Mercurius 2015

MERC MERCURIUS MAGAZINE OF TURKU SCHOOL OF ECONOMICS

2015

ARTICLES

THIS IS TURKU SCHOOL OF ECONOMICS

EDITORIAL: THE WAY FORWARD

DEAN’S GREETING: A GREAT PLACE TO THINK AHEAD

EMOTIONS IN MERGERS AND ACQUISITIONS

MOULDING THE MARKETS

SUSTAINABLE CARBON USE IN THE HORIZON

LEAP INTO THE UNKNOWN

CONSUMERS SEEK INDIVIDUAL EXPERIENCES TOGETHER

UTILISING ENTERTAINMENT GAMES IN THE REHABILITATION OF THE BRAIN

HEALTH ECONOMICS UNTANGLES THE HEALTHCARE REFORM

SUPPORTING ENTREPRENEURIAL ACTIVITY IN THE CLASSROOM

A GOOD MANAGER DOES NOT HIDE BEHIND BUSINESS DATA

MASTER’S THESIS OF THE YEAR

BEST ACCELERATOR PROGRAMME IN FINLAND

Publisher Turku School of Economics at the University of Turku | Cover image @turkuschoolofeconomics Contact turkuschoolofeconomics@utu.fi | Translation Katja Vuokko www.utu.fi/tse

MERCURIUS 2015

DEAN’S GREETING

TURKU SCHOOL OF ECONOMICS

A GREAT PLACE TO THINK AHEAD

T

urku School of Economics has developed during the last two decades into a respected and acknowledged actor in the international academic field. The many awards for research publications and research-based high quality teaching reflect that the international standards taken seriously at TSE. Aiming at the highest levels of international academic activity has gradually become the natural mode of working.

We are proud of the considerable number of academic scholars that are internationally recognized and respected. Amidst turbulent times, we have been able to establish a recognizable ground of first class research. This also shows in the

continuous success stories in obtaining competitive funding, both national and international, for our research projects.

Our personnel is globally networked with prestigious scholars in their respective areas of expertise, and holds many important positions in world class forums, such as boards of academic associations and editorial boards of major journals. On the other hand, our personnel is closely connected to the local business and public sector communities, which is apparent in research as well as education.

In our strategy work, we have selected, based on careful analysis, our areas of strength in research. These include entrepreneurship, management control, networks in business, and economic policy and markets. These areas represent established spearhead fields of research that carry unique features. We have also selected certain themes that cut across our research agenda and curricula: innovation, responsibility, and foresight.

The third theme is based on the unique expertise of Futures Studies at the Finland Futures Research Centre that is one of the five departments of the School, the other ones being Accounting and Finance, Economics, Management and

Entrepreneurship, and Marketing and International Business.

We are also well known for excellent facilities for working and studying.

The same applies to all teaching given

by TSE, both at the Turku and Pori campuses, ranging from the Bachelor’s degree level studies to doctoral training and executive education. A wide array of learning methods is used and interaction plays a major role in our education. We offer teacher exchange opportunities and constantly aim to recruit international faculty members. Regarding its working atmosphere, TSE has continually received exceptionally positive feedback for its close-knit operating culture in accreditation processes. TSE is also a highly respected actor as regards its relationships with industry and society.

To summarize, we strive to guarantee high quality in all our activities, and also constantly look for new opportunities to network and collaborate with respected international partners. I can guarantee that collaboration with TSE is always a good investment!

MARKUS GRANLUND Dean, Professor of Management Accounting

Who are we?

Founded in

1950

T

urku School of Economics is one of the most significant business schools in Finland.

We train entrepreneurial-minded, innovative, and responsible future decision-makers and experts in an international environment. A wide selection of courses, high-quality teaching, and our positive study environment attract thousands of applicants every year.

We make a difference by contributing to research regarding innovations and innovative practices.

We work in intense collaboration with our international academic partners and have close, long-term relations with the business community. To develop sustainable businesses and a sustainable society we put an emphasis on research on business foresight and ethical and responsible management.

We are situated in the city of Turku in Southwest Finland and are a part of the multidisciplinary University of Turku.

The articles of this magazine introduce our experts and their topics.

3 500 undergraduate and postgraduate students

Core values Ethical and critical approach • Creativity • Openness • Communality

Openness, trust, and commitment are notable characteristics of the TSE community. Our environment motivates its members to create high-quality research and engage in their studies. It also makes us an attractive partner for co-operation.

In the Global top

200

5

departments Focus areas Entrepreneurship • Management control • Networks in business • Economic policy and markets

Business studies is one of the five subject areas in which the University of Turku ranked in the top 200 In the QS World University Rankings by Subject 2015.

