SME internationalisation from a network perspective : an empirical study on a Finnish-Greek business network

The study examines the internationalisation process of a contemporary SME firm and explores the impact of its business network on this development. The objective of the study is to understand SME internationalisation and its dynamics from a network perspective. The purpose of this research project is to describe and explore the development process of a firm and its business network by identifying the changes, critical events and influence factors that form this development. It is a qualitative case study, which focuses on a Finnish focal firm and its respective business network as it expands into the Greek market. It is a longitudinal research process, which covers a period of time from 1994 to 2004. The empirical study concentrates on the paper trading and converting business. The study builds on the network theory and the framework provided by Johanson and Mattsson's (1988) model on network internationalisation. The incremental internationalisation theories and network theories form the theoretical focus. The research project is organised according to a process view. The focal firm evolves from a domestically-oriented small subsidiary into an internationally experienced company, which has activities in several market areas and numerous business networks in various market segments and product categories. The findings illustrate the importance of both the domestic and foreign business network context in a firm's internationalisation process. The results of the study suggest theoretical modifications on a firm's internationalisation process by broadening the perspective and incorporating the strategic context of a firm. The findings suggest that internationalisation process is a non-linear process, which does not have a deterministic order in its development. The findings emphasise the significance of relational networks, both managerial and entrepreneurial, for establishing position in foreign markets. It implies that a firm's evolution is significantly influenced by its business network and by critical events. Business networks gain coherence due to common goals and they use accumulated capabilities to exploit market opportunities. The business network sets constraints and provides opportunities, which makes the related decision making strategically important. The firm co-evolves with its business network. The research project provides an instrumental case study with a description of an SME internationalisation process. It contributes to existing knowledge by illustrating dynamics in an international business network and by pinpointing the importance of suppliers, customers, partners, ownerships and competition to the internationalisation process.

Webometric network analysis : mapping cooperation and geopolitical connections between local government administration on the web

Webben är en enorm källa för information. Innehållet på webbsidorna är en synlig typ av information, men webben innehåller även information av en annan typ, en mera gömd typ i form av sambanden och nätverken som hyperlänkarna skapar mellan webbsajterna och –sidorna som de kopplar ihop. Forskningsområdet webometri ämnar, bland annat, att skapa ny kunskap ur denna gömda information som finns inbyggt i hyperlänkarna samt att skapa förståelse för hurudana fenomen och förhållanden utanför webben kan finnas representerade i hyperlänkarna. Målet med denna forskning var att öka förståelse för användningen av hyperlänkar på webben och speciellt kommunernas användning av hyperlänkar. Denna forskning undersökte hur kommunerna i Egentliga Finland skapade och mottog hyperlänkar samt hurudana nätverk formades av dessa hyperlänkar. Forskningen kartlade nätverk av direkta länkar mellan kommunerna och av samlänkar till och från kommunerna och undersökte ifall dessa nätverk kunde användas för att undersöka geopolitiska förhållanden och samarbete mellan kommunerna i Egentliga Finland. De övergripande forskningsfrågorna som har besvarats i denna forskning är: 1) Från ett webometriskt perspektiv, hur använder kommunerna i Egentliga Finland webben? 2) Kan hyperlänkar (direkta länkar och samlänkar) användas för att kartlägga geopolitiska förhållanden och samarbete mellan kommuner? 3) Vilka är de viktigaste motiveringarna för att skapa länkar mellan, till och från kommunernas webbsajter? Denna forskning kom till ovanligt tydliga resultat för en webometrisk forskning, både när det gäller upptäckta geografiska faktorer som påverkar hyperlänkningarna och de klassificerade motivationerna för att skapa länkarna. Resultaten visade att de direkta hyperlänkarna mellan kommunerna kan användas för att kartlägga geopolitiska förhållanden och samarbete mellan kommunerna för att de direkta länkarna var motiverade av officiella orsaker och de var klart påverkade av distansen mellan kommunerna och av de ekonomiska regionerna. Samlänkningarna in till kommunerna visade sig fungera som ett mått för geografisk likhet mellan kommunerna, medan samlänkningarna ut från kommunerna visade potential för att kunna användas till för att kartlägga kommunernas gemensamma intressen. Forskningen kontribuerade även till utvecklandet av forskningsområdet webometri. En del av de viktigaste kontributionerna av denna forskning var utvecklandet av nya metoder för webometrisk forskning samt att öka kunskap om hur existerande metoder från nätverksanalys kan användas effektivt för webometrisk forskning. Resultaten från denna forskning och de utvecklade metoderna kan användas för snabba kartläggningar av diverse förhållanden mellan olika organisationer och företag genom att använda information gratis tillgängligt på webben.

