Technology sourcing, knowledge management and governance in international inter-organizational innovation networks

This conceptual paper aims to improve our understanding of how internationalised firms use outsourcing and offshoring strategies to manage knowledge and information through the life-cycle of integrated product-service solutions. More precisely, we identify the appropriate theoretical framework for this analysis and investigate through in-depth case studies how UK engineering firms organise, coordinate, and incentivise work that is executed in globally distributed teams. Our research focuses on their UK and India offices to study the organisation and governance of distributed teams. The research has several theoretical dimensions - organization; geography; time and knowledge - that it addresses as boundary challenges.

Análise da relação entre estrutura e desempenho de redes interorganizacionais colaborativas

Cada vez mais, as empresas têm percebido as vantagens de estabelecerem alianças umas com as outras, formando redes. Essas vantagens podem estar ligadas aos mais variados objetivos, que são mensurados por diferentes indicadores de desempenho. A presente pesquisa teve como objetivo a determinação das características estruturais que são mais adequadas, considerando uma série de possíveis indicadores de desempenho, para uma rede interorganizacional colaborativa. Para tal, foi realizado um levantamento bibliográfico-exploratório em duas bases de dados, e utilizada uma abordagem qualitativa para sistematizar as informações encontradas. Como principal resultado deste trabalho, foi construído um quadro teórico que sistematiza a relação entre a estrutura e o desempenho de uma rede. Acredita-se que este artigo possa servir como uma contribuição inicial para um campo de pesquisa ainda pouco explorado.

Overcoming network overload and redundancy in inter-organizational networks:the roles of potential and latent ties

This paper builds on Granovetter's distinction between strong and weak ties [Granovetter, M. S. 1973. The strength of weak ties. Amer. J. Sociol. 78(6) 1360–1380] in order to respond to recent calls for a more dynamic and processual understanding of networks. The concepts of potential and latent tie are deductively identified, and their implications for understanding how and why networks emerge, evolve, and change are explored. A longitudinal empirical study conducted with companies operating in the European motorsport industry reveals that firms take strategic actions to search for potential ties and reactivate latent ties in order to solve problems of network redundancy and overload. Examples are given, and their characteristics are examined to provide theoretical elaboration of the relationship between the types of tie and network evolution. These conceptual and empirical insights move understanding of the managerial challenge of building effective networks beyond static structural contingency models of optimal network forms to highlight the processes and capabilities of dynamic relationship building and network development. In so doing, this paper highlights the interrelationship between search and redundancy and the scope for strategic action alongside path dependence and structural influences on network processes.

Organizational Sustainability and Value Creation in Collaborative Networks

Part 10: Sustainability and Trust

A new look at leadership in collaborative networks : process catalysts

Collaborative networks have come to form a large part of the public sector’s strategy to address ongoing and often complex social problems. The relational power of networks, with its emphasis on trust, reciprocity and mutuality provides the mechanism to integrate previously dispersed and even competitive entities into a collective venture(Agranoff 2003; Agranoff and McGuire 2003; Mandell 1994; Mandell and Harrington 1999). It is argued that the refocusing of a single body of effort to a collective contributes to reducing duplication and overlap of services, maximizes increasingly scarce resources and contributes to solving intractable or 'wicked’problems (Clarke and Stewart 1997). Given the current proliferation of collaborative networks and the fact that they are likely to continue for some time, concerns with the management and leadership of such arrangements for optimal outcomes are increasingly relevant. This is especially important for public sector managers who are used to working in a top-down, hierarchical manner. While the management of networks (Agranoff and McGuire 2001, 2003), including collaborative or complex networks (Kickert et al. 1997; Koppenjan and Klijn 2004), has been the subject of considerable attention, there has been much less explicit discussion on leadership approaches in this context. It is argued in this chapter that the traditional use of the terms ‘leader’ or ‘leadership’ does not apply to collaborative networks. There are no ‘followers’ in collaborative networks or supervisor-subordinate relations. Instead there are equal, horizontal relationships that are focused on delivering systems change. In this way the emergent organizational forms such as collaborative networks challenge older models of leadership. However despite the questionable relevance of old leadership styles to the contemporary work environment, no clear alternative has come along to take its place.