4

international Master’s Degree Programmes

Doctoral Programme

13

subjects

3

other units

Pori Unit • TSE exe • Centre for Collaborative Research

THE WAY FORWARD: COMBINING INTERNATIONAL QUALITY ACCREDITATIONS WITH CLEAR DISTINCTIVENESS PHOTO: KONGYING GUO

G

lobalization of business education has made business schools all over the world more similar. The schools compete for the same students and also somewhat for the same clients. Following international accreditation criteria is taken as a sign of undisputable quality, which leads to high recognition, and it is seen to enable the recruiting of the most talented students and researchers. When international accreditations are approached with an intent to follow the practice of leading schools, they run

the risk of leading to mainstreaming and uniformity.

At the same time, increased competition in a global environment draws the schools to another direction. It requires that they have clear and competitive profiles. The schools choose different strategies for differentiation. Some schools focus on their local community and adapt their operations to its needs, others compete internationally with a more specific and unique offering in education and development. Differentiation can be based on location, strengths in research, history and tradition, or values and culture, but a truly competitive profile is often a complex and systemic combination of different factors. The combination of international quality recognition and explicit differentiation facilitates success.

It may be that we are reaching a point of saturation in mainstreaming of schools.

This offers opportunities for business schools, which are innovative and creative enough to embark on clear profiles. Such a differentiation of schools will enrich the global business education and provide alternative value propositions, operational models and more diversity.

Quality assurance systems ‒ and accreditations – play a key role for development and recognition. They support the strategic and practical development of schools and secure that they stay competitive and are able to sustain resources for future development.

Accreditations and rankings supplement a unique profile as factors of attractiveness.

International outlook and relations ‒ regardless of the institution’s profile and

unique competence ‒ are an inevitable part of all business schools’ everyday life. Not only for reasons of attaining international accreditation but also for delivering competitive knowledge, teaching, and services in any given context locally, regionally and globally. In addition, the questions related to sustainability are present all over the world more explicitly than ever. This brings responsible business and leadership to the everyday agendas of business schools.

Turku School of Economics has strengths ‒ based in its history and current state ‒ which make the building of a unique and competitive profile possible not just in the Finnish or Northern European operational environment, but in a wider international context.

The strategy TSE has been building for the last few years is exciting and challenging. Combining strengths in research to the themes of innovation, foresight and responsibility is a strong formula which takes the course of international development into account.

By implementing its strategy appropriately, TSE has all the potential of becoming a widely recognized and appreciated business school.

ANDERS ASPLING

The writer is the Chair of Turku School of Economics’ international Advisory Board.

Aspling is a professor at Tongji University School of Economics and Management and Founding Secretary General of the Globally Responsible Leadership Initiative (GRLI).

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You cannot overemphasise the importance of communications in a merger.�

- Niina Nummela

TEXT TARU SUHONEN | ILLUSTRATION MILLA RISKU | TRANSLATION MARI RATIA

Companies can benefit from emotions in

MERGERS AND ACQUISITIONS Corporate acquisition means great changes for the companies on both sides of the deal. Often, the focus is on the operations and structural changes of the organisations, and people and their emotions are given little attention. When the personnel is not fully committed, the process can be efficient but the benefits of the merger might not be achieved.

– Corporate acquisitions and mergers often leave too much space for frustration, uncertainty, fear, anger and sorrow, whereas the potential of positive feelings – joy, relief, pride, and contentment – is not utilised in full, says Professor of International Business Niina Nummela from Turku School of Economics.

Professor Nummela and her research group have studied international mergers and acquisitions for over ten years. The research has been conducted in close collaboration with companies.

– When studying integration processes, we have observed that individuals should be taken more often into account in corporate acquisitions. Companies that make a great deal of acquisitions tend to have rather detailed operation manuals for how to carry out the integration process, but soft values related to personnel are not often addressed in them.

Companies face similar challenges In their EmoMA research project, the group is studying the role of emotions in international mergers and acquisitions.

The project is carried out in collaboration with companies that want to develop their practices involving emotions and managing people.

– We analyse the acquisitions and consider what could be learned from the process. Even though the study focuses on the challenges of the companies that are part the research project, other companies face many of the same challenges.

The researchers’ premise is that communications and utilising positive feelings are factors that should be invested in considerably more often than what the companies are doing at the moment.

– You cannot overemphasise the importance of communications in a merger. When people do not know what is happening, it stirs uncertainty which can cause many problems. This applies to the companies on both sides of the deal.

Nummela argues that positive emotions are a resource that is not put to use – companies seem to neglect their significance and the discussion revolving around corporate acquisitions is negative.

– If, for example, the personnel were heard when Meyer’s acquisition of Turku Shipyard went through, many positive emotions, such as joy, relief and pride, would have emerged in the discussion. If a company has managed to create a positive atmosphere, they should strive to maintain and develop it.

In the EmoMA project, the researchers measure the emotional atmosphere of the company with a simple thermometer metaphor: the temperature rises to plus degrees with positive feelings, whereas negative ones make it drop below zero.

By analysing the temperature graph, the researchers can find out what caused the emotions and how the challenges related to them could be solved.

According to Nummela, the collaboration with the companies has been particularly fruitful from the researchers’ point of view.