Financial performance of segments in the intelligent home network

The goal of this study is to examine the intelligent home business network in order to determine which part of the network has the best financial abilities to produce new business models and products/services by using financial statement analysis. A group of 377 studied limited companies is divided into four examined segments based on their offering in producing intelligent homes. The segments are customer service providers, system integrators, subsystem suppliers and component suppliers. Eight different key figures are calculated from each of the companies to get a comprehensive view of their financial performances, after which each of the segments is studied statistically to determine the performances of the whole segments. The actual performance differences between the segments are calculated by using the multi-criteria decision analysis method in which the performances of the key figures are graded and each key figure is weighted according to its importance for the goal of the study. The results of this analysis showed that subsystem suppliers have the best financial performance. Second best are system integrators, third are customer service providers and fourth component suppliers. None of the segments were strikingly poor, but even component suppliers were rather reasonable in their performance; so, it can be said that no part of the intelligent home business network has remarkably inadequate financial abilities to develop new business models and products/services.

Harvesting and wood transport planning with SNAP III program (Scheduling and Network Analysis Program) in a pine plantation in Southeast Brazil

The objective of this study was to verify the potential of SNAP III (Scheduling and Network Analysis Program) as a support tool for harvesting and wood transport planning in Brazil harvesting subsystem definition and establishment of a compatible route were assessed. Initially, machine operational and production costs were determined in seven subsystems for the study area, and quality indexes, construction and maintenance costs of forest roads were obtained and used as SNAP III program input data. The results showed, that three categories of forest road occurrence were observed in the study area: main, secondary and tertiary which, based on quality index, allowed a medium vehicle speed of about 41, 30 and 24 km/hours and a construction cost of about US$ 5,084.30, US$ 2,275.28 and US$ 1,650.00/km, respectively. The SNAP III program used as a support tool for the planning, was found to have a high potential tool in the harvesting and wood transport planning. The program was capable of defining efficiently, the harvesting subsystem on technical and economical basis, the best wood transport route and the forest road to be used in each period of the horizon planning.

National Library and Library Network in Finland - Cooperation Being the Driving Force of Success

Kristiina Hormia-Poutasen esitys Danish Research Association -tapahtumassa Tanskassa 15.9.2011

Network effects: Scale development and implications for new product performance

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

Development of a social service in a multi-party network

Tämän pro gradu-tutkimuksen tarkoituksena oli tutkia monen toimijan sosiaalipalvelukehittäjäverkoston toimivuutta ja sen toimivuuteen vaikuttavia tekijöitä. Aihetta lähestyttiin erilaisten teoreettisten kokonaisuuksien kautta, joiden avulla saatiin luotua tutkimukselle pohja. Viitekehys tutkimukselle luotiin yhdistäen erilaisia teoreettisia aihealueita verkostoista, verkostojen johtamisesta ja palveluista. Tutkimuksessa korostuu motivaation, yhteisen, tarpeeseen perustuvan tavoitteen, sitoutumisen ja orkestroinnin merkitys verkostotoiminnassa hyvän lopputuloksen aikaansaamiseksi. Tutkimuksen empiirisessä osuudessa tehty kvalitatiivinen case-tutkimus keskittyy tiettyyn verkostoon, joka on Socomin koordinoimana kehittänyt Kaakkois-Suomen alueelle uudenlaista sosiaalipalvelua liittyen henkilökohtaiseen apuun. Verkosto on monen toimijan verkosto, jonka jäsenet edustavat erilaisia tahoja ja organisaatioita. Tutkimuksen perusteella verkosto on toiminut hyvin ja tehokkaasti ja saanut luotua toimivan sosiaalipalvelun. Verkosto tukee kirjallisuuskatsauksessa löydettyjen tekijöiden, kuten verkosto-orkestroinnin, sitoutumisen ja yhteisen päämäärän, vaikutusta verkoston toimintaan ja lopputulokseen.

Rainfall erosivity for the State of Rio de Janeiro estimated by artificial neural network

The Artificial Neural Networks (ANNs) are mathematical models method capable of estimating non-linear response plans. The advantage of these models is to present different responses of the statistical models. Thus, the objective of this study was to develop and to test ANNs for estimating rainfall erosivity index (EI30) as a function of the geographical location for the state of Rio de Janeiro, Brazil and generating a thematic visualization map. The characteristics of latitude, longitude e altitude using ANNs were acceptable to estimating EI30 and allowing visualization of the space variability of EI30. Thus, ANN is a potential option for the estimate of climatic variables in substitution to the traditional methods of interpolation.

