The Role of a firm’s mindset in international success - case study of Finnish marine industry firms

This thesis investigates the influence of a firm’s mindset on international success in the context of the Finnish marine industry. The study draws theoretical wisdom from organisational behaviour and strategic management literatures. The research aim set for this study was to identify and categorise existing strategic types based on mindsets found in the marine industry SMEs, and to link the influence of mindsets with success by examining the role of mindsets in a firm’s performance. Mindsets of firms were conceptualised as aggregate collections of perceptions that influence how the surrounding environment is discerned by the members of the firm. Mindsets are idiosyncratic to firms and therefore important firm-specific resources which influence decision-making and can be observed through the strategic behaviour of firms. Qualitative case study method was applied which was further supported by quantitative data on the financial performance of the ten case firms. Taxonomy based on the dimension of mindsets and prediction was developed to demonstrate four ideal types of firms identified within the marine industry. It was found that all of the case firms emphasised adaptation in their strategy while planning was emphasised to a varying degree. Moreover, two different methods of adapting were found; proactive and reactive. Firms which plan in the long-term and adapt proactively constantly investigate whether their plans are synchronous with the realities of the market; by having an open mindset, a firm’s perception of the reality of the market is enabling the firm to develop value creating strategies which are superiorly informed.This finding was supported by the financial data and led to the proposition that having an open mindset and placing a high level of emphasis on prediction may have a positive influence on international success. Also, it was proposed that concentrating only on exploiting business opportunities in the present time and not exploring any addition opportunities can have a negative influence on the firm’s performance, even if the mindset of the firm is open.

Modelling flexible asset management in industrial maintenance companies and networks

The tightening competition and increasing dynamism have created an emerging need for flexible asset management. This means that the changes of market demand should be responded to with adjustments in the amount of assets tied to the balance sheets of companies. On the other hand, industrial maintenance has recently experienced drastic changes, which have led to an increase in the number of maintenance networks (consisting of customer companies that buy maintenance services, as well as various supplier companies) and inter-organizational partnerships. However, the research on maintenance networks has not followed the changes in the industry. Instead, there is a growing need for new ways of collaboration between partnering companies to enhance the competitiveness of the whole maintenance network. In addition, it is more and more common for companies to pursue lean operations in their businesses. This thesis shows how flexible asset management can increase the profitability of maintenance companies and networks under dynamic operating conditions, and how the additional value can then be shared between the network partners. Firstly, I have conducted a systematic literature review to identify what kind of requirements for asset management models are set by the increasing dynamism. Then I have responded to these requirements by constructing an analytical model for flexible asset management, linking asset management to the profitability and financial state of a company. The thesis uses the model to show how flexible asset management can increase profitability in maintenance companies and networks, and how the created value can be shared in the networks to reach a win-win situation. The research indicates that the existing models for asset management are heterogeneous by nature due to the various definitions of ‘asset management’. I conclude that there is a need for practical asset management models which address assets comprehensively with an inter-organizational, strategic view. The comprehensive perspective, taking all kinds of asset types into account, is needed to integrate the research on asset management with the strategic management of companies and networks. I will show that maintenance companies can improve their profitability by increasing the flexibility of their assets. In maintenance networks, reorganizing the ownership of the assets among the different network partners can create additional value. Finally, I will introduce flexible asset management contracts for maintenance networks. These contracts address the value sharing related to reorganizing the ownership of assets according to the principles of win-win situations.

The accumulation of financial and social capital as a means to achieve a sustained competitive advantage for consumer co-operatives

