Investointipäätökseen vaikuttavat faktat ja tuntemukset maaliikenteessä

The conventional approach in economics has assumed business decisions to follow rational and logical reasoning. Management accounting (MA) has been defined as information, which is designed to enable rational decision makers to make optimal decisions. However, the recent MA literature has shown that managerial decisions rely also on feeling and intuition. Institution theory has been applied to illustrate the observed bounded rationality in organizations, but it does not explain why and when investment discussions culminate to investment actions. More research is needed to understand the decision making process in organizations and how the intertwined facts and feelings of the decision affect the process. When the influence of fact and feeling driven criteria in decisions is recognized, the actual role of MA in decision making must be reconsidered. Alternative fuel vehicle investments offer a complex and appealing context to study the topic, as the investment discussions are influenced by a diverse set of facts and feelings ranging from fuel cost savings to environmental values. The thesis focused particularly on the engagement of facts and feelings related to investment decisions on natural and bio gas vehicles. The topic was covered by creating a framework explaining the interaction of facts and feelings in decision making process. It also described how the discussions eventually lead to actual investment behaviour and how to recognize the role of MA in the process. The research material was gathered through an interventionist case study setting by creating MA tools for a case company and interviewing B2B customers about their natural gas vehicle investment decisions. The findings contributed to the discussion on factors affecting investment decisions in road transportation. The study suggests that the investment decision requires both a factual grounding and support from the decision maker’s values in order to form a real investment possibility. The fact and feeling driven decision criteria varies with the nature of the investment. Therefore, also the role of MA is different depending on the hierarchy of the criteria. Calculations alone do not determinate the outcome of the investment decision in the road transportation context

Drivers and Limitations for Incorporating Environmental Considerations into Investment Decision-Making

