the field of econophysics has shown that fluid flow have analogous phenomena in financial market behavior, the typical parallelism being delivered between energy in fluids and information on markets. However, the geometry of the manifold on which market dynamics act out their dynamics (corporate space) is not yet known. In this thesis, utilizing a Seven year time series of prices of stocks used to compute S&P500 index on the New York Stock Exchange, we have created local chart to the corporate space with the goal of finding standing waves and other soliton like patterns in the behavior of stock price deviations from the S&P500 index. By first calculating the correlation matrix of normalized stock price deviations from the S&P500 index, we have performed a local singular value decomposition over a set of four different time windows as guides to the nature of patterns that may emerge. I turns out that in almost all cases, each singular vector is essentially determined by relatively small set of companies with big positive or negative weights on that singular vector. Over particular time windows, sometimes these weights are strongly correlated with at least one industrial sector and certain sectors are more prone to fast dynamics whereas others have longer standing waves.

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.