Virtual operators in the mobile industry: a techno-economic analysis

For a company planning to become a mobile operator, two alternative ways to enter the market exist. In addition to the traditional way of acquiring a spectrum license and building a mobile network, market entrance is also possible by becoming a virtual operator and utilizing the existing networks of incumbent operators. Potentially, virtual operators will have an important role in shaping the mobile market structure and competition. In this paper, techno-economic modeling methods are used to analyze the position of virtual operators in the mobile communications industry. Four alternative virtual operator scenarios are constructed and analyzed using a linear, deterministic, and quantitative techno-economic model. The results highlight the importance of wholesale contracts with incumbent mobile network operators in determining the virtual operators’ business profitability. Unbalance in termination prices between fixed and mobile networks is shown to give incentives for virtual operators to invest in their own network infrastructure.     

Not Roadmaps but Toolboxes: Analysing Pioneering National Programmes for Sustainable Consumption and Production

The profusion of knowledge about the complexity of promoting sustainable consumption has led to calls to address the issue in a cross-cutting manner. This article discusses pioneering national sustainable consumption and production (SCP) programmes as tools for informed decision making. The analysis is based on a theory of three organizing principles for SCP policy: (1) deliberation, (2) efficiency and (3) sufficiency. These organizing principles protect and enact particular values and can be promoted in either a weak or strong manner. A comparison of three SCP programmes from Finland, Sweden, and the UK shows that different programmes emphasize somewhat different principles: programmes in the UK and Finland emphasize the efficiency principle, whereas the Swedish programme places considerable emphasis on promoting sufficiency, as well. Meanwhile, deliberation is well presented in all the programmes, but the countries apply it somewhat differently. On the whole, government commitment to the programmes is limited, and clear targets, timetables, and resources are mentioned only occasionally. Thus, rather than being credible roadmaps towards SCP, the pioneering programmes take the form of mixed toolboxes. The programmes contain many innovative and potentially effective proposals, but in responding to the challenges acknowledged in the programme documents, individual actors must bear heavy responsibilities. From this perspective, the pioneering SCP programmes also provide false reassurance and a means to outsource the promotion of SCP to non-government actors.     

The Free Cash Flow Anomaly Revisited: Finnish Evidence

Abstract:  This paper examines the performance of an investment strategy based on free cash flows using financial statement data of Finnish companies during the period 1992-2002. The analysis in this paper is motivated by the so-called free cash flow anomaly previously documented e.g. in Hackel, Livnat and Rai (2000) . Using annual financial statement information, we identify large-capitalization companies with positive free cash flows, low free cash flow multiples, and low financial leverage. Since a portfolio of these companies is found to consistently outperform the market index, our results suggest that the free cash flow anomaly also exists in the Finnish stock market.     

Perceived importance of red flags across fraud types

The purpose of this study is to examine whether internal auditors, external auditors and economic crime investigators perceive the importance of red flags as significantly different across two fraud types: fraudulent financial reporting and misappropriation of assets, as well as across within-subject categories. A total of 471 useable responses were collected using a web-based survey. The findings indicate that significant differences exist on both single and aggregate mean levels among the participant groups. Internal auditors report a higher perceived importance of the red flags related to detecting misappropriation of assets than of those related to fraudulent financial reporting, whereas the opposite is true for economic crime investigators. For external auditors, only small differences in aggregate means between misappropriation of assets and fraudulent financial reporting were found. As the sensitivity to fraud type may affect professional planning, procedures and techniques with regard to fraud prevention, detection and investigation, the results may have both practical and theoretical implications. Further, the focus on both fraud types adds to prior literature on fraud.     

Diffusion of forest biorefineries in Scandinavia and North America

Biomass-based energy has become a major focus of attention from a variety of directions due to the global challenges of meeting our energy needs. Bioenergy and bio-products are also currently being explored intensively in the forest cluster, as many elements that have in the past guaranteed success have largely disappeared. As the bioenergy and biorefining economies are evolving, there is a need for realistic estimates regarding the factors which affect the diffusion of forest biorefineries. This paper outlines global and national drivers for forest biorefineries in Scandinavia and North America. It explores the financial, political, technological, and ecological and raw-material related factors, as well as business competencies, challenges and changes in the business environment. This study is based on data from an expert opinion survey and comments from the experts about the survey results yielded by a Delphi method. According to our results, key factors for the development of forest biorefineries are very similar in both studied areas. There needs to be support from the macro-scale environment particularly from governments, but also the involved industries themselves need to be active. Diffusion factors in the macro-scale business environment are better understood when compared to more industry-specific strategic factors. Both studied areas seem to have potential for success in the biorefinery business. However, a more realistic identification of national strengths as well as continuous development of competencies – while avoiding an overly optimistic attitude – is crucial.     

Antecedents of salespeople's reluctance to sell radically new products

Contemporary marketing and management discussions emphasize companies' ability to exploit current business opportunities while exploring emerging opportunities in changing environments. Salespeople play a key role in both of these activities. However, prior research provides little guidance on explorative activities at the operational level of the organization. This conceptual article establishes an explanatory model on the antecedents of salespeople's reluctance to sell radically new products (RNPs). Reluctance to sell RNPs is a potentially important but previously overlooked obstacle to companies' explorative activities. This article focuses on both the factors that influence an individual salesperson's motivation, and the organizational systems that may increase or decrease his or her motivation to sell RNPs. To this end, this article offers eight propositions that both managers and researchers can utilize in future studies.