Intra-organizational knowledge transfer in a Finnish multinational company

The ability of a multinational company to effectively transfer knowledge from one unit to another can create a great source of competitive advantage and is crucial for long-term success. However, in their attempts to disseminate existent knowledge across national boundaries, organizations encounter several obstacles. Especially challenging is the transfer of tacit knowledge, the most valuable kind, as it is embedded in the minds and the behavior of people. The purpose of this study is to identify the main factors and challenges to be considered in intra-organizational knowledge transfer and consequently develop a framework that could be utilized to improve the process. The research is of qualitative nature and it adopts an exploratory approach. The study was further conducted as an intensive single-case study through studying a Finnish multinational company, and the researcher adopted a role as a participant observant in the research setting. Other data collection methods include semi-structured interviews and an online survey. The research findings show that knowledge transfer is currently challenging within the international sales organization of the case company. The majority of knowledge is currently concentrated in the company headquarters, and it is not always systematically distributed to the regional offices abroad. The main factor affecting knowledge transfer seems to be the organizational culture, which does not support or encourage knowledge sharing. The company is struggling in having a common place for information and employees that lack proper social networks have difficulties accessing relevant knowledge. Some recommended improvement suggestions include the institutionalization of knowledge transfer by turning it into an articulated organizational goal, and the implementation of a reward system that includes soft factors, such as teamwork and knowledge sharing behavior. Furthermore, the organizational culture should be more open and supportive in order to reinforce trust. Individuals in regional offices should be given better support by offering them dedicated mentors and increasing the amount of expatriation. Finally, knowledge should actively be codified and stored in commonly shared platforms where it is easily accessible by all employees.

Towards Inter-organizational Working Capital Management

Working capital is an investment which is tied up into the inventories and accounts receivable and which is released with accounts payable. Due to the current business landscape with tightened financial conditions and finance markets, organizations emphasize efficient working capital management. With efficient working capital management, a company can reduce the need of finance, free up cash, increase profitability, improve liquidity, increase the efficiency of operations, and decrease (financing) costs. From the perspective of an individual company, efficient working capital management means decreasing inventory levels by shortening the cycle time of inventories, decreasing accounts receivable by shortening the trade credit terms and effective collection procedures, and increasing the level of accounts payable by paying the suppliers later. From an inter-organizational perspective, however, working capital should not be sub-optimized by a single company but holistic view to working capital management through the supply chain should be adopted to create value and improve performance together. The purpose of this research is to take academic research as well as practical management towards inter-organizational working capital management. The thesis discusses the benefits as well as mechanisms of working capital management in the inter-organizational context and has two main objectives: (1) to examine the effect of inter-organizational working capital management on performance in the value chain context and (2) to develop models of working capital management for internal as well as inter-organizational value chains. The results of the archival research conducted in the value chain of the pulp and paper industry and the value chain of the automotive industry indicate that companies can increase relative profitability by managing working capital comprehensively by taking into account all three components, and holistically though the value chain. Companies in the value chain benefit from different strategies in working capital management depending on the position of the company in the value chain. This can be taken into account in inter-organizational working capital management. The effects of inter-organizational working capital management actions on the financing costs of working capital were studied via simulations. Simulations also show that the value chain and individual companies benefit from an inter-organizational view to working capital management. Inter-organizational working capital management actions include for example: shortening the cycle time of inventories, reducing product costs, shifting inventories, shortening payment terms, and considering the cost of capital. The thesis also provides solutions for the practical requirements for tools to control working capital. The design science part of the research introduces the adjusted cash conversion cycle (ACCC) model for internal value chains, as well as models for working capital management in the inter-organizational value chain context: the working capital management model (WCMM) and the financial cycle time model (FCTM) designed in corporation and product levels respectively. This research contributes to literature on working capital management and interorganizational accounting. The research gives a holistic, inter-organizational view to the management of working capital. It advances the knowledge in working capital management on operational level, increases knowledge in the recently risen theme of supply chainoriented, collaborative working capital management, combines management accounting research with supply chain management research, and contributes to the demand of practical inter-organizational accounting methods. In addition, the research has strong practical focus as new managerial methods are introduced.

