Audit firm tenure and qualified opinions: New evidence from Spain

The 2010 Green Paper on Audit Policy by the European Commission has explicitly questioned the sufficiency of audit rotation rules established by European Union Members to guarantee auditor independence. In addition, the Paper clearly states that more research is needed regarding the effects of long audit tenures on independence. In this article, we have replicated the research by Ruiz-Barbadillo, Gómez-Aguilar, and Biedma (2005) about the effects of audit firm tenure on independence with more updated data. However, unlike them, we have performed panel data estimations instead of pooled regression. Our approach allows for a better control of individual unobserved heterogeneity, thus reducing potential problems caused by omitted variable bias. While Ruiz-Barbadillo et al. reported an unexpected positive effect of tenure on the likelihood of audit qualifications, we do not show any significant effect of tenure on the opinion of the audit report. Our results are robust to various sensitivity analyses.

The Role of Firm Size in Training Provision Decisions: evidence from Spain

The level of training provided by small firms to their employees is below that provided by their larger counterparts. The provision of firm-related training is believed to be associated to certain characteristics of the firm. In this paper we argue that small firms provide fewer training opportunities as they are less likely to be associated with these characteristics than large firms. The suitability of estimating training decisions as a double-decision process is examined here: first, a firm has to decide whether to provide training or not and, second, having decided to do so, the amount of training to provide. The differences in training provision between small and large firms are decomposed in order to analyse the individual contribution of these characteristics to explaining the gap. The results show that small firms face greater obstacles in accessing training and that the main reasons for that are related to their technological activity and the geographical scope of the market in which they operate.

Resurssien ja kyvykkyyksien vastaavuus alan muuttuviin vaatimuksiin

Tämän diplomityön tavoitteena on tutkia kohdeyrityksen strategista muutosta perinteisestä tuotetoimittajasta ratkaisujen toimittajaksi. Toimialan muutosta arvioidaan tarkemmin, jotta voidaan selvittää kuinka yrityksen tulisi mukauttaa resurssejaan ja kyvykkyyksiään sopeutuakseen muutoksen tuomiin uusiin haasteisiin. Tarkastelun alla on erityisesti yrityksen strateginen muutos ja kuinka löytää strategian kannalta ne dynaamiset kyvykkyydet joiden avulla yritys saa pysyvää kilpailuetua. Yritykset pyrkivät strategisessa suunnittelussaan pysyvään kilpailuetuun. Strategista johtamisen teorioita on esitetty useita ja niiden kautta on vaikea selittää nykyisin nopeasti muuttuvassa toimintaympäristössä toimivien yritysten menestystä. Dynaamisten kyvykkyyksistä on haettu selitystä menestyksen taakse. Yritysten tavoitellessa kokonaan uusia liiketoiminta-alueita niihin kohdistuu suuria muutoksia niin ulkoisesti kuin sisäisestikin. Tällöin on kriittistä tunnistaa ne ydinkyvykkyydet joiden avulla voidaan menestyä uusilla liiketoiminta-alueilla. Työn ensimmäisessä osassa esitetään strategiaan ja kyvykkyyksiin liittyviä teorioita. Teoriaosiossa tarkastellaan myös palveluyritykseksi muuntautumisen haasteita, jonka jälkeen esitellään kohdeyrityksen strategiset tavoitteet ja kuinka puuttuvia resursseja voidaan tunnistaa. Resurssipohjaisen lähestymistavan avulla päästiin hyvin käsiksi toimialan muutoksen aiheuttamiin puuttuviin resursseihin. Analyysin aikana tunnistettiin puutteita tavoitteisiin nähden ja tässä työssä nousi yhtenä keskeisimpänä esille ICT-osaaminen kohdeyrityksen siirtyessä laitevalmistajan roolista kohti ratkaisun toimittajaa. Tutkimuksen perusteella voidaan todeta, että resurssipohjaisen lähestymistavan avulla voidaan tunnistaa tämän tyyppisessä yrityksessä resurssipuutteita joita kehittämällä yritys voi saavuttaa pysyvää kilpailuetua.

Decomposing differences in total factor productivity across firm size

This paper investigates the extent to which the gap in total factor productivity between small and large firms is due to differences in the endowment of factors determining productivity and to the returns associated with these factors. We place particular emphasis on the contribution of differences in the propensity to innovate and in the use of skilled labor across firms of different size. Empirical evidence from a representative sample of Spanish manufacturing firms corroborates that both differences in endowments and returns to innovation and skilled labor significantly contribute to the productivity gap between small and large firms. In addition, it is observed that the contribution of innovation to this gap is caused only by differences in quantity, while differences in returns have no effect; in the case of human capital, however, most of the effect can be attributed to increasing differences in returns between small and large firms.

