Managing Changes in Collaborative Networks: A Conceptual Approach

Collaborative Networks represent organizational forms that became omnipresent in today’s way of making business. Such organizational forms are often established in order to satisfy a complex customer need, which one company could not satisfy on its own. This means that the participating companies are to a certain degree dependent on each other. Managing inter-firm relationships by means of inter-organizational interdependencies represents an important Business-IT Alignment issue. In this paper, we present the Dependency-based Alignment Framework, which represents a conceptual approach for managing changes in Collaborative Networks from a holistic perspective. A detailed and methodologically well-founded approach in the definition and design of our framework is accompanied by a detailed investigation of relevant properties of this design artifact. To demonstrate the applicability of our framework in practice, we introduce a case study, which uses Semantic Media Wiki and the SPARQL query language. Finally, we evaluate our results in an argumentative and deductively descriptive way

Käsitteellinen lähestymistapa organisatoristen verkostojen tutkimukseen

Tutkimusympäristöt joissa eri tieteenalojen tutkijat toimivat yhdessä ratkaistakseen verkostoissa toimivien kumppaniyritysten ongelmia ovat haasteellisia tiedonvaihdon ja tutkimustiedon keräämisen kannalta. Vaikka tutkimuskohde on yhteinen, tutkijat lähestyvät sitä omien tieteidensä näkökulmasta käyttäen siihen teorioita ja menetelmiä jotka eivät ole yhteensopiva muiden kanssa. Lapin yliopistossa tehdyn tutkimustyön aikana nämä ongelmat tulivat esiin, kun useissa monialaisissa projekteissa tarkasteltiin liiketoimintaverkostoja sekä teollisuusliiketoiminnan että matkailun alalta. Projektien kohteina olevissa verkostoissa yritykset pyrkivät tyypillisesti hakemaan verkostotoiminnasta hyötyjä informaatioteknologian avulla tehostaakseen liiketoimintasuhteitaan ja siten edesauttamaan johtamiseen ja operatiiviseen toimintaan liittyvää tiedonkulkua. Pääasiallinen ongelma näissä ympäristöissä tapahtuvassa tutkimuksessa on, että uudet projektit eivät helposti pysty hyödyntämään edellisten projektien tuotoksia, koska aikaisemmin kerättyä tutkimustietoa, analyysejä tai luotuja ratkaisumalleja ei ole saatavilla siinä muodossa että ne voitaisiin ottaa uuden tutkimuksen pohjaksi. Tässä työssä on tarkasteltu ja kehitetty käsitteellisiä malleja ja niihin liittyviä menetelmiä, jotka tukevat monitieteistä liiketoimintaverkostojen tutkimusta, ja samalla tekevät mahdolliseksi hyödyntää jo olemassa olevaa tutkimustietoa. Tässä diplomityössä kehitetty ratkaisu perustuu liiketoimintaverkostojen analysointiin käsitemallintamisen avulla. Tämän tuloksena on luotu organisatoristen ympäristöjen käsitemalli, joka keskittyy integraatiota edistäviin yhteistoimintasuhteisiin, ja kuvattu siihen liittyvä tutkimuksellinen prosessi joka mahdollistaa projektin aikana syntyvän tutkimusaineiston käsitteellistämisen ja lisätiedon liitämisen niihin. Tämä helpottaa tutkimustiedon jäsentämistä ja sen jakamista tutkijoiden ja kohdealueen toimijoiden välillä. Lisäksi työssä määritellään metatietokuvauksia ja rajattuja sanastoja jotka perustuvat semanttisen webin tekniikoihin, joilla voidaan luokitella eri projektien aikana syntyviä tutkimusartefakteja ja hallinnoida tutkimustietoa.The research settings, where project teams consisting of researchers from different scientific fields, and working together to provide solutions to the issues of networked partner organizations, are challenging in terms of communicating and accumulating research knowledge. Although the focus of the research is shared, difficulties emerge because it is explored from different scientific perspectives, relying on theories and methods that do not match with others. This observation was made during research work conducted at the University of Lapland in projects that concentrated on business networks in the manufacturing and tourism industries. The organizations in these commercial environments typically seek benefits from information technology to intensify the network-wide business relationships and to improve knowledge-intensive operations and management. The main problem is that new projects cannot easily benefit from the results of past projects because the collected research materials, analyses and models are not easily found and they are difficult to align with the objectives of new projects. In this work, to resolve theses issues, conceptual models and related approaches have been analyzed and elaborated to support cross disciplinary research on business networks, and at the same time enable the re-use and sharing of research knowledge. The solution presented in this Master's thesis has been developed by relying on conceptual modelling approaches to analyze business networks. As a result, general concept model of inter-organizational environments has been built that focuses on the integrative relationships in them. Further, accompanying research process that enabies the conceptualization and annotating of the project research outcomes has been constructed. This helps in organizing and sharing research information between researchers and stakeholders. Additionally, metadata descriptions and controlled vocabularies based on semantic web technologies are defined to align research constructs originating from different projects and to support research knowledge management

