Benefits realisation from collaborative working

When we began this research programme on behalf of ICW into the Benefits of Collaborative Working our premise was that the principal driver behind collaboration would be cost reduction based on increased efficiency through better process integration. This was, to some extent, borne out by our investigations into past research of the subject which focused on either client or supplier-based engagement. It was equally apparent that the challenges came from mistrust of this single objective and limited consideration for the wider implications of the end-to-end or holistic perspective of multiple organisations - at various levels - being “joined up”. This premise was quickly challenged when we engaged with Senior Executives in a series of one-to-one interviews. What emerged was a broader perspective where a more open and committed approach fostered greater confidence on both sides resulting in more productive engagements, allowing a flow-through supply chains to end users. Increased visibility leads to greater reliability and more constructive problem solving which in turn reduces perceived levels of risk. More inclusive relationships result in more business, enhanced scope, more innovation and greater certainty of outcomes on all sides of the relationship. From the research, interviews, survey and case studies, some of which are contained within this report, we have clearly identified a range of tangible benefits achieved through collaborative working including: Improved business and operational performance. Increased business winning. Enhanced risk management. Innovation. Multi-million pound efficiencies. Increased client confidence and repeat business. New product development. Growing interdependency as a result of more complex, high risk, business together with increasing global trade is focusing industry and government on the need to invest in developing more integrated business relationships. The research detailed within the report indicates that drivers and trends are focused on building confidence in outcomes as opposed to the historical approach focused on cost reduction. As the survey discovered, cost reduction featured lowest in terms of collaborative working drivers. The challenge for organisations is in building commitment and sustainable relationships which ensure they do what they promise. Organisations managing complex and extended supply chains rate managing risk as a key factor; the research also highlights that business relationship risk is now an additional major consideration. The most significant future challenge is to change traditional organisational cultures to accept more readily collaborative business models. This highlights the need to identify and further develop competencies and skills to harness collaborative working. There is a clear recognition that the adoption of a more systematic approach, such as BS 11000 and its future iteration as an International Standard (ISO 11000) scheduled for publication autumn of 2016, integrated with supportive collaborative processes and systems will underpin the business environment where collaborative working can be seen as a competitive advantage

Organizing for servitization:examining front- and back-end design

Purpose: Research suggests that to structure for servitization, organizations should separate their front- and back-end units by reference to high versus low contact activities. However, these prescriptions are overly simplistic and largely based on anecdotal evidence that fails to account for context. This research addresses the need to explore the design decisions taken by organizations in support of servitization. Design/methodology/approach: A large-scale exploratory case study was conducted, consisting of embedded cases in three divisions of a UK-based, global manufacturing firm. Findings: Each division provided different combinations of offerings (i.e. product-, use- and result-oriented). The findings suggest that front-end / back-end configurations differ according to the offering and can exist concurrently within the same organization, challenging the assumption that different configurations within an organization are not possible. The findings show that underlying contextual factors, such as the complexity and temporality of the offering, as well as the power of the customer, have implications for the structuring of servitizing organizations. Research limitations: This is a context-specific, qualitative case study conducted within a large original equipment manufacturer, yet the findings are analytically generalized. Originality/value: In identifying the relevance of different design decisions in terms of customer contact, decoupling of activities and grouping of employees, the findings challenge the extant view that organizations simply split activities between the front- and back-end functions. The research identifies an additional design configuration - Integrated Project Teams – involving a dominant customer dictating organizational interfaces. This research exposes the need for further investigation into how to organize for servitization in project based contexts

Building Bridges: Boundary Spanners in Servitized Supply Chains

Purpose: Solutions provision depends on effective and efficient supply chains. Existing discourse within servitization has remained at the organisational or inter-organisational level with a limited emphasis on the role of individuals. However, supply chains are not just relationships between organisations, they are complex, inter-personal relationships that span organisational boundaries. The limited focus on boundary spanners and their interactions means that managerial roles critical for the provision of solutions remain unidentified. The purpose of this paper is to identify the functions, roles and practices of boundary spanners that connect organisations and enable the effective provision of solutions. Design/methodology/approach: A case study comprising 61 interviews in 11 firms was conducted in the UK network of a commercial vehicles manufacturer, to investigate boundary spanning for product and solutions provision. Findings: The functions of boundary spanners move from communicating product and price features in product provision towards strategic communication, dissonance reduction, professional education, consultation and leveraging offerings in solutions provision. The study also identifies the boundary spanning roles and practices that form these functions for solutions provision. Originality/value: This is the first study in servitization that identifies and describes the boundary spanning functions, roles and practices. By adopting the lens of boundary spanning, the research addresses the lack of empirical managerial-level enquiry within servitization research. It extends the theoretical discussion on the differences between supply chain management in servitized vs product contexts