By so far, scholars have discussed how the characteristics of consumer co-operatives (cooperative principles, values and the dual role of members as the users and owners) can potentially give them a competitive advantage over investor-owned firms (IOFs). In addition, concern for the community (as partly derived from locality and regionality) has been seen as a potential source of success for consumer co-operatives. On the other hand, the geographicbound purpose of consumer co-operation causes that consumer co-operative can be regarded as a challenging company form to manage. This is because, according to the purpose of consumer co-operation, co-operatives are obligated to 1) provide the owners with services and goods that are needed and do so at more affordable prices than their competitors do and/or 2) to operate in areas in which competitors do not want to operate (for example, because of the low profitability in certain area of business or region). Thus, consumer co-operatives have to operate very efficiently in order to execute this geographic-bound corporate purpose (e.g. they cannot withdraw from the competition during the declining stages of business). However, this efficiency cannot be achieved by any means; as the acceptance from the important regional stakeholders is the basic operational precondition and lifeline in the long run. Thereby, the central question for the survival and success of consumer co-operatives is; how should the consumer co-operatives execute its corporate purpose so it can be the best alternative to its members in the long run? This question has remained unanswered and lack empirical evidence in the previous studies on the strategic management of consumer cooperation. In more detail, scholars have not yet empirically investigated the question: How can consumer co-operatives use financial and social capital to achieve a sustained competitive advantage? It is this research gap that this doctoral dissertation aims to fulfil. This doctoral dissertation aims to answer the above questions by combining and utilizing interview data from S Group co-operatives and the central organizations in S Group´s network (overall, 33 interviews were gathered), archival material and 56 published media articles/reports. The study is based on a qualitative case study approach that is aimed at theory development, not theory verification (as the theory is considered as nascent in this field of study). Firstly, the findings of this study indicate that consumer co-operatives accumulate financial capital; 1) by making profit (to invest and grow) and 2) by utilizing a network-based organizational structure (local supply chain economies). As a result of financial capital accumulation, consumer co-operatives are able to achieve efficiency gains but also remain local. In addition, a strong financial capital base increases consumer co-operatives´ independence, competitiveness and their ability to participate in regional development (which is in accordance with their geographically bound corporate purpose). Secondly, consumer cooperatives accumulate social capital through informal networking (with important regional stakeholders), corporate social responsibility (CSR) behaviour and CSR reporting, pursuing common good, and interacting and identity sharing. As a result of social capital accumulation, consumer co-operatives are able to obtain the resources for managing; 1) institutional dependencies and 2) customer relations. By accumulating both social and financial capital through the above presented actions, consumer co-operatives are able to achieve sustained competitive advantage. Finally, this thesis provides useful ideas and new knowledge for cooperative managers concerning why and how consumer co-operatives should accumulate financial and social capital (to achieve sustained competitive advantage), while aligning with their corporate purpose.

Budgeting decision-making in Finnish municipalities

This master’s thesis examines budgeting decision-making in Finnish municipalities; an issue that has not received a lot of attention in the academic literature. Furthermore, this thesis investigates whether the current budgeting decision-making practices could be improved by using a new kind of budget decision-making tool that is based on presenting multiple investment or divestment alternatives simultaneously to the decision makers as a frontier, rather than one by one. In the empirical part of the thesis, the results from three case interviews are introduced in order to answer the research questions of the study. The empirical evidence of this thesis suggests that there is a need for the presented budgeting decision-making tool in Finnish municipalities. The current routine is seen as good even though the interviewees would warmly welcome the alternative method that would function as a linkage be-tween strategy and the budget. The results also indicate that even though municipalities are left with a lot of room in their budgeting decision-making routine, the routine closely, though not always purposely, follows given guidelines and legislation. The major problem in the current practices seems to be the lack of understanding, as the decision-makers find it hard fully to understand the multiplicative effects of the budget-related decisions.

Liiketoiminnan strateginen suunnittelu: Konesali-liiketoiminta

Tässä diplomityössä selvitettiin tukkuliikkeen liiketoimintamahdollisuuksia konesali-liiketoiminnassa. Päätutkimuskysymys oli: Millainen liiketoimintamalli soveltuu kestävään arvontuotantoon tukkuliikkeelle konesali-liiketoiminnassa? Työn teoriaosassa paneudutaan strategiseen suunnitteluun, liiketoimintamalleihin ja liiketoimintamallien suunnitteluun. Teoriaosan pohjalta johdettiin vaatimukset ja luotiin viitekehys liiketoimintamallien suunnittelulle. Ongelmanratkaisu aloitettiin toimintaympäristön analyysillä, jonka pohjalta tunnistettiin liiketoimintamahdollisuuksia. Kerättyä dataa analysoitiin erilaisilla analysointimenetelmillä liikemahdollisuuksien tunnistamiseksi. Tämän jälkeen tunnistettuja liiketoimintamahdollisuuksia arvioitiin ja kaikkein potentiaalisimmat ideat kehitettiin liiketoimintamalleiksi. Työn varsinaiset tulokset jakautuvat kolmeen osaan: Toimintaympäristön analyysiin, kehitettyihin konsepteihin ja suunnitelmaan konseptien käyttöönotosta. Toimintaympäristön analyysi sisältää makro- ja mikroympäristön analysoinnin, joita voidaan hyödyntää, jos jokin liiketoimintamalleista päätetään ottaa käyttöön. Toimintaympäristön analyysin perusteella voidaan tehdä johtopäätös, etteivät tukkuliikkeen resurssit sovellu perinteiseen konesaliliiketoiminnan arvontuotantoon. Tutkimuksen tärkein tulos on kuitenkin kehitetyt liiketoimintamallit, jotka pystyvät hyödyntämään olemassa olevia resursseja ja silti olemaan kilpailukykyisiä konesali-liiketoiminnassa.