Smart Service Innovation: Organization, Design, and Assessment

Background: The emergence of technologies such as the Internet of Things, big data, cloud computing, and wireless communication drives the digital transformation of the entire society. Organizations can exploit these potentials by offering new data-driven services with innovative value propositions, such as carsharing, remote equipment maintenance, and energy management services. These services result from value co-creation enabled by smart service systems, which are configurations of people, processes, and digital technologies. However, developing such systems was found to be challenging in practice. This is mainly due to the difficulties of managing complexity and uncertainty in the innovation process, as contributions of various actors from multiple disciplines must be coordinated. Previous research in service innovation and service systems engineering (SSE) has not shed sufficient light on the specifics of smart services, while research on smart service systems lacks empirical grounding. Purpose: This thesis aims to advance the understanding of the systematic development of smart services in multi-actor settings by investigating how smart service innovation (SSI) is conducted in practice, particularly regarding the participating actors, roles they assume, and methods they apply for designing smart service systems. Furthermore, the existing set of methods is extended by new methods for the design-integrated assessment of smart services and service business models. Approach: Empirical and design science methods were combined to address the research questions. To explore how SSI is conducted in practice, 25 interviews with experts from 13 organizations were conducted in two rounds. Building on service-dominant logic (SDL) as a theoretical foundation and a multi-level framework for SSI, the involvement of actors, their activities, employed means, and experienced challenges were collected. Additionally, a case study was used to evaluate the suitability of the Lifecycle Modelling Language to describe smart service systems. Design science methods were applied to determine a useful combination of service design methods and to build meta-models and tools for assessing smart services. They were evaluated using experiments and the talk aloud method. Results: On the macro-level, service ecosystems consist of various actors that conduct service innovation through the reconfiguration of resources. Collaboration of these actors is facilitated on the meso-level within a project. The structure and dynamics of project configurations can be described through a set of roles, innovation patterns, and ecosystem states. Four main activities have been identified, which actors perform to reduce uncertainty in the project. To guide their work, actors apply a variety of means from different disciplines to develop and document work products. The approach of design-integrated business model assessment is enabled through a meta-model that links qualitative aspects of service architectures and business models with quantitative assessment information. The evaluation of two tool prototypes showed the feasibility and benefit of this approach. Originality / Value: The results reported in this thesis advance the understanding of smart service innovation. They contribute to evidence-based knowledge on service systems engineering and its embedding in service ecosystems. Specifically, the consideration of actors, roles, activities, and methods can enhance existing reference process models. Furthermore, the support of activities in such processes through suitable methods can stimulate