Showing papers by "Aalto University published in 2005"

Managerial cognition, action and the business model of the firm

Abstract: – The purpose of the paper was to outline a generic framework for the business model and illuminate its linkages to managerial cognition., – The paper reviewed the focal literature focusing on the actions and evolution of a firm and built a synthesis that describes the different components of a business model., – The main finding was that a business model is essentially both a cognitive phenomenon as well as being built on the material aspects of a firm., – The paper proposes that the business model can be scrutinized in future studies, especially from the viewpoints of cognition, thus creating new avenues for intra‐firm evolutionary studies., – The paper found several implications for practising managers. First, the concept itself creates possibilities for self‐analysis and scenario building. Second, the understanding that a business model is systemic helps managers to evaluate their actions vis‐a‐vis the evolutionary path of the business model. Third, the outlined business model is useful in executive education as it creates a cognitive map of the various aspects of business activities., – The paper offers new insights into the functions and evolution of firms and will be of interest to both researchers and practising managers.

Language and the Circuits of Power in a Merging Multinational Corporation

Abstract: We argue in this paper that corporate language policies have significant power implications that are easily overlooked. By drawing on previous work on power in organizations (Clegg, 1989), we examine the complex power implications of language policy decisions by looking at three levels of analysis: episodic social interaction, identity/subjectivity construction, and reconstruction of structures of domination. In our empirical analysis, we focus on the power implications of the choice of Swedish as the corporate language in the case of the recent banking sector merger between the Finnish Merita and the Swedish Nordbanken. Our findings show how language skills become empowering or disempowering resources in organizational communication, how these skills are associated with professional competence, and how this leads to the creation of new social networks. The case also illustrates how language skills are an essential element in the construction of international confrontation, lead to a construction of superiority and inferiority, and also reproduce post-colonial identities in the merging bank. Finally, we also point out how such policies ultimately lead to the reification of post-colonial and neo-colonial structures of domination in multinational corporations.

Language and the Circuits of Power in a Merging Multinational Corporation

Abstract: We argue in this paper that corporate language policies have significant power implications that are easily overlooked. By drawing on previous work on power in organizations (Clegg, 1989), we examine the complex power implications of language policy decisions by looking at three levels of analysis: episodic social interaction, identity/subjectivity construction, and reconstruction of structures of domination. In our empirical analysis, we focus on the power implications of the choice of Swedish as the corporate language in the case of the recent banking sector merger between the Finnish Merita and the Swedish Nordbanken. Our findings show how language skills become empowering or disempowering resources in organizational communication, how these skills are associated with professional competence, and how this leads to the creation of new social networks. The case also illustrates how language skills are an essential element in the construction of international confrontation, lead to a construction of superiority and inferiority, and also reproduce post-colonial identities in the merging bank. Finally, we also point out how such policies ultimately lead to the reification of post-colonial and neo-colonial structures of domination in multinational corporations.

A multiwavelength view of the TeV blazar markarian 421: Correlated variability, flaring, and spectral evolution

Abstract: We report results from an intensive multiwavelength monitoring campaign on the TeV blazar Mrk 421 over the period of 2003-2004. The source was observed simultaneously at TeV energies with the Whipple 10 m telescope and at X-ray energies with the Rossi X-Ray Timing Explorer (RXTE) during each clear night within the Whipple observing windows. Supporting observations were also frequently carried out at optical and radio wavelengths to provide simultaneous or contemporaneous coverages. The large amount of simultaneous data has allowed us to examine the variability of Mrk 421 in detail, including cross-band correlation and broadband spectral variability, over a wide range of flux. The variabilities are generally correlated between the X-ray and gamma-ray bands, although the correlation appears to be fairly loose. The light curves show the presence of flares with varying amplitudes on a wide range of timescales at both X-ray and TeV energies. Of particular interest is the presence of TeV flares that have no coincident counterparts at longer wavelengths, because the phenomenon seems difficult to understand in the context of the proposed emission models for TeV blazars. We have also found that the TeV flux reached its peak days before the X-ray flux did during a giant flare (or outburst) in 2004 (with the peak flux reaching ~135 mcrab in X-rays, as seen by the RXTE ASM, and ~3 crab in gamma rays). Such a difference in the development of the flare presents a further challenge to both the leptonic and hadronic emission models. Mrk 421 varied much less at optical and radio wavelengths. Surprisingly, the normalized variability amplitude in the optical seems to be comparable to that in the radio, perhaps suggesting the presence of different populations of emitting electrons in the jet. The spectral energy distribution of Mrk 421 is seen to vary with flux, with the two characteristic peaks moving toward higher energies at higher fluxes. We have failed to fit the measured spectral energy distributions (SEDs) with a one-zone synchrotron self-Compton model; introducing additional zones greatly improves the fits. We have derived constraints on the physical properties of the X-ray/gamma-ray flaring regions from the observed variability (and SED) of the source. The implications of the results are discussed.

