What is a networked business?

Due to increasing competitive pressure in their market, many enterprises are implementing changes to the way they conduct business. These changes range from implementing new IT, to redesigning the structure of the organization and entering into all kinds of cooperations with other enterprises, forming what we call a ‘networked business’. In this paper, we try to explain the origin of the networked business from three different, but related, perspectives: resource dependence, transaction cost and IT impact. We also explore some terms that are used to describe interorganizational structures to find their principal components in an attempt to determine relationships between them and find a broad and precise, new definition of the term ‘networked business’

A contingency model of perceived effectiveness in accounting information systems: Organizational coordination and control effects

A contingency model is advanced that examines sources of requirements for organizational coordination and control as they affect the extent of integration in an accounting information system. Requirements that are contingent on the degree of organizational formalization, information interdependence among functional areas, and dependence in interorganizational information sharing and electronic data interchange links, are examined. The congruence or fit of system integration with those requirements is a key concept that influences beliefs about system effectiveness. Results of the empirical study indicated that, as hypothesized, the fit between the accounting system design and the contingency factors resulted in a more successful system. Specifically, system fit was a significant factor that explained variations in perceived AIS effectiveness, as measured by decision makers’ perceived satisfaction with the accuracy and monitoring effectiveness of output information. The effect of system fit on a second factor of perceived AIS effectiveness, as measured by decision-makers’ satisfaction with the perceived quality of information content in system outputs, was only marginally significant. The study addresses an important area in accounting systems research that directly relates to the decision facilitation and control objectives of accounting information. © 2000 Elsevier Science Inc. All rights reserved

The role of network administrative organizations in the development of social capital in inter-organizational food networks

This paper is concerned with the role of network administrative organizations (NAOs) in the development of social capital in inter‐organizational networks aiming at supporting their members to innovate in the food sector through interacting with one another. A multi‐case study approach is used whereby three Belgian inter‐organizational networks are investigated i.e. Wagralim, R&eacute;seau‐Club and Flanders Food. Our study shows that there are many options available to NAOs to build social capital within the networks they are responsible for; options which we propose to categorize in three main distinct groups: creation of boundary objects, careful selection of members and effective communication.</p

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

Alliance Coordination, Dysfunctions, and the Protection of Idiosyncratic Knowledge in Strategic Learning Alliances

In high technology industries firms use strategic learning alliances to create value that can’t be created alone. While they open their interorganizational membrane to gain new skills and competences, generate new products and services, accelerate development speed, and enter into new markets their idiosyncratic knowledge base may be impaired when knowledge related dysfunctions like the unintended knowledge transfer, asymmetric learning speed or premature closing occur. Within a value approach we examine the interplay of alliance coordination activities that enhance value creation, emerging knowledge related dysfunctions, and formal and organizational protections measures which shall safeguard firms intellectual crown jewels. We tested our hypotheses with a sample of 111 strategic alliances of young technology based Enterprises (YTBEs) with competing partners in high and key technology industries. Our findings suggest that a focal firm’s alliance management is well advised to intensely coordinate the alliance and to be aware of dysfunctional tendencies that erode alliance value. Since organizational protection measures could exaggerate dysfunctional effects they should be deployed very deliberately on a modest level. Formal protections measures, in contrast, seem to aggravate coordination activities’ value creation effect by setting behavioral guidelines. Moreover, an unsuccessful negotiation process of formal protection agreements may allow a deselection of partners that would not obey others intellectual property interests. Finally, we highlight theoretical and managerial implications that arise from these findings. --Strategic Learning Alliance,Protection

How managers can build trust in strategic alliances: a meta-analysis on the central trust-building mechanisms

Trust is an important driver of superior alliance performance. Alliance managers are influential in this regard because trust requires active involvement, commitment and the dedicated support of the key actors involved in the strategic alliance. Despite the importance of trust for explaining alliance performance, little effort has been made to systematically investigate the mechanisms that managers can use to purposefully create trust in strategic alliances. We use Parkhe’s (1998b) theoretical framework to derive nine hypotheses that distinguish between process-based, characteristic-based and institutional-based trust-building mechanisms. Our meta-analysis of 64 empirical studies shows that trust is strongly related to alliance performance. Process-based mechanisms are more important for building trust than characteristic- and institutional-based mechanisms. The effects of prior ties and asset specificity are not as strong as expected and the impact of safeguards on trust is not well understood. Overall, theoretical trust research has outpaced empirical research by far and promising opportunities for future empirical research exist

The internet: strategy and boundaries of the firm

Many advantages have been ascribed to the Internet. Although it lacks the necessary elements to be regarded as a strategic resource, the Internet seems to be a useful tool to provide support for business strategies.In this work we discuss how the Internet can be used to support the development of capabilities and define firm boundaries. Using a sample of Spanish firms, empirically analysed, we find positive relationships between the use of the Internet and product differentiation, as well as the introduction of organizational changes. In addition, we present evidence that the Internet reduces both internal coordination costs and transaction costs as a result of the positive relationships found between the use of the Internet, the degree of vertical integration and the establishment of technological agreements with suppliers and customers

Absorptive Capacity: Antecedents, Models and Outcomes

This chapter focuses on the gap between the speed of proliferation of theoretical and empirical contributions and the speed of accumulation of the acquired scientific knowledge regarding absorptive capacity. To contribute to narrowing this gap, we will in particular review the conceptual developments of the absorptive capacity construct. Based on the seminal contributions of Cohen & Levinthal (1989, 1990) we will provide a brief overview of the various conceptual attributes of this construct, like the definition, antecedents and consequences, and levels of analysis involved. Next, we will assess the refinements, extensions and reconceptualizations of this construct in the literature. Furthermore, from the perspective of viewing models as mediating instruments between theory and empirical phenomena (Morgan and Morrison, 1999), we will analyze efforts to build conceptual models. Finally, we will address the progress made, select key problems and we will formulate future research directions to improve the multilevel and transdisciplinary characteristics of absorptive capacity.innovation;absorptive capacity;knowledge