Entrepreneurial orientation in small and medium-sized enterprises during economic crisis

The economic importance of small and medium-sized enterprises (SMEs) and entrepreneurship has increased significantly in recent decades and entrepreneurial activity and SMEs are deemed vital to economic progress. Therefore, it is justifiable to study how small firms and entrepreneurs can enhance their performance and emergence in the turbulent economic environment. The concept of entrepreneurial orientation (EO) has recently attracted considerable attention in the field of entrepreneurship research. EO generally refers to a firm’s propensity to be innovative, to be proactive and to take risks. A majority of EO studies so far have found that adopting EO associated entrepreneurial behaviors will help firms to create or sustain a high level of performance. This dissertation explores the main drivers and performance implications of EO for SMEs in time of economic crisis. Hence the first objective of this dissertation is to examine the performance implications of EO and to test the role of EO on how firms are treated by the crisis at operative level. The second objective is to expand the prevailing understanding of determinants of EO by exploring the relationship between owner's work related values, attitudes, demographic characteristics, firm’s financial resources and EO. EO was found to be a significant and positive factor behind a firm’s long run growth. Hence it can be said that EO has positive implications for firm performance. But on the other hand, during a time of economic crisis the different dimensions of EO had both positive and negative effects on performance of SMEs. The performance implications varied across different stages of the crisis and were also dependent on what measure was used for measuring the performance. The main drivers of EO in SMEs were the personal work related values of the entrepreneur and his/her prior experience as an entrepreneur. The intrinsic work values related to interest, responsibility, challenge, self-development or intellectual stimulation and values related to status, power, achievement and recognition had a positive effect on the level of EO. On the other hand, extrinsic values related to high income, material possessions, benefits such as generous holidays, job security, and comfort through good working conditions decreased the level of EO

Fast pyrolysis in circulating fluidized bed: feasibility study

Today the limitedness of fossil fuel resources is clearly realized. For this reason there is a strong focus throughout the world on shifting from fossil fuel based energy system to biofuel based energy system. In this respect Finland with its proven excellent forestry capabilities has a great potential to accomplish this goal. It is regarded that one of the most efficient ways of wood biomass utilization is to use it as a feedstock for fast pyrolysis process. By means of this process solid biomass is converted into liquid fuel called bio-oil which can be burnt at power plants, used for hydrogen generation through a catalytic steam reforming process and as a source of valuable chemical compounds. Nowadays different configurations of this process have found their applications in several pilot plants worldwide. However the circulating fluidized bed configuration is regarded as the one with the highest potential to be commercialized. In the current Master’s Thesis a feasibility study of circulating fluidized bed fast pyrolysis process utilizing Scots pine logs as a raw material was conducted. The production capacity of the process is 100 000 tonne/year of bio-oil. The feasibility study is divided into two phases: a process design phase and economic feasibility analysis phase. The process design phase consists of mass and heat balance calculations, equipment sizing, estimation of pressure drops in the pipelines and development of plant layout. This phase resulted in creation of process flow diagrams, equipment list and Microsoft Excel spreadsheet that calculates the process mass and heat balances depending on the bio-oil production capacity which can be set by a user. These documents are presented in the current report as appendices. In the economic feasibility analysis phase there were at first calculated investment and operating costs of the process. Then using these costs there was calculated the price of bio-oil which is required to reach the values of internal rate of return of 5%, 10%, 20%, 30%, 40%, and 50%.

Profitability planning of the ski resort project

Objective of this master’s thesis is to create an investment calculation model, which makes it possible to determine if the ski resort business can be profitable. The ultimate goal is to create a description with the help of theoretical knowledge, interviews and investment calculation model, how the operation of ski resort is possible to be profitable and what are the critical success factors for achieving this goal. Thesis is carried out as qualitative research, which is supported by the necessary constructive information utilizing calculations. The client company has provided valuable insights and material for this thesis. Theoretical report examines the steps of developing a business plan, investment components and methods as well as sensitivity analysis. The theoretical part is based on the articles, textbooks, interviews and researches. The empirical part of the thesis is assembled by benchmarking other same size Finnish ski resorts, conducting interviews and using investment calculation model. The empirical part provides comprehensive information about ski resort industry, the future of the project, the business plan and the profitability calculations. As the result of this thesis the investment calculation model, which makes it possible to simulate different scenarios for ski resort project, was formed. The model was used to create a picture in which kind of scenario the ski resort business would be profitable and what are the critical success factors in achieving this aim.

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.