Determination of the influence of the variation of reducing and non-reducing sugars on coffee quality with use of artificial neural network

The present study aimed at evaluating the use of Artificial Neural Network to correlate the values resulting from chemical analyses of samples of coffee with the values of their sensory analyses. The coffee samples used were from the Coffea arabica L., cultivars Acaiá do Cerrado, Topázio, Acaiá 474-19 and Bourbon, collected in the southern region of the state of Minas Gerais. The chemical analyses were carried out for reducing and non-reducing sugars. The quality of the beverage was evaluated by sensory analysis. The Artificial Neural Network method used values from chemical analyses as input variables and values from sensory analysis as output values. The multiple linear regression of sensory analysis values, according to the values from chemical analyses, presented a determination coefficient of 0.3106, while the Artificial Neural Network achieved a level of 80.00% of success in the classification of values from the sensory analysis.

Experimental evaluation of the performance of a wireless sensor network in agricultural environments

The aim of this study was to perform an experimental study to evaluate the proper operation distance between the nodes of a wireless sensor network available on the market for different agricultural crops (maize, physic nut, eucalyptus). The experimental data of the network performance offers to farmers and researchers information that might be useful to the sizing and project of the wireless sensor networks in similar situations to those studied. The evaluation showed that the separation of the nodes depends on the type of culture and it is a critical factor to ensure the feasibility of using WSN. In the configuration used, sending packets every 2 seconds, the battery life was about four days. Therefore, the autonomy may be increased with a longer interval of time between sending packets.

Silting in the dense reservoir network of the Pereira de Miranda catchment

This study aims to analyze the impacts of the reservoir network within Pereira de Miranda - CE catchment (also called Pentecoste) over sediment transport and storage capacity of the system. The survey of the "damming" was carried out using satellite images. We identified 502 erosion units, derived from overlaying maps of the Universal Soil Loss Equation parameters, which allowed the estimation of localized erosion in the basin and identification of areas potentially generating sediment. In order to estimate silting in Pentecoste reservoir, different system structure scenarios were considered. An average erosion rate of 59 t ha-1year-1 was estimated. According to the model, the silting of Pentecoste reservoir may vary from 1.1 to 2.6% per decade, depending on the scenario considered. It is also observed that the reservoirs upstream can retain up to 58% of the sediment that would reach the Pentecoste reservoir. Very small reservoirs with a capacity of up to 100,000 m³, although representing only 1.83% of the system water availability, are able to retain almost 8% of total sediment produced.

Comparative analysis of different meat traceability systems using multiple criteria and a social network approach

The adoption of a proper traceability system is being incorporated into meat production practices as a method of gaining consumer confidence. The various partners operating in the chain of meat production can be considered a social network, and they have the common goal of generating a communication process that can ensure each characteristic of the product, including safety. This study aimed to select the most appropriate meat traceability system “from farm to fork” that could be applied to Brazilian beef and pork production for international trade. The research was done in three steps. The first used the analytical hierarchy process (AHP) for selecting the best on-farm livestock traceability. In the second step, the actors in the meat production chain were identified to build a framework and defined each role in the network. In the third step, the selection of the traceability system was done. Results indicated that with an electronic traceability system, it is possible to acquire better connections between the links in the chain and to provide the means for managing uncertainties by creating structures that facilitate information flow more efficiently.

Integration in project business : mechanisms for integrating customers and the project network during the life-cycle of industrial projects