Keskijohdon osaaminen strategian toteuttamisessa

Strategian määrittely ja suunnittelu on menestyvän yrityksen elinehto. Strategian toteuttaminen on yhtä tärkeää kuin sen suunnittelu. Tämän tutkimuksen tavoitteena oli selvittää millaisia tehtäviä yrityksen keskijohto tekee toteuttaessaan strategiaa sekä millaista osaamista ja tietoa tehtävät vaativat. Tutkimus suoritettiin laadullisena haastattelututkimuksena ja empiirinen aineisto kerättiin kuudella teemahaastattelulla. Haastateltaviksi valittiin kohdeyrityksen pää-toimialan keskijohto. Tutkimuksen tuloksena selvisi että kolme tärkeintä keskijohdon osaamista strate-gian toteuttamissa on vuorovaikutus ja johtaminen, resurssien allokointi ja muu-tosohjelmien toteuttaminen. Vuorovaikutuksen onnistumisessa on keskeistä keski-johdon sosiaaliset taidot. Keskijohdon tärkein strateginen työkalu on epämuodolli-nen vuorovaikutus. Suurin osa osaamisista sisältää hiljaista tietoa.

Evaluating the Strategic Objectives of Cameroonian Higher Education: An application of the Balanced Scorecard

Contemporary higher education operates in an environment of dwindling and parsimonious resources; the increasing need for accountability and relevance to varying stakeholders with differing expectations. These relatively new trends in higher education have been faced by business organizations which have developed different ways of operating in response. This study outlines one way by which business organizations have addressed similar circumstances to show how the Cameroon higher education (HE) could learn from business organizations to manage strategic objectives. The balanced scorecard (BSC) has been used by business organizations to address similar trends. This study evaluates the strategic objectives of Cameroonian higher education using the balanced scorecard. The system level is used to identify the general strategic objectives and one state university is used to represent the translation and implementation of the objectives at the institution level. The BSC principles used include: operational strategic objectives; organizational alignment to the strategy; making strategy everyone’s everyday job; making strategy continual and; mobilizing the leadership for change. The underlying concepts in these principles are communication, consensus, relevance, and a participatory approach. The study employs data from policy documents, relevant literature, websites and semi-structured interviews. The research approach is qualitative and the analyses are done by making meaning of phenomena in their natural contexts. The results show that there is a general knowledge of the strategic objectives but there is disagreement on the relevance of these objectives to HE and on the type of approaches used in implementing the objectives. It was also found that the relevant stakeholders are known, but not all the respondents agree on the importance of these stakeholders. All stakeholders do not have the same level of influence-the state is the most influential. Reporting is sufficiently done but there are insufficient provisions for feedback from stakeholders. The study concludes that the BSC principles can be applied to the management of strategic objectives in Cameroon HE. For Cameroonian higher education, it is recommended that the focus should be first, on developing tools for strategy before the strategy itself. Even though the need for the BSC is confirmed the context does not seem sufficiently ready to implement the BSC as a strategic management tool. The proposed BSC framework can only be used as a communication tool. The barriers to managing strategic objectives in Cameroon HE are related to the communication, consensus, clarity and relevance. However, the system has prospects for improved management and eventual adoption of the BSC as both a strategic management and communication tool. In line with other BSC applications to higher education, this study concluded that it is more feasible to apply the balanced scorecard to a single higher education institution than to a higher education system. The study makes a contribution to the BSC by showing how its principles can be used in a non-business context. The study also opens up possibilities for future research on the same topic in a different context or the same context with a wider scope (more institutions and respondents); the same study with a deeper focus on the interrelationships between the different strategic objectives (strategy maps). The study could also be extended by including the perspectives of the identified stakeholders who are not directly part of the higher education system but constitute the environment in which higher education operates.

