THE ECOLOGY OF INTERORGANIZATIONAL INFORMATION SHARING

Increasingly, companies use interorganizational information systems to support business process partnerships, such as automatic replenishment systems and other supply chain initiatives, invoicing and payments, and insurance claims processing. Inter-firm networking in turn can increase the visibility of information generated and used by business partners. These business partners may experience intended and unintended impacts from the changes in the partnering relationship, in effect altering the ecology of the organization. Yet IT researchers rarely study an organization’s ecology, focusing instead on impacts upon internal processes. Our goal in this paper is to propose a definition of interorganizational information ecology, to provide IT researchers with a lens through which interorganizational information sharing should be studied. We begin by reviewing principles of ecology from the natural and social sciences and then discuss the emergence of principles of organizational ecology and information ecology within the management literature. We then argue that advances in information technology have been a primary enabler for companies’ focus on interorganizational business processes and that field research on IT-enabled business partnerships must include the impacts upon each partner and the information shared among them. An example from health care demonstrates the usefulness of the concept, and we conclude with suggestions for field-based research on the ecology of interorganizational information sharing

Motorola cash management: The evolution of a global system

The set of interorganizational information systems used for global cash management in business markets is analyzed. A longitudinal case study of Motorola is presented. Their strategy has evolved from an internal cost saving focus to a cooperative one, yielding significant strategic benefits by the inclusion of trading partners. The financial aspects of Motorola's business relationships with trading partners and its principal bank have been transformed through a process of organizational learning and adaptation coupled with the close integration of information systems (ISs) throughout the cash supply chain. Cooperative behavior between Motorola and its suppliers, with the help of Citibank, has enabled a coordinated response to bring cash flows in line with product flows. The results are compared with existing IS marketing theories on business relationships, market structure, and globalization

A Typology of Interorganizational Relationships: Implications for IS Design

We are currently witnessing an explosion in the number and variety of interorganizational relationships reported in the business press that are often described using buzzwords such as \u27partnership\u27 and strategic alliance\u27. Unfortunately, theory lags practice in the examination of this phenomenon that is increasingly becoming the model for success in many industries. From the perspective of Transaction Cost Economics, a dominant theoretical anchor, these interorganizational relationships are considered to fall between the well described extremes of market exchange and hierarchically controlled exchanges and belong to a less understood type termed the \u27hybrid\u27 (Clemons, Reddi, Row 1993, Hennart 1994). Information Technology (IT) is often the fundamental enabler of these non traditional forms of organizing (Quinn 1992) and a theoretical understanding of the phenomenon is indispensable to enable the effective exploitation of IT capabilities in such relationships. In an exploratory study to derive a process based understanding of interorganizational relationships in the distribution channel, we find evidence that interorganizational relationships can be classified into four distinct types. The four types differ significantly in the processes of operational control and boundary management as well as in the nature of information exchange and the role of information technologies. The results provide a greater understanding of action in interorganizational relationships and have implications for the design of interorganizational information systems (IOS)

Generation of human and structural capital: lessons from knowledge management

Interorganizational and social relationships can be seen as part of the intellectual capital of a firm. Existing frameworks of intellectual capital, however, fail to address how relationships should be managed to generate more intellectual capital. Drawing on the interaction approach and the fields of intellectual capital and knowledge management, this paper develops a framework for managing relationships. The framework is illustrated with a case study. It is also noted that firms can improve relationship management and thus generate more intellectual capital

Environmental entrepreneurship and interorganizational arrangements : a model of social-benefit market creation

Research summary: Social-benefit markets, such as those for carbon trading, are becoming increasingly popular for combating complex social and environmental problems. However, their unique characteristics pose substantial challenges to market creation and require novel entrepreneurial approaches. Integrating the entrepreneurship literature with that of management information systems, we conceptualize social-benefit markets as a new type of interorganizational arrangement and develop a model of social-benefit market creation. First, we argue that a core entrepreneurial collective, comprising a plurality of actors from government, business, and social movements, is essential. Second, we elaborate a six-phase process through which the interests of entrepreneurs are aligned and inscribed in a market artifact and the market is formed. The model is illustrated with reference to the Western Climate Initiative’s carbon market creation efforts. Managerial summary: Carbon markets have become a popular strategy for reducing greenhouse gas emissions, with similar market-based solutions being proposed for other social and environmental challenges. We refer to these new structures as socialbenefit markets. Social-benefit market creation is a complex undertaking that will require novel entrepreneurial approaches and new interorganizational information systems. In an effort to reduce some of this complexity, we propose a model to explain how entrepreneurs from government, business, and social movements must work collectively to build social-benefit markets. We further elaborate a six-phase process through which entrepreneurs are able to align their diverse interests and create a stable market artifact. For managers from all sectors, our work offers actionable guidance for forming collective ventures that deliver real social benefits. Copyright © 2017 Strategic Management Society

Assessing partnership alternatives in an IT network employing analytical methods

One of the main critical success factors for the companies is their ability to build and maintain an effective collaborative network. This is more critical in the IT industry where the development of sustainable competitive advantage requires an integration of various resources, platforms, and capabilities provided by various actors. Employing such a collaborative network will dramatically change the operations management and promote flexibility and agility. Despite its importance, there is a lack of an analytical tool on collaborative network building process. In this paper, we propose an optimization model employing AHP and multiobjective programming for collaborative network building process based on two interorganizational relationships’ theories, namely, (i) transaction cost theory and (ii) resource-based view, which are representative of short-term and long-term considerations. The five different methods were employed to solve the formulation and their performances were compared. The model is implemented in an IT company who was in process of developing a large-scale enterprise resource planning (ERP) system. The results show that the collaborative network formed through this selection process was more efficient in terms of cost, time, and development speed. The framework offers novel theoretical underpinning and analytical solutions and can be used as an effective tool in selecting network alternatives

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