Multichannel distribution strategy for electrical equipment marketing

The thesis examines System Integration and original equipment manufacturer (OEM) channel in the St. Petersburg drives market. The aim of the study was to increase understanding the relationship between OEM and SI and producers, problems and ongoing trends. The collected data was analyzed in order to find out which features of a power electronic drive product exercise a significant influence for the Russian companies decision. An essential part of this study was interviews as primary information sources, organized with SI and OEM companies which represented the basic SPb industry segments. The wholesalers and end users are left out from the analysis. The collected data was analyzed in order to find out which features of a power electronic drive product exercise a significant influence for the Russian companies decision.

Johtoryhmätyöskentely pörssinoteeratussa kasvuhakuisessa logistiikkayhtiössä

Tutkimuksen tarkoituksena oli selvittää johtoryhmän tehtävän ja toiminnan tärkeys ja tarve.Tavoitteena oli saada selville johtoryhmän muodostumiseen vaikuttavia tekijöitä sekä johtoryhmän toimintaan vaikuttavia tekijöitä ja miten johtoryhmä vaikuttaa yrityksen tuloksellisuuteen.Tapaustutkimus toteutettiin teemahaastatteluilla,jotka analysoitiin aihepiireittäin.Tutkimustuloksen mukaan johtoryhmätyöskentely on yrityksissä tärkeä yrityksen tuloksellisessa toiminnassa sekä strategian muodostuksessa. Johtoryhmän muodostumiseen vaikuttavat yrityksen strategia, mutta johtoryhmän työ on tärkeää myös itse strategian muodostumiselle. Johtoryhmän kokoonpanoon vaikuttavat erityisesti johtajien kokemus ja koulutus. Hyvä luottamuksen taso johtoryhmässä vaikuttaa positiivisesti uusien ideoiden syntyyn, ja edesauttaa näin myös johtoryhmän voimavarojen keskittymistä yrityksen kannalta oleellisiin asioihin.

On Value Creation at an Industrial Intersection – Bioenergy in the Forest and Energy Sectors

The traditional forest industry is a good example of the changing nature of the competitive environment in many industries. Faced with drastic challenges forestindustry companies are forced to search for new value-creating strategies in order to create competitive advantage. The emerging bioenergy business is now offering promising avenues for value creation for both the forest and energy sectors because of their complementary resources and knowledge with respect to bioenergy production from forest-based biomass. The key objective of this dissertation is to examine the sources of sustainable competitive advantage and the value-creation opportunities that are emerging at the intersection between the forest and energy industries. The research topic is considered from different perspectives in order to provide a comprehensive view of the phenomenon. The study discusses the business opportunities that are related to producing bioenergy from forest-based biomass, and sheds light on the greatest challenges and threats influencing the success of collaboration between the forest and energy sectors. In addition, it identifies existing and potential bioenergy actors, and considers the resources and capabilities needed in order to prosper in the bioenergy field. The value-creation perspective is founded on strategic management accounting, the theoretical frameworks are adopted from the field of strategic management, and the future aspect is taken into account through the application of futures studies research methodology. This thesis consists of two parts. The first part provides a synthesis of the overall dissertation, and the second part comprises four complementary research papers. There search setting is explorative in nature, and both qualitative and quantitative research methods are used. As a result, the thesis lays the foundation for non-technological studies on bioenergy. It gives an example of how to study new value-creation opportunities at an industrial intersection, and discusses the main determinants affecting the value-creation process. In order to accomplish these objectives the phenomenon of value creation at the intersection between the forest and energy industries is theorized and connected with the dynamic resource-based view of the firm.

Evaluating Firm-Hosted Online Communities

This thesis centers to three firm-hosted online communities which operate in the field of software development. The communities were analyzed by using a particular design framework. This thesis investigates how companies can benefit from firm-hosted online communities and how well the design principles are present in analyzed communities. The framework also gives perspective and indicators which enables the possibility to analyze and compare communities with each other. This thesis also discuss how well a design framework designed for measuring social software fits to measuring online communities of software development.