Multispecies weed competition and their economic threshold on the wheat crop

Two field experiments were conducted to evaluate the effects of multispecies weed competition on wheat grain yield and to determine their economic threshold on the crop. The experiments were conducted in 2002, on two sites in Iran: at the Agricultural Research Station on Ferdowsi University of Mashhad (E1) and on the fields of Shirvan's Agricultural College (E2). A 15 x 50 m area of a 15 ha wheat field in E1 and a 15 x 50 m area of a 28 ha wheat field in E2 were selected as experimental sites. These areas were managed like other parts of the fields, except for the use of herbicides. At the beginning of the shooting stage, 30 points were randomly selected by dropping a 50 x 50 cm square marker on each site. The weeds present in E1 were: Avena ludoviciana, Chenopodium album, Solanum nigrum, Stellaria holostea, Convolvulus spp., Fumaria spp., Sonchus spp., and Polygonum aviculare. In E2 the weeds were A. ludoviciana, Erysimum sp., P. aviculare, Rapistrum rugosum, C. album, Salsola kali, and Sonchus sp. The data obtained within the sampled squares were submitted to regression equations and weeds densities were calculated in terms of TCL (Total Competitive Load). The regression analysis model indicated that only A. ludoviciana, Convolvulus spp. and C. album, in E1; and A. ludoviciana, S. kali, and R. rugosum, in E2 had a significant effect on the wheat yield reduction. Weed economic thresholds were 5.23 TCL in E1 and 6.16 TCL in E2; which were equivalent to 5 plants m-2 of A. ludoviciana or 12 plants m-2 of Convolvulus spp. or 19 plants m-2 of C. album in E1; and 6 plants m-2 A. ludoviciana, 13 plants m-2 S. kali and 27 plants m-2 R. rugosum in E2. Simulations of economic weed thresholds using several wheat grain prices and weed control costs allowed a better comparison of the experiments, suggesting that a more competitive crop at location E1 than at E2 was the cause of a lower weed competitive ability at the first location.

Augmented reality systems for weed economic thresholds applications

The augmented reality (AR) technology has applications in many fields as diverse as aeronautics, tourism, medicine, and education. In this review are summarized the current status of AR and it is proposed a new application of it in weed science. The basic algorithmic elements for AR implementation are already available to develop applications in the area of weed economic thresholds. These include algorithms for image recognition to identify and quantify weeds by species and software for herbicide selection based on weed density. Likewise, all hardware necessary for AR implementation in weed science are available at an affordable price for the user. Thus, the authors propose weed science can take a leading role integrating AR systems into weed economic thresholds software, thus, providing better opportunities for science and computer-based weed control decisions.

The effects of pigweed redroot (Amaranthus retoflexus) weed competition and its economic thresholds in corn (Zea mays)

The aim of this study was to determine the economic damage threshold of Pigweed redroot for corn regarding its density. An experiment was conducted at the Agriculture Research station of Islamic Azad University branch of Gonabad during 2006. The experiment was carried out as a factorial in a randomized complete block design with three replications. In the experiments, the factors included corn (var. 704) densities of 7.5, 8.5 and 9.5 plants m-2 and pigweed redroot densities of 0, 2, 4, 6 and 8 plants m-2. The increase in Pigweed redroot density, decrease in crop grain and biomass yield components such as ear length, ear diameter, number of grains per row, row number, grain number in ear, grain yield and biological yield of corn, decreased. Also, with an increase in corn density, the number of grain per rows, row number, grain yield and biological yield of corn increased. The economic thresholds density of Pigweed redroot was 0.09 to 0.13 plants m-2 in corn different densities, and increased with corn density increases.

Railways, Airports and Sea Container Operators as Publicly Listed Companies – Financial Performance and Shareholder Value Creation Perspective