Aineettomien riskien hallinta – case Itä-Suomen Biopankki

Aineeton pääoma nähdään organisaation keskeisenä kilpailutekijänä ja voimavarana. Se voi kuitenkin joissain tilanteissa olla organisaatiolle myös rasite tai jopa menestymistä heikentävä tekijä. Tutkimuksen tavoitteena oli laatia biopankin riskienhallinnalle malli, joka huomioi toimintaan vaikuttavat aineettomat riskitekijät ja toimii strategisena johtamisen ja toiminnan kehittämisen työvälineenä. Tutkimus toteutettiin tapaustutkimuksena, jossa käytettiin konstruktiivista tutkimusotetta. Biopankille luotiin konstruktio, riskienhallintamalli, jolla pyrittiin ratkaisemaan reaalimaailman ongelma ja samalla luomaan kontribuutiota tieteenalalle. Biopankki on uudentyyppinen organisaatio, joka kerää, hallinnoi ja säilyttää biologisia ihmisperäisiä näytteitä ja niihin liittyviä tietoja tulevaa tutkimusta varten. Toiminnan riskien taustasyyt ovat usein aineettomia, kuten toimintakulttuuri, asenne, osaaminen tai motivaatio. Tutkimuksessa löydettiin uusia biopankin toimintaan kytkeytyviä aineettomia riskejä koko aineettoman pääoman alueelta ja määriteltiin riskitasoihin perustuva lähestymistapa riskien hallintaan. Konstruktio aineettomien riskien hallintamalliksi sai selkeää vahvistusta tutkimuksen aineistosta, ja se voi toimia organisaation kehittämisen pohjana. Riskikartan luominen ja riskien arviointi ovat tekohetken poikkileikkauksia tilanteesta. Organisaation toiminta ja siihen kohdistuvat riskit ja mahdollisuudet muuttuvat ja kehittyvät. Riskien tunnistaminen lisää tietoa organisaatiosta ja sen toimintaympäristöstä, mikä luo puitteet myös uusien mahdollisuuksien tunnistamiselle. Sopivan riskienhallintamallin avulla voidaan löytää kilpailuetua suhteessa muihin organisaatioihin. Kilpailuetuna voi toimia myös muita parempi riskinkantokyky esimerkiksi toiminnan joustavuuden kautta.

Strategisen johdon dynaamiset kyvykkyydet tuoteinnovaation mahdollistajana healthtech-toimialalla

Tämän Pro Gradu –tutkielman tarkoituksena selvittää yritysten strategisen johdon roolia tuoteinnovaatioiden mahdollistajina. Tutkielmassa perehdytään dynaamisiin kyvykkyyksiin ja dynaamisiin johtamiskyvykkyyksiin tuoteinnovaatiotoiminnan taustalla healthtech-toimialalla. Tutkimuksen perustana on teoriakatsauksen pohjalta laadittu viitekehys, joka toimii pohjana tutkimuksen empiirisessä osuudessa. Viitekehys koostuu innovaatioteoriasta sekä dynaamisista kyvykkyyksistä, jotka ovat sensing-kyvykkyys, seizing-kyvykkyys ja reconfiguring-kyvykkyys. Kyvykkyyksien taustalta selvitetään minkälaisia prosesseja, rutiineja ja toimintatapoja yrityksillä, ja niiden strategisella johdolla, on tuoteinnovaatioiden johtamisessa. Tutkimuksessa empiriisessä osuudessa käytettiin tapaustutkimusta, jonka aineisto kerättiin tutkimuksen kohderyhmälle toteutuin teemahaastatteluin. Haastattelurunko koostui tutkielman viitekehyksen pohjalta. Teemahaastatteluiden litteroitu aineisto analysoitiin sisällönanalyysin keinoin, jonka jälkeen päädyttiin johtopäätöksiin siitä, minkälaisia prosesseja, rutiineja ja toimintatapoja kyvykkyyksien taustalla on, mikä on innovaatioiden rooli liiketoiminnalle, ja miten dynaamiset johtamiskyvykkyydet näyttäytyivät. Tärkeinpänä tutkimustuloksena havaittiin, että selkeitä teorian mukaisia rutiineja, prosesseja ja toimintatapoja löytyi niin uusien mahdollisuuksien havaitsemissa, niihin tarttumisessa kuin uhkilta suojautumisessa. Havaittiin myös, että toimialalla innovaatioiden rooli on korostunut.

