SOA adoption in business networks: do service-oriented architectures really advance inter-organizational integration?

The emergence of the Internet as a global communication infrastructure has dramatically reduced interaction costs within and across organizations, with significant impact on inter-organizational relationships, vertical industry structures, and markets. More recently, service-oriented architectures (SOA) and Web services have introduced the next paradigm shift and foster the idea of dynamic business networks with quick connect and disconnect relationships. However, little research has systematically analyzed how companies leverage SOA to improve their inter-organizational relationships and reshape their business networks. In addition, the mature research stream on inter-organizational information systems (IOS) has not yet sufficiently considered SOA. In order to close this gap, our research seeks to improve the fundamental understanding of how SOA is applied in business networks and how it differs from prior forms of IOS. Using an exploratory research approach, we investigate 33 SOA cases to identify focus areas and patterns of SOA adoption in business networks. Our case analysis builds on a multi-dimensional classification scheme which we derived from prior literature. While our empirical findings do not confirm all promising propositions related to SOA, they underline the specific contribution of SOA compared to prior forms of IOS. We conclude by suggesting five clusters of SOA adoption in the inter-organizational domain, each of those introducing new aspects in the coordination of distributed business networks.     

Understanding the influence of multiple levels of governments on the development of inter-organizational systems

In the arena of international trade, multiple levels of governments (ranging from national to supranational) play an important role in regulating and controlling cross-border trade activities. Recently, they have also become powerful players in influencing decisions about inter-organizational systems (IOS). The influences of these multiple levels of governments on IOS are of an enormous scale and impact on businesses and national economies. Understanding them is a prerequisite for informed actions. From a theoretical point of view we contribute with the MLxMC framework, a conceptual framework, which combines a processual, multi-level approach with the motors of change. We use the MLxMC framework to explicitly highlight the influences of multiple levels of governments on IOS developments that take place in the highly regulated environment of international trade. We demonstrate how the framework can be applied to analyze such developments, extending the existing IOS research with models that explicitly acknowledge the role of government. The framework makes use of multi-level analysis by taking the political and institutional aspects into account. As an analytical tool, the framework can support business practitioners as well as policy-makers in their strategic choices of which level to engage at and with whom to collaborate in order to influence the debate.     

System sourcing and information processing capability in supply chains: a study of small suppliers

Although the adoption of inter-organizational systems (IOS) has been studied extensively in the existing literature, relatively little research attention has been paid to how small firms in supply chains are influenced by their larger partners in making their system sourcing decisions. In this study, we examine how small suppliers may choose their system sourcing approaches to better serve and collaborate with their large customers in supply chains. Our empirical findings suggest that information processing requirements and collaboration needs drive small suppliers to adopt more commercial off-the-shelf software package (i.e., external sourcing) to build their IOSs. Moreover, we find that small suppliers take such external sourcing as a way to achieve system effectiveness and enhance their information processing capabilities. The findings of this study generate important theoretical and managerial implications for IOS adoption and organizational information processing.     

Inter-organizational relationships and the flow of information through value chains

I developed a framework that can identify types of inter-organizational relationships. Various kinds of information exchanged between trading partners were grouped into two broad types: transactional and managerial. I then examined the effects of inter-organizational information systems (IOS) and traditional communication media (TCM) on the amount of information exchanged. Stepwise regression analyses showed that the use of value chains was the most significant factor influencing the exchange of both types of information. In examining the impact of the information exchanged to improve production performance, it appeared that different kinds of information influenced different aspects. Depending on the usage level of the media and the types of information exchanged, four categories of inter-organizational relationships and their particular characteristics were defined: traditional links for coordination, strategic alliances, electronic links for coordination, and virtual organizations.     

管理控制论在协作绩效分析中应用研究

研究在环境不确定条件下,企业间协作以及组织间信息系统匹配度对企业间协作绩效影响的问题.以管理控制论为理论基础,以制造行业企业间协作问题为研究对象,应用必要的变数定律及活性系统模型,对汽车制造企业进行了实证分析.研究结果表明,环境不确定性、企业间协作以及信息系统交互影响对企业间协作绩效影响显著;在环境不确定性强的条件下,采用紧密协作及频繁使用组织间信息系统支持的方式协作绩效好;初步证实了管理控制论可作为组织管理研究领域中应用的理论基础.对企业所面临的组织环境不确定性条件下企业间协作问题,以及信息系统应用也具有一定的指导意义.     