– Mergers and acquisitions are matters that are not usually shared with outsiders.

In this project, the companies have been very open-minded and there haven’t been any issues we could not ask about.

First multidisciplinary research on mergers and acquisitions In addition to International Business,

many units of Turku School of Economics, such as Accounting and Business Law, conduct research on corporate mergers and acquisitions. The Faculty has strong expertise in the integration process after the acquisition, but the researchers in the EmoMA project wanted to include emotions research experts from different disciplines in their study.

In addition to the researchers of international business, four professors who are top, international experts in their own field also participate in the research.

– The project includes approximately ten researchers from Turku School of Economics. As there isn’t much earlier research on the topic, it was easy to get international professors to join the project. Professors Michael Boiger, Sir Cary Cooper, Zoltan Kövecses and Asifa Majid provide expertise in organisational psychology, communication and cultural cognition, sociolinguistics, and cultural psychology.

The EmoMA project consists of four studies whose topics range from expressing emotions in different cultures, management in global virtual organisations, and emotional competence of the management in different situations. Questions that interest both the researchers and companies are, for example, the role of the integration manager, dialogue between different parties, and creating trust during the integration process.

Focus on the Individual in Company Management The research has only just begun, but it is already evident that, in the recession following the financial crisis, Finnish companies strive to rationalise their operations by cutting down expenses

and developing their processes. The primary goal has been to improve their competitiveness in the international market. Managerial approach to solving the problems has proven to be ineffective as well as rather short-sighted in most cases.

– A more permanent, lasting competitive edge can be created only by developing management in concert with efficiency and by ensuring that employees feel like an important part of the organisation. This is a necessary prerequisite so that the personnel will commit themselves to the company and to its strategy and goals. Ignoring the individual perspective leads inevitably to a situation where the personnel’s contentment and motivation decrease and the company can even lose valuable staff resources when employees leave the organisation.

According to Nummela, the companies that manage to combine managerial approach and efficiency with management that takes individuals into consideration will be successful in the international market. The committed employees of these companies are more productive than others, and, at the same time, a reputation as a good employer will attract the most talented individuals to seek employment in the company.

– This will be very important in the future when the new candidates in the job market represent the Y and Z generations, to whom the meaningfulness of the employment and the atmosphere at the workplace are more important motivators than economic compensations. •

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Everyone can be a disruptor in

their own market, says Valtteri Kaartemo.

MOULDING the MARKETS TEXT TARU SUHONEN | PICTURES PĂ„IVI OKSANEN

Markets are institutions. Companies tend to do things in a certain way: they use familiar distribution channels and cooperate with established partners. While markets create opportunities, they also limit them.

S

tartup companies are commonly considered as disruptors of institutionalised markets. The agility of startups is often idealised, and the language and concepts from the startup world have also become adopted into the culture of other types of companies. Lecturer Valtteri Kaartemo from the Department of Marketing and International Business at Turku School of Economics studied startup networks in his doctoral dissertation. He wants to challenge all kinds of companies to consider whether they could benefit from doing things in a different way.

- Startups have the courage to experiment, because they have less to lose.

For this reason, they have more freedom to look for the right approach and try out different options. However, it is not necessary, or even beneficial, for any company to take the markets at face value.

Even companies operating in traditional fields and larger players can act as positive market disruptors: question established practices and create new ones, break conventions and conduct business in a novel way.

Kaartemo points out that most successful startups have gone through a lot of work before things started to happen.

Often chance has a role to play, as well, and chance favours those who are prepared.

- It is useful to evaluate your own field from the viewpoint of established practices: what is the basis of exchange, what norms govern the operations, and how information is communicated in the market. Only when you know the market can you start questioning it.

Market disruptors create opportunities for themselves by identifying gaps in the market, but the starting point is to question established truths.

Consumers are interested in new approaches Valtteri Kaartemo participates in a research project on the mechanisms that can be employed to mould the markets. The aim of the project is to aid Finnish companies in discovering new opportunities in their fields, for example opportunities created by global megatrends.

- Demographic changes, the shift of economic power to developing countries, urbanisation, climate change and technological breakthroughs are all factors that can be built upon. It is useful to know the market and the mechanisms of change when you start to look for your own angle to the market. Companies that shake up the markets are often in a situation where the larger trends support their operations.

Kaartemo believes that, at the moment, there is great demand for doing things in novel ways. For example, dissatisfaction with regulations spurs companies to find new ways to enter the market. On the other hand, consumers want new ways of acquiring products: more straightforward and sustainable, with no middlemen.

A good example would be online shopping, which has been on the brink of breaking through since the 1990’s.

However, only recently people have changed their shopping behaviour permanently, which is now evident even in the selection offered by hypermarkets.

Taking charge of the future Research is conducted in cooperation with companies. The aim of the REBUS project is to develop new business models particularly for marine industries with partner company MacGregor.