Situational awareness concept in a multinational collaboration environment : challenges in the information sharing framework

Technological capabilities are built to support different types of collaboration, and this gives the justification to widely observe, how activity environments are influenced by technology. Technology as an enabler can be addressed from different perspectives, other than merely technological. Dynamic, evolving environment is at the same time interesting but also challenging. As a multinational collaboration environment, the maritime surveillance is an good example of time critical and evolving environment, where technological solutions enable new ways of collaboration. Justification for the inspiration to use maritime environment as the baseline for understanding the challenges in creating and maintaining adequate level of situational awareness, derives from the complexity of the collaboration and information sharing environment elements, needed to be taken into account, when analyzing criticalities related to decision making. Situational awareness is an important element supporting decision making, and challenges related to it can also be observed in the maritime environment. This dissertation describes the structures and factors involved in this complex setting, found from the case studies that should be taken into account when trying to understand, how these elements affect the activities. This dissertation focuses on the gray area that is between a life threatening situation and normal everyday activities. From the multinational experimentation series case studies, MNE5 and MNE6 it was possible to observe situations that were not life threatening for the participants themselves, but not also basic every day activities. These case studies provided a unique possibility to see situations, where gaining of situational awareness and decision making are challenged with time critical crisis situations. Unfortunately organizations do not normally take the benefit from the everyday work to prepare themselves for possible emerging crisis situations. This dissertation focuses on creating a conceptual model and a concept that supports organizations – also outside the maritime community – to improve their ability to support gaining of situational awareness from the individual training level, all the way to changes in organizational structures in aiming for better support for decision making from the individual level to the highest decision making level. Quick changes and unpredictability are reality in organizations and organizations do not have the possibility to control all the factors that affect their functioning. Since we cannot be prepared for everything, and predict every crisis, individual activities inside teams and as a part of organizations, need to be supported with guidance, tools and training in order to support acting in challenging situations. In fact the ideology of the conceptual model created, lies especially in the aim of not controlling everything in beforehand, but supporting organizations with concrete procedures to help individuals to react in different, unpredictable situations, instead of focusing on traditional risk prevention and management. Technological capabilities are not automatically solutions for functional challenges; this is why it is justified to broaden the problem area observation from the technological perspective. This dissertation demonstrates that it is possible to support collaboration in a multinational environment with technological solutions, but it requires the recognition of technological limitations and accepting the possible restrictions related to technological innovations. Technology should not be considered value per se, the value of technology should be defined according to the support of activities, including strategic and operational environment evaluation, identification of organizational elements, and taking into account also the social factors and their challenges. Then we are one step closer to providing technological solutions that support the actual activities by taking into account the variables of the activity environment in question. The multidisciplinary view to approach the information sharing and collaboration framework, is derived especially from the complexity of decision making and building of situational awareness, since they are not build or created in vacuity, but in the organizational framework by the people doing it with the technological capabilities, enabled by the organizational structures. Introduced case studies were related to maritime environment, but according to the research results, it is valid to argue, that based on the lessons learned it is possible to create and further develop conceptual model and to create a general concept to support a wider range of organizations in their attempt to gain better level of situational awareness (SA) and to support decision making. To proof the versatile usage of the developed concept, I have introduced the case study findings to the health care environment and reflected the identified elements from the trauma center to the created concept. The main contribution to complete this adventure is the presented situational awareness concept created in the respect to NATO concept structure. This has been done to tackle the challenge of collaboration by focusing on situational awareness in the information sharing context by providing a theoretical ground and understanding, of how these issues should be approached, and how these elements can be generalized and used to support activities in other environments as well. This dissertation research has been a several year evolving process reflecting and affecting presented case studies and this learning experience from the case studies has also affected the goals and research questions of this dissertation. This venture has been written from a retro perspective according to ideology of process modeling and design rationale to present to the reader how this entire journey took place and what where the critical milestones that affected the end result, conceptual model. Support in a challenging information sharing framework can be provided with the right type of combination of tools, procedures and individual effort. This dissertation will provide insights to those with a new approach to war technology for the organizations to gain a better level of awareness and to improve the capabilities in decision making. This dissertation will present, from the war technology starting point, a new approach and possibility for the organizations to create a better level of awareness and support for decision making with the right combination of tools, procedures and individual effort.

The role of customer perspective in organizational renewal. A comparative case study of knowledge-intensive business services.

The objective of this thesis was to study organizational renewal from the customer orientation perspective. Customer orientation is divided into customer relationship management and customer knowledge, which both are important components of customer related organizational renewal capabilities. The study was conducted in knowledge intensive business service firms, which are required to renew their strategy, operations and processes constantly in order to gain and sustain competitive advantage. In the empirical research, two companies were studied, both offering services to their customers. The analysis was done in two phases; first each case was analyzed individually and then the cases were compared in a cross-case analysis. The most important finding was that customer orientation is considered important but it is not being utilized for organizational renewal in full capacity.