Tiedon jakamiseen vaikuttavat tekijät asiantuntijatyössä

Yhteiskunnan muuttuessa entistä tietovaltaisemmaksi, tiedon jakaminen nähdään kaikkein merkittävimpänä tietoprosessina organisaation kehittymisen kannalta. Tässä pro gradu -tutkielmassa selvitettiin, mitkä tekijät vaikuttavat tiedon jakamiseen asiantuntijatyössä. Tutkimus toteutettiin tapaustutkimuksena ja aineisto analysoitiin teorialähtöisen sisällönanalyysin avulla. Tutkimuksen tulosten perusteella asiantuntijatyötä tekevien tiedon jakamiseen vaikuttavat tekjiät ovat sisäinen motivaatio, yksilöiden välinen luottamus sekä organisaation rakenne ja kulttuuri. Tutkimuksen mukaan työ itsessään palkitsee ja motivoi tiedon jakamiseen, mutta yksilöiden välillä tulee olla hyväntahtoisuuteen ja pätevyyteen liittyvää luottamusta. Organisaation hierarkkisuus, käytettävissä olevan ajan, yhteisöllisyyden ja arvostuksen puute heikentävät tiedon jakamista. Sitä vastoin organisaation avoin kulttuuri tukee tiedon jakamista. Rahallisen palkitsemisen ei nähty vaikuttavan tiedon jakamiseen.

Strategisen osaamisen johtaminen, casetutkimus energia-alan yrityksestä

Strateginen osaaminen on yrityksen strategian toteutumisen kannalta olennaista osaamista. Sen tunnistamista voidaan pitää koko strategisen osaamisen johtami-sen tärkeimpänä – ja vaikeimpana - vaiheena. Vasta sen jälkeen, kun strategiset osaamisalueet on tunnistettu, voidaan niitä menestyksekkäästi johtaa. Tämän tutkimuksen tavoitteena oli selvittää, mitkä tekijät vaikuttavat strategisen osaamisen tunnistamiseen ja johtamiseen. Tutkimus suoritettiin laadullisena tapaustutkimuksena energia-alan yrityksessä ja empiirinen aineisto kerättiin haastattelemalla konsernin johtoryhmän jäseniä. Tutkimustulos osoittaa, että strategisen osaamisen tunnistamisen ja johtamisen kannalta ratkaisevaa on yrityksen strategisten linjausten vieminen riittävän konk-reettiselle tasolle. Mitä turbulenssisempi toimintaympäristö on, sitä tiheämmin strategisen osaamisen kehittämisen suuntaa tulee tarkastella.

Co-operative acquisitions – the contextual factors and challenges for co-operatives when acquiring an investorowned firm

Mergers and acquisitions (M&As) have been seen as an important strategy in helping organizations to grow, gain access to new markets and resources, increase efficiency, and enable competitiveness in order to fulfil the purpose of the organization. These aspects have made M&As of central interest to academic literature. In co-operative studies mergers especially have been widely studied. The common focus of these studies is that M&As have taken place between organizations of the same form. It is noteworthy that there is a scarcity of literature concerning acquisitions between different organizational types. Moreover, M&As have not been evaluated concerning the organization’s ownership and purpose, which may be significant integration factors. The overall objective of this study is to describe and understand why co-operative organizations use acquisition as a strategic alternative. In more detail – and in order to develop understanding of the background ideals affecting the acquisition decision and the differences of organization ideals in the integration process – this study is based on a qualitative case study approach. By combining interview data gathered from the OPPohjola Group and associating the observations from various streams of research on acquisitions and management with the purpose of co-operation, and examining these issues further, the thesis contributes to the elaboration of theory in the field of the strategic management of co-operatives. The dissertation consists of two parts. The first part introduces the research topic, methods and publications, as well as discussing the overall outcomes. The second part consists of four publications that address the research questions from different viewpoints. The analyses of this dissertation indicate that, from the strategic point of view, the acquisition of an investor-owned firm by a co-operative organization may create competitive advantage for the co-operative. On the other hand, there are differences in and following from the purpose of acquirer and the acquiree that may, in such case, pose several challenges to the integration process.

Internal Changes in International New Ventures During Initial Internationalization: Finnish SMEs Operating in Dynamic High-tech Industries

The purpose of this qualitative research is to study how international new ventures change internally during initial internationalization. Based on the analysis of seven INV firms, a framework illustrating this change process, will be developed. This research will also develop earlier theories, and create a solid combination of existing theories to explain the phenomenon. INV firms internationalize more rapidly and aggressively than traditional MNEs. At the same, external and internal drivers cause changes in INVs culture, resources, capabilities, strategic management, and output decisions inside the company. Organizational learning and resource acquisition through international business networks explain how INVs are able to cope with the dynamic high-technology industry and be able to adapt. Internationalization of INVs proceeds through several phases, which may be gone through rapidly due to the network effects and INVs’ special characteristics. The results of this research revealed that INVs internal change process proceeds through four phases; pre-incorporation phase, product development phase, internationalization and growth phase, and maturation phase. INVs culture, resources, capabilities, strategic management, and outputs change significantly during initial internationalization, and INVs develop from small start-ups into fully established companies.