Tarve kestävälle yhteiskunnalliselle muutokselle vaikuttaa välttämättömältä, kun tarkastellaan rajallisia luonnonresursseja ja ympäristön huononevaa tilaa. Kestävyysmuutoksen kirjallisuus on käsitellyt tätä tarvetta systeemitasolla, mutta sillä rajallinen ymmärrys ympäristökestävyyden edistämisestä yritystasolla ja edelleen yksittäisissä liiketoiminnoissa. Tämä on valitettavaa, sillä kestävyysmuutos tarvitsee toteutuakseen edelläkävijätoimintaa, joka käytännössä ilmenee organisaatio- ja yksilötasolla. Kirjallisuudessa ei ole syvällisesti käsitelty yritysten päätöksenteon käytänteitä ja ympäristönäkökulmien roolia päätöksentekoprosesseissa. Tämän vuoksi on toivottu, että johtamisen tutkimushaaroja tuotaisiin mukaan kestävyysmuutoksen keskusteluun. Laskentatoimen kirjallisuus on hiljattain tunnistanut tarpeen ympäristötietoisemmalle liiketoiminnalle. Se on kehittänyt investointiarvioinnin ja raportoinnin työkaluja talous- että ympäristötiedon huomioimiseksi yritysten päätöksenteossa. Työkalujen saatavuus ei kuitenkaan vielä takaa, että yritykset todellisuudessa sisällyttäisivät ympäristönäkökulmia päätöksentekoprosesseihinsa. Ympäristötietoisemman päätöksenteon edistäminen tarvitsee perinpohjaista ymmärrystä todellisista tilanteista, joissa yritykset ovat investoineet puhtaampiin teknologioihin. Vastatakseen näihin tutkimustiedon puutteisiin, tämä väitöskirja tutkii ympäristönäkökulmien sisällyttämistä investointipäätöksenteon prosesseihin. Väitöskirja tarkastelee ulkoisia muutospaineita, jotka ajavat yrityksiä huomioimaan ympäristönäkökulmia päätöksentekoprosesseissaan. Lisäksi se tarkastelee käynnistäviä tekijöitä, jotka aloittavat investoinnin todellisissa päätöksentekotilanteissa, sekä rajoitteita, jotka hankaloittavat ympäristönäkökulmien sisällyttämistä prosesseihin. Väitöskirja rakentuu yhteenvedosta ja viidestä tutkimusartikkelista, jotka perustuvat laadullisiin tutkimusotteisiin. Tutkimuksen teoreettinen pohja yhdistää kontingentista ja pragmaattis-konstruktivistista lähestymistapaa päätöksentekoon sekä SPAT-vaihtopolkuanalyysimenetelmää yritysten päätösprosessien analysointiin. Yksittäiset artikkelit hyödyntävät kirjallisuuteen perustuvia käsiteanalyyseja sekä interventionistisia tapaustutkimuksia. Tapaustutkimukset tehtiin suomalaisella kaasualalla. Ne käsittivät keskeisiä tahoja kaasun tuottajista ja käyttäjistä biokaasun tuotantojärjestelmiä paikallisesti edistäviin kuntatoimijoihin. Tutkimuksessa tunnistetut ulkoiset muutospaineet, käynnistävät tekijät ja hankaloittavat rajoitteet tuottavat ymmärrystä yritysten investointipäätöksenteosta ja ympäristönäkökulmien sisällyttämisestä päätöksiin. Tulokset lisäävät ymmärrystä yritysten päätöksenteosta kestävyysmuutoksen, laskentatoimen ja energiatekniikan kirjallisuuteen. Ne myös havainnollistavat, kuinka yritykset investoivat puhtaampiin teknologioihin ulkoisten muutospaineiden, vaikuttajien, sisäisten päätösrakenteiden ja yksittäisten päätöksentekijöiden yhteisvaikutuksesta. Investoinnin voi käynnistää ulkoisesti liiketoimintaympäristössä muuttunut tilannetekijä tai aktiivinen vaikuttaja. Sisäisesti käynnistävät tekijät lähtevät motivoituneista yksilöistä, joiden roolit ja arvot tukevat investointia. Vaikka ulkoiset muutospaineet tai sisäiset arvot tukisivat ympäristönäkökulmien huomioimista, erilaiset rajoitteet voivat vaikeuttaa niiden sisällyttämistä päätöksentekoon. Rajoitteet voivat kummuta sekä päätösprosessien rakenteista että päätöksentekijöistä. Kokonaisuutena puhtaampien teknologioiden investoinnit vaativat käynnistäviä tilannetekijöitä liiketoimintaympäristössä, motivoituneita ulkoisia ja sisäisiä vaikuttajia sekä soveltuvaa organisaation päätöksenteon rakennetta ja vuorovaikutusta. Tulokset ovat hyödyllisiä päättäjille ja teknologiatoimittajille, jotka haluavat edistää puhtaamman teknologian investointeja yrityksissä. Toimijat voivat lisätä työnsä vaikuttavuutta tunnistamalla käynnistäviä tekijöitä ja käytännön rajoitteita investointipäätöksenteossa. Etenkin puhtaampien teknologioiden myyjät voivat ymmärtää nykyisten ja potentiaalisten asiakasyrityksien päätöksentekoa paremmin tulosten avulla. Lisäksi tarvitaan jatkotutkimusta ulkoisista muutospaineista, käynnistävistä tekijöistä ja rajoitteista muissa investointikonteksteissa. Jatkotutkimus voi myös tarkastella keskeisten sisäisten vaikuttajien rooleja, arvoja ja keinoja edistää puhtaampien teknologioiden investointeja organisaatiossa.Society’s transition towards environmental sustainability seems inevitable from the perspective of limited resources and ecological degradation. Sustainability transition literature has addressed this need at the system level, but it has provided limited knowledge on enhancing sustainability at the company level and within individual businesses. This is unfortunate, as the transition requires forerunner actions that different companies and individuals can drive in practice. The literature has not thoroughly investigated the decision-making practices of companies and the role of environmental considerations in those processes. Therefore, the sustainability transition scholars have called for introducing management studies into the discussion. Acknowledging the need for more environmentally conscious business practices, management accounting literature has recently developed new investment assessment tools and reporting methods. They enable the consideration of both financial and environmental information in managerial decision-making. However, the availability of such methods does not imply that companies would incorporate environmental considerations into their decision-making processes in reality. Therefore, to enhance environmentally conscious decision-making practice, a more thorough understanding is needed about the actual decision-making processes in situations in which companies are investing into cleaner technologies. To address these needs, this dissertation studies the incorporation of environmental considerations into investment decision-making processes. More precisely, this dissertation identifies and elaborates on the external pressures that drive companies to consider environmental aspects of their technology investments, on the triggers that initiate the investments in actual decision-making situations, and on the limitations that hinder the incorporation of environmental considerations into investment decision-making processes. To meet its research objective, this dissertation combines different in-depth qualitative research approaches. It is built on a summary and five research articles (Articles I–V). The theoretical basis of the dissertation combines contingency- and actor-based approaches to decision-making, together with Switching Patch Analysis Technique as a critical incident technique for analysing decision-making processes. The individual articles employ conceptual analyses and in-depth case studies with some interventionist features. The case studies were conducted in the Finnish gas sector, involving central stakeholders from the gas providers and utilizers and the local authorities that foster local investments in biogas production systems. Overall, this dissertation uniquely combines analyses of the pressures for environmental sustainability at the system level and of the triggers and limitations in decision-making processes at the company level. It integrates and elaborates upon the current understanding of the decision-making practices of companies as presented in the literature on sustainability transitions, management accounting, and energy technology. The findings illustrate how cleaner technology investments of companies are the result of complex interactions between external situational pressures, influencers, internal process structures, and individual decision-makers. These investments can be triggered externally by situational changes in a business environment or by active influencers. In contrast, internal triggers for these investments involve motivated individuals who possess supporting roles and values for initiating the investment. However, whether pressured externally or valued internally, the incorporation of environmental considerations can face challenges in practice. It can be hindered by limitations stemming from the investment decisionmaking process structure and the decision-makers involved. Therefore, achieving cleaner technology investments in an organization requires supportive situational factors in the external business environment, motivated external and internal influencers that foster changes in practice, and internal decision-making structures and interactions that allow the incorporation to take place in the organization. These findings are relevant for practitioners who wish to influence the decisionmaking processes of companies from the outside. Such practitioners include policymakers, technology providers, and management that promote cleaner technology investments in companies. These practitioners can increase the impact of their work as influencers by identifying the triggers and practical limitations for incorporating environmental considerations into decision-making. In particular, the representatives selling cleaner technologies can understand better the decisionmaking processes of their existing and potential customer companies. Future studies are encouraged to investigate external pressures, triggers, and limitations in other investment contexts. Furthermore, these studies could also address the roles, intentions, and actions taken by key influencers when they promote the cleaner technologies in their organisations

