THE ROLE OF PATH DEPENDENCE IN THE BUSINESS MODEL ADAPTATION: FROM TRADITIONAL TO DIGITAL BUSINESS MODELS

The digital context has driven new prospects of value creation and capture thus challenging and disrupting the traditional business models. Organizations need business models to transform the specific inherent logic of digital information products into new ways of creating economic value creation and appropriation. Thus, the business model change is an imperative for organizations to exploit value creation opportunities and to survive. Over time, however, business models become deeply embedded and they represent the dominant logic of the organization. Moreover the shift to the digital context poses additional cognitive constrains due to the characteristics inherent in digital information products that are quite distinct from the conventional ones, hence requiring a fundamental shift of dominant logic. This proposed study aims to explore the role of cognitive path dependencies originating in the non-digital context as an isolating mechanism in the process of creation of new digital business mode

Using enkapsis theory for unravelling societal complexities - the case of Uber

Digital technologies can create novel clusters of societal entities. This can lead to tensions in relationships between existing societal entities and in some cases it requires a rethinking of the structures that characterize these relationships. An example of a digital technology that has challenged existing relationships between traditional businesses, legal authorities and the public is Uber, an application-based transportation networking company. One way of understanding such complex relationships is in terms of enkaptic interlacements. The theory of enkapsis is a philosophical tool, based on a specific view of reality, which may guide a novel understanding of the relationship between artefacts and entities and between social structuresthat exist in reality. It distinguishes between three main types of relationships between societal entities, namely part-whole relationships, enkaptic interlacements and interlinkages. If we apply this rather abstract theory to the complex case of Uber, we find, for example, that Uber has a part-whole relationship with the information technology infrastructure. This implies thatwithout digital technologies, Uber loses its meaning and will not function according to its primary function, namely to connect drivers to passengers. We explore how the theory of enkapsis can explain a multiplicity of other complex relationships and explain the different responses to Uber in different countries, cultural settings and legal systems

SOFTWARE PROGRAMMER PRODUCTIVITY: A COMPLEMENTARY-BASED RESEARCH MODE

The identification of the factors that condition a software programmer’s productivity remains a key challenge for both scholars and practitioners. While a number of studies have focused on the impact of one or a few particular factors, the way these factors jointly condition programmer productivity is still unknown. This paper presents a conceptual model aimed at a comprehensive understanding of the factors that complement each other to govern the productivity of a software programmer. The model is based on complementarity theory and its systems approach and addresses an individual worker’s productivity, which accounts for cognitive, technological, and organizational characteristics. The analyzed factors are organized into a system of complementarities, offering two propositions that specify the conditions of a programmer’s productivity. The model’s key contribution lies in its unique configuration of two systems of complementarities, which have the potential to add to the literature on the productivity of software programmers. The proposed model can be employed as a guidance for the design of empirical investigations of the conditions of individual software programmers’ productivity as well as information worker productivity in general

Exploring the Notion of Information: A Proposal for a Multifaced Understanding

Man’s notion of ‘information’ is essential as it guides human thinking, planning, and consequent actions. Situations such as the Haiti earthquake in 2010, the financial crisis in Greece in 2010, and the oil slick in the Gulf of Mexico in 2010 are just a few instances of constant growing empirical dilemmas in our global society where information plays a central role. The meaning of what information is has clear implications for how we deal with it in our practical lives, which in turn may give rise to situations that we would prefer to be without. In this sense, the notion of information has evidently presented the need to question what it really means and how it dominates the functioning of our global society. To address this fundamental issue of information, two questions are explored and presented in this paper: What notions of information are dominating the scholarly literature? And what are the differences between these notions? To answer these questions, we have conducted a comprehensive literature survey of more than two hundred scholarly publications. Detailed analyses of the content of these publications identified four kinds of forms of information notions. The results show that these four forms present diverse and opposing views of the notion of information, labelled as the ‘quartet model of information’. These ad-dress different foci, contexts, and challenges. In addition, we propose an alternative and novel understanding of the notion of information, associated with how information functions in our global society. This understanding offers a new perspective intended to address significant needs of the information society

COMPLEMENTARITIES OF EFFECTIVE INDIVIDUAL IT USE : PRELIMINARY RESULTS

This paper presents preliminary results from an ongoing empirical study that seeks to understand the relationship between IT-complementary factors and the individual productivity of information workers. Although there is substantial evidence of positive IT complementarity effects on productivity at macro-, meso-, and micro-levels of the economy, we still lack knowledge on the configuration of these factors at the individual level. To investigate this gap, we have designed a new research model of an information worker’s individual productivity when an IT system is used jointly and synchronously with both individual and organizational factors. The model is tested in a longitudinal field study of sales operations of an international pharmaceutical company with a multi sub-case set-up. While we continue to collect data, preliminary findings from difference-in-difference analysis are presented here and demonstrate that the introduction of a “full” set of IT complementarities has had a positive and significant effect on the number of sales calls performed

