Showing papers by "Aalto University published in 2003"
TL;DR: This paper revisits the theory of knowledge creation through the SECI process and ba, and tries to advance them further by incorporating the dialectic thinking.
Abstract: This paper is a part of our attempt to build a new knowledge-based theory of the firm and organization to explain the dynamic process of knowledge creation and utilization. For this, we revisit the theory of knowledge creation through the SECI process and ba, and try to advance them further by incorporating the dialectic thinking. In this paper, knowledge creation is conceptualized as a dialectical process, in which various contradictions are synthesized through dynamic interactions among individuals, the organization, and the environment. With the view of a firm as a dialectic being, and strategy and organization should be re-examined as the synthesizing and selftranscending process instead of a logical analysis of structure or action. An organization is not an information-processing machine that is composed of small tasks to carry out a given task, but an organic configuration of ba. Ba, which is conceptualized as a shared context in motion, can transcend time, space, and organization boundaries to create knowledge.
1,312 citations
TL;DR: The time dependence of the recently introduced minimum spanning tree description of correlations between stocks, called the "asset tree", has been studied in order to reflect the financial market taxonomy and the basic structure of the tree topology is very robust with respect to time.
Abstract: The time dependence of the recently introduced minimum spanning tree description of correlations between stocks, called the ‘‘asset tree’’ has been studied in order to reflect the financial market taxonomy. The nodes of the tree are identified with stocks and the distance between them is a unique function of the corresponding element of the correlation matrix. By using the concept of a central vertex, chosen as the most strongly connected node of the tree, an important characteristic is defined by the mean occupation layer. During crashes, due to the strong global correlation in the market, the tree shrinks topologically, and this is shown by a low value of the mean occupation layer . The tree seems to have a scale-free structure where the scaling exponent of the degree distribution is different for ‘‘business as usual’’ and ‘‘crash’’ periods. The basic structure of the tree topology is very robust with respect to time. We also point out that the diversification aspect of portfolio optimization results in the fact that the assets of the classic Markowitz portfolio are always located on the outer leaves of the tree. Technical aspects such as the window size dependence of the investigated quantities are also discussed.
695 citations
TL;DR: In this article, the dimensions of the supplier's value creation in a supplier-customer relationship could be classified according to efficiency, effectiveness and network functions, and a framework connecting specific capabilities to different types of value production is suggested.
550 citations
TL;DR: It is argued that effectiveness in Russia relies more on adaptability and flexibility than it does in the United States, because of the legacy of the Communist era.
Abstract: This paper examines the link between organizational culture and effectiveness for foreign-owned firms operating in Russia. Beginning with a model of organizational culture developed in the USA, the paper presents a multi-method analysis of culture and effectiveness in a transition economy. We argue that effectiveness in Russia relies more on adaptability and flexibility than in the USA. Furthermore, the legacy of the communist era forces firms in Russia to deal with a workforce with a unique time perspective and a unique set of sub-cultures that often undermine attempts at coordination and integration. We first explore these ideas using survey data on 179 foreign-owned firms operating in Russia and compare the results to those obtained for firms in the USA. We then present four case studies designed to ground the results in the Russian context, and to document cultural dynamics not captured by the model.
475 citations
TL;DR: In this article, the authors focus on the management of strategic business networks and suggest a classification system for different types of strategic nets, identify key management issues that arise in operating in a network context, and consequently identify the basic capabilities required in managing different kinds of strategic networks.
Abstract: This conceptual article focuses on the management of strategic business networks. Networks are seen to offer firms collective benefits beyond those of a single firm or market transaction. We aim to contribute to the development of the emerging theory of network management by integrating notions from the Industrial Network Approach, strategic management, and the Dynamic Capabilities View. Our starting premise is that the characteristics of the task that organizations try to accomplish through forming a specific strategic net, influence the management of that net and thus the capabilities required. In other words, we expect different types of strategic nets to require different managerial skill sets or capabilities. On the basis of this premise, we suggest a classification system for different types of strategic nets, identify key management issues that arise in operating in a network context, and consequently identify the basic capabilities required in managing different types of strategic nets.
352 citations
TL;DR: Lessons learned from an international study of users of mobile handheld devices and services are learned to help improve the quality of services and improve the user experience of these services.
Abstract: Lessons learned from an international study of users of mobile handheld devices and services.
201 citations
TL;DR: In this paper, the diversity of time perspectives in academic work is explored, focusing on dilemmas and tensions between them. And the relationships between the different time perspectives, including the role of work in one's temporality, are discussed.
