Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

Innovative coordination of agribusiness chains and networks

To facilitate scientifically grounded innovative forms of strategic network coordination, this paper integrates two major bodies of literature on competitive advantage. The two bodies of literature are the industry-oriented outside-in approach, and the competence-oriented inside-out approach, here homogenized along the dimensions of degrees of firm embeddedness, respectively, the broadness of shared resource bases. The elements detailed are interfirm relationships, resource bases, network governance instruments, coordination mechanisms, the impact of events on network structures, and the active mobilisation of actors and resource. Thereby, the paper is able to detail 5 generic types of business networks. Next, it relates 21 network governance instruments to type of partnerships (binding vs loosening), forms of interaction (cooperative vs opportunistic). The realized reduction of network complexity enhances conceptual transparency and increases the instrumental usage of this research for effective network coordination by businesses. An integrated case illustrates the usefulness of the various concepts and the coherency of the different elements

The Role of Knowledge Management in the Relationship between IT Capability and Interorganizational Performance: An Empirical Investigation

Knowledge management capability (KMC) represents an important link between IT and individual firm performance. We investigate this link in an interorganizational (IO) context—an increasingly important and yet substantially underresearched area. Based on reviewing and integrating the literature, we develop and test a comprehensive empirical conceptualization of KMC that includes knowledge creation, transfer, retention, and application. We collected survey data from supply management professionals at one partner firm (either customer or supplier) in an IO relationship. We tested our research hypotheses using structural equation modeling. We found that partner firms’ KMC was positively associated with IO performance. We also found that IO information technology (IOIT) infrastructure capabilities facilitated KMC through the strength of IO relational capability. Partner interdependence was positively associated with IO relational capability and with KMC. Taking a knowledge management (KM) perspective, our research shows that IT requires relational capability and KMC to bring performance gains to IO partnerships. These insights have theoretical importance for understanding IT-enabled knowledge management in IO settings and practical significance for firms to effectively use their IOIT infrastructure

Bringing tasks back in: an organizational theory of resource complementarity and partner selection

To progress beyond the idea that the value of inter-firm collaboration is largely determined by the complementarity of the resources held by partners, we build a theoretical framework that explains under which conditions a set of resources or capabilities can be considered as complementary and resulting in superior value creation. Specifically, we argue that the tasks that an inter-firm collaboration has to perform determine complementarities, and that complementarities arise from similar and dissimilar resources alike. We capture this relationship in the concept of task resource complementarity. Further, we examine factors that impact on the relevance of this construct as a predictor of partner selection. Finally, we discuss which implications arise for a theory of the firm when tasks are explicitly incorporated into the conceptualization of resource complementarity

Transferring and creating technological knowledge in interfirm R&D relationships: The initiation and evolution of interfirm learning.

In this study, we examine the initiation and evolution of interfirm learning in interfirm R&D relationships. Based on in-depth case studies, we suggest that the process of learning in interfirm R&D relationships consists of different challenges: 1) initiating technological knowledge transfer, 2) continuing technological knowledge transfer, and 3) moving towards the joint creation of new technological knowledge. Our findings identify conditions needed to initiate knowledge transfer: the presence of legal knowledge transfer clauses, overlapping skills and equipment, fragile trust and organizational similarity. The continuance of knowledge exchange implies complementary modes of collaborating characterized by sharing technologies which are oriented towards different applications. Joint knowledge creation implies convergence on the level of applications which only becomes feasible when prior knowledge exchange processes have generated resilient levels of trust. These observations point to the relevance of conceiving and organizing interfirm R&D relationships in a timephased, differentiated manner.Applications; Case studies; Convergence; Exchange; Interfirm learning; Interfirm R&D; Knowledge; Knowledge creation; Knowledge transfer; Learning; Processes; R&D; Similarity; Studies; Technology; Trust;