Reconciling and reconceptualising servitization research: drawing on modularity, platforms, ecosystems, risk and governance to develop mid-range theory

PURPOSE: This research bridges disparate research on servitization, namely product–service systems (PSS) and integrated solutions (IS), to provide valuable insights for the progression of the field. It acts as a reconciliation of these research streams and offers a reconceptualised agenda incorporating recent research on platforms, ecosystems, modularity, risk and governance as key conceptual themes to synthesise and build theory. DESIGN/METHODOLOGY/APPROACH: This is a conceptual, theory development article focused on advancing thinking on servitization by identifying systematic and theoretically informed research themes. It also proposes future research opportunities to advance theoretical contributions and practical implications for servitization research. FINDINGS: By reviewing and synthesising extant PSS and IS research, this article identified five core themes – namely modularity, platforms, ecosystems, risks and governance. The importance of these five themes and their linkages to PSS and IS are examined and a theoretical framework with a future research agenda to advance servitization is proposed. ORIGINALITY/VALUE: This paper considers the similarities and differences between PSS and IS in order to develop a theory and to reconcile formerly disparate research efforts by establishing linkages between core themes and identifying valuable synergies for scholars. The importance of the core themes and current gaps within and across these themes are shown, and a mid-range theory for servitization is positioned to bridge the servitization-related PSS and IS communities

Trusting the unknown: The impact of Artificial Intelligence on inter-organisational trust

This research explores how Artificial Intelligence (AI) driven digital transformation influences trust in inter-organisational relationships. The study adopts an embedded case study design whereby three AI-driven services, differing in their complexity, were studied within the Chinese e-commerce sector. The wider contribution of the study is towards the OSCM literature by providing insights into the interplay between inter-organisational trust and trust in the AI technology, a timely and emerging research area. Specifically, we contribute to the OSCM literature by exploring theoretically and empirically the relationships between complexity and trust building process in AI-driven digital transformation contexts

The Governance of Collaboration in Complex Projects

Purpose Inter-organisational collaboration is becoming increasingly important in complex projects; some project customers even formally require evidence of collaborative competence from potential providers. The purpose of this paper is to explore the governance of collaboration and the ways in which it is enacted in practice for complex projects. Design/methodology/approach The study is based on a qualitative analysis of 29 semi-structured interviews, primary data from meetings and events supported by secondary data, including standards and industry-specific contract templates. Findings The paper identifies how collaboration can be effectively governed in complex projects through the emerging role of the collaboration standard and its impact on contractual and relational governance mechanisms. The standard sets higher-level institutional guidelines that affect the way in which collaboration is governed in complex projects. It helps formalise informal relational practices whilst also providing guidelines for building flexibility in contracts by including coordination- and adaptation-oriented provisions conducive to collaboration. Originality/value The paper demonstrates the emerging role of the collaboration standard and its influence on contractual and relational mechanisms deployed in complex projects. It shows how the standard can formalise and codify informal collaborative practices and help transfer related learning across projects, thereby contributing towards the dual requirement for standardisation and flexibility in project settings

Social capital is not for sale : a supply network perspective on mergers and acquisitions

Purpose Mergers and acquisitions (M&As) often lead to significant changes in the focal supply networks, hence disrupting firm-level relationships. Little is known about the supply network implications of M&As, which can be a major issue, especially for firms acquiring competitors that share suppliers, customers and associated resources. Using social capital as a theoretical lens, this research aims to investigate the implications of an acquisition on supply network relationships. Design/methodology/approach The acquisition of a large truck manufacturer by its competitor is investigated using an exploratory case study methodology. A total of 24 interviews were conducted across ten companies in the focal supply network with an analysis of financial data. Findings The findings from the study provide evidence that firms seeking to acquire such relationships cannot directly buy the social capital embedded within those relationships. They identify pre-acquisition characteristics and post-integration factors to understand how the supply network as a whole draws on the structural, cognitive and relational dimensions of social capital to address discrepancies in the merging network. Originality/value This study depicts an empirically grounded, theory-based account of a post-acquisition supply network integration process, showing how an M&A can drastically impact customer and supplier network relationships. The main contribution of this paper lies in extending our understanding of how social capital cannot be simply transferred from one organisation to another during an M&A. Rather, this work illustrates how social capital in supply networks is transformed by considering the pre- and post-acquisition social capital dynamics of the merging networks