eThesis - Kauppakorkeakoulun sähköiset gradut

Open Book Accounting in a Mechanical Engineering Network – Case Business Park Concept in Hämeenlinna

Objectives The primary objective of this study is to gather more empirical data on open book accounting use in the context of a mechanical engineering network. In addition the goal of the research is to expand discussion what are reasons for open costs data in the defence industry and offer more understanding of its role in collaborations and technology transfer arrangements.

Methodology This study is a descriptive single-case study, the data of which is mainly gathered through semi-structured interviews. In addition material has been gathered from multiple sources such as annual reports by the companies, presentations and internal material. The interviews were tape-recorded if allowed, transcribed and analyzed in the light of the research setting. All interviews were carried out between March and April 2008.

Findings A case study on business relationships in a network and its implementation of open book accounting practice is presented. Open book accounting is an appropriate method to ensure the successfulness of the network in mechanical engineering. More specifically, it is an approach to ensure a competitive position in the defence industry. As earlier studies imply the means for using open book accounting differ and its suitability should be investigated on a case-by-case basis. Contrary to earlier empirical material, open book accounting is used already at an early development stage of the network, and while it requires trust, the use of open book accounting concurrently strengthens it. This study presents open book accounting as a prerequisite for local manufacturing. The data flow is not only restricted to the runner of the network, but beyond the borders of it. The end-customer is a major beneficiary of open book accounting information. It is gathered not only to improve the efficiency of the network, but to ensure the quality of manufacturing information both at the marketing stage and later when technology transfer occurs.