...development in interorganizational relationships Abstract Most research on trust in inter-organizational relationships focuses on a single level of analysis, typically the individual or organizational level, and treats trust as a fairly static phenomenon. To stimulate more cross-level research, we propose a theoretical model that explains how trust in inter-organizational relationships is related across various levels of analysis. At the same time, our model emphasizes the dynamic aspect of trust by examining how trust develops throughout consecutive relationship stages. Drawing from several programs of research, we identify the mechanisms that drive the progression of trust across levels as the inter-organizational relationship unfolds. Starting with the boundary spanner as the key individual at the beginning of a new collaboration, we specify how trust gradually becomes part of the fabric of organizational action. By integrating micro and macro approaches over time, the proposed model contributes to a better understanding of how trust evolves in inter-organizational relationships. Keywords Alliance dynamics, cross-level effects, institutionalization, inter-organizational relationships, multilevel theory, strategic alliances, trust Introduction In the development of the management of inter-organisational relationships, the issue of trust has increasingly become the main focus (MacDuffie, 2011; Zaheer and Harris, 2006). As such relationships have a naturally...
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...ARTICLE: Value chain analysis in interfirm relationships: a field study and Interorganizational cost management and relational context. Introduction A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activity's value. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. A diamond cutter, as a profession, can be used to illustrate the difference of cost and the value chain. The cutting activity may have a low cost, but the activity adds much of the value to the end product, since a rough diamond is significantly less valuable than a cut diamond. Typically, the described value chain and the documentation of processes, assessment and auditing of adherence to the process routines are at the core of the quality certification of the business, e.g. ISO 9001. Diagram 1 The goal of these activities is to create value that exceeds the costs of providing the product or service and next generating a profit margin. A Value Chain Analysis (VCA) has five parts including: a) inbound logistics; include the receiving, warehousing, and inventory control of input materials. b) Operations;...
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...contributed articles Doi:10.1145/ 2330667.2330685 Trust between client organization and cloud provider is a strong predictor of successful cloud deployment. By GaRy GaRRiSon, SanGhyun Kim, anD RoBin L. WaKeFieLD Success Factors for Deploying Cloud Computing “a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (such as networks, servers, storage, applications, and services) that can be quickly provisioned and released with minimal management effort or service provider interaction.”14 The emergence of cloud computing is transforming the way organizations purchase and manage computing resources,17 providing a fundamentally different IT model in which a cloud provider might be responsible for a range of IT activities, including hardware and software installation, upgrades, maintenance, backup, data storage, and security. The result is that organizations can lower their IT capital expenditures ClOUD COMPUTiNg iS 62 Com muniCatio nS o F th e aCm | S epteM Ber 201 2 | vo L . 5 5 | N o. 9 and operating costs by purchasing ondemand technology resources (such as increased data storage, bandwidth, and processing power) while eliminating the need to maintain outdated equipment. Cloud services also include environments for application development and access to key technologies, software, and skilled IT personnel that might otherwise be too costly and difficult to obtain and maintain (see Figure 1). Along with hardware...
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...Inter-Organizational Customer-Supplier Relationships Ricky Ryssel Siemens Business Services Management Consulting, Carl-Wery-Sraße 18, 81739 München, Germany Tel: +49 (89) 636-48887 E-mail: ricky.ryssel@mch20.sbs.de Thomas Ritter School of Management University of Bath, Bath BA2 7AY, U.K. Phone: +44 (1225) 32-33 19, E-Mail: t.ritter@bath.ac.uk Hans Georg Gemünden Institute of Technology and Innovation Management Technical University Berlin, HAD 29, Hardenbergstr. 4-5, D - 10623 Berlin, Germany Phone: +49 (30) 314-23 796 E-Mail: hans.gemuenden@tim.tu-berlin.de Abstract To strengthen their position in today’s highly competitive and fast paced business environment more and more supplier firms engage in relationships with their customers. These inter-organizational relationships have proven to create value for both parties involved. However, the management of such relationships requires resources and is a complex task. Recent advances in information technology offer new ways of managing inter-organizational relationships. The impact of those intra-organizational and inter-organizational information systems for creating value in business-to-business relationships has not been explored so far. In this paper, a conceptual model about the impact of information system deployment on value-creating functions of inter-organizational buyer-seller relationships is developed. Based on an empirical study with 60 German firms engaged in customer-supplier relationships this paper also gives some empirical...