Abstract: This article explores the diversity of time perspectives in academic work. The background of the study stems from recent changes in university management and funding, which impose new demands for academic work, including its temporal order. Drawing on focused interviews with 52 academics, we discern four core time perspectives according to which academics experience their work: scheduled time, timeless time, contracted time and personal time. Scheduled time refers to the accelerating pace of work, timeless time to transcending time through immersion in work, contracted time to short-term employment with limited future prospects and finally, personal time to one's temporality and the role of work in it. In addition, we discuss the relationships between the different time perspectives, focusing on dilemmas and tensions between them.
193 citations
TL;DR: In this paper, a focused survey traces the development of supply chains and networks over two decades and characterizes the different stages supply chain evolution on the basis of supply chain integration and changing roles and responsibilities of the companies.
Abstract: Asks what really has changed for and what to expect from future supply chains. Most surveys rank activities related to sourcing, operations, customer services and marketing in terms of their importance to, or degree of hindrance for, successful supply chain management (SCM). In this explorative study, analyzes the change of SCM both in terms of operational practices and organizational capabilities in some industrial companies. A focused survey traces the development of supply chains and networks over two decades. Observes the expected growth in use of supporting IT systems, extent of information sharing and scope of coordination efforts. Characterizes the different stages supply chain evolution on the basis of supply chain integration and changing roles and responsibilities of the companies. It seems that due to the continuous structural change of the business environment the very concept of supply chain, let alone the best practice of managing one, should be subject to re‐examination in a wider context. In order to reach the current ideal of SCM practices, the strategic preconditions for innovative networking also need to be in place.
191 citations
TL;DR: In this article, the authors introduced a new methodology for constructing a network of companies called a dynamic asset graph, which is similar to the dynamic asset tree studied recently, as both are based on correlations between asset returns.
Abstract: This paper introduces a new methodology for constructing a network of companies called a dynamic asset graph. This is similar to the dynamic asset tree studied recently, as both are based on correlations between asset returns. However, the new modified methodology does not, in general, lead to a tree but a disconnected graph. The asset tree, due to the minimum spanning tree criterion, is forced to "accept" edge lengths that are far less optimal (longer) than the asset graph, thus resulting in higher overall length for the tree. The same criterion also causes asset trees to be more fragile in structure when measured by the single-step survival ratio. Over longer time periods, in the beginning the asset graph decays more slowly than the asset tree, but in the long run the situation is reversed. The vertex degree distributions indicate that the possible scale free behavior of the asset graph is not as evident as it is in the case of the asset tree.
188 citations
TL;DR: In this article, the authors investigate the use of value-based management (VBM) in five Finnish-based organizations from five different industries, and illustrate the diversity of actual use of VBM.
162 citations
26 Oct 2003
TL;DR: The MetaEdit+ demo will focus on showing how the domain-specific languages and generators are made; complete with several examples of domain- specific methods and related code generators.
Abstract: MetaEdit+ is an environment that allows building modeling tools and generators fitting to application domains, without having to write a single line of code. The capability to define modeling tools and generators is relevant as it provides the ability to raise the abstraction of design work from code to domain concepts, and a raise in abstraction leads to an imminent raise in productivity, as illustrated by the past years' experiences.In domain-specific modeling and MetaEdit+, one expert defines a domain-specific language as a metamodel containing the domain concepts and rules, and specifies the mapping from that to code in a domain-specific code generator. For the method implementation, MetaEdit+ provides a metamodeling language and tool suite for defining the method concepts, their properties, associated rules, symbols, checking reports, and generators. Once the expert defines a modeling method, or even a partial prototype, the rest of the team can start to use it in MetaEdit+ to make models with the modeling language and the required code is automatically generated from those models. Based on the metamodel, MetaEdit+ automatically provides CASE tool functionality: diagramming editors, browsers, generators, multi-user/project/platform support, etc.The MetaEdit+ demo will focus on showing how the domain-specific languages and generators are made; complete with several examples of domain-specific methods and related code generators.
TL;DR: In this paper, the authors present a model of risky debt in which collateral value is correlated with the possibility of default, and the model is then used to study the expected loss given default, primarily as a function of collateral.
