Organizational Performance of a Firm in a Modular Business Network

The organizational capabilities to interact with others have been greatly improved as a result of modern information and communications technologies: Nowadays a company can maintain more relationships with more companies at much lower costs than before. What impact does this increased interaction capability have on the company\u27s choice to perform tasks itself or to \u27outsource\u27 such tasks to others (the trade-off between \u27make\u27 or \u27buy\u27)? Business network theory places the company in a \u27business network\u27, a web of business partners linked together in a flexible way to produce different outputs depending on the customer requirements. Previous research suggests that such business networks require modularization of the products, the processes and the firm in order to be effective. Firms would be able to share their core capabilities and therefore can respond faster, and more effective, to different requirements. Are business networks indeed more dynamic and more \u27agile\u27 than other forms of inter-organizational co-operation like alliances, joint-ventures or markets? More precisely, what is the impact of the structure of a business network on the performance of the participating actor organizations? The objective of this study is to define and understand this relationship: business network structure and organizational performance. In this Research in Progress Paper we present our preliminary set of hypotheses and our testing instrument, a management game called the Business Networking Game that simulates modular business networks

Simulation in manufacturing and business: A review

Copyright @ 2009 Elsevier B.V.This paper reports the results of a review of simulation applications published within peer-reviewed literature between 1997 and 2006 to provide an up-to-date picture of the role of simulation techniques within manufacturing and business. The review is characterised by three factors: wide coverage, broad scope of the simulation techniques, and a focus on real-world applications. A structured methodology was followed to narrow down the search from around 20,000 papers to 281. Results include interesting trends and patterns. For instance, although discrete event simulation is the most popular technique, it has lower stakeholder engagement than other techniques, such as system dynamics or gaming. This is highly correlated with modelling lead time and purpose. Considering application areas, modelling is mostly used in scheduling. Finally, this review shows an increasing interest in hybrid modelling as an approach to cope with complex enterprise-wide systems