Taloudellinen kilpailija-analyysi osana strategista johdon laskentatoimea

Tämä kandidaatintutkielma käsittelee asiantuntijaorganisaatioiden tilinpäätöstietojen analysointia taloudellisen kilpailija-analyysin tekniikoita hyödyntäen. Tutkielman tavoitteena oli selvittää, miten kuudessa asiantuntijaorganisaatiossa on pyritty parantamaan tai säilyttämään saavutettu markkina-asema vuosina 2011–2014. Tutkimusmuotona käytettiin tilinpäätösanalyysia. Tutkielma on case-yrityksen toimeksiannosta toteutettu taloudellinen kilpailija-analyysi. Tutkimuksen teoriaosa käsittelee taloudellista kilpailija-analyysia osana strategista johdonlaskentatoimea. Teoreettinen viitekehys rakentuu taloudellisen kilpailija-analyysin tekniikoiden, sekä näitä koskevien empiiristen tutkimusten ympärille. Empiirinen osio jakautui kolmeen osaan, joista kaksi ensimmäistä käsittelivät case-yrityksen määrittelemän yritysjoukon seulomista muutaman taloudellisen tunnusluvun avulla. Varsinainen analyysin painopiste oli kuudelle yritykselle toteutetussa taloudellisessa kilpailija-analyysissa. Teorian pohjalta taloudellisen kilpailija-analyysin tutkimuskohteiksi valittiin kustannusrakenteet, kilpailuasema sekä tilinpäätöstiedot. Tutkielman tarkasteluajanjakso oli mielenkiintoinen, sillä vuosina 2011–2013 liikevaihtojen trendi oli jyrkästi laskeva, mutta vuonna 2014 yleisilme kääntyi nousevaksi. Tarkemman analyysin pohjalta johtopäätöksissä esiin nousivat kasvun ja kannattavuuden tunnusluvut. Opinnäytetyön tutkimustuloksissa havaittiin, että parhaiten tutkimuksen ajanjaksolla liikevaihtojen romahduksesta selvinneillä yrityksillä oli laaja-ansaintapohja sekä joustava kulurakenne. Kannattavuuden parhaiten säilyttäneet yritykset olivat tehneet runsaasti säästöjä henkilöstökuluissa, jotka muodostivat koko aineistossa suurimman osuuden kuluista. Vakavaraisuudeltaan vahvimmat yritykset eivät tehneet rajuja leikkauksia kulurakenteistaan, vaan sietivät muita pidempään heikkoa kannattavuutta.

Developing asset management in district heating and cooling business in a large energy company

The purpose of this Master´s Thesis is to develop asset management and its practices in case company. District heating and cooling systems operated by case company around Finland, Sweden, Poland and the Baltics form an enormous-sized asset base where some parts are starting to reach their end of life-cycles. Large-sized asset renewal actions are under discussion and maintenance spending is increasing. Financially justified decisions in changing business environment are needed. Asset management is one of the most important concepts for production organization which operates with capital-intensive production assets. Organizations profitability is highly dependent on assets´ performance. Such assets, like district heating and cooling systems, should be utilized as efficiently as possible within their life-cycles but also maintained and renewed optimally. In this qualitative thesis, empirical interview study was conducted to describe the current situation on how the assets are managed in the case company and to examine the readiness to implement a new, risk-based solution. Asset management revealed to be a very well-known concept. From proposed risk-based asset management point of view, several key observations were made. It was seen as a suitable solution, but further development will be needed. Based on the need and findings, several key processes and frameworks were created and also tested with a case study. Assets` condition monitoring should be improved, which would have a positive impact on event probability assessment. Risk acceptance is also a thing to be discussed further. When the evaluation becomes fluent in single investment cases, portfolio-level expansion should be considered and started. As a result, thesis proposes a solution how risk-based asset management could be performed practically in a capital-intensive case company in order to optimize the maintenance spending in a long run. Created practical framework is made universal: similar principles can be applied into multiple cases in case company but also in other energy companies. Risk-based asset management`s benefits could be utilized best in portfolio-level optimization where the capital would be invested to the most important objects from total risk point of view. Eventually, such approach would allow case company to optimize capital spending in a situation where funds are not adequate to cover all the mandatory needs and prioritization between the investment alternatives will truly be needed.