CO2 reduction through digital transformation in long-haul transportation : Institutional entrepreneurship to unlock product-service system innovation

Industrial firms seek to develop offerings that can reduce their negative ecological impact while still being economically viable. Initial studies of these offerings focused on the what and the why. Only recently have studies addressed how to pursue these efforts. The literature generally ignores the underlying mechanisms of how such offerings are created and operated. This paper reports a longitudinal case study of an industrial firm's innovative offering. This offering combines heavy duty vehicles and related services for long-haul transportation. It enables road transportation firms to reduce fuel consumption by one quarter and thereby cut CO2 emissions and fuel costs. A multi-theoretical investigation of that offering contributes to the literature by providing: (i) a rich characterization of an industrial organization's offering that combines economic viability with a much lower negative environmental impact; (ii) a chain of underlying mechanisms that enable such an offering to emerge, including activation of institutional entrepreneurship for industrial entrepreneurship; and (iii) an articulation of the value of using multi-theoretical inquiries of ecological industrial offerings instead of seeking a new isolated theory

Value creation through the evolution of business model themes

A conceptual framework is proposed to examine value creation through the evolution of business model themes. A critical assessment of the literature on business models, business model themes, and their evolution is presented. This assessment highlights the fact that business model themes are typically theorized as being static. Instead, the framework presented here characterizes business models and the business model themes of value creation as co-evolving within an evolving industry. The framework provides a set of propositions that specify how firms can create value by entering an industry, reacting to imitators, and co-evolving with product market strategies and with environmental factors. This study contributes to the literature on value creation through business model themes

SYSTEMS MANAGEMENT AND INFORMATION METRICS BASED ON TIME DISTORTION AND PROFIT.

Organizational management systems, for control and command, have attracted a great amount of research and debate since the very origin of management, as its underlying question is: how to manage human activity systems successfully? More recently, the so-called 'Balanced Score Card' approach has assumed dominance in managers' practice. While that approach has its merits, it also has some important limitations; among others it ignores the concept of time and its relation to information. To deal with some aspect of this limitation, this paper introduces a metric, (e.g. mathematical model) based upon information theory (entropy). The entropy in this paper measures the information content of time distortion in organizational performance and links it to the economic outcome (profit). The paper demonstrates how time-based goals can serve as a metrics of both information and economy, and that the relation between information content and economy outcome is not linear.  The paper suggests a mathematical model in which the management system and its operating system are carriers of information (as measured in nats) with economic dependence. The proposed model shows, among others, that time-distortion influences economic performance dramatically, including a lever effect, while high information entropy does not necessarily imply high economic outcome. The outcomes of the paper are contra-intuitive and may suggest a new metric for assessing goal oriented information from management system to its operating system. It may also be seen as a model for assessment of management efficiency with respect to time and economy

Using enkapsis theory for unravelling societal complexities - the case of Uber

Digital technologies can create novel clusters of societal entities. This can lead to tensions in relationships between existing societal entities and in some cases it requires a rethinking of the structures that characterize these relationships. An example of a digital technology that has challenged existing relationships between traditional businesses, legal authorities and the public is Uber, an application-based transportation networking company. One way of understanding such complex relationships is in terms of enkaptic interlacements. The theory of enkapsis is a philosophical tool, based on a specific view of reality, which may guide a novel understanding of the relationship between artefacts and entities and between social structures\u3cbr/\u3ethat exist in reality. It distinguishes between three main types of relationships between societal entities, namely part-whole relationships, enkaptic interlacements and interlinkages. If we apply this rather abstract theory to the complex case of Uber, we find, for example, that Uber has a part-whole relationship with the information technology infrastructure. This implies that\u3cbr/\u3ewithout digital technologies, Uber loses its meaning and will not function according to its primary function, namely to connect drivers to passengers. We explore how the theory of enkapsis can explain a multiplicity of other complex relationships and explain the different responses to Uber in different countries, cultural settings and legal systems

The Swedish Information Economy : Current Evidence and Key Government Policy Implications

It is well known that most of the largest economies in the world are becoming information economies (understood as an aggregate of economic activities that produce information outputs) in terms of value added (GNP) and jobs. Sweden is among the most advanced adopters of ICT and represents therefore a suitable empirical base for the investigation of an information economy. The data reveal that the largest part of the Swedish economy in terms of GNP value added is constituted by information services. This study presents some surprising economic structures never before uncovered, which are discussed here and then contextualized in terms of implications for public policy making.