On the Design of IT Artifacts and the Emergence of Business Processes as Organizational Routines

Much of the BPM literature views business process design and implementation as a top-down process that is built on strategic alignment and managerial control. This view is inconsistent with the observation that information infrastructures, including a company’s business process infrastructure, are at drift, a term that refers to the lack of top-down management control. The paper contributes to resolving this inconsistency by developing a framework that conceptualizes business processes as emergent organizational routines that are represented, enabled, and constrained by IT artifacts. IT artifacts are developed in processes of functional-hierarchical decomposition and social design processes. Organizational routines have ostensive and performative aspects, forming a mutually constitutive duality. A literature review demonstrates that the propositions offered by the framework have been insufficiently considered in the BPM field. The paper concludes with an outlook to applying the framework to theorizing on the emergence of business processes on online social network sites

Exploring the Interplay of the Design and Emergence of Business Processes as Organizational Routines

Much of the BPM literature views business process design and implementation as a top-down process that is built on strategic alignment and managerial control.While this view has enabled the design of many IT artifacts for business processes, it is inconsistent with the observation that information infrastructures, including a company’s business process infrastructure, are at drift, a term that refers to the lack of topdown management control. The paper contributes to resolving this inconsistency by developing ameta-framework that conceptualizes business processes as emergent organizational routines that are represented, enabled, and constrained by IT artifacts. IT artifacts are developed in processes of functionalhierarchical decomposition and social design processes. Organizational routines have ostensive and performative aspects, forming a mutually constitutive duality. A literature review demonstrates that the propositions offered by the meta-framework have been insufficiently considered in the BPM field. The paper concludes with an outlook to applying the meta-framework to theorize about the interplay of design projects with the subsequent emergence of business processes in organizations

Deferred Action: Theoretical model of process architecture design for emergent business processes

E-Business modelling and ebusiness systems development assumes fixed company resources, structures, and business processes. Empirical and theoretical evidence suggests that company resources and structures are emergent rather than fixed. Planning business activity in emergent contexts requires flexible ebusiness models based on better management theories and models . This paper builds and proposes a theoretical model of ebusiness systems capable of catering for emergent factors that affect business processes. Drawing on development of theories of the ‘action and design’class the Theory of Deferred Action is invoked as the base theory for the theoretical model. A theoretical model of flexible process architecture is presented by identifying its core components and their relationships, and then illustrated with exemplar flexible process architectures capable of responding to emergent factors. Managerial implications of the model are considered and the model’s generic applicability is discussed

The long and winding road: Routine creation and replication in multi-site organizations

Prior research on organizational routines in the ‘capabilities’ literature has either studied how new routines are created during an exploratory process of variation and selection or how existing routines are replicated during a phase of exploitation. Few studies have analyzed the life cycle of new routine creation and replication as an integrated process. In an in-depth case study of England’s Highways Agency, this paper shows that the creation and replication of a new routine across multiple sites involves four sequential steps: envisioning, experimenting, entrenching and enacting. We contribute to the capabilities research in two ways: first, by showing how different organizational levels, capabilities and logics (cognitive and behavioural) shape the development of new routines; and second, by identifying how distinct evolutionary cycles of variation and selective retention occur during each step in the process. In contrast with prior research on replication as an exact copy of a template or existing routine, our study focuses on the replication of an entirely new routine (based on novel principles) that is adapted to fit local operational conditions during its large-scale replication across multiple sites. We draw upon insights from adjacent ‘practice research’ and suggest how capabilities and practice studies may complement each other in future research on the evolution of routines

Technology and the economy

Overview of economics of innovatio

Technical Change and Industrial Dynamics as Evolutionary Processes

This work prepared for B. Hall and N. Rosenberg (eds.) Handbook of Innovation, Elsevier (2010), lays out the basic premises of this research and review and integrate much of what has been learned on the processes of technological evolution, their main features and their effects on the evolution of industries. First, we map and integrate the various pieces of evidence concerning the nature and structure of technological knowledge the sources of novel opportunities, the dynamics through which they are tapped and the revealed outcomes in terms of advances in production techniques and product characteristics. Explicit recognition of the evolutionary manners through which technological change proceed has also profound implications for the way economists theorize about and analyze a number of topics central to the discipline. One is the theory of the firm in industries where technological and organizational innovation is important. Indeed a large literature has grown up on this topic, addressing the nature of the technological and organizational capabilities which business firms embody and the ways they evolve over time. Another domain concerns the nature of competition in such industries, wherein innovation and diffusion affect growth and survival probabilities of heterogeneous firms, and, relatedly, the determinants of industrial structure. The processes of knowledge accumulation and diffusion involve winners and losers, changing distributions of competitive abilities across different firms, and, with that, changing industrial structures. Both the sector-specific characteristics of technologies and their degrees of maturity over their life cycles influence the patterns of industrial organization ? including of course size distributions, degrees of concentration, relative importance of incumbents and entrants, etc. This is the second set of topics which we address. Finally, in the conclusions, we briefly flag some fundamental aspects of economic growth and development as an innovation driven evolutionary process.Innovation, Technological paradigms, Technological regimes and trajectories, Evolution, Learning, Capability-based theories of the firm, Selection, Industrial dynamics, Emergent properties, Endogenous growth