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...COLLABORATION THE NECESSARY EVIL AT THE WORK PLACE School of Management Leadership and Organizational Behavior Abstract The purpose of this research is to showcase the necessity of collaboration at the work place. The nature of collaboration needed among different components of the work place, leading to high job satisfactions and increased productivity. I will also go into details on the other benefits that can be realized when these work units collaborate among each other. The company I will specifically be dealing with in this research is Boeing and how collaboration has worked into its ultimate success throughout the years. The Organization Organization: Boeing Location: Seattle Washington; headquarters in Chicago with presence in several countries around the world. Economic sector: Aerospace Industry. Services Offered: Manufacturing of commercial jetliners, Design, assemble and support defense systems, Satellites and launch vehicles among other services. Number of employees: over 170,000 employees in the United States alone. Website: http://www.boeing.com Background Boeing is a large company of more than 170,000 fulltime and part-time contingent employees. The company is located in Seattle Washington but its headquarters are in Chicago with other locations in the United States and a plethora of others all over the world. With such a large base of employees, the company’s strategy has to be well planned and coordinated to ensure delivery of customer’s...
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...multiple channels. 3. Which of the following is a true statement about Internet-based channels? a. Walmart's channel model continues to rely on its 'brick and mortar' stores exclusively. b. ‘Bricks and Mortar’ retailers that added online capabilities to traditional channels of distribution have had sluggish sales. c. Online sales have become an established distribution channel for B2C but not B2B markets. d. Internet-based channels have become a mainstream channel in the channel mixes of many firms. e. The growth of E-commerce is beginning to slow. 4. A sustainable competitive advantage is one that a. lasts at least five years. b. is based on a superior product feature. c. usually stresses a lower price. d. is difficult for competitors to match. e. stresses heavy promotional spending. 5. According to the text, the most promising avenue for gaining a sustainable competitive advantage today is through an...
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...CAROL POLLARD, Appalachian State University . JANICE C. SIPIOR, Villanova University DOROTHY LEIDNER, Baylor University LINDA LAI, Macau Polytechnic University of China CHRISTY CHEUNG, Hong Kong Baptist University DEBORRAH CRISTOBAL, University of Santo Tomas, Philippines WILEY & Sons, Inc. CONTENTS 4 Networks and Collaboration as Business Solutions 112 I IT Supports Organizational Performance in Turbulent Business Environments 1 Toyota Scion's Innovative Advertising Strategies 2 1.1 Doing Business in the Digital Economy 4 1.2 Information Systems and Information Technology 11 1.3 Business Performance Management, Business Pressures, Organizational Responses, and IT Support 13 1.4 Strategy for Competitive Advantage and IT Support 18 1.5 Social Computing and Networking and Virtual Worlds 25 1.6 Why Should You Learn About Information Technology? 29 1.7 Plan of the Book 30 1.8 Managerial Issues 31 Minicase: NHS Hospitals Adopt Wireless 35 G Information Technologies: Concepts, Types, and IT Support 38 Mary Kay's IT Systems 39 2.1 Information Systems: Concepts and Definitions 41 2.2 Classification and Types of Information Systems 42 2.3 How IT Supports People 52 2.4 How IT Supports Supply Chains and Business Processes 56 2.5 Information Systems Infrastructure, Architecture, and Emerging Computing Environments 58 2.6 Innovative and Futuristic Information Systems 64 2.7 Managerial Issues 67 Minicase: Airbus Improves Productivity with...
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...cannot be successful unless the participating companies adopt an enterprise-to-enterprise perspective. 2. Discuss the SCOR and GSCF models of supply chain management. The SCOR model identifies five key processes—plan, source, make, deliver, and return—associated with supply chain management. Each of the five processes indicates the important role of logistics in supply chain management. There are eight relevant processes in the GSCF model—customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development management, and returns management. Logistics also plays an important role in the supply chain processes in the GSCF model. 3. What are four key attributes of supply chain management? The chapter discussed six key attributes of supply chain management: customer power; a long-term orientation; leveraging technology; enhanced communication across organizations; inventory control; interorganizational coordination. 4. Why do contemporary supply chains need to be fast and agile? “fast” encompasses a time/speed component, while “agile” focuses on an organization’s ability to...