Managing Project Business Development: an Inter-Organizational and Intra-Organizational Perspective (summary section only)

The driving force behind this study is the gap between the reality of the firms engaged in project business and the available studies covering project management and business process development. Previous studies show that project-based organizations were ‘immature’ in terms of the project-management ‘maturity model’, as few firms were found to be optimizing processes. Even within those, very little attention was paid to combine inter-organizational and intra-organizational perspectives. In this study an effort is made to elaborate some thoughts and views on project management, which interrelate firms’ external and internal activities. In line with the integration, the dissertation uses an approach to the management of project-business interdependencies in the networks of actors, activities and resources. Firstly, the study develops an understanding for inter-organizational perspectives by exploring the complementarities of process activities in the basic development of project business. It presents a framework that is elaborated on the basis of the reciprocal interactions of activities within and outside the organization—thus providing a coherent basis for continuous business-process improvement. In addition, the study presents new tools that can be used to develop project-business processes in each of its functional areas. The research demonstrates how project-business activities can be optimized using the right resources at the right time with the right actors and the right actions. The selected five articles included in this dissertation explain the basic framework for the development of project business. Each paper covers various aspects of inter-organizational and intra-organizational perspectives for project management. The study develops a valuable and procedural model for business-process improvement using the Delphi method that can be used not only in academia but also as a guide for practitioners that takes them through a series of well-defined steps when making informed, consistent and efficient changes to their business processes.

Social Capital in Inter-Organizational Partnership Research

This chapter focuses on the use of social capital as a construct to examine and explain the formation and operation of inter-organizational partnerships. In particular it shows how social capital contributes to the sustainability of a public sector partnership. In this research context social capital is defined as the networks, trust, norms and values that enable individuals and organizations to achieve mutual goals through collaboration. This definition draws upon the author’s empirical research on partnerships and partnership working in the field of post-compulsory education and her practical experience of establishing, managing and leading international partnerships for teaching and research in teacher education. The emphasis is on the practical application of social capital to qualitative data and on identifying sources of evidence, including research literature from different disciplines in the social sciences to interpret and theorize primary data. The first section of the chapter considers the complexities of defining social capital in the context of rival theoretical and political perspectives and leads to a discussion of the dimensions of social capital that are found in effective and sustained partnerships.

Elements of a methodology to assess the alignment of core-values in collaborative networks

Collaborative networks are typically formed by heterogeneous and autonomous entities, and thus it is natural that each member has its own set of core-values. Since these values somehow drive the behaviour of the involved entities, the ability to quickly identify partners with compatible or common core-values represents an important element for the success of collaborative networks. However, tools to assess or measure the level of alignment of core-values are lacking. Since the concept of 'alignment' in this context is still ill-defined and shows a multifaceted nature, three perspectives are discussed. The first one uses a causal maps approach in order to capture, structure, and represent the influence relationships among core-values. This representation provides the basis to measure the alignment in terms of the structural similarity and influence among value systems. The second perspective considers the compatibility and incompatibility among core-values in order to define the alignment level. Under this perspective we propose a fuzzy inference system to estimate the alignment level, since this approach allows dealing with variables that are vaguely defined, and whose inter-relationships are difficult to define. Another advantage provided by this method is the possibility to incorporate expert human judgment in the definition of the alignment level. The last perspective uses a belief Bayesian network method, and was selected in order to assess the alignment level based on members' past behaviour. An example of application is presented where the details of each method are discussed.

Fellow travelers: an ethnographic study of the dynamics of inter-organizational collaboration

The research is a 13-months ethnographic field work on the early operations of a Multi-party alliance active in the global field of indoor positioning. The study aims to understand and investigate empirically the challenges that at the individual and group level influence the organizing principle guiding the alliance operations and evolution. Its contribution rests on the dynamics affecting ecosystems of innovation and collaborative spaces of value co-creation in inter-organizational projects.

Dynamics of governance and control in inter-organizational software development

In recent years, development of information systems (IS) has rapidly changed towards increasing division of labor between firms. Two trends are emerging. First, client companies increasingly outsource software development to external service providers. Second, the formerly oligopolistic enterprise application software industry has started to disintegrate into focal partnership networks – so called platform ecosystems. Despite the increasing prominence of IS outsourcing and platform ecosystems, many of these inter-organizational partnerships fail to achieve expected benefits. Ineffective governance and control frequently plays a pivotal role in producing these failures. While designing effective governance and control mechanisms is always challenging, inter-organizational software development projects are often business-critical and exhibit additional dynamics and uncertainty. As a consequence governance and control have to be adapted over time. The three research projects included in this book provide a better understanding of how and why governance and control can be effectively adapted over time. The implications for successful management of inter-organizational software development projects are highly relevant for theory and practice.