discussions on how methods from different disciplines can be applied and combined for developing the various aspects of smart service systems. The underlying results help practitioners to better organize and conduct SSI projects. As potential roles in a service ecosystem depend on organizational capabilities, the presented results can support the analysis of ex¬ternal dependencies and develop strategies for building up internal competencies.:Abstract iii Content Overview iv List of Abbreviations viii List of Tables x List of Figures xii PART A - SYNOPSIS 1 1 Introduction 2 1.1 Motivation 2 1.2 Research Objectives and Research Questions 4 1.3 Thesis Structure 6 2 Research Background 7 2.1 Smart Service Systems 7 2.2 Service-Dominant Logic 8 2.3 Service Innovation in Ecosystems 11 2.4 Systematic Development of Smart Service Systems 13 3 Research Approach 21 3.1 Research Strategy 21 3.2 Applied Research Methods 22 4 Summary of Findings 26 4.1 Overview of Research Results 26 4.2 Organizational Setup of Multi-Actor Smart Service Innovation 27 4.3 Conducting Smart Service Innovation Projects 32 4.4 Approaches for the Design-integrated Assessment of Smart Services 39 5 Discussion 44 5.1 Contributions 44 5.2 Limitations 46 5.3 Managerial Implications 47 5.4 Directions for Future Research 48 6 Conclusion 54 References 55 PART B - PUBLICATIONS 68 7 It Takes More than Two to Tango: Identifying Roles and Patterns in Multi-Actor Smart Service Innovation 69 7.1 Introduction 69 7.2 Research Background 72 7.3 Methodology 76 7.4 Results 79 7.5 Discussion 90 7.6 Conclusions and Outlook 96 7.7 References 97 8 Iterative Uncertainty Reduction in Multi-Actor Smart Service Innovation 100 8.1 Introduction 100 8.2 Research Background 103 8.3 Research Approach 109 8.4 Findings 113 8.5 Discussion 127 8.6 Conclusions and Outlook 131 8.7 References 133 9 How to Tame the Tiger – Exploring the Means, Ends, and Challenges in Smart Service Systems Engineering 139 9.1 Introduction 139 9.2 Research Background 140 9.3 Methodology 143 9.4 Results 145 9.5 Discussion and Conclusions 151 9.6 References 153 10 Combining Methods for the Design of Digital Services in Practice: Experiences from a Predictive Costing Service 156 10.1 Introduction 156 10.2 Conceptual Foundation 157 10.3 Preparing the Action Design Research Project 158 10.4 Application and Evaluation of Methods 160 10.5 Discussion and Formalization of Learning 167 10.6 Conclusion 169 10.7 References 170 11 Modelling of a Smart Service for Consumables Replenishment: A Life Cycle Perspective 171 11.1 Introduction 171 11.2 Life Cycles of Smart Services 173 11.3 Case Study 178 11.4 Discussion of the Modelling Approach 185 11.5 Conclusion and Outlook 187 11.6 References 188 12 Design-integrated Financial Assessment of Smart Services 192 12.1 Introduction 192 12.2 Problem Analysis 195 12.3 Meta-Model Design 200 12.4 Application of the Meta-Model in a Tool Prototype 204 12.5 Evaluation 206 12.6 Discussion 208 12.7 Conclusions 209 12.8 References 211 13 Towards a Cost-Benefit-Analysis of Data-Driven Business Models 215 13.1 Introduction 215 13.2 Conceptual Foundation 216 13.3 Methodology 218 13.4 Case Analysis 220 13.5 A Cost-Benefit-Analysis Model for DDBM 222 13.6 Conclusion and Outlook 225 13.7 References 226 14 Enabling Design-integrated Assessment of Service Business Models Through Factor Refinement 228 14.1 Introduction 228 14.2 Related Work 229 14.3 Research Goal and Method 230 14.4 Solution Design 231 14.5 Demonstration 234 14.6 Discussion 235 14.7 Conclusion 236 14.8 References 23

Pathways of Property Transformation: Enterprise Network Careers in Hungary, 1988-2000: Outline of an Analytic Strategy