Abstract: We present a model of risky debt in which collateral value is correlated with the possibility of default. The model is then used to study the expected loss given default, primarily as a function of collateral. The results obtained could prove useful for estimating losses given default in many popular models of credit risk which assume them constant. We also examine the problem of determining sufficient collateral to secure a loan to a desired extent. In addition to bank practitioners, regulators might find our analysis useful in reviewing banks’ lending standards relative to current collateral values. In particular, the current proposals for The New (Basel) Capital Accord involve options for the use of banks’ own loss given default estimates which might benefit from the analysis in this paper.
TL;DR: In this article, a single-chip, multimode receiver for GSM900, DCS1800, PCS1900, and UTRA/FDD WCDMA is introduced, which operates at four different radio frequencies with two different baseband bandwidths.
Abstract: A single-chip, multimode receiver for GSM900, DCS1800, PCS1900, and UTRA/FDD WCDMA is introduced in this paper. The receiver operates at four different radio frequencies with two different baseband bandwidths. The presented chip uses a direct-conversion architecture and consists of a low-noise amplifier (LNA), downconversion mixers with on-chip local-oscillator I/Q generation, channel selection filters, and programmable gain amplifiers. In spite of four receive bands, only four on-chip inductors are used in the single-ended LNA. The repeatable receiver second-order input intercept point (IIP2) of over +42 dBm is achieved with mixer linearization circuitry together with a baseband circuitry having approximately +100-dBV out-of-band IIP2. The noise figure of the SiGe BiCMOS receiver is less than 4.8 dB in all GSM modes, and 3.5 dB in WCDMA. The power consumption from a 2.7-V supply in all GSM modes and in WCDMA mode is 42 and 50 mW, respectively. The silicon area is 9.8 mm/sup 2/ including the bonding pads.
TL;DR: In this article, the authors used a sample of approximately 87,000 earnings observations from almost 22,000 firms in 18 countries for the five-year period 1995-1999, and found that firms' tendency to exercise cosmetic earnings management (CEM) worldwide.
Abstract: Using a sample of approximately 87,000 earnings observations from almost 22,000 firms in 18 countries for the five‐year period 1995–1999, we document firms' tendency to exercise cosmetic earnings management (CEM) worldwide. Following prior studies in the area (Thomas 1989, among others), we define CEM by small upward rounding of reported net income that generates more than expected zeros and less than expected nines as second digit of earnings numbers. We partition our sample into positive and negative earnings to see whether the anomalous frequencies are reversed in negative earnings (losses) relative to positive earnings (profits), as predicted by CEM. In addition, we analyze net sales as a control variable. We find that, due to more ample opportunities to accounting manipulation, upward rounding is much more significant on the bottom line than on the top of an income statement. Consistent with prior studies, we find a reversed pattern of CEM for net losses. In addition, we find evidence for our expecta...
TL;DR: The process consisted of describing of the problem and exploring the key factors, finding measurable quantities for the most essential factors, and selecting the final model to be used in the regulation of distribution pricing.
Abstract: This paper describes the process of developing an approach to evaluating the cost-efficiency of Finnish electricity distribution companies based on Data Envelopment Analysis (DEA). The process consisted of three main stages (1) describing of the problem and exploring the key factors, (2) finding measurable quantities for the most essential factors, and (3) selecting the final model to be used in the regulation. Especially the selection of environmental variables, which allow the comparison of distribution companies operating in different environments, played a key role in the process. The selected model is used as a part of the regulation of distribution pricing.
TL;DR: This study suggests that in multi-site environment, it is not enough to coordinate development activities to achieve a common goal, rather, more emphasis should be put on coordinating interdependencies between activities.
Abstract: A widely held understanding of coordination in software development is that it focuses on coordinating development activities to achieve a common goal. Our study, a case study in an international ICT company, suggests that in multi-site environment, it is not enough to coordinate development activities to achieve a common goal. Rather, more emphasis should be put on coordinating interdependencies between activities. Shifting the interest from activities (and subsystems) toward system-level dependencies requires software architects and developers to have a common understanding of the software architecture. Our findings reflect coordination challenges in multi-site environment with geographically dispersed teams. On the basis of the findings, we claim that architecture could be used to coordinate distributed development. However, this requires that the chief architect is capable of maintaining the integrity of the architecture and of communicating it. Furthermore, we list some requirements for a development methodology that uses architecture to support the coordination. Copyright © 2004 John Wiley & Sons, Ltd.
TL;DR: In this article, the authors analyze the central arguments and evidence put forth in the discussion on eco-efficient services, and address questions occupying policy-makers, managers and researchers: how relevant are ecoefficient services in environmental management, and what might be the next steps in exploring their potential?