Integrated internal communications: a multidisciplinary perspective

Abstract: Purpose – This article's purpose is to explore the multidisciplinary nature of internal communications, and argue that an integrated approach to internal communications is beneficial when assessing knowledge sharing in organisations.Design/methodology/approach – This article presents a review of relevant current literature, and explores the issue through qualitative interview data from a world‐leading multinational companies (MNC).Findings – The empirical data provide support for the integrated view, and also enhance our understanding of knowledge sharing as an important and strategic function of integrated internal communications.Originality/value – The integrated perspective here contributes to the understanding of internal communications in two ways. First, it draws from the domains of business, management, corporate, and organisational communication, which together incorporate both practical and theoretical knowledge. Second, it includes all formal and informal communication that take place inside an ...

Speaking in Tongues : The Importance of Language in International Management Processes

Abstract: This paper considers recent research on language effects in some international management situations, specifically, intraorganizational interactions, such as interunit communication and subsidiary autonomy, and in postmerger integration. Within the multinational corporation (MNC), the need for control and coordination has driven the move toward language standardization, in the form of a common corporate language, with widespread effects on management processes. Our analysis indicates that, while important, language issues have been relatively ignored but may offer a rewarding research avenue regarding the functioning of the MNC, with potentially important implications for management.

Integration or disintegration? Human resource implications of a common corporate language decision in a cross-border merger

Abstract: The primary purpose of introducing a common corporate language in cross-border mergers is to integrate two previously separate organizations and facilitate communication However, the present case study of a cross-border merger between two Nordic banks shows that the common corporate language decision may have disintegrating effects, particularly at organizational levels below top management We identify such effects on performance appraisal, language training and management development, career paths, promotion and key personnel Our findings show that top management needs to work through the consequences of the language decision upon those who are expected to make such a decision work

In search of management accounting theory

Abstract: In this article we discuss management accounting theory. We discuss the motivation for and role of theory in management accounting, arguing that theories in an applied field such as management accounting should provide explanations that are useful for those we study - managers, organizations and society. We evaluate the nature of theories currently used and developed. Those theories that are considered theories by the research community are largely imported from other social sciences, but have hardly anything that makes them unique to management accounting. Those theories that do not currently deserve the status of theory attempt to explain how to apply management accounting to achieve superior performance. We argue that both forms of theories, at present, largely fail to provide valid support for practitioners. We contend that management accounting theory should help us to answer questions of what methods we should apply, how, in what circumstances, and how to change management accounting. We provide suggestions on how management accounting research could proceed to produce better theories.

Rapid internationalisation enabled by the Internet: The case of a knowledge intensive company

Abstract: In this paper we will show how knowledge intensive firms can quicken their internationalisation by using the Internet as a sales channel. When properly applied the Internet can provide a way to decrease the effects of liability of foreignness and resource scarcity, and herewith contribute to an increased speed of internationalisation. The focus of the empirical research is on a Finnish knowledge intensive company and the development of its international operations and sales channels. The study applies the longitudinal case study method when examining in-depth the development of Futuremark Corporation for a period of five years.

Branding Strategies of Born Globals

Abstract: Born global companies have now been studied for a decade. However, little has been written specifically about the challenges facing born globals in their branding endeavours. This research examines the branding strategies of 30 Finnish small and medium-sized born globals. The experience, qualities and global orientation of the founder and the top management team are found important for the success of the born globals in their branding achievements. A key argument is that business-to-business and business-to-consumer born globals differ as to their branding strategies and approaches. The analysis reveals a major imperative; branding strategies are dynamic and depend on the globalisation degree.

The dynamics of contextual forces of ERP implementation

Abstract: This paper reports the findings of an in-depth case study of implementing Enterprise Resource Planning Systems (ERP) in a long-established multinational company within the telecommunication sector. The company streamlined its operations through an ambitious business process redesign initiative and introduced an ERP system. The study examines the emergence of the ERP system and the enactment of simultaneous changes to the system and to the company context, along with the intentions and actions of the individuals involved. The study seeks to understand the ERP implementation process, in particular, the link between the ERP implementation process and the underlying and often subtle influences within the context. By drawing on the case study the paper offers a theoretical conceptualization of triggers and consequences of the cycles of control and drift of ERP implementation. We argue that by taking account of managers' intentions, the affordance of technology and the power and cultural context, we can provide richer insights into the ERP implementation process and the dynamics of the underlying, subtle influences within the context.