Inter-organizational information systems adoption for service innovation in building sector

The building sector has experienced a significant decline in recent years in Spain and Europe as a result of the financial crisis that began in 2007. This drop accompanies a low penetration of information and communication technologies in inter-organizational oriented business processes. The market decrease is causing a slowdown in the building sector, where only flexible small and medium enterprises (SMEs) survive thanks to specialization and innovation in services, which allow them to face new market demands. Inter-organizational information systems (IOISs) support innovation in services, and are thus a strategic tool for SMEs to obtain competitive advantage. Because of the inherent complexity of IOIS adoption, this research extends Kurnia and Johnston's (2000) theoretical model of IOIS adoption with an empirical model of IOIS characterization. The resultant model identifies the factors influencing IOIS adoption in SMEs in the building sector, to promote further service innovation for competitive and collaborative advantages. An empirical longitudinal study over six consecutive years using data from Spanish SMEs in the building sector validates the model, using the partial least squares technique and analyzing temporal stability. The main findings of this research are the four ways an IOIS might contribute to service innovation in the building sector. Namely: a) improving client interfaces and the link between service providers and end users; b) defining a specific market where SMEs can develop new service concepts; c) enhancing the service delivery system in traditional customer?supplier relationships; and d) introducing information and communication technologies and tools to improve information management.

The importance of a new kind of learning in collaborative networks

There is wide agreement that in order to manage the increasingly complex and uncertain tasks of business, government and community, organizations can no longer operate in supreme isolation, but must develop a more networked approach. Networks are not ‘business as usual’. Of particular note is what has been referred to as collaborative networks. Collaborative networks now constitute a significant part of our institutional infrastructure. A key driver for the proliferation of these multiorganizational arrangements is their ability to facilitate the learning and knowledge necessary to survive or to respond to increasingly complex social issues In this regard the emphasis is on the importance of learning in networks. Learning applies to networks in two different ways. These refer to the kinds of learning that occur as part of the interactive processes of networks. This paper looks at the importance of these two kinds of learning in collaborative networks. The first kind of learning relates to networks as learning networks or communities of practice. In learning networks people exchange ideas with each other and bring back this new knowledge for use in their own organizations. The second type of learning is referred to as network learning. Network learning refers to how people in collaborative networks learn new ways of communicating and behaving with each other. Network learning has been described as transformational in terms of leading to major systems changes and innovation. In order to be effective, all networks need to be involved as learning networks; however, collaborative networks must also be involved in network learning to be effective. In addition to these two kinds of learning in collaborative networks this paper also focuses on the importance of how we learn about collaborative networks. Maximizing the benefits of working through collaborative networks is dependent on understanding their unique characteristics and how this impacts on their operation. This requires a new look at how we specifically teach about collaborative networks and how this is similar to and/or different from how we currently teach about interorgnizational relations.

The nature and prevalence of inter-organizational project ventures : evidence from a large scale field study in the Netherlands 2006-2009

There has recently been noted a rapid increase in research attention to projects that involve outside partners. Our knowledge of such inter-organizational projects, however, is limited. This paper reports large scale data from a repeated trend survey amongst 2000 SMEs in 2006 and 2009 that focused on inter-organizational project ventures. Our major findings indicate that the overall prevalence of inter-organizational project ventures remained significant and stable over time, even despite the economic crisis. Moreover, we find that these ventures predominantly solve repetitive rather than unique tasks and are embedded in prior relations between the partnering organizations. These findings provide empirical support for the recent claims that project management should pay more attention to inter-organizational forms of project organization, and suggest that the archetypical view of projects as being unique in every respect should be reconsidered. Both have important implications for project management, especially in the area of project-based learning.

Communication and organizational social networks : a simulation model

Recent management research has evidenced the significance of organizational social networks, and communication is believed to impact the interpersonal relationships. However, we have little knowledge on how communication affects organizational social networks. This paper studies the dynamics between organizational communication patterns and the growth of organizational social networks. We propose an organizational social network growth model, and then collect empirical data to test model validity. The simulation results agree well with the empirical data. The results of simulation experiments enrich our knowledge on communication with the findings that organizational management practices that discourage employees from communicating within and across group boundaries have disparate and significant negative effect on the social network’s density, scalar assortativity and discrete assortativity, each of which correlates with the organization’s performance. These findings also suggest concrete measures for management to construct and develop the organizational social network.