Abstract: Eco-efficient services, or sustainable product–service systems, are a popular topic in discussions on sustainability and eco-efficiency. In these discussions, ‘service’ actually refers to many different things. It may refer to the role of the service sector in the economy, or to a new business strategy, or to the service (utility) provided by a product. Furthermore, the discussion on eco-efficient services has been linked to concepts such as the ‘new’, ‘experience’ or ‘customized’ economy. The article analyses the central arguments and evidence put forth in the discussion on eco-efficient services. The findings address questions occupying policy-makers, managers and researchers: how relevant are eco-efficient services in environmental management, and what might be the next steps in exploring their potential? Copyright © 2003 John Wiley & Sons, Ltd and ERP Environment.
Proceedings Article•
01 Jan 2003TL;DR: This study combines product development, marketing, sales, revenue logic, services and implementation into a cohesive framework describing the generic elements of business models in the software industry.
Abstract: In this study we explore the concept of business model and its essential elements in software business. There are no rigorous previous definitions or descriptions of the term business model in the context of software businesses in existing academic literature. Hence, a conceptual definition was found essential. Furthermore, there is a clear managerial need for constructs that help understanding and managing the bounded variations of different aspects of software businesses. We believe that decomposition of the business model concept is of help on that score, too. Based on cases representing different businesses in software industry, we explore business models for creating of a holistic view of business options based on schemes of things that the managers of our case companies found essential when describing their businesses. As a result of our study, we combine product development, marketing, sales, revenue logic, services and implementation into a cohesive framework describing the generic elements of business models in the software industry.
TL;DR: In this paper, the authors show that the amount of clustering observed is negatively related to the gross spread level of a country and that few clusters contain abnormal positive surpluses.
Abstract: Patterns of clustering in IPO gross spreads can be identified not only in the U.S., but also in many other markets across the world. The evidence indicates, however, that these clustering patterns are not necessarily collusive. Clustering is widespread in many countries with low gross spreads. In fact, the amount of clustering observed is negatively related to the gross spread level of a country. Additionally, an analysis of abnormal gross spreads following Hansen (2001) indicates that few clusters contain abnormal positive surpluses.
TL;DR: In this paper, the effectiveness of email advertising to promote information to consumers was investigated using data from a survey of 838 female Finnish consumers of a major international cosmetics brand, and the results suggest that email advertisers should strive to generate emails that are perceived as useful.
Abstract: Since the advent of the internet, much speculation has ensued regarding its tangible benefits to business. This article looks at the effectiveness of email advertising to promote information to consumers. Within this email promotion context, and using data from a survey of 838 female Finnish consumers of a major international cosmetics brand, we investigate consumer perceptions of email advertising. Specifically, within an exploratory research context we address two research questions: (1) What email advertising factors may influence visits to the company website? and (2) What email advertising factors may influence visits to a physical (i.e., bricks-and-mortar) company sales outlet? Results suggest that email advertisers should strive to generate emails that are perceived as useful. Useful emails appear to influence consumers to visit the store primarily to either buy the product or view the product firsthand, rather than visit the company website. However, as consumers could not buy the advertised products from the website, these findings should be regarded as preliminary. Factors influencing perceptions of email advertising usefulness are explored along with limitations and future research directions.
TL;DR: The health centre specific efficiency scores obtained in this study can be used locally to evaluate, design and implement structural changes in the production processes.
TL;DR: In this paper, the authors examine the globalization of the wireless value system and the ensuing shift from geographic to strategic advantage, and examine four kinds of regional advantages: US, Western Europe, Nordic countries, and Japan.
Proceedings Article•
01 Jan 2003TL;DR: A method based on the Minimum Description Length principle is used to split words statistically into subword units allowing efficient language modeling and unlimited vocabulary and the resulting model outperforms both word and syllable based trigram models.
Abstract: We study continuous speech recognition based on sub-word units found in an unsupervised fashion. For agglutinative languages like Finnish, traditional word-based n-gram language modeling does not work well due to the huge number of different word forms. We use a method based on the Minimum Description Length principle to split words statistically into subword units allowing efficient language modeling and unlimited vocabulary. The perplexity and speech recognition experiments on Finnish speech data show that the resulting model outperforms both word and syllable based trigram models. Compared to the word trigram model, the out-of-vocabulary rate is reduced from 20% to 0% and the word error rate from 56% to 32%.
TL;DR: In this paper, a general model of dynamic common agency with symmetric information is considered and the set of truthful Markov perfect equilibrium payoffs is characterized and the efficiency properties of the equilibria are established.