- Together we try to address issues that do not come up in the day-today operations of the company. Large companies in particular tend to be quite siloed, and the different divisions do not view the bigger picture of market logics as a whole.

In the project, MacGregor plans its future under the guidance of experts.

Workshops provide a space to create different market scenarios and analyse the ongoing changes in the operational environment of the company. An essential goal is to help the company develop its operations so that its course is not dictated by the actions of other players.

- Success in a changing field that is characterised by strong international

networks requires renewal. We have created three different future scenarios with the company, and now we continue to develop these ideas: what is the most favourable option for the future of the company, and what measures are needed to reach it in practice.

Kaartemo notes that statements about the markets often seem self-evident, particularly when you study economics.

- However, when you talk with people from actual companies, you become increasingly aware that there is real need for better understanding of market mechanisms and institutions. In the REBUS programme, which is conducted under FIMECC (Finnish Metals and Engineering Competence Cluster), our own scientific understanding of the market logics is increasing continuously. Furthermore, it is rewarding to observe how the company has progressed in the way they think about these issues, thanks to taking time to analyse them. •

SUSTAINABLE CARBON USE in the horizon TEXT LIISA REUNANEN

The Neo-Carbon Energy project aims at developing a new kind of energy system. The objective is to create a better, emission-free world.

P

rofessor Sirkka Heinonen wants a future in which everyone, not just large power plants, produces energy; and all that energy is clean and renewable.

This is the objective of the Neo-Carbon Energy project, in which Heinonen is in charge of the foresight part.

The purpose of the project is to create an emission-free and cost-effective energy system.

The starting point is a new approach to carbon use. In the system, fuels are produced from atmospheric carbon dioxide by solar and wind power. These fuels can then be directly utilised in transportation, industry and as a large-scale energy storage.

- The synthesising technology utilised in the system already exists. Audi has demonstrated this technology for transport use in Germany, and Woikoski has adopted it in Finland, Heinonen tells.

The project is conducted in partnership with Lappeenranta University of Technology and VTT Technical Research Centre of Finland. Lappeenranta University of Technology and VTT are responsible for the technical development of the energy system. Heinonen heads the part of the project conducted at the Finland Futures Research Centre, which concentrates on the anticipation of future strategic environments and development trends.

- The task of futures research is to open up our thinking to consider alternative futures and to influence the realisation of desirable future scenarios. As far as we know, this is the only research project that suggests that Finland running on 100 percent

renewable energy is an attainable scenario. It is important to study how this scenario would be realised and how it could improve both the quality of environment and human wellbeing, and at the same time spur new growth in our economy, says Heinonen.

Production back to small units Behind the project is the idea that various developments are causing power in the society to shift increasingly to individuals and their associations. At the same time, traditional institutions and organisations lose some of their predominance. In a similar manner, an energy system based on renewable energy sources is decentralised among small local producers.

- The change will not only affect energy production, but it will also make energy into an individual choice related to lifestyle and personal values. The question is, what will happen when more and more people want to produce their own energy, as long as the problem of renewable energy storage is solved, Heinonen reflects.

As an example, Heinonen cites the new battery technology that was recently announced by Tesla.

- If these batteries become widespread, one consequence could be that people start to cover all their energy needs themselves by producing wind and solar power. This system would turn consumers into producers, and at the same time break the notion that energy production is based on large-scale power plants run by large companies, Heinonen envisions.

Heinonen considers prosumerism, the blending of the roles of consumers and producers, to be connected with the more general trend where citizens take an increasingly active role in the development of the society and businesses.

- People want to influence their immediate environment and search for meaning in their lives through practical choices, Heinonen states.

Turning startups into a driving force in economics According to Heinonen, if the scenarios developed in the project were to become reality, the economic growth of societies would become increasingly based on small and medium-sized enterprises and startup companies.

- This would considerably diversify the production structure and lead to a more pluralistic society. The change would be particularly significant for Finland, since Finnish production has been traditionally based on heavy industry and technology industries.

In current discussion, growth is primarily

used to refer to economic growth and the model of continuous growth. Heinonen takes up the concept of neo-growth, which introduces human and social growth alongside economic growth. Neo-growth is also ecologically sustainable.

Heinonen argues that it is not insignificant what kind of growth we pursue in the economy and the society.

- Growth should be viewed as a cyclical process, like it was seen during the Antiquity and in many branches of Asian philosophy.

In this model, things grow, prosper and then wither, providing raw material for new growth, Heinonen emphasises.

- Neo-growth is a challenge that shakes up the economic system, and at the same time opens up opportunities for new types of business and service development. For this reason, our project is followed by a number of companies that understand the strategic importance of foresight. They want to know where the world is going, the technical solutions that are currently under development, and how the lives of the consumers are going to change as a consequence, Heinonen tells. •

Laura Nummelin and her research colleagues interviewed consumers and entrepreneurs in authentic consuming situations, for example in small breweries, hiking resorts and car dealerships.