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...Academy of Management Journal 2006, Vol. 49, No. 5, 894–917. WHEN DOES TRUST MATTER TO ALLIANCE PERFORMANCE? REKHA KRISHNAN Simon Fraser University XAVIER MARTIN NIELS G. NOORDERHAVEN Tilburg University We examine how uncertainty moderates the trust-performance relationship in alliances, building on the distinction between behavioral uncertainty, which relates to anticipating and understanding partners’ actions, and externally caused environmental uncertainty. We argue that trust matters more to performance under behavioral uncertainty and less under environmental uncertainty. In data from 126 international alliances, the positive relationship between trust and performance is stronger under high behavioral uncertainty and weaker under high environmental uncertainty. We conclude that partners should concentrate on developing interorganizational trust where potential improvement in alliance performance justifies this effort, which in turn depends on the type of uncertainty faced. Strategic alliances blur firm boundaries and create mutual dependence between previously independent firms (McEvily, Perrone, & Zaheer, 2003). A distinctive characteristic of strategic alliances is that partners have to deal not only with the uncertainty in their environment but also with the uncertainty arising from each other’s behavior (Harrigan, 1985). Because of partners’ dependence on each other, previous research has emphasized the importance of relational factors for the smooth functioning...
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...Interfirm alliances in the small business: The role of social networks BarNir, Anat; Smith, Ken A. Journal of Small Business Management40.3 (Jul 2002): 219-232. Abstract (summary) In light of the increasing importance of strategic alliances in shaping competition, this study explored whether the social network of small firm executives can be leveraged to facilitate the establishment of interfirm alliances. Analyses are based on a mail survey of 149 small manufacturing firms in the northeast US. Results indicate that the social networks of senior executives account for 11%-22% of the variance in the degree to which firms engage in alliances, depending on the type of alliance. Results also show that the number of interfirm alliances is positively related to several networking properties (propensity to network, strength of ties, and network prestige). Findings are discussed in the context of network theory, social embeddedness, and the overall implications for management researchers and practitioners. Full text In light of the increasing importance of strategic alliances in shaping competition, this study explored whether the social network of small firm executives can be leveraged to facilitate the establishment of interfirm alliances. Analyses are based on a mail survey of 149 small manufacturing firms in the northeast United States. Results indicate that the social networks of senior executives account for 11-22 percent of the variance in the degree to which firms engage in alliances...
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...Interfirm alliances in the small business: The role of social networks BarNir, Anat; Smith, Ken A. Journal of Small Business Management40.3 (Jul 2002): 219-232. Abstract (summary) In light of the increasing importance of strategic alliances in shaping competition, this study explored whether the social network of small firm executives can be leveraged to facilitate the establishment of interfirm alliances. Analyses are based on a mail survey of 149 small manufacturing firms in the northeast US. Results indicate that the social networks of senior executives account for 11%-22% of the variance in the degree to which firms engage in alliances, depending on the type of alliance. Results also show that the number of interfirm alliances is positively related to several networking properties (propensity to network, strength of ties, and network prestige). Findings are discussed in the context of network theory, social embeddedness, and the overall implications for management researchers and practitioners. Full text In light of the increasing importance of strategic alliances in shaping competition, this study explored whether the social network of small firm executives can be leveraged to facilitate the establishment of interfirm alliances. Analyses are based on a mail survey of 149 small manufacturing firms in the northeast United States. Results indicate that the social networks of senior executives account for 11-22 percent of the variance in the degree to which firms engage in alliances...