On the Convergence of Evolutionary and Behavioral Theories of Organizations: A Tentative Roadmap

The behavioral theory of the firm has been acknowledged as one of the most fundamental pillars on which evolutionary theorizing in economics has been built. Nelson and Winter’s 1982 book is pervaded by the philosophy and concepts previously developed by Cyert, March and Simon. On the other hand, some behavioral notions, such as bounded rationality, though isolated from the context, are also at the heart of some economic theories of institutions such as transaction costs economics. In this paper, after briefly reviewing the basic concepts of evolutionary economics, we discuss its implications for the theory of organizations (and business firms in particular), and we suggest that evolutionary theory should coherently embrace an “embeddedness” view of organizations, whereby the latter are not simply efficient solutions to informational problems arising from contract incompleteness and uncertainty, but also shape the “visions of the world”, interaction networks, behavioral patterns and, ultimately, the very identity of the agents. After outlining the basic features of this perspective we analyze its consequences and empirical relevance.

Managing routine emergence: the Neste case

Changes in organizations and in the operating environment occur on a regular basis. In the context of organizational routines, this indicates that routines will remain, change, emerge or be unlearned. Yet, routine emergence and managerial role in routines lacks previous academic research. Managing routine emergence is a somewhat contrasting concept, which offers an interesting starting point to examine the topic. The purpose of this study is to be describe routine emergence and the managerial role in routines. The study aims to shed light on understanding the phases of routine emergence, factors affecting the emergence as well managerial role in the process and the way to verify competence in routines. To achieve this, the study adopts a practice-based view of routines. The research builds on critical realism approach. The empirical part of the research was conducted as a case study with three embedded cases of investment projects in which the emergence of new operating routines was examined. The case company was Neste, a Finnish company that operates on a global market in three business areas: oil products, renewable products, and marketing & services. Sources of data collection consisted of participant observation, 15 semi-structured interviews, and documentation. The study reveals that routine emergence consists of three main phases: routine content definition, routine learning, and routine implementation in practice. The findings indicate that routine emergence cannot be fully planned since unexpected issues take place during the routine implementation. The study highlights the importance of operator involvement in each phase of the routine emergence. “Building your own house” was seen as descriptive representation for operator involvement in projects. Interestingly, operators acquire a comprehensive understanding of the process during the project work, but still a considerable part of learning takes place during and after the routine implementation. During this period, attentiveness, ability to understand how the process works against the guidelines and planned routines, readiness to surprises, and flexibility in operations are needed. Moreover, the study shows that it is critical to verify competence in routines. This study thereby has two theoretical contributions: new routine emergence and the managerial role in routines. The research provides with four practical implications for managers: 1) managing routine emergence is essential, 2) routine content definition extends beyond a specific routine, 3) well-planned trainings enable and enhance routine learning, and 4) routine implementation implies changes to the planned routine

The liminality of trajectory shifts in institutional entrepreneurship

In this paper, we develop a process model of trajectory shifts in institutional entrepreneurship. We focus on the liminal periods experienced by institutional entrepreneurs when they, unlike the rest of the organization, recognize limits in the present and seek to shift a familiar past into an unfamiliar and uncertain future. Such periods involve a situation where the new possible future, not yet fully formed, exists side-by-side with established innovation trajectories. Trajectory shifts are moments of truth for institutional entrepreneurs, but little is known about the underlying mechanisms of how entrepreneurs reflectively deal with liminality to conceive and bring forth new innovation trajectories. Our in-depth case study research at CarCorp traces three such mechanisms (reflective dissension, imaginative projection, and eliminatory exploration) and builds the basis for understanding the liminality of trajectory shifts. The paper offers theoretical implications for the institutional entrepreneurship literature