TL;DR: In this article, the authors studied job and worker flows in the Finnish business sector during a deep recession in the early 1990s and found that the adjustment of labor input has happened through a reduced hiring rate rather than through an increased separation rate.
Abstract: Job and worker flows in the Finnish business sector are studied during a deep recession in the early 1990s. The data set covers effectively the whole work force. The gross job and worker flow rates are fairly high. The evidence suggests that the adjustment of labor input has happened through a reduced hiring rate rather than through an increased separation rate. However, during the recession the group of declining plants included more and larger plants than before, which led to reduced employment. Excess worker turnover (churning) and excess job reallocation have been low during the recession. The evidence of the countercyclicality of job reallocation is mixed. The flows are calculated both for the whole business sector, and for seven main industries. Services have clearly higher flow rates than manufacturing, but the cyclical changes in the flows are fairly similar in all industries. To test the sensitivity of the results to data sources, job flows are calculated from three different statistics.
TL;DR: The results suggest that poor availability of product information and a lack of systems integration severely limit the efficiency of consumer search in present electronic markets.
Abstract: Electronic markets are frequently touted to be highly efficient. The prevailing hypothesis is that very low information search costs will enable buyers to expand their product information search and comparison beyond what is feasible in conventional markets. The aim of this paper is to evaluate the relative efficiency of product search in current travel service markets. We report the results of our analysis based on an experimental setting with 92 subjects. Our conclusions tend to disagree with previous predictions about the efficiency of electronic markets. The electronic markets observed were found to be at best as efficient as their conventional counterparts. Our results suggest that poor availability of product information and a lack of systems integration severely limit the efficiency of consumer search in present electronic markets.
TL;DR: In this article, the authors studied the optimal harvesting of a multiple vintage forest system under discounting, discrete time and strictly concave utility, and showed that at the optimal stationary state, timber harvest may evolve cyclically over time.
01 Jan 2003
TL;DR: Relevance of document titles to the processing task can be predicted with reasonable accuracy from only a few features, whereas prediction of relevance of specific words will require new features and methods.
Abstract: We investigate whether it is possible to infer from implicit feedback what is relevant for a user in an information retrieval task. Eye movement signals are measured; they are very noisy but potentially contain rich hints about the current state and focus of attention of the user. In the experimental setting relevance is controlled by giving the user a specific search task, and the modeling goal is to predict from eye movements which of the given titles are relevant. We extract a set of standard features from the signal, and explore the data with statistical information visualization methods including standard self-organizing maps (SOMs) and SOMs that learn metrics. Relevance of document titles to the processing task can be predicted with reasonable accuracy from only a few features, whereas prediction of relevance of specific words will require new features and methods.
TL;DR: The results show that the use of radial projection for target setting is too restrictive, and the decision making units (DMUs) are free to choose their own target values on the efficient frontier.
Abstract: Radial projection is a standard technique applied in data envelopment analysis (DEA) to calculate efficiency scores for input and/or output variables. In this paper, we have studied the appropriateness of radial projection for target setting. We have created a situation where the decision making units (DMUs) are free to choose their own target values on the efficient frontier and then compared the results to those of radial projection. In practice, target values are primarily used for future goal attainment; hence, not only preferences but also, and on the whole, change in time frame, affect the choice of target values. Based on that, we conducted an empirical experiment with an aim to study how the DMUs choose their most preferred target values on the efficient frontier. The subjects, who all were students of the Helsinki School of Economics, were given the freedom to explore their personalized efficient frontiers by using a multiple objective linear programming (MOLP) approach. To study various and relevant scenarios, the personalized efficient frontiers for all students were constructed in such a way that the current position of each student in relation to the frontier made him/her inefficient, efficient, or super-efficient. The results show that the use of radial projection for target setting is too restrictive.
TL;DR: In this article, the authors examine the global product and marketing strategies and their development when globalizing ICT companies and highlight the importance of examining co-operation possibilities in both vertical and horizontal value networks.
Abstract: SUMMARY The study examines the global product and marketing strategies and their development when globalising ICT companies. Two major globalisation paths are distinguished: Born Globals and Globalising Internationals. The paper describes the characteristics of these two approaches, outlines a framework for understanding the product, brand and channel strategies in the globalisation process. It further elaborates on two important dimensions, namely standardisation across countries and co-operation in value networks. The study shows how the product and marketing strategies should be standardised along the globalisation process. A novel finding relates to the importance of examining co-operation possibilities in both vertical and horizontal value networks.