CONSUMERS SEEK INDIVIDUAL EXPERIENCES TOGETHER TEXT JENNI VALTA PICTURE PĂ„IVI KOSONEN

Socially valued products and services are characterised by status, reputation, uniqueness and appreciation by the community. Being able to create a socially constructed value experience gives a great competitive edge, particularly to small entrepreneurs.

C

an you control something that is uncontrollable? This is the question that researchers from Turku School of Economics and the University of Vaasa were puzzling over when they started a project that studies prestige, or consumers’ socially constructed value experiences.

Prestige means social esteem accorded to a certain product or service. The phenomenon exists primarily in the minds of the consumers and entrepreneurs, but it

”

While the use of luxury products may elicit envy and disapproval, prestige products generate positive social approval.”

can be signalled through the consumption of particular products and services.

- Approval from a person’s circle of acquaintances forms the basis for prestige behaviour. Consumer choices originate from the individual, but approval by the social reference group makes certain choices possible in the first place, says project researcher Laura Nummelin from the entrepreneurship research group TSE Entre at Turku School of Economics.

Approval by friends or family is the starting point for giving social value to a product, but that alone is not enough to generate a prestige experience. A valued product must be sufficiently unique to

differentiate itself from mass-produced products.

- Prestige products can be massproduced, to a certain extent, but they need to include features that differentiate them from cheap mass products. They have high quality and craftsmanship, but they are still more affordable than luxury products.

In this sense, we can talk about everyday luxury, Nummelin describes.

Valued products and services are also related to status and reputation, but emphasis on these factors varies between individuals. Status had a significant role particularly for consumers in their twenties.

They responded that when choosing a product, they pay attention to visible factors, such as brands.

- Older persons tended to pay more attention to the uniqueness and reputation of a product, says Nummelin.

A small entrepreneur can stand out by investing in prestige While the ability to make individual choices is important to consumers, at the same time they are looking for products and services that link them with other consumers. The social reference group does not necessarily need to be a physical group; instead, it can also be a social media community.

- Modern consumer culture is characterised by experience seeking and communality. For example, people who are

into superfoods or specialty coffee enjoy everyday tasting experiences with these products. These experiences are then shared with the personal community on e.g. social media, Nummelin tells.

According to Nummelin, not just any product can attain the status of a socially valued prestige product. The greatest potential lies in small entrepreneurs’ products that have significant novelty value.

While the use of luxury products may elicit envy and disapproval, prestige products generate positive social approval.

- Prestige could give small businesses a clear competitive edge and a way to distinguish themselves. At the moment, we are developing an indicator that entrepreneurs can use to measure the prestige value of their products. With the indicator, we attempt to model the phenomenon; however, this is difficult, because choices are always made by individuals.

Research on beers, cars and adventure travel When an entrepreneur understands the value experiences of the consumers, there is good potential for ideas, products and services that benefit both sides. For this reason, Nummelin calls for more dialogue between small entrepreneurs and consumers.

- Entrepreneurs should seek feedback for their ideas and thoughts, for example through social media. If the entrepreneur already has customers, they can be used as a starting point. The situation becomes more challenging when the product or service is brand new. On the other hand, renewal is a common characteristic of prestige products. When a product has reached the attention of the general public, it may lose its speciality and experience value.

With her research group, Nummelin examined how consumers and entrepreneurs viewed social value related to travel, small brewery beers and cars.

Research co-operation with an Australian university affected the choice of these business fields.

- Beers, cars and adventure travel are all rather masculine products. We have thought that in the future, businesses such as design companies could also make good research subjects.

Results of the Valuable, Intangible and Prestigious Service Experiences research project have been presented in numerous scientific conferences. The researchers have also written a book on the prestige phenomenon, which is aimed at all entrepreneurs, managers and experts who are interested in their customers. •

ENTREPRENEURSHIP IS A LEAP INTO THE UNKNOWN TEXT ERJA HYYTIĂ„INEN PICTURES HANNA OKSANEN, ESKO KESKI-OJA

A course on entrepreneurship. Many thought it would be easy: the professor will tell how to set up and manage a business. However, the reality proved to be quite different. The professor did not concentrate on how to establish a new business, she did not provide any ready-made solutions - on the contrary, she told that there are no such things. The students had to think for themselves, innovate, and dare to step into unknown territory.

P

rofessor of Entrepreneurship Ulla Hytti describes entrepreneurship as a subject that students either love or

hate.

According to Professor of Entrepreneurship Jarna Heinonen, many of the students that come to the School of Economics have been diligent high school students: they are used to the mode of studying in which the teacher tells how things are, and the student adopts this and thus knows the right answer in the exam.

In entrepreneurship, however, there are no such ready-made answers. You need to have the courage to leap into the unknown.

The students who are willing to change their ways have much to gain. The teacher acts as a coach and a sounding board, and supports the student in creating and innovating new solutions.

- Students are surprised when I do not give them a list of assignments for the course and deadlines for their reports.