This study analyzes the restructuring of a national economy by identifying the career pathways of its enterprises. This analysis is conducted in a setting strategically chosen as a case of rapid and profound economic transformation: the post-socialist Hungarian economy between 1988-2000. The goal of this study is to chart the multiple pathways of property transformation. Property pathways are conceptualized as the patterned sequences of change that firms undergo 1) in the composition of their ownership structure and 2) in their position within network structures of ties to other enterprises. These career pathways are neither unidirectional nor plotted in advance. The landscape and topography of the socioeconomic field are given shape and repeatedly transformed by the interaction of the multiple strategies of firms attempting to survive in the face of variable political, institutional, and market uncertainties. These different types of uncertainties will have different temporalities, and the study explores whether and how they increase or diminish in various periods. The authors develop and test specific hypotheses about how enterprise pathways along the compositional and positional property dimensions are related to the shifting contexts of these types of uncertainty. The core dataset for this study includes the complete ownership histories of approximately 1,800 of the largest enterprises in Hungary for a twelve year period, starting with the collapse of communism in 1989, recording each change in a company's top 25 owners on a monthly basis. Monthly entries for each enterprise also include changes in top management, boards of directors, major lines of product activity, raising or lowering of capital, and location of establishments and branch offices, as well as the dates of founding, mergers, bankruptcy, etc. Data on revenues, number of employees, and operating profit will be compiled from annual balance sheets. These rich data make it possible to map the life cycles of the business groups that are formed by network ties among enterprises, identifying not only when they arise, merge, or dissipate, but also the changing shapes of their network properties. To identify patterns of change, the study draws on sequence analysis, a research tool that makes possible the study of historical processes in an eventful way similar to historiography while retaining social scientific abstraction. Whereas sequence analysis has given us a perspective on careers as historical processes but has not been applied to business organizations, network analysis has been applied to business organizations but has not been done historically. The methodological innovation at the heart of this study is to combine the tools of sequence analysis and network analysis to yield a sequence analysis of changing network positions

Six degrees of early-stage ventures

Private markets investment volume and valuations exceed the level of the dot-com bubble (PwC and CBInsights, 2019). The available amount of capital surges as investors announce new multi-billion dollar funds (Kruppa, 2019). Even large, institutional funds in the Silicon Valley, who are used to investing in later stages, move upstream to invest in fledgling firms to achieve higher ownership and returns (Clark, 2019a). Despite the high private market liquidity, standing out from the crowd is critical and has become more difficult to achieve, even for innovative entrepreneurs (Planko et al., 2017). Curiously, venture capitalists who expect the latest technology and innovation from new ventures, did not themselves significantly innovate in their approach, including methods of evaluating ventures (Kupor, 2019). Few investors came up with new, differentiated investment strategies, one such example being data-driven investing (Pitchbook, 2018). Although venture capitalists seek to invest in firms which benefit substantially from the notion that “data is the new oil”, few practice to leverage data for their investment process (Parkins, 2017; Dance et al., 2018; Arroyo et al., 2019; Gompers et al., 2020). Instead, the overwhelming majority adheres to the motto “picking investments is an art, not science” and relies primarily on its networks as the most valuable resource (Bell, 2014; Huang and Pearce, 2015; Gompers et al., 2020). Venture capitalists’ focus on their social networks could not only negatively affect investment decisions and returns, but also promote group-think and stifle the progression of their investment thesis (Wuebker et al., 2015). Reviewing the previous works on entrepreneurship, venture evaluation, and venture capital revealed a significant gap in the literature. While investors and entrepreneurs depend heavily on their social networks, these networks play an insignificant role in venture evaluation. The existing frameworks are inadequate to accurately assess early-stage ventures and thus a rethink of methodology is needed to better capture the networked nature of today’s ventures (Miloud et al., 2012; Dusatkova and Zinecker, 2016). This thesis suggests a new perspective for early-stage venture evaluation, with particular focus on formalising the ventures’ social networks. Contributions made by this thesis are fourfold and relevant to entrepreneurs, investors, and academic theorists. Firstly, existing theories that explain venture fundraising success are expanded by adding a social network perspective. Secondly, this research provides a comprehensive overview of stakeholders’ roles and their constellation in social networks around the entrepreneurs and their ventures. Thirdly, for entrepreneurs, different modes of leveraging their social networks for critical business functions are identified. Lastly, an evaluation tool for venture capitalists to the investability of early-stage ventures is developed. In summary, results provide new insights into entrepreneurial strategies for leveraging social networks to enhance operations, differentiate from competitors, send positive signals to investors, and ultimately improve the venture’s assessment by the private market.EPSRC Doctoral Training Partnerships (DTP