Resources and capabilities approach to online strategy – Multiple-case study of Finnish magazines' online services

Most Finnish periodical magazines have a website, often an online service. The objective of this thesis is to understand the magazines’ resources and capabilities and match them with online strategies’ goals and objectives. The thesis’ theoretical part focuses on explaining and classifying resources, capabilities, goals and objectives, and applying everything into Finnish magazine publishing context. In the empirical part, there is a comparative case study of four magazines. The findings indicate that with cooperating, advertising and community hosting capabilities magazines may utilize their human, brand, content and customer base resources. The resources can be further addressed to reach profitability, customer-centricity and brand congruency goals.

Coopetitive advantage – How firms create and appropriate value by collaborating with their competitors

Collaboration between competing firms (coopetition) has emerged as an important issue forn business practice in many industries. Extant literature has examined coopetition on many levels of analysis, but lacks clarity in distinguishing it explicitly from cooperation between noncompeting organizations. Because of this, the performance implications of coopetition from the perspective of an individual firm are still ambiguous – some research suggests positive results whereas other studies suggest detrimental outcomes. The aim in this dissertation is to narrow these gaps by exploring how firms create and appropriate value through collaboration with their competitors. The dissertation is divided into two parts. The first part comprises an overview of the relevant literature, as well as the conclusions of the whole study, and the second part includes six research publications. Both qualitative and quantitative methodologies are utilized. The results suggest that coopetition embodies the distinctive logic of value creation and appropriation from the perspective of an individual firm, and thus differs in terms of performance implications from cooperation between non-competitors. The distinction comes from the fact that competitors have somewhat similar understanding, capabilities and interest related to certain markets, which is potentially both challenging and beneficial in terms of the individual firm’s competitiveness. It appears from the findings that there are distinctive firm-external and firm-specific factors affecting the success of a coopetition strategy. This study makes three main contributions. First, on the conceptual level it shows the distinction between coopetition and cooperation between non-rivals as a collaborative inter-organizational relationship. Secondly, it sets out a framework and propositions that enhance understanding of how value is created and appropriated in coopetition from the perspective of an individual firm. Thirdly, it offers empirical evidence of how coopetition affects firms’ innovation and market performance, and identifies the focal internal and external factors involved. In general terms, the thesis adds to our knowledge of how a firm can successfully utilize a coopetition strategy in its pursuit of improved performance.

The role of power relations in strategic supply management – A value net approach

Supplier relationships are key elements of supply management and thus have attracted substantial research interest among academics and practitioners. The collaborative nature of relationships has been the focus of the mainstream research, and limited interest has been channelled towards power in buyer–supplier relationships. However, power is one of the key factors determining the outcomes in many business relations. Hence, one of the main objectives of this dissertation is to clarify how power may influence the nature of buyer–supplier relationships and, moreover, the depth of collaboration. Another main objective is to clarify the role of power relations in strategic supply management. Given the different nature of relationships, the firm needs divergent strategies in its supply management in order to handle them efficiently. Power has been identified as one of the factors that affect the nature of buyer–supplier relationships, and firms should thus develop strategies for handling power relations. Three research questions are addressed in pursuit of these objectives, the aim being to clarify the sources of power, the influence of power on collaboration, and the role of buyer–supplier relationships in the firm’s supply strategy. This dissertation has two parts. The first part provides a synthesis of the overall dissertation, and the second part comprises five complementary research papers. The qualitative research method is applied in an empirical case study from the Finnish food industry. The main contribution of this dissertation is that it clarifies the role of power relations in strategic supply management in value nets, and discloses the nature of power as an influencing factor in supplier relationships. It extends the discussion on power in buyer– supplier relationships in highlighting the context of networks and raising the question of network effects on power relations. It also illustrates how power positions and power relations in value nets can be determined based on the sources of power of the network actors, and shows their influence on collaboration.

Success of service-intensive manufacturing firms - resource-based view

The main objective of this study is to examine the relationships between resources, competitive advantage and firm success. The study focuses, on one hand, on the financial performance of service-intensive manufac-turing firms against competitors with a lower service intensity and, on the other hand, on the resources as drivers for competitive advantage and success. The purpose of the theoretical part is to link the study in the field of the strategy research. The empirical part of the study is based on the quantitative analyses of the survey data collected from 50 major suppliers of industrial machinery and transportation equipment in Europe and North America. Results indicate that service-intensive manufacturing firms have performed better and their performance has been more stable vis-à-vis their peers. The main resources that differentiate service-intensive manufacturing firms from their non-service intensive competitors are service strategy and service-oriented top management. The analyses on the VRIO resources produced only a limited amount of information and solely service-centred culture appeared to be a rent generating resource.