Instead, I sit next to a student and ask, “how would you describe an agenda?” Some of the students find this unsettling, others are delighted, Hytti tells.

needs entrepreneurialism, even those in a salaried position. Entrepreneurship means solution-oriented thinking, innovation and self-direction, Heinonen describes.

At Turku School of Economics, both the extent of training and the depth of research in entrepreneurship have grown during the past 15 years. The University of Turku is the only Finnish-language university that offers a bachelor’s degree in entrepreneurship; master’s degree programmes are available also in other universities.

The importance placed on entrepreneurship at the University of Turku is also evidenced by the fact that the University has developed its own strategy on entrepreneurship and entrepreneurship training. This strategy guides the purposeful cultivation of entrepreneurship and entrepreneurial attitudes throughout the University.

- Entrepreneurial skills are exactly what is needed in the working life nowadays.

Employers want academic professionals, experts who are not afraid to push the envelope and experiment, says Heinonen.

Entrepreneurship skills for working life

The University of Turku as an entrepreneurial university

Tasks at the entrepreneurship course may require the students to, for example, identify a problem, find a creative solution for it and think what means and resources are needed to reach that solution.

- Everyone who works as an expert

- We offer plenty of entrepreneurship education; chiefly at the School of Economics, as might be expected, but also in other faculties. However, our problem is that these courses are typically attended by students who are already interested in

Professors Jarna Heinonen and Ulla Hytti associate entrepreneurship with innovation, responsibility and creativity. According to Hytti, entrepreneurs should dare to try out new things, even when they are not entirely certain of what they are doing. We accustom the students to step out of their comfort zone, she describes.

entrepreneurship. Of course, the students who want to learn how to establish a startup find their way to the relevant courses, but for others, it is more difficult to recognise and discover entrepreneurship education, says Heinonen.

For this reason, the entrepreneurship strategy talks about exposure to entrepreneurship education: how employees and students could be attracted to entrepreneurship studies. The professors recognise that it takes time to adopt a new mindset. Hytti compares the process to a bag of microwave popcorn.

- When you put the bag in the microwave oven, a few kernels pop early

on. After a while, the popping increases, but some of the kernels are always left unpopped. We need to accept a similar course of progress. Not everyone will become enthusiastic, but those who see this as an opportunity will gain new tools for their work, Hytti explains.

As a multidisciplinary university, the University of Turku has a unique opportunity to profile itself as an entrepreneurial university.

- An entrepreneurial university keeps abreast of current trends and plays an active role in the society and the academic world, Heinonen describes. •

A GOOD MANAGER

does not hide behind business data TEXT JUSSI MATIKAINEN | ILLUSTRATION MILLA RISKU

When everything is moving, nobody knows the destination. Professor Tuomo Peltonen urges corporate executives to carry the responsibility that comes with power and to treat employees as human beings, not as numbers on a computer screen.

A

s a result of the prolonged economic stagnation, the media is full of news about co-operation negotiations. Every day, we can read comments from managers and employees about the impending negotiations and on the feelings caused by the situation.

- Of course, a lot depends on how things are handled within the company. In any case, those who were not laid off suffer from a survivor syndrome: they feel guilty about retaining their jobs, says Professor of Management and Organisation Tuomo Peltonen.

Co-operation negotiations are commonly justified by global market movements. This implies that companies just involuntarily end up in these situations, and the contribution of an individual worker has little effect on the end result.

- Co-operation negotiations tend to reinforce atomism within a company, as everyone needs to concentrate on their own survival.

Peltonen, who in his work studies organisational behaviour and human resource management, suspects that cooperation negotiations have become a lever that is used to give shock therapy to the work community.

- Undoubtedly, real needs also affect the process, but in a sense, it seems that co-operation negotiations have also become a pre-emptive measure taken by the management. If, at the same time, the company touts how the employees are an important resource, there is of course a discrepancy. Recurring negotiations

weaken the trust and morale inside the company, in other words the very things that the company executives would want to strengthen.

For this reason, Peltonen identifies buffering ability as one of the attributes of a good manager. Uncertainty created by the operational environment and external pressures should not be burdened wholesale on the employees’ shoulders. The actions of the managers also directly affect the way the subordinates view the situation.

- If managers come and go, but at the same time the company preaches employee commitment, there is once again a discrepancy.

We need to rediscover leadership In organisations it is now fashionable to talk about leadership as a shared, relational phenomenon. Peltonen would like to rein in this eagerness to redistribute leadership.

- If everyone is a leader, why do companies have formal superiors? Perhaps the old idea of power and responsibility going hand in hand could sometimes clarify the situation.

Leadership in general is on the move, even astray, in the society.

- I do not pine for the days of President Kekkonen, but certainly we could also learn from the past. Now the President has lost most of his powers, and key positions from the Chief of Defence to university rectors are all fixed-term positions. Nobody takes clear leadership.

The contrast between the management practices of now and then becomes clear

when we stop to think about the world of old-time industrial towns and factory owners. These owners created a smallscale welfare society in their factory towns.