Relocation of Nordic Manufacturing

Manufacturing industries have had an important role in the export-driven economies of the Nordic countries. Manufacturing companies from these countries have increasingly been moving production abroad in recent years. However, backshoring of previously offshored manufacturing is attracting growing attention among researchers and policy-makers. This phenomenon, and its consequences for the renewal of manufacturing, are yet little understood.The research project “Reshoring of manufacturing (ROaMING): Disruptive Technologies, Business Ecosystems and Performance Information as Key Enablers” focused on increased understanding of production relocation trends in the Nordic countries, Denmark, Finland, and Sweden. The aim was to create in-depth knowledge on the status of and potential for relocating manufacturing as a source of renewal of the manufacturing sector. The research approach consisted of quantitative and qualitative parts utilizing both available databases and new data collected through a large-scale survey and case research.The report consists of five main content chapters. First, the survey results of offshoring and backshoring trends in the Nordic countries Denmark, Finland, and Sweden are presented. Then we discuss the use of financial information in decision-making regarding manufacturing offshoring and backshoring. Thereafter the results of a study on manufacturing innovations and the adoption and implementation of new manufacturing technologies are reported. The fourth chapter presents the results of a study involving two manufacturing companies on the role of business ecosystems in manufacturing relocation decisions. Finally, the fifth chapter explores the global production investments made during the period 2005-2015 by large manufacturing firms with headquarters in Denmark, Finland, and Sweden.The results among the Nordic manufacturing firms indicate that offshoring is clearly more common than backshoring. The manufacturing relocations by Nordic firms are geographically wide-ranging. The most important regions for offshoring and of backshoring are Eastern and Western Europe, the Nordic countries, and China. Offshored production is typically cost focused, whereas production relocated to the Nordic countries is relatively complex and technology-intensive, seeking access to technology, skills and knowledge, and proximity to R&D and product development. Movement of production is expected to continue both offshore and back. The reinforcement of the Nordic countries as a strong base for high value-adding manufacturing firms can be influenced by policy measures and future research.Policy implications, as well as future research proposals are noted as the result of this study. Cost competitiveness in the Nordic countries needs to be ensured in relation to their reference group in the competition. This also exerts pressure for continuous productivity improvements through technological advances and process improvements. Access to skills, knowledge and technology are important factors for Nordic manufacturers to relocate production. Therefore product, process and supply chain innovation, as well as colocation of R&D and production, need to be promoted. Policy-makers need to pay attention to maintaining the Nordic innovation systems. Many firms seem to lack a clear strategy or analytical capabilities for manufacturing location decisions. Expertise on managing global manufacturing networks should be enhanced. Follow-up on the extent, drivers and benefits of production relocations of the Nordic manufacturing firms is needed to enhance the fact-based understanding of the longer-term trend of manufacturing relocations