Inter-organizational information systems as company resources

Here the concept of an inter-organizational system (IOS) is explored. Reasons are given for considering inter-organizational information systems as valuable company resources, and some potential benefits that could be obtained from these resources are listed. A case example of an inter-organizational system is being presented: it also discusses the benefits that could be obtained from this prototype system and its descendants.     

The configuration of inter-organizational relations

Based on recent literature on the impact of inter-organizational information systems (IOS) on industrial organization, this paper proposes a framework for research into the interdependencies between IOS and coordination strategy. The elements of the framework are: (1) market structure; (2) governance forms; (3) relationship dimensions and (4) enterprise resources. It is suggested that these four elements at the same time affect and are affected by coordination strategy which focuses on inter-organizational relations. The research proposition is that inter-organizational arrangements have to be interpreted as complex, multi-layer configurations of organizational parameters. The composition and flexible adaptation of these configurations – rather than the selection of one efficient governance form – and the related design of IOS are the major tasks of coordination strategy. The design parameters are related to the elements of the framework: (1) the position of the enterprise in inter-organizational relations, be it a network, groups of networks or markets; (2) combinations of governance forms with different partners; (3) combinations of governance forms within a given network of relations referring to the different layers in inter-organizational relations, namely the institutional, operational and technical layers and (4) combinations of (inter-) organizational arrangements for the use and development of resources. EUROSELECT, a horizontal network of European grocery wholesalers, is used as an example to illustrate how different contingencies affect the inter-organizational design and why the complex configuration of relations is chosen.     

Critical success factors of inter-organizational information systems—A case study of Cisco and Xiao Tong in China

This paper reports a case study of an inter-organizational information system (IOS) of Cisco and Xiao Tong in China. We interviewed their senior managers, heads of departments and employees who have been directly affected in their work. Other sources of information are company documents and publicly available background information. The study examines the benefits of the IOS for both corporations. The research also reveals seven critical success factors for the IOS, namely intensive stimulation, shared vision, cross-organizational implementation team, high integration with internal information systems, inter-organizational business process re-engineering, advanced legacy information system and infrastructure and shared industry standard.     

Exploratory analysis on the halo effect of strategic goals on IOS effectiveness evaluation

How do managers evaluate the effectiveness of IT use? Past literature showed that the assessment of IT effectiveness is not straightforward, especially when viewed in terms of “business outcomes,” such as sales increase, firm profitability, and firm success. For inter-organizational systems (IOS), IT effectiveness evaluation is even more challenging, because these IOS are an integral part of a retail channel distribution system where several factors can influence business outcomes. Under such circumstances, IOS effectiveness evaluation is prone to a halo effect. A survey of retailers and suppliers showed that firms favorably judge IOS as long as their strategic goals are met, even when they do not recognize any IOS contribution towards accomplishing them. Conversely, IOS use was not appreciated when strategic goals were not met—even if IOS use benefits the firm at the operational or tactical level. In effect, IOS evaluation was overshadowed by the halo effects of strategic goal accomplishment.     

A cross industry comparison of inter-organisational systems implementation activities

The Inter-organisational systems (IOS) Motivation Model (IMM) has recently been proposed as a theory that explains variations in IOS implementation processes initiated by organisations. The IMM classifies IOS adoption projects (regardless of the underlying technology used) into four generic motivation scenarios and explains different implementation processes for each motivation scenario. The theory was tested in the Australian pharmaceutical industry where it received broad support. In order to enhance its generality, in this study we explore the applicability of part of the IMM theory to a different industry context by addressing the research objective that organisations with the same motive for implementing an IOS initiate the same implementation activities regardless of differences in the industry contexts within which they operate. We have used a multiple case study approach and compared the implementation of a proprietary in-house built e-ordering system in a large Australian pharmaceutical manufacturing company with that of a web-based EDI system used by a large automotive manufacturing company using IMM as a theoretical lens. The empirical results indicate a striking similarity in the implementation processes of these two different IOS applications; this can largely be explained using the IMM theory. Furthermore, the differences in industry contexts do not appear to have a direct influence on the activities associated with implementing these systems.     