Furthermore, both employers and workers had a strong lifetime commitment to the shared endeavour.

- The relationship between the sides was not based on calculating how much I give and what do I get. Instead, people gave their all, without calculations.

Good leader turns subcultures into an asset The task of managers is to create an atmosphere that makes employees commit to a certain corporate culture. Peltonen points out that often, a strong and commonly shared culture can actually be found on the lower levels of the organisation, for example in a particular occupational group.

- Subcultures like this are challenging because they are restricted to a particular group and their goals do not always match with the company’s goals. Therefore, the big question is how to turn these subcultures into a positive asset.

The first step in this process is to recognise and acknowledge the subcultures.

To achieve this, the manager needs to have the courage to step out of the office to the ground level in order to find out what is really happening in the company. Peltonen states that very often, managers prefer to keep company with other managers and thus almost unconsciously drift into a

slightly alternate reality.

- Managers present business cases to other managers at leadership forums, instead of testing their ideas about the company in front of their own employees.

In effect, stepping into a leadership position is always also a test of the person’s character.

- Managers must buffer the organisation and themselves against external pressures.

They get requests from all directions, but they should not react to every call.

Constant change saps energy Beautiful classical music plays in the background in Professor Peltonen’s office, and we sit on red sofas and discuss in an unhurried atmosphere.

- Of course, researchers are privileged in the sense that we can take an analytical view of things, since we are not part of a company and in the middle of all the action.

Peltonen believes that humans have a certain existential desire for permanence.

These days, this aspiration faces serious challenges, as everything is on the move.

Organisations, as well, face constant reforms that are both psychically and emotionally taxing. Every reshuffling saps the energy of the staff and takes concentration away from the core tasks.

Uncertainty created by constant change is also evident in the performance assessment of employees.

- Everyone is at some kind of transitional stage. The conclusion of the

annual development discussions is that you are on your way from one point to another.

You are not too bad, but not quite ready, either.

One of the challenges of leadership is thus finding a balance between conventions and one’s own policy. In research, the concept of isomorphic pressure is used to describe mechanisms that make companies imitate each other.

- For example, already the word ’strategy’ separates the management from the staff. Managers formulate strategies even when those strategies do not match with the everyday experience of the employees.

Still, try to find a company or organisation that does not put major emphasis on planning and reflecting on their strategy.

Meeting others on a human level Technological advances have opened up a new dimension in management and leadership. Managers have access to quantitative data at any time through their computers and cell phones. Modern leaders need numbers to support their leadership.

- Previously, the relationship between leaders and subordinates was personal. The factory owner walked the factory floor and talked directly with individual workers.

In contrast, modern business data enables managers to adopt an anonymous, seemingly efficient mode of management.

- Technological solutions are easy and efficient. However, numbers tell nothing about the employees’ dreams, aspirations and fears. They do not explain why some change has happened or what are the factors behind it.

For this reason, superficial management is dangerous.

- If you do not understand the operations and dynamics of your company, you have no way of discovering untapped potential or anticipating unexpected developments that might take place even tomorrow.

Various executive training programmes have a key role in providing future leaders with a set of appropriate tools. Professor of Management hopes that MBA programmes, for example, would not be filled to the brim with strategic and intellectual exercises; instead, time should also be devoted to reflecting how the manager can connect with others on a human level.

- The universities that train future leaders also have a key role. The traditional Finnish system of having institutionally separate schools of economics has contributed to a siloed mindset, which the graduates then take with them to the business world. Instead, economics students and, for example, humanities students should ideally find each other already during the studies. •

UTILISING ENTERTAINMENT GAMES IN THE REHABILITATION OF THE BRAIN The Play for Reward research project, launched by the multidisciplinary game research network of the University of Turku, studies emotional engagement in entertainment gaming and its utilisation in the rehabilitation of patients suffering from brain damage.

T

urku School of Economics coordinates the Play for Reward research project, with four faculties of the University of Turku and five partner companies participating in it.

- Our first aim is to study the kinds of emotions experienced by gamers when they play their favourite games, and how gaming engages and addicts the players.

After that, we investigate possible ways to utilise engaging gaming experiences in the development of rehabilitation services, explains Project Manager Jukka Vahlo from the Centre for Collaborative Research.

Finally, the business prospects of health games are examined in the business studies portion of the project.

- People invest a great amount of time and energy into their favourite games. In order to utilise this potential in health care, we first need to study the effectiveness of games. We find out what kinds of actors are missing from our ecosystem that would enable the health care side and the game provider to form a service. Achieving this requires an open-minded attitude also in the organisation of welfare services, says Project Director Aki Koponen. โ ข

PICTURE HANNA OKSANEN

Professor of Psychiatry Jyrki Korkeila (right) is in charge of the research portion of the project, investigating how gaming can be used in brain rehabilitation. From the left: Aki Koponen, Jukka Vahlo and Tribeflame CEO Torulf Jernstrรถm.