Knowledge, processes and relationships in organizational change: Understanding how to facilitate management of intellectual capital in diverse organization structures and cultures.

This study examined relationships of organizational dependencies, change management and developed intellectual knowledge resources, in different intellectual capital based development programs on ICT-sector. Study was carried out in a research context, where high degree of external organizational contingencies existed and lots of changes in several development programs had taken place in the last years. From a scientific perspective the main contribution was that evidence between relationships of organizational dependencies, change model portfolio and developed knowledge resources could be suggested. From managerial perspective the primary implication was that in situations where sustainable competitive advantage is pursued by means of increasing knowledge based productivity of labor, firms should seek to pursue organizational settings where external dependencies have minimal amount of effect.

Organisaatiomuutoksen jalkautuminen konepajayritykseen

Tutkimuksessa tarkasteltiin suomalaisen konepajayrityksen muutosprosessia, jossa se siirtyy yksilökeskeisestä tiimimäiseen toimintatapaan. Tavoitteena oli selvittää, missä asioissa organisaatio on onnistunut ja missä epäonnistunut muutosprosessissa. Tulosten pohjalta analysoitiin yrityksen muutosjohtamista ja muutosvastarinnan tekijöitä ja ideoitiin keinoja miten pysyvä muutos voitaisiin aikaansaada. Tutkimus on luokiteltavissa laadulliseksi tapaustutkimukseksi, jonka aineistona hyödynnettiin yrityksessä toteutettuja kyselytutkimuksia sekä niiden tulosten pohjalta muodostettujen puolistrukturoitujen yksilöhaastatteluiden lausumia. Tutkimus tarkasteli organisaatiota muutoksen alkutilanteessa ja noin vuosi muutoksen aloittamisen jälkeen, joten kyseessä oli toimintatutkimus. Vuoden aikana yrityksessä koettu muutos oli hyvin tiimikohtaista: toiset tiimit toimivat jo hyvinkin tiimimäisesti, mutta toiset tiimit olivat toteuttaneet tiimiytymistä lähinnä pakonomaisesti. Merkittävä syy vähäiseen muutokseen oli se, ettei johto ollut selkeästi viestinyt muutoksen välttämättömyydestä eikä kertonut mistä toiminnassa on kyse ja mitä sillä haetaan. Johtamisen olisi pitänyt myös olla selkeämmin ihmisten johtamista huomioiden yksilöiden motivointitekijöitä ja ryhmäkäyttäytymistä. Olennaista olisi myös kiinnittää enemmän huomiota työhyvinvointitekijöihin, jotta henkilöstö saadaan motivoituneeksi toimimaan yhteiseksi hyväksi.

Building organizational creativity – a multitheory and multilevel approach for understanding and stimulating organizational creativity

Organizational creativity is increasingly important for organizations aiming to survive and thrive in complex and unexpectedly changing environments. It is precondition of innovation and a driver of an organization’s performance success. Whereas innovation research increasingly promotes high-involvement and participatory innovation, the models of organizational creativity are still mainly based on an individual-creativity view. Likewise, the definitions of organizational creativity and innovation are somewhat equal, and they are used as interchangeable constructs, while on the other hand they are seen as different constructs. Creativity is seen as generation of novel and useful ideas, whereas innovation is seen as the implementation of these ideas. The research streams of innovation and organizational creativity seem to be advancing somewhat separately, although together they could provide many synergy advantages. Thereby, this study addresses three main research gaps. First, as the knowledge and knowing is being increasingly expertized and distributed in organizations, the conceptualization of organizational creativity needs to face that perspective, rather than relying on the individual-creativity view. Thus, the conceptualization of organizational creativity needs clarification, especially as an organizational-level phenomenon (i.e., creativity by an organization). Second, approaches to consciously build organizational creativity to increase the capacity of an organization to demonstrate novelty in its knowledgeable actions are rare. The current creativity techniques are mainly based on individual-creativity views, and they mainly focus on the occasional problem-solving cases among a limited number of individuals, whereas, the development of collective creativity and creativity by the organization lacks approaches. Third, in terms of organizational creativity as a collective phenomenon, the engagement, contributions, and participation of organizational members into activities of common meaning creation are more important than the individualcreativity skills. Therefore, the development approaches to foster creativity as social, emerging, embodied, and collective creativity are needed to complement the current creativity techniques. To address these gaps, the study takes a multiparadigm perspective to face the following three objectives. The first objective of this study is to clarify and extend the conceptualization of organizational creativity. The second is to study the development of organizational creativity. The third is to explore how an improvisational theater based approach fosters organizational creativity. The study consists of two parts comprising the introductory part (part I) and six publications (part II). Each publication addresses the research questions of the thesis through detailed subquestions. The study makes three main contributions to the research of organizational creativity. First, it contributes toward the conceptualization of organizational creativity by extending the current view of organizational creativity. This study views organizational creativity as a multilevel construct constituting both of individual and collective (group and organizational) creativity. In contrast to current views of organizational creativity, this study bases on organizational (collective) knowledge that is based on and demonstrated through the knowledgeable actions of an organization as a whole. The study defines organizational creativity as an overall ability of an organization to demonstrate novelty in its knowledgeable actions (through what it does and how it does what it does).Second, this study contributes toward the development of organizational creativity as multi-level phenomena, introducing developmental approaches that face two or more of these levels simultaneously. More specifically, the study presents the cross-level approaches to building organizational creativity, by using an approach based in improvisational theater and considering assessment of organizational renewal capability. Third, the study contributes on development of organizational creativity using an improvisational theater based approach as twofold meaning. First, it fosters individual and collective creativity simultaneously and builds space for creativity to occur. Second, it models collective and distributed creativity processes, thereby, contributing to the conceptualization of organizational creativity.