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...John M. Olin School of Business, Washington University, St Louis, Missouri, U.S.A. Relational exchange arrangements supported by trust are commonly viewed as substitutes for complex contracts in interorganizational exchanges. Many argue that formal contracts actually undermine trust and thereby encourage the opportunistic behavior they are designed to discourage. In this paper, we develop and test an alternative perspective: that formal contracts and relational governance function as complements. Using data from a sample of information service exchanges, we find empirical support for this proposition of complementarity. Managers appear to couple their increasingly customized contracts with high levels of relational governance (and vice versa). Moreover, this interdependence underlies their ability to generate improvements in exchange performance. Our results concerning the determinants of these governance choices show their distinct origins, which further augments their complementarity in practice. Copyright 2002 John Wiley & Sons, Ltd. Transaction cost economics (TCE) has emerged as a common framework for understanding how managers craft governance arrangements. The general proposition of this literature is that managers align the governance features of interorganizational relationships to match known exchange hazards, particularly those associated with specialized asset investments, difficult performance measurement, or uncertainty (Williamson, 1985, 1991). In response to exchange...
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...A Framework for Linking the Structure of Information Systems with Organizational Requirements for Information Sharing Author(s): Sunro Lee and Richard P. Leifer Reviewed work(s): Source: Journal of Management Information Systems, Vol. 8, No. 4 (Spring, 1992), pp. 27-44 Published by: M.E. Sharpe, Inc. Stable URL: http://www.jstor.org/stable/40397996 . Accessed: 18/03/2013 20:56 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. . M.E. Sharpe, Inc. is collaborating with JSTOR to digitize, preserve and extend access to Journal of Management Information Systems. http://www.jstor.org This content downloaded on Mon, 18 Mar 2013 20:56:30 PM All use subject to JSTOR Terms and Conditions A Framework Linking Structure for the of with Information Systems Organizational for Requirements Information Sharing LEE P. SUNRO ANDRICHARD LEDFER in candidate Management Information at Sunro Lee is a doctoral Systems Rensselaer His research interests include Institute. current issuesin methodological Polytechnic andtesting, decision information...
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...the use of the computer to facilitate all of firm’s operation. Firm’s internal business areas; Finance, Human Resources, Information Services, Manufacturing, and Marketing. Finance deals mainly with the Financial Community, Stockholders and Owners and firm’s Customer. Human Resources has special interest in the Global Community and Labor Unions. Information Services interfaces with hardware and software Suppliers. Manufacturing is responsible for dealing with the firm’s Suppliers, and Labor Unions. Marketing is primarily responsible for interfacing with the firm’s Customers and Competitors. All of the areas interface with the Government. Anticipated Benefits from Ecommerce – Positive, Improvements, Advantage. 1. Improved customer service 2. Improved relationships with suppliers and the financial community 3. Increased return on stockholder and owner investments Ecommerce Constraints – Limitations or Disadvantage. * High cost * Security concerns * Immature or unavailable software The Pathway to Ecommerce – the planning stage for implementing the system to ecommerce. Business Intelligence – background about the business – anyone in the organization must know everything about the business. Or in the other hand [BI] defined broadly to include information on all environmental elements. Basic Intelligence Task Collect Data – is the firm may acquire either Primary data [P] or Secondary data [S]. [P] – is gathered by the firms from the surveys. Ex....
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...Building Organizational Trust Kirsimarja Blomqvist Telecom Business Research Center, Lappeenranta University of Technology and Sonera Research, P.O.BOX 20, 53851 LAPPEENRANTA, FINLAND e-mail: Kirsimarja.Blomqvist@lut.fi, mobile +358-40-755 1693 Pirjo Ståhle, Competence, Knowledge and Technology Management, Sonera Ltd, PL 116, 00051 SONERA, FINLAND e-mail: pirjo.stahle@sonera.com ABSTRACT In this paper we study the role of trust in enhancing asymmetric partnership formation. First we briefly review the role of trust. Then we analyze the state-of-the-art of the theoretical and empirical literature on trust creation and antecedents for experienced trustworthiness. As a result of the literature review and our knowledge of the context in praxis, we create a model on organizational trust building where the interplay of inter-organizational and inter-personal trust is scrutinized. Potential challenges for our model are first the asymmetry of organizations and actors and secondly the volatility of the business. The opportunity window for partnering firms may be very short i.e. there is not much time for natural development of trust based on incremental investments and social or character similarity, but so called “fast” or “swift” trust is needed. As a managerial contribution we suggest some practices and processes, which could be used for organizational trust building. These are developed from the viewpoint of large organization boundary-spanners (partner/vendor managers) developing...
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