Inter-organizational information systems adoption – a configuration analysis approach

In this article we propose a new complementary approach to investigate Inter-Organizational Information Systems (IOIS) adoption called configuration analysis. We motivate the need for a new approach by the common observation that the structure and the strategy of an IOIS are interdependent and that the IOIS adoptions consequently cluster orderly. For example, an IOIS setup with a powerful customer as a hub and many suppliers as spokes frequently surfaces across diffusion studies. Yet, this fact has not been integrated into existing analyses, and its implications have not been fully developed. We propose that IOIS scholars need to look beyond the single adopting organization in IOIS adoption studies and in contrast consider adoption units what we call an adoption configuration. Each such configuration can be further characterized along the following dimensions: (1) vision, (2) key functionality, (3) mode of interaction, (4) structure and (5) mode of appropriation. In addition, these dimensions do not co-vary independently. For example, a particular organizing vision assumes a specific inter-organizational structure. A typology of IOIS configurations for adoption analysis is laid out consisting of dyadic, hub and spoke, industry and community configurations. Specific forms or adoption analysis are suggested for each type of configuration. Overall, configuration analysis redirects IOIS adoption studies both at the theoretical and the methodological level, and a corresponding research agenda is sketched.     

Alignments between the depth and breadth of inter-organizational systems deployment and their impact on firm performance

This paper explores the performance impact of alternative deployment alignment strategies for inter-organizational systems (IOS) in supply chains. Based on the asset orchestration perspective, we consider two deployment alignment strategies, namely, balanced alignment and reinforcing alignment, which represent strategic choices made by firms in relation to the emphases placed on depth and breadth of IT deployment in supply chain operations. The results of our empirical study show that the depth and breadth of IOS deployment enhance a firm's competitive performance through operational improvement, and the balanced alignment between IOS depth and breadth enhances the firm's competitive performance.     

Trust, planning and benefits in a global interorganizational system

Abstract. Trust has been shown by many researchers to be an important factor in the success of interorganizational systems (IOS). In this paper, we describe an example of an IOS developed as part of a strong inter‐firm relationship. In 1999, Vodafone of the UK embarked on a transformation to globalize its relationship with Ericsson of Sweden, moving from a set of in‐country relationships to a global relationship mediated through an IOS. As of 2002, the IOS is heavily used, and continues to evolve as part of the overall relationship. Vodafone and Ericsson pursued a journey‐oriented approach to globalization and development, freed from any formal project plan, and identified asymmetric benefits. Using a model previously developed by Gallivan & Depledge (2003), we explore the roles and dynamics of trust, planning and benefits. We posit that a journey or improvisational approach to IOS development works where a relationship is strong and levels of inter‐firm trust are high. We suggest that the nature of the inter‐firm relationship is more important than the approach to IOS development.     

The implementation of Customer Oriented Inter-Organizational Systems: an investigation from the sponsor's perspective

Computer based systems that link an organization with its customers are becoming common, and are often considered to be competitively important. Success of customer oriented inter-organizational systems relies on adoption of these systems by customers. Hence, implementation presents a crucial stage in the development of these systems. Factors associated with adoption of these systems by customers were identified from the literature on innovation and on inter-organizational systems. The study then investigated adoption factors by collecting data on nine systems and linking adoption factors with varying adoption rates. Marketing of the system and technological awareness of customers were found to have the strongest influence on adoption by customers. Areas for further research and implications for practice are identified.     

Variable use of standards-based IOS enabling technologies in Australian SMEs: an examination of deliberate and emergent decision making processes

Use of inter-organizational systems (IOS) is widely recognized as pivotal to organizational success. However, the nature of decision making processes regarding the adoption and use of IOS-enabling technologies has received little research attention. The authors explore approaches to decision making relating to SMEs’ use of these technologies and outline the drivers and implications of such decision making. Data were collected through two crosssectional surveys and multiple case studies. The surveys allowed for the identification of two groups of three SMEs each—the first group increased and the second group decreased the use of IOS-enabling technologies over time. This identification provided the context of strategic change or transition in the use of these technologies over time. The study’s results challenge widely held assumptions about the performance benefits of higher-level, deliberate planning over functional-level, emergent decision making regarding SMEs’ technological choices. Results also show that SME managers mainly use flexible IOS technology adoption and implementation strategies to promote organizational performance. Further, two main factors drive flexible decision making: a lack of managerial power and a lack of financial resources. Overall, the study offers insights into the link between IOS-enabling technology use and organizational strategy, and advances research concerning the contingencies influencing SMEs’ decision making in this context.     