Is extreme programming just old wine in new bottles: A comparison of two cases

Abstract: This article explores extreme programming (XP) as an information systems development approach and argues that it is mainly old wine in new bottles. We take an interpretive and critical view of the phenomenon. We made an empirical study of two companies that apply an XP-style development approach throughout the information systems development life cycle. The results of our research suggest that XP is a combination of best practices of traditional information systems development methods. It is hindered by its reliance on talented individuals, which makes its large-scale deployment as a general-purpose method difficult. We claim that XP can be useful for small teams of domain experts who are physically close together and able to communicate well with the end users, and who are good designers and implementers. However, these skilled and motivated individuals with high working moral can exhibit high productivity regardless of the methods used if they are not overly constrained by bureaucracy.

SpeechFind: advances in spoken document retrieval for a National Gallery of the Spoken Word

Abstract: Advances in formulating spoken document retrieval for a new National Gallery of the Spoken Word (NGSW) are addressed. NGSW is the first large-scale repository of its kind, consisting of speeches, news broadcasts, and recordings from the 20th century. After presenting an overview of the audio stream content of the NGSW, with sample audio files from U.S. Presidents from 1893 to the present, an overall system diagram is proposed with a discussion of critical tasks associated with effective audio information retrieval. These include advanced audio segmentation, speech recognition model adaptation for acoustic background noise and speaker variability, and information retrieval using natural language processing for text query requests that include document and query expansion. For segmentation, a new evaluation criterion entitled fused error score (FES) is proposed, followed by application of the CompSeg segmentation scheme on DARPA Hub4 Broadcast News (30.5% relative improvement in FES) and NGSW data. Transcript generation is demonstrated for a six-decade portion of the NGSW corpus. Novel model adaptation using structure maximum likelihood eigenspace mapping shows a relative 21.7% improvement. Issues regarding copyright assessment and metadata construction are also addressed for the purposes of a sustainable audio collection of this magnitude. Advanced parameter-embedded watermarking is proposed with evaluations showing robustness to correlated noise attacks. Our experimental online system entitled "SpeechFind" is presented, which allows for audio retrieval from a portion of the NGSW corpus. Finally, a number of research challenges such as language modeling and lexicon for changing time periods, speaker trait and identification tracking, as well as new directions, are discussed in order to address the overall task of robust phrase searching in unrestricted audio corpora.

Mergers and acquisitions through an intellectual capital perspective

Abstract: The acquisition of knowledge and other intangible resources often underlies merger and acquisition strategies. Past streams of research regarding the effect intangible resources have on merger and acquisition performance have been fragmented and remained mutually exclusive of each other. Introduces, in an attempt to integrate these streams of research, the intellectual capital perspective and argues that core intellectual capital has to be at the root of high value synergies. With the help of a case study presents a framework that can be used to identify core intellectual capital. Then discusses the conditions surrounding the trade of intellectual capital and their effect on value creation prospects. Proposes that the value creation potential of synergies involving core intellectual capital is a function of the conditions for trading and leveraging intellectual capital and the transformation inertia associated with the trade.

Technology, Labour Characteristics and Wage-Productivity Gaps

Abstract: We use plant-level employer-employee data in production functions and wage equations to examine whether wages are based on productivity. We use a stepwise procedure to find out how the results are influenced by the kind of data that is available. The models include shares of employee groups based on age, level and field of education, and sex. The gap between the age-related wage and productivity effects increases with age. Education increases productivity, but wage under-compensates productivity especially for those with the highest level of non-technical education. For women the results depend greatly on the specification and method used.

Combining eye movements and collaborative filtering for proactive information retrieval

Abstract: We study a new task, proactive information retrieval by combining implicit relevance feedback and collaborative filtering. We have constructed a controlled experimental setting, a prototype application, in which the users try to find interesting scientific articles by browsing their titles. Implicit feedback is inferred from eye movement signals, with discriminative hidden Markov models estimated from existing data in which explicit relevance feedback is available. Collaborative filtering is carried out using the User Rating Profile model, a state-of-the-art probabilistic latent variable model, computed using Markov Chain Monte Carlo techniques. For new document titles the prediction accuracy with eye movements, collaborative filtering, and their combination was significantly better than by chance. The best prediction accuracy still leaves room for improvement but shows that proactive information retrieval and combination of many sources of relevance feedback is feasible.

