Browsing by Author "Rajala, Risto, Prof., Aalto University, Department of Industrial Engineering and Management, Finland"

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    The bottom-up agency in driving institutional change - A case study in a corporate environment
    (Aalto University, 2021) Punkka, Timo; Vartiainen, Matti. Prof. emer., Aalto University, Finland; Tuotantotalouden laitos; Department of Industrial Engineering and Management; Perustieteiden korkeakoulu; School of Science; Rajala, Risto, Prof., Aalto University, Department of Industrial Engineering and Management, Finland
    Agile development methods have moved into the mainstream. Agile development relies on short iterations and continuous adaptation to changing conditions. However, to fully benefit from these rapid development cycles, the rest of the organization should be aligned with this manner of thinking. Unfortunately, scaling agile thinking has been identified as challenging, particularly regarding how this magnitude of change can be driven in a bottom-up approach. This research concentrates on organizational change and specifically on how an individual bottom-up agency can initiate and drive even institutional change. The research utilized an abductive approach and continuously combined existing theories with empirical findings. The research consisted of three individual studies: The first study concentrated on the theoretical feasibility of utilizing the team-based organization model as an approach to help agile thinking unfold in an organization. For the second study, two-year action research was conducted to empirically test the approach in the case organization. The final study aimed at understanding the bottom-up transformation in retrospect. The data for the first and third study consists primarily of interviews utilizing different techniques. For the action research, the primary data-gathering methods consisted of various information systems of the case organization, workshop and meeting memos, and author's notes from direct and participatory observation. During the research, the author conducted a total of 18 individual interviews and one focus group interview. Based on the findings, this research states that it is possible to initiate a change of this magnitude through an individual bottom-up agency. The success of such an endeavor depends on finding solutions to organizational boundaries. The key differentiator in large-scale bottom-up transformation and its success concerns whether the actors can find ways to understand the constellation of institutional logics at play in different parts of the organization and can re-form the suggested change in order to legitimize the new state of affairs. Legitimization, in turn, is a pre-condition for institutional change. The main contribution of this research comprises a three-layer model for bottom-up institutional change. The findings strengthen the potential of using institutional logics as a theory for efforts to accelerate organizational change. In addition, this research provides empirical evidence for one possible route for unfolding agile thinking at the organizational level.
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    Framing service as ideology and practice - Cognitive underpinnings of service transformation in Finland’s residential sector
    (Aalto University, 2015) Siltaloppi, Jaakko; Rajala, Risto, Prof., Aalto University, Department of Industrial Engineering and Management, Finland; Rakennustekniikan laitos; Department of Civil and Structural Engineering; Built Environment Services Research Group; Insinööritieteiden korkeakoulu; School of Engineering; Peltokorpi, Antti, Prof., Aalto University, Department of Civil and Structural Engineering, Finland
    Service transformation describes organization-level change from goods- to service-centric value creation. While considering the aspects of strategy and organization structure, existing research pays little attention to the cognitive basis of service transformation. Integrating perspectives from three theoretical backgrounds – service-dominant logic, institutional theory and organizational cognition – this dissertation develops new knowledge of how framing influences service transformation. Frame is defined here as an organization level schema of interpretation that embodies a particular interpretation of the organization in its environment, guiding how the members of the organization engage in value cocreation. Adopting a qualitative research approach, this dissertation studies service transformation in Finland's residential sector, in which organizations are increasingly adopting resident-focused and service-centric forms of activity to complement the asset-centric logic of operations. This dissertation consists of two empirical studies. The first study examines how organizations perceive and respond to the transformation toward increasingly resident-centric service provision in the residential sector, and identifies four logics of value creation. The second study adopts a multiple-case study design to understand how framing influences service transformation in seven organizations. The findings present four archetypical ways of framing services – as profit generation, organizational reorientation, basis of business, and expression of values – which rest on two underlying dimensions: Argument diversity describes whether an organization relies on business-centric rationales or multiple interrelated rationales in legitimizing resident services; identification with resident-centric service provision distinguishes between instrumental views of resident services and resident services as the constitutive logic of the organization. The findings link the archetypical frames to different tactics by which managers build their legitimacy within the organization, and identify different managerial orientations to facilitate change at the level of activities, organization design, and culture. Finally, the findings link these to different directions of service transformation.The findings contribute to service literature on by theorizing the cognitive underpinnings of service transformation, emphasizing service not only as operative-level activity but also as organization-wide ideology to value creation. The findings also complement organizational literature by examining service transformation as organizational hybridization, as well as by elaborating the role of framing in organizations responding to institutional processes.