Investointipäätökseen vaikuttavat faktat ja tuntemukset maaliikenteessä

The conventional approach in economics has assumed business decisions to follow rational and logical reasoning. Management accounting (MA) has been defined as information, which is designed to enable rational decision makers to make optimal decisions. However, the recent MA literature has shown that managerial decisions rely also on feeling and intuition. Institution theory has been applied to illustrate the observed bounded rationality in organizations, but it does not explain why and when investment discussions culminate to investment actions. More research is needed to understand the decision making process in organizations and how the intertwined facts and feelings of the decision affect the process. When the influence of fact and feeling driven criteria in decisions is recognized, the actual role of MA in decision making must be reconsidered. Alternative fuel vehicle investments offer a complex and appealing context to study the topic, as the investment discussions are influenced by a diverse set of facts and feelings ranging from fuel cost savings to environmental values. The thesis focused particularly on the engagement of facts and feelings related to investment decisions on natural and bio gas vehicles. The topic was covered by creating a framework explaining the interaction of facts and feelings in decision making process. It also described how the discussions eventually lead to actual investment behaviour and how to recognize the role of MA in the process. The research material was gathered through an interventionist case study setting by creating MA tools for a case company and interviewing B2B customers about their natural gas vehicle investment decisions. The findings contributed to the discussion on factors affecting investment decisions in road transportation. The study suggests that the investment decision requires both a factual grounding and support from the decision maker’s values in order to form a real investment possibility. The fact and feeling driven decision criteria varies with the nature of the investment. Therefore, also the role of MA is different depending on the hierarchy of the criteria. Calculations alone do not determinate the outcome of the investment decision in the road transportation context

Business environment - emerging external and internal pressures for sustainable production

acceptedVersionPeer reviewe

Wood material selection in school building procurement – A multi-case analysis in Finnish municipalities

Municipalities are increasingly adopting green public procurement practices in construction projects; one example is the specification of preferred building materials in public procurement tenders. Before tendering documents, different stakeholders and their ambitions influence the framing of material requirements. In this paper we explore factors initiating wood material selection in five public procurement cases, where the initiation phase of the procurement resulted in wood material use requirements specified in the public procurement tenders. Based on the cases, we constructed potential paths leading to building material requirements to be set in the tender documents. We also identified triggers initiating construction projects and offer a discussion of the role of different determinants related to building material use. These identified paths, triggers, and determinants unveiled the dynamics behind building material requirements in public procurement tenders and more specifically, the actions and underlying values for doing so.publishedVersionPeer reviewe

Puurakentaminen kunnissa – julkinen keskustelu päätöksentekoa ohjaamassa

Rakennusmateriaaleihin liittyy paljon erilaisia osittain median välittämiä ja luomia mielikuvia. Tutkimustietoa mielikuvaväittämien rinnalle on tarjolla vähän. Silti kunnat joutuvat tekemään haastavia päätöksiä rakennushankkeistaan. Erityisen ajankohtaisena ilmiönä monet kunnat haluavat ottaa kantaa rakennusmateriaalivalintoihin ja edistää puurakentamista. Tässä artikkelissa tarkastelemme sitä, minkälaisia institutionaalisia asetelmia (eli arvoja, uskomuksia, tavoitteita, asenteita, käytäntöjä ja odotuksia) puuhun rakennusmateriaalina liitetään julkisessa keskustelussa. Aamulehden uutisaineistoon (2015–2020) perustuen nostamme esiin neljä keskeistä institutionaalisten asetelmien kategoriaa: (1) puurakentaminen kunnan vetovoimatekijänä, (2) puurakentamisen taloudelliset vaikutukset hanketasolla ja kansallisesti, (3) puurakentamisen hyvinvointi-vaikutukset sekä (4) puurakentaminen kestävän kehityksen edistäjänä. Esitämme, että uutismedia voi uudistaa vanhentuneita käsityksiä puurakentamisesta ja vaikuttaa näin myönteisesti kunnallisiin päätöksiin rakentaa nimenomaan puusta. Tämä väite perustuu siihen, että uutisaineistossa puurakentamiseen liittyvät institutionaaliset asetelmat ovat pitkälti positiivisia. Kilpailevat, puurakentamiseen liittyvät institutionaaliset asetelmat kuitenkin nivoutuvat toisiinsa, mikä tuo kuntapäätöksentekoon kompleksisuutta. Tuloksemme auttavat ymmärtämään paremmin kuntien päätöksenteon taustalla vaikuttavia tekijöitä suhteessa kunnan demokratia-, talous-, yhteisö- ja hyvinvointitehtäviin sekä mahdollisesti laajemminkin.202