HEALTH ECONOMICS UNTANGLES THE HEALTHCARE AND SOCIAL WELFARE REFORM The purpose of health economics research is to support public discussion on health care by providing information on mechanisms and tools that can be utilised to reduce costs, says Professor Petri Böckerman.

P

etri Böckerman is the first Professor of Health Economics at the University of Turku. In health economics, the health care system as a whole is studied from the viewpoint of economics. Research is divided into two broad subfields: the study of health behaviour and the study of healthcare systems, their functioning and efficiency.

Böckerman has studied issues such as the effects of smoking and alcohol consumption on an individual’s future employment and labour market outcomes, and the effects of the replacement rate of the health insurance system on sick leaves.

A new project that combines the research branches of health behaviour and system studies is now being prepared at the University of Turku. The project studies how the increasing use of electronic prescriptions affects health, for example due to harmful overlapping medications.

- Many of our research questions are related to the way IT services can be employed to check the rise in health care costs. The population is ageing, and it is becoming difficult to provide sufficiently comprehensive and high-quality services for the elderly, particularly in Europe, as the fiscal policy is left with little room for manoeuvre, Böckerman says.

Research-based knowledge to support the assessment of reforms The professorship of Health Economics has been established to answer the demand for objective research-based knowledge in the society and to aid, for example, decision makers who seek ways to reduce the cost structure.

- In the case of the healthcare and social welfare reform, research is needed to introduce into the public discussion information on factors that might keep the rise of costs in check. So far, there has been very little discussion on what exactly are the mechanisms that can be employed to reduce the costs. •

PHOTO: HANNA OKSANEN

MASTER’S THESIS OF THE YEAR: STORE EXPERIENCES ARE IMPORTANT FOR A BRAND The Master’s thesis in marketing by M.Sc. (econ.) Iida Vanhanen has been awarded as the best thesis in 2014 at Turku School of Economics.

In her thesis Store experiences and their influence on store performance and brand strength: Case Samsung Experience Store, Iida Vanhanen examined how store experiences can strengthen the brand and influence store performance. The topic is particularly relevant now as the role of brick-and-mortar stores has changed due to the growth of online retail. The study offers valuable information on the link between store experiences and brand success, which has so far been little studied.

- The topic of the thesis has significance from the business management perspective, and it also contributes to academic research. Other strengths include exceptional methodological strength and elegance in reporting. The research provides new information on a level that is rare in Master’s theses, say Senior Research Fellow Elina Jaakkola and Senior Research Fellow Harri Terho, who together supervised the thesis. •

THE STARTUP JOURNEY OF BOOST IS THE BEST ACCELERATOR PROGRAMME IN FINLAND The Nordic Startup Awards chose the acceleration programme of Boost Turku, a student-based entrepreneurship community in Turku, as the best Finnish acceleration programme in 2015.

The Startup Journey has now been running for four years. About thirty companies have been established in the programme, and over twenty of them are still active.

- The results speak for themselves.

Companies in the programme have received altogether over 6 million euros in capital financing, and created over a hundred new jobs. Success stories include Walkbase, which develops indoor location analytics, and adventure game developer Rival Games, explains Boost’s Community Manager Leo Kadieff.

Boost convinced the jury with its energy and initiative.

- Boost Turku is a non-profit organisation.

A number of experts and trainers take part in our activities every year with the same non-profit spirit, to support the grassroots movement.

The University of Turku, other higher education institutions in Turku and the City of Turku support the activities of the Boost Turku community. •

ENTREPRENEURSHIP CLASS BOOSTS ENTREPRENEURIAL ATTITUDES

A

research project at the Pori unit of Turku School of Economics has examined how participation in entrepreneurship education affects the students’ ideas about their future. The researchers conducted a survey among students in entrepreneurship classes.

Based on the results, the respondents had a relatively positive attitude towards entrepreneurship and becoming an entrepreneur, and most of them would be willing to establish their own business.

The researchers maintain that entrepreneurship education can be employed to support the future

entrepreneurship of the students.

However, the main objective in Finnish comprehensive and general education is not the founding of companies, but supporting the students’ entrepreneurial activity, active citizenship and working life skills.

- Recent entrepreneurship studies have promoted noticing and utilising opportunities as a central characteristic of entrepreneurship. This can be put to use whether you are an entrepreneur or an employee, or even in your social life, explain Professor Ulla Hytti and Research Fellow Lenita Nieminen who conducted the study. •

TURKU

A Journey Far Starts from Near

Good leadership gets things moving

eMBA TURKU DEVELOPS VISIONARY LEADERS The executive MBA Turku aims at developing visionary leaders with a desire for renewal and the will to deliver real benefits to their organisations.

The structure of our highly regarded programme has its foundations in four areas of focus: • • • •

visionary leadership; global business excellence; innovation, and new business creation; and personal growth.

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Turun kauppakorkeakoulu • Turku School of Economics