A legitimacy challenge of a cross-cultural interorganizational information system

This paper studies the adoption and diffusion of a cross-cultural Interorganizational Information System (IOS), which is used to streamline the processing of financial transactions between European investment fund companies and Taiwanese banks. Drawing from institutional and organizational legitimacy theory, we argue that the adoption and implementation of technological innovation is contingent upon its alignment with three institutional pillars in different countries and the deployment of legitimation strategies by stakeholders. Departing from classical innovation diffusion theory, our empirical investigation reveals that the implementation of a cross-cultural IOS is a dynamic process involving the recognition, understanding, and management of the regulative, normative, and cognitive challenges arising in two different institutional settings. This paper contributes to the growing body of research that highlights the significance of social and institutional influences on the adoption of IOS in a global environment.     

Explaining the adoption of grid computing: An integrated institutional theory and organizational capability approach

Grid computing can meet computational demands and offers a promising resource utilization approach. However, little research details the drivers of and obstacles to adoption of this technology. Institutional and organizational capability theory suggests an adoption model that accounts for inter- and intra-organizational influences. An empirical study with 233 high-ranking IT executives reveals that adoption results from social contagion, while organizational capabilities such as trust, firm innovativeness, tendency to outsource, and IT department size, influence adoption from an intra-organizational perspective. The findings show that mimetic pressures and trust play major roles in adoption processes, which differentiates grid computing from other inter-organizational systems.     

Developing a Financial Statement-Based Effectiveness Measure of Interorganizational Systems' Contribution

Measuring the contribution of interorganizational systems (IOS) is challenging, and mainly based on subjective surveys. The purpose of this study is to objectively examine the effectiveness of IOS, through data from corporate financial statements. We developed a novel performance measure: an effectiveness ratio that reflects changes in average inventory level in comparison with change in annual sales. This measure reflects a certain aspect of improvement in supply chain management achieved by the evident developments of IOS, while considering external events that affected the companies. Two samples of American and Israeli companies were used for developing and empirically examining the suggested effectiveness ratio over 20 years (1993-2012). The results show considerable improvement as measured by the average effectiveness ratio of randomly selected American international companies in the cosmetics and toiletry products sector. However, the Israeli sample of food suppliers and importers, showed average marginal improvement, and major variance among the companies.     

Predicting open IOS adoption in SMEs: An integrated SEM-neural network approach

This research examines the predictors of open interorganizational systems (IOS) adoption by using RosettaNet as a case study. The model used in this research derived its theoretical supports from literature related to interorganizational relationships and knowledge management studies. A sequential, multi-method approach integrating both structural equation modeling (SEM) and neural network analysis was employed in this research. Data was collected from 136 small and medium sized enterprises (SME). Our result showed that interorganizational relationships such as communication, collaboration and information sharing play an important role in SMEs’ RosettaNet adoption decisions. Knowledge management practices such as knowledge application, knowledge acquisition and knowledge dissemination also influenced SMEs’ decision to adopt RosettaNet. The findings are useful for decision makers to understand how they can improve the adoption of RosettaNet in their organizations. Unlike previous studies, this research provided additional insights into what influence the adoption of RosettaNet by examining variables beyond the traditional technological attributes which have been studied quite extensively. By integrating SEM with artificial intelligence techniques such as neural network, this study also examined the non-linear and non-compensatory relationships involved in the adoption of RosettaNet.     

Neural network application in predicting advanced manufacturing technology implementation performance

Advanced Manufacturing Technology (AMT) adoption can be complex, costly, and risky. Companies need to assess and evaluate their current conditions with that of AMT requirements to identify the gaps and predict their performance. Such an approach will facilitate companies not only in their investment decisions, but on the actions needed to improve performance. The lack of such an approach prompted this study to develop an Artificial Neural Network (ANN) classification and prediction model that can assist companies especially Small and Medium size Enterprises (SMEs) in evaluating AMT implementation. Data were collected from a survey of 140 SMEs. Using cluster analysis, the companies were classified into three groups based on their performance. Then, a feed-forward NN was developed and trained with back-propagation algorithm. The results showed that the model can classify companies with 72% accuracy rate into the three clusters. This model is suitable to evaluate AMTs implementation outcomes and predict company performance as high, low, or poor in technology adoption.