This thesis focuses on integration in project business, i.e. how projectbased companies organize their product and process structures when they deliver industrial solutions to their customers. The customers that invest in these solutions run their businesses in different geographical, political and economical environments, which should be acknowledged by the supplier when providing solutions comprising of larger and more complex scopes than previously supplied to these customers. This means that the suppliers are increasing their supply range by taking over some of the activities in the value chain that have traditionally been handled by the customer. In order to be able to provide the functioning solutions, including more engineering hours, technical equipment and a wider project network, a change is needed in the mindset in order to be able to carry out and take the required responsibility that these new approaches bring. For the supplier it is important to be able to integrate technical products, systems and services, but the supplier also needs to have the capabilities to integrate the cross-functional organizations and departments in the project network, the knowledge and information between and within these organizations and departments, along with inputs from the customer into the product and process structures during the lifecycle of the project under development. Hence, the main objective of this thesis is to explore the challenges of integration that industrial projects meet, and based on that, to suggest a concept of how to manage integration in project business by making use of integration mechanisms. Integration is considered the essential process for accomplishing an industrial project, whereas the accomplishment of the industrial project is considered to be the result of the integration. The thesis consists of an extended summary and four papers, that are based on three studies in which integration mechanisms for value creation in industrial project networks and the management of integration in project business have been explored. The research is based on an inductive approach where in particular the design, commissioning and operations functions of industrial projects have been studied, addressing entire project life-cycles. The studies have been conducted in the shipbuilding and power generation industries where the scopes of supply consist of stand-alone equipment, equipment and engineering, and turnkey solutions. These industrial solutions include demanding efforts in engineering and organization. Addressing the calls for more studies on the evolving value chains of integrated solutions, mechanisms for inter- and intra-organizational integration and subsequent value creation in project networks have been explored. The research results in thirteen integration mechanisms and a typology for integration is proposed. Managing integration consists of integrating the project network (the supplier and the sub-suppliers) and the customer (the customer’s business purpose, operations environment and the end-user) into the project by making use of integration mechanisms. The findings bring new insight into research on industrial project business by proposing integration of technology and engineering related elements with elements related to customer oriented business performance in contemporary project environments. Thirteen mechanisms for combining products and the processes needed to deliver projects are described and categorized according to the impact that they have on the management of knowledge and information. These mechanisms directly relate to the performance of the supplier, and consequently to the functioning of the solution that the project provides. This thesis offers ways to promote integration of knowledge and information during the lifecycle of industrial projects, enhancing the development towards innovative solutions in project business.

From network pictures to network insight in solution business – the role of internal communication

Operating in business-to-business markets requires an in-depth understanding on business networks. Actions and reactions made to compete in markets are fundamentally based on managers‘ subjective perceptions of the network. However, an amalgamation of these individual perceptions, termed a network picture, to a common company level shared understanding on that network, known as network insight, is found to be a substantial challenge for companies. A company‘s capability to enhance common network insight is even argued to lead competitive advantage. Especially companies with value creating logics that require wide comprehension of and collaborating in networks, such as solution business, are necessitated to develop advanced network insight. According to the extant literature, dispersed pieces of atomized network pictures can be unified to a common network insight through a process of amalgamation that comprises barriers/drivers of multilateral exchange, manifold rationality, and recursive time. However, the extant body of literature appears to lack an understanding on the role of internal communication in the development of network insight. Nonetheless, the extant understanding on the amalgamation process indicates that internal communication plays a substantial role in the development of company level network insight. The purpose of the present thesis is to enhance understanding on internal communication in the amalgamation of network pictures to develop network insight in the solution business setting, which was chosen to represent business-to-business value creating logic that emphasizes the capability to understand and utilize networks. Thus, in solution business the role of succeeding in the amalgamation process is expected to emphasize. The study combines qualitative and quantitative research by means of various analytical methods including multiple case analysis, simulation, and social network analysis. Approaching the nascent research topic with differing perspectives and means provides a broader insight on the phenomenon. The study provides empirical evidence from Finnish business-to-business companies which operate globally. The empirical data comprise interviews (n=28) with managers of three case companies. In addition the data includes a questionnaire (n=23) collected mainly for the purpose of social network analysis. In addition, the thesis includes a simulation study more specifically achieved by means of agent based modeling. The findings of the thesis shed light on the role of internal communication in the amalgamation process, contributing to the emergent discussion of network insights and thus to the industrial marketing research. In addition, the thesis increases understanding on internal communication in the change process to solution business, a supplier‘s internal communication in its matrix organization structure during a project sales process, key barriers and drivers that influence internal communication in project sales networks, perceived power within industrial project sales, and the revisioning of network pictures. According to the findings, internal communication is found to play a substantial role in the amalgamation process. First, it is suggested that internal communication is a base of multilateral exchange. Second, it is suggested that internal communication intensifies and maintains manifold rationality. Third, internal communication is needed to explicate the usually differing time perspectives of others and thus it is suggested that internal communication has role as the explicator of recursive time. Furthermore, the role of an efficient amalgamation process is found to be emphasized in solutions business as it requires a more advanced network insight for cross-functional collaboration. Finally, the thesis offers several managerial implications for industrial suppliers to enhance the amalgamation process when operating in solution business.

The Finnish National Digital Library: a national service is developed in collaboration with a network of libraries, archives and museums

Insight-lehden numerossa 26 (Maaliskuu 2013) julkaistu artikkeli.