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    Managing the complexity of service contracting in buyer-supplier collaboration
    (Aalto University, 2022) Zou, Wenting; Brax, Saara A., Dr., LUT University, School of Business and Management, Finland; Tuotantotalouden laitos; Department of Industrial Engineering and Management; Perustieteiden korkeakoulu; School of Science; Rajala, Risto, Prof., Aalto University, Department of Industrial Engineering and Management, Finland
    Purchasing business services have become increasingly important for companies as they strive for competitive advantages. Service contracts are an essential part of purchasing business services. The importance and complexity of service contracts increase with the complexity of the services, indicating managing service contracts can be very complicated. Yet, very little work has examined how service contracts' structure influences supplier performance. This dissertation focuses on managing service contracting and performance from the service complexity perspective. The present study aims to improve the current understanding of the essential dimensions of service complexity by investigating how service complexity influences service contracts and supplier performance. This study also examines how the different dimensions of service performance affect the business relationship and service contract renewal. The insights of this study draw from systematic literature review and survey research studies among the professional respondents from 25 countries. The systematic literature review identifies four dimensions of service complexity - multiplicity, diversity, interdependence, and variability. The review provides a basis for understanding service complexity as the perspective for the study. The empirical results show the crucial role of contract structure in effective service delivery. This dissertation finds the three major contract dimensions (definition of responsibility, performance criteria, and incentives) and follow-up management practices that positively influence buyer-perceived supplier performance. It also finds that service complexity significantly increases the need to design incentives in the service contract and buyer's follow-up management towards better supplier performance. In terms of business service contracting outcomes, this dissertation finds all three dimensions of service performance – competence-based, expressive, and collaborative – drive relationship performance that increases customer repurchase intentions. The relationship performance mediates the links between expressive and collaborative service performance with customer repurchase intentions This dissertation contributes to the existing body on the characteristics of services by identifying the essential dimensions of service complexity. The findings contribute to advancing knowledge on performance-enhancing aspects of designing and monitoring the B2B service contracts. This dissertation is among the first few studies to incorporate the structure and the follow-up management into the services contracts in studying service delivery and performance. The results advance knowledge on the development of contractual governance for improving supplier performance by specifying the contract dimensions. This dissertation also contributes to comprehensively understanding the factors that impact business customers' service contract renewal. It also adds the role of service complexity in successful B2B service purchasing.
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    Underpinnings of User Participation in Innovation on Online Communication Platforms
    (Aalto University, 2016) Kaur, Puneet; Westerlund, Mika, Prof., Carleton University, Canada; Chen, Sufen, Prof., National Taiwan University of Science and Technology (NTUST), Taiwan; Tuotantotalouden laitos; Department of Industrial Engineering and Management; Service Engineering and Management; Perustieteiden korkeakoulu; School of Science; Rajala, Risto, Prof., Aalto University, Department of Industrial Engineering and Management, Finland
    The aim of this dissertation is to advance the understanding of the motivational and behavioral factors affecting user participation in innovation on online communication platforms. In particular, social networking service (SNS)-based brand communities (such as Facebook) have been recognized as effective platforms for practicing user innovation, and they are very popular among small, medium and large organizations. However, these platforms suffer from two major challenges, user retention and continuous user participation. Prior literature has paid little attention to understanding these important issues of user participation in the innovation process. Therefore, this dissertation aims to fill these gaps by investigating different factors that affect user participation and retention in innovation on SNS-based brand communities.                              The research questions of the dissertation are addressed using quantitative research methods and psychometrics. This dissertation utilized several theoretical frameworks, including the flow theory, consumption value theory, uses and gratification theory, social cognitive theory, the theory of reasoned action, and developmental psychology to explain different aspects of user participation in innovation on online communication platforms. A total of five empirical research articles were undertaken to address the different aspects of the phenomenon. The present thesis developed an instrument for measuring users' flow experience during SNS and SNS-based brand communities' use. It examined users' online regret experience in SNS from the perspective of their demographic characteristics and flow experience. The thesis also investigated users' participation from the perspective of the participation facilitating functionalities (i.e., commenting). Finally, the present thesis aimed at understanding the reasons that motivate users to continue participating in SNS-based brand communities. The main results of the dissertation are: First, a valid and reliable flow experience instrument for addressing the different dimensions of users' flow experience was developed. Second, it was found that online regret was experienced by older adolescents and those spending more time on SNS-based brand communities, and was positively correlated to playfulness and focused attention. Third, the elements of self-efficacy, social influence, reciprocal benefit and hedonic motivation were found to influence users' attitudes towards the usage of the commenting in SNS-based brand communities. Fourth, playfulness and social enhancement were found to predict users' intention to continue using SNS-based brand communities. Fifth, a valid and reliable instrument measuring users' flow experience during the usage of SNS-based brand communities was developed.