Logistics infrastructure and transportation services have been the liability of countries and governments for decades, or these have been under strict regulation policies. One of the first branches opened for competition in EU as well as in other continents, has been air transports (operators, like passenger and freight) and road transports. These have resulted on lower costs, better connectivity and in most of the cases higher service quality. However, quite large amount of other logistics related activities are still directly (or indirectly) under governmental influence, e.g. railway infrastructure, road infrastructure, railway operations, airports, and sea ports. Due to the globalization, governmental influence is not that necessary in this sector, since transportation needs have increased with much more significant phase as compared to economic growth. Also freight transportation needs do not correlate with passenger side, due to the reason that only small number of areas in the world have specialized in the production of particular goods. Therefore, in number of cases public-private partnership, or even privately owned companies operating in these sub-branches have been identified as beneficial for countries, customers and further economic growth. The objective of this research work is to shed more light on these kinds of experiments, especially in the relatively unknown sub-branches of logistics like railways, airports and sea container transports. In this research work we have selected companies having public listed status in some stock exchange, and have needed amount of financial scale to be considered as serious company rather than start-up phase venture. Our research results show that railways and airports usually need high fixed investments, but have showed in the last five years generally good financial performance, both in terms of profitability and cash flow. In contrary to common belief of prosperity in globally growing container transports, sea vessel operators of containers have not shown that impressive financial performance. Generally margins in this business are thin, and profitability has been sacrificed in front of high growth – this also concerns cash flow performance, which has been lower too. However, as we examine these three logistics sub-branches through shareholder value development angle during time period of 2002-2007, we were surprised to find out that all of these three have outperformed general stock market indexes in this period. More surprising is the result that financially a bit less performing sea container transportation sector shows highest shareholder value gain in the examination period. Thus, it should be remembered that provided analysis shows only limited picture, since e.g. dividends were not taken into consideration in this research work. Therefore, e.g. US railway operators have disadvantage to other in the analysis, since they have been able to provide dividends for shareholders in long period of time. Based on this research work we argue that investment on transportation/logistics sector seems to be safe alternative, which yields with relatively low risk high gain. Although global economy would face smaller growth period, this sector seems to provide opportunities in more demanding situation as well.

Factors Affecting Customer Profitability: a Bibliometric Study

The first objective of the thesis is to find out which factors impact on customer profitability has been studied in scientific articles. The second objective is to find out the main authors and publishers from the subject area. Expectations were to find factors from marketing and management accounting literature, but this study did not succeed to gather management accounting perspective on the subject area. This study used bibliometric methods. The data for this study was collected manually from Scopus and Web of Science databases. Search words resulted 770 articles and from those 82 were included to further analyze. Descriptive analysis, citation analysis and content analysis were made. Bibexcel and Pajek software were used in this study. Publication activity was concentrated on years 2004-2013. The most productive author around the subject area is Kumar Vipin from Georgia State University (USA). A multiple customer profitability factors were identified. A lot of research was made for example about satisfaction, relationship duration, loyalty, marketing actions and customer equity drivers. The research is concentrated on service sector. The results are suggesting that there are research gaps in business-to-business and manufacturing sector.

The Pay-Off Method as a Tool for Evaluating the Risk and Profitability of Public Real Estate Investments

Real option valuation, in particular the fuzzy pay-off method, has proven to be useful in defining risk and visualizing imprecision of investments in various industry applications. This study examines whether the evaluation of risk and profitability for public real estate investments can be improved by using real option methodology. Firstly, the context of real option valuation in the real estate industry is examined. Further, an empirical case study is performed on 30 real estate investments of a Finnish government enterprise in order to determine whether the presently used investment analysis system can be complemented by the pay-off method. Despite challenges in the application of the pay-off method to the case company’s large investment base, real option valuation is found to create additional value and facilitate more robust risk analysis in public real estate applications.

The effect of environmentally differentiated port fees to shipping companies’ environmental investments

The pressure has grown to develop cost-effective emission reduction strategies in the Baltic Sea. The forthcoming stringent regulations of the International Maritime Organization for reducing harmful emissions of shipping in the Baltic Sea are causing increasing expenses for the operators. A market-based attitude towards pricing of economic incentives could be seen as a new approach for a successful application for the additional emission reduction of nitrogen oxides (NOx). In this study the aim is to understand the phenomenon of environmentally differentiated port fees and its effects on shipping companies’ emission reduction investments. The goal is to examine empirically the real-life effects of the possible environmental differentiated port fee system and the effect of environmentally differentiated port fees on NOx reduction investments in the Baltic Sea. The research approach of this study is nomothetical. In this study research questions are answered by analyzing the broad database of the Baltic Sea fleet. Also the framework of theory is confirmed and plays an important role in analyzing the research problem. Existing investment costs of NOx emission reduction technology to ship owners are estimated and compared to investment costs with granted discounts added to the cash flows. The statistical analysis in this study is descriptive. The major statistic examination of this study is the calculation of the net present values of investments with different port fee scenarios. This is done to investigate if the NOx technology investments could be economically reasonable. Based on calculations it is clear that the effect of environmentally differentiated port fees is not adequate to compensate the total investment costs for NOx reduction. If the investment decision is made only with profitability considerations, sources will prefer to emission abatement as long as incomes from the given subsidy exceeds their abatement costs. Despite of the results, evidence was found that shipping companies are nevertheless willing to invest on voluntary emission abatement technology. In that case, investment decision could be made with criteria of, for example, sustainable strategy or brand image. Combined fairway and port fee system or governmental regulations and recommendation could also function as additional incentives to compensate the investment costs. Also, the results imply that the use of NPV is not necessarily the best method to evaluate environmental investments. If the calculations would be done with more environmental methods the results would probably be different.