Technology, Labour Characteristics and Wage‐productivity Gaps*

Abstract: We use plant-level employer–employee data in production functions and wage equations to examine whether wages are based on productivity. We use a stepwise procedure to find out how the results are influenced by the kind of data that is available. The models include shares of employee groups based on age, level and field of education, and sex. The gap between the age-related wage and productivity effects increases with age. Education increases productivity, but wage under-compensates productivity especially for those with the highest level of non-technical education. For women the results depend greatly on the specification and method used.

Gender and National Identity Constructions in the Cross-Border Merger Context

Abstract: In this article we explore ways in which vertical gender inequality is accomplished in discourse in the context of a recent chain of cross-border mergers and acquisitions that resulted in the forma

Strategic Behavior and Underpricing in Uniform Price Auctions: Evidence from Finnish Treasury Auctions

Abstract: We contribute to the debate on the optimal design of multiunit auctions by developing and testing robust implications of the leading theory of uniform price auctions on the bid distributions submitted by individual bidders. The theory, which emphasizes market power, has little support in a data set of Finnish Treasury auctions. A reason may be that the Treasury acts strategically by determining supply after observing bids, apparently treating the auctions as a repeated game between itself and primary dealers. Bidder behavior and underpricing react to the volatility of bond returns in a way that suggests bidders adjust for the winner’s curse. ECONOMISTS AND POLICYMAKERS HAVE DEBATED the optimal design of multiunit auctions for decades. Much of the debate has been shaped by Friedman’s (1960) proposition that the U.S. Treasury could decrease funding costs by using uniform price rather than discriminatory price auctions. In both auction formats, individual bidders submit collections of bids (demand schedules) and the securities are awarded in the order of descending price until supply is exhausted. In uniform auctions, winning bidders pay the market-clearing (or, stop-out) price

Four Themes of the Impact of Management Teams on Organizational Performance: Implications for Future Research of Entrepreneurial Teams

Abstract: This article draws together accumulated research regarding top management teams with the more general literature of work on small groups, and adds detailed interpretation, thereby contributing to the literature on founding/management teams of new ventures. Prior TMT (Top Management Team) research has commonly linked demographic variables to team effectiveness. However, a growing understanding of the effects of teams on organizational performance suggests that besides team demographic variables, more fine-grained variables concerning team and individual processes have to be taken into account in order to better understand the link between entrepreneurial teams and organizational performance. Drawing on a large body of literature, four themes are proposed to illuminate these links in new ventures: resources, structural and process effects of teams, task leadership, and the effects of team members’ personal integration into the task process.

Trust, Social Networks and Enterprise Development: Exploring Evidence from East and West Germany

Abstract: This paper examines the role of social networks in enterprise development by comparing personal trust (as inherent in social relationships) to collective and institutional trust (derived from the wider cultural, political and legal environment). The findings indicate that there is a shift from personal towards institutional trust as the firm develops and grows, but they also confirm enterprise behaviour being based on a mixture of different trust forms. Moreover, the findings underline the difficulty of studying trust empirically, recommending longitudinal qualitative approaches for further research.

Epi-convergent discretizations of stochastic programs via integration quadratures

Abstract: The simplest and the best-known method for numerical approximation of high-dimensional integrals is the Monte Carlo method (MC), i.e. random sampling. MC has also become the most popular method for constructing numerically solvable approximations of stochastic programs. However, certain modern integration quadratures are often superior to crude MC in high-dimensional integration, so it seems natural to try to use them also in discretization of stochastic programs. This paper derives conditions that guarantee the epi-convergence of the resulting objectives to the original one. Our epi-convergence result is closely related to some of the existing ones but it is easier to apply to discretizations and it allows the feasible set to depend on the probability measure. As examples, we prove epi-convergence of quadrature-based discretizations of three different models of portfolio management and we study their behavior numerically. Besides MC, our discretizations are the only existing ones with guaranteed epi-convergence for these problem classes. In our tests, modern quadratures seem to result in faster convergence of optimal values than MC.

ERP System Adoption - Does the Size Matter?

Abstract: This paper investigates the relationship of enterprise size to the constraints and objectives of Enterprise Resource Planning (ERP) systems adoption. The survey data based on the responses of 44 companies indicates that significant differences exist between small, medium-sized and large enterprises in ERP system adoption. Specifically, the findings suggest that small companies experience more knowledge constraints than their larger counterparts in ERP adoption. Further, while being the most prevalent objective for ERP adoption in all the company groups, business development through ERP adoption is considered especially important by the medium-sized and large enterprises. Finally, the findings of the study suggest that instead of considering small and medium-sized enterprises as one homogenous group, the differences between these two groups of companies should be acknowledged in the future research.

Financial participation and performance in Europe

Abstract: 7th Eur IIRA Conf.: Study Group HRM: The relationship betwee HRM and Organisational and Employee Performance, 7 september 2004