Social networks and networking facilitating internationalization: Experiences of two Finnish fashion companies

Background: Fashion is a dynamic and creative industry where larger retailers are enjoying international success. Small businesses however are struggling in the face of international expansion, as they lack the necessary resources and managerial know-how. The Finnish fashion industry has neither been able to develop the industry environment to support small and micro firms nor has Finland relevant finance or public domains, such as, seen in other Nordic countries. Networking has been recognized to facilitate organizational growth and international expansion in industries such as manufacturing and high technology. It has enabled smaller companies to gain resources, knowledge and experiences otherwise unattainable. Objective: The purpose of this study was to explore how networking has been utilized in the Finnish fashion industry. Particularly social relationships and networks are examined, as they emphasize the importance of individuals. Exploration on the past actions should also provide insight how networks and networking could be utilized and developed in the future. Main findings: It was discovered that the Finnish fashion industry (social) network is rather dense. This was mainly due to the small size of the Finnish market. In the early years of the establishment of the company, close contacts seemed to be utilized. As a company expands and extends its business, the relationships tended to move towards more utilitarian in nature. However, in some cases, the long term relationships had also affectionate features, such as trust and commitment. International networking was found to have positive impact on business opportunities. Participation to events, such as trade shows, was perceived as one of the best ways to meet new international contacts and to develop ones network. Active networking in the Finnish market, however, created both domestic and international opportunities. Furthermore, cooperation and open communication were discovered to facilitate innovation and projects. The public sector seemed to lack the interest in supporting the fashion industry according to the interviewees. The major issues for the fashion industry still concerned, among others, funding, administrative guidance and public support for developing the industry as a whole.

Empirical study on the adoption, use and effects of cloud-based testing

Cloud computing is a practically relevant paradigm in computing today. Testing is one of the distinct areas where cloud computing can be applied. This study addressed the applicability of cloud computing for testing within organizational and strategic contexts. The study focused on issues related to the adoption, use and effects of cloudbased testing. The study applied empirical research methods. The data was collected through interviews with practitioners from 30 organizations and was analysed using the grounded theory method. The research process consisted of four phases. The first phase studied the definitions and perceptions related to cloud-based testing. The second phase observed cloud-based testing in real-life practice. The third phase analysed quality in the context of cloud application development. The fourth phase studied the applicability of cloud computing in the gaming industry. The results showed that cloud computing is relevant and applicable for testing and application development, as well as other areas, e.g., game development. The research identified the benefits, challenges, requirements and effects of cloud-based testing; and formulated a roadmap and strategy for adopting cloud-based testing. The study also explored quality issues in cloud application development. As a special case, the research included a study on applicability of cloud computing in game development. The results can be used by companies to enhance the processes for managing cloudbased testing, evaluating practical cloud-based testing work and assessing the appropriateness of cloud-based testing for specific testing needs.