Knowledge Dynamics in Innovation Biographies : a Methodological and Spatial Perspective

The dissertation at hand analyses knowledge dynamics in innovation proc-esses from a methodological and spatial perspective. By applying a micro-level and process-based view, it contributes to recent research about knowl-edge creation in innovation. This is implemented with the novel research approach of Innovation Biographies that enables to empirically study the time-spatial unfolding of knowledge in innovation processes. The thesis follows three aims:  To analyse the nature of knowledge dynamics in innovation processes from idea to implementation according to content, actor constellations and the related micro-geography.  To explicate the research approach of Innovation Biographies and to embed it into the wider methodological array of economic geography, by assessing the value-added of its results in relation to other empirical ap-proaches that analyse knowledge generation and social interaction in in-novation.  To study sectoral innovation specifics within tourism and construction by analysing the mutual influence of knowledge dynamics and the geo-graphical and social context in concrete innovation processes, and by in-terpreting findings in light of the sectors’ particular distinctions. The essential finding contributing to the first aim is that knowledge combinations from different sectors and scales have had decisive influence on the analysed innovation processes. High-tech knowledge was combined with low-tech knowledge; production structures of the automotive industry influenced those of prefabricated houses, football clubs of the German Bundes league cooperated with tourism actors, etc. The geography of knowledge dynamics revealed a multi-scalar scope, even if impact of different scales varied according to sectoral and socio-spatial contexts in which innovation emerged and gained momentum. Furthermore, in contrast to mainstream assumptions, the actor networks of the innovations were only to a limited extent based on previously existing trustful relations. Networks have rather been constituted by a mixture of actors known and unknown to the innovating organisation in order to account for the arising novelty. Referring to the second aim, findings revealed that the micro-level approach of Innovation Biographies provides substantially enriched insight into knowledge creation, its dynamics and time-spatial patterns of innovation. Thus, Innovation Biographies offer a relevant and complementary perspec-tive as compared to other research approaches in economic geography. Through a specific combination of interviewing techniques, network analy-ses, and visualisations, it is possible to reconstruct the generation of knowl-edge in innovation creation from idea to implementation. However, draw-backs, e.g. concerning the fuzziness of the precise beginning and end of an innovation process and strong reliance on cooperation of interview partners remain. As to the third aim, knowledge dynamics and innovation behaviour in tour-ism and construction are heavily influenced by spatial distinctions of the sectors’ production structures. In tourism, the density of competitors causes massive competition and frequent imitation of innovation. Two types of in-novation strategies counteracting competition have been elaborated. The first is labelled “assimilation”, the second “distinction”. In the former strat-egy, proximate actors are involved in knowledge generation. By incorporat-ing actors that otherwise could be potential competitors, a lever is installed that prevents imitation. Within the latter strategy, competitive advantage is achieved through the incorporation of knowledge from actors located in other countries. Utilising internationally sourced, for others not easily acces-sible knowledge, allows innovators to develop unique services that cannot be immediately imitated by others. The construction sector is characterised through strongly localised, tempo-rary, project-based structures that result in renewed knowledge generation in every new building project and therewith in costly repetitive actions. Cur-rent innovation strategies, therefore, strive to overcome spatial constraints and project-based structures, e.g. through prefabrication or service-orientation. These innovation strategies are crucially shaped by knowledge combinations