Enablers and Consequences of Interfirm Co-Production

As contemporary firms increase their reliance on information technology (IT) and are increasingly turning their attention to jointly creating value with their primary stakeholders, there is a growing need to understand what enablers promote from interfirm value co-creation from co-production in supply chains, how the co-production can be realized and what value can be created through the co-production. We integrate systems theory and the relational view perspectives to develop an explanatory model to explain how co-production mediates the impacts of enablers on the reciprocal benefits created in the global supply chain context. Drawing upon systems theory, we identify three constructs: platform compatibility (i.e., compatibility), co-production (i.e., synergy), and collaborative governance (i.e., integration effort). We draw on the relational view to identify two activities: process alignment and resource sharing for co-production, conceptualize three basic types of reciprocal benefits: market, innovation and anshin value, and theorize co-production—the synergy of process alignment and resource sharing activities—as key to the realization of synergy, thereby contributing to the reciprocal benefits in the context of interfirm supply chain. Based on survey data collected from 464 senior management representatives from 230 high-tech manufacturing firms from within Taiwan and China, we found 1) collaborative governance has a positive effect on platform compatibility, 2) both collaborative governance and platform compatibility promote co-production, 3) guanxi has a positive effect on collaborative governance and has a positive moderating effect on collaborative governance and co-production, and 4) co-production positively affects reciprocal benefits. Our findings highlight 1) the important role of co-production in mediating the platform compatibility and collaborative governance effects on reciprocal benefits, and 2) the complementary role of guanxi in strengthening the collaborative governance effect on co-production. These results provide insights into how firms can co-create value through enhanced interfirm co-production

Interfirm IT Capability Profiles and Communications for Cocreating Relational Value: Evidence from the Logistics Industry

This study seeks to identify the means by which information technology helps cocreate relational value in the context of interfirm relationships in the logistics industry—a large and information-intensive industry. We identify a set of IT functionalities—single-location shipping, multilocation shipping, supply chain visibility, and financial settlement—that can be used to manage the flows of physical goods, information, and finances across locations in interfirm logistics processes. Progressively more advanced sets of IT functionalities, when implemented and used in the interfirm relationship to execute logistics processes, are proposed to form four distinct IT capability profiles of increased sophistication. Interfirm IT capability profiles of higher sophistication are proposed to help cocreate greater relational value by facilitating the flows of physical goods, information, and finances across locations in the interfirm logistics process. Besides their direct role in helping cocreate relational value, these interfirm IT capability profiles are proposed to further enhance relational value cocreation when complemented by interfirm communications for business development and IT development.Our empirical study was situated in one of the world’s largest logistics suppliers and over 2,000 of its interfirm relationships with buyers across industries. Integrated data from four archival sources on the IT functionalities implemented and used in interfirm logistics relationships, interfirm communications, relational value (share of wallet and loyalty), and multiple control variables were collected. The results show that the proposed interfirm IT capability profiles and interfirm communications have both a direct and an interaction effect on relational value. Implications for cocreating relational value in interfirm relationships with the aid of IT are discussed

Information technology and marketing performance within international market-entry alliances: a review and an integrated conceptual framework

The purpose of our paper is to engage in a comprehensive review of the research on Information Technology (IT)-mediated international market-entry alliances.This paper provides a theory-informed conceptual framework of IT-enabled cross-border interfirm relationships and performance outcomes. It integrates perspectives of Resource-based View (RBV) and Transaction Cost Economics (TCE) to argue that the establishment of interfirm IT capabilities enhances the marketing performance of the foreign partner in the host location by improving interfirm relationship governance. Furthermore, IT-related risks and contextual restrictions are identified as important moderators. Conceptualisations of IT capabilities, IT-enhanced interfirm governance, and IT-led marketing performance improvement are suggested. Drawing on RBV and TCE, IT resources, related human resources, and IT integration between partner firms in combination enhances the ability of firms to manage the relationship more effectively through shared control, interfirm coordination, cross-firm formalisation, and hybrid centralisation. These benefits then bring about better upstream and downstream marketing performance in the host location. Additionally, IT capabilities help to mitigate possible contextual limitations and risks. The paper offers a number of theory- and literature- informed research propositions which can be empirically tested in future studies.Top managers of firms currently in or planning to enter international alliances for market entry should carefully consider effective development of interfirm IT capabilities in terms of readiness of hardware and software, human resources, and organisational resources. Our paper provides an integrated framework and propositions which contribute to limited understanding and appreciation of IT value in international market-entry alliances