Managing Customer Issues through a Support Channel Network

The importance of after-sales service or service in general can be seen and experienced by customers every day with industrial as well as other non-industrial services or products. This dissertation, drawing on theory and experience, focuses on practical engineering implications, specifically the management of customer issues in the after-sales phase in the mobile phone arena. The main objective of this doctoral dissertation is to investigate customer after-sales issue management, specifically regarding mobile phones. The case studies focus on issue resolution time and the issue of corrective actions. This dissertation consists of a main body and four peer-reviewed journal articles and one manuscript currently under review by a peer-reviewed journal. The main body of this dissertation examines the elements of customer satisfaction, loyalty, and retention with respect to corrective actions to address customer issues and issue resolution time through literature and empirical studies. The five independent works are case studies supporting the thesis research questions. This study examines four questions: 1) What are the factors affecting corrective actions for customers? 2) How can customer issue resolution time be controlled? 3) What are the factors affecting processes in the service chain? and 4) How can communication be measured in a service chain? In this work, both quantitative and qualitative analysis methods are used. The main body of the thesis reviews the literature regarding the elements that bridge the five case studies. The case studies of the articles and surveys lean more toward the methodology of critical positivism and then apply the interpretive approach in interpreting the results. The case study articles employ various statistical methods to analyze and to interpret the empirical and survey data. The statistical methods were used to create a model that is useful for significantly optimizing issue resolution time. Moreover, it was found that samples for verifying issues provided by the customer neither improve the perceived quality of corrective actions nor the perceived quality of issue resolution time. The term “service” in this work is limited to the technical services that are provided by product manufacturers and after-sales authorized service vendors. On the basis of this research work, it has been observed that corrective actions and issue resolution time are associated with customer satisfaction and hence, according to induction theory, to customer loyalty and retention. This thesis utilizes knowledge of marketing and customer relationships to contribute to the existing body of knowledge concerning information and communication technology for after-sales service recovery of mobile terminals. The established models in the thesis contribute to the existing knowledge of the after-sales process of dealing with customer issues in the field of mobile phones. The findings suggest that process managers could focus more on communication and training provided to the staff as new technology evolves rapidly. The study also suggest the managers formulate strategies for how customers can be kept informed on a regular basis of the status of issues that have been escalated for corrective action. The findings also lay the foundation for the comprehensive objective to control the entire product development process, starting with conceptualization. This implies that robust design should be applied to the new products so that problems affecting customer service quality are not repeated. The objective will be achieved when the entire service chain from product development to the final user can be modeled and this model can be used to support the organization at all levels.

The Relationship of Organizational Culture, Employee Motivation and Innovativeness: Evidence from Finnish Technology Industries

The purpose of this thesis is to analyze the effects of tangible and intangible incentives on the dimensions of motivation and organizational innovativeness in the context of different organizational cultures. Theory suggests that an antecedent of innovativeness is individual creativity of employees, which is influenced by intrinsic motivation, flexible organizational structures, and transformational leadership. Empirical evidence for this research is derived from 424 respondents representing technology-driven industries in Finland. Data is collected through an online questionnaire and analyzed using SPSS statistics software. The results imply that intangible incentives and intrinsic motivation have an important role in determining organizational innovativeness. The positive relationships of intangible incentives, intrinsic motivation and innovativeness seem to be higher in flexible organizational cultures. As practical implications, managers should foster flexible organizational cultures that highlight employee empowerment. The motivating power of non-financial intrinsic incentives and recognition of good work should not be undermined when compared to tangible monetary rewards.

Challenges in managing large-scale agile software development transformation

Adapting and scaling up agile concepts, which are characterized by iterative, self-directed, customer value focused methods, may not be a simple endeavor. This thesis concentrates on studying challenges in a large-scale agile software development transformation in order to enhance understanding and bring insight into the underlying factors for such emerging challenges. This topic is approached through understanding the concepts of agility and different methods compared to traditional plan-driven processes, complex adaptive theory and the impact of organizational culture on agile transformational efforts. The empirical part was conducted by a qualitative case study approach. The internationally operating software development case organization had a year of experience of an agile transformation effort during it had also undergone organizational realignment efforts. The primary data collection was conducted through semi-structured interviews supported by participatory observation. As a result the identified challenges were categorized under four broad themes: organizational, management, team dynamics and process related. The identified challenges indicate that agility is a multifaceted concept. Agile practices may bring visibility in issues of which many are embedded in the organizational culture or in the management style. Viewing software development as a complex adaptive system could facilitate understanding of the underpinning philosophy and eventually solving the issues: interactions are more important than processes and solving a complex problem, such a novel software development, requires constant feedback and adaptation to changing requirements. Furthermore, an agile implementation seems to be unique in nature, and agents engaged in the interaction are the pivotal part of the success of achieving agility. In case agility is not a strategic choice for whole organization, it seems additional issues may arise due to different ways of working in different parts of an organization. Lastly, detailed suggestions to mitigate the challenges of the case organization are provided.