Wirtschaftsinformatik

Emergence of networks:
Summary

Dr. Hans-Dieter Zimmermann

Lehrstuhl fr Wirtschaftsinformatik und
Interorganisationssysteme
Institut fr Wirtschaftsinformatik
Universitt Mnster

Objectives of this modul

Explain the emergence/ formation of networks from different

perspectives:
an inside-out perspective: extending the companys boundaries
a theoretical explanation using organisation theory
an explanation life-cycle of the firm explanation
an empirical explanation concentrating on different facilitating
conditions

"Firms form partners for the dance but, when the music stops, they
can change them. In these circumstances competition is still at work
even if it has changed its mode of operation."
Richardson (1972, 896)

IOS SS04 - 02: emergence of networks and organisation theory - summary

Agenda

1. Networking and the extended enterprise

2. Network emergence from a theory perspective
3. Networking and the firms life cycle perspective
4. Facilitating conditions and formation processes

IOS SS04 - 02: emergence of networks and organisation theory - summary

1. Networking and the extended enterprise

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

Explain the emergence of networks from an inside-out

perspective.

Value creation activities move to the outside, crossing firm

boundaries ...

IOS SS04 - 02: emergence of networks and organisation theory - summary

The extended enterprise: blurring boundaries of

the firm

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

Source:
Konsynski, B.:
IBM Systems
Journal 32/1,
1993, 111-142

Markets

Relations

Boundary

Enterprise

Hierarchy

Network

Market

IOS SS04 - 02: emergence of networks and organisation theory - summary

Agenda

1. Networking and the extended enterprise

2. Network emergence from a theory perspective
3. Networking and the firms life cycle perspective
4. Facilitating conditions and formation processes

IOS SS04 - 02: emergence of networks and organisation theory - summary

Network emergence from a theory perspective

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

Explain the emergence of networks using organisation theory.

The historical development of organisation theory reflects the
discussion of network emergence...

IOS SS04 - 02: emergence of networks and organisation theory - summary

From traditional to an expanded (network) view

A. Traditional view: the enterprise as the dominating
research object (within its environment)

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

B. Expanded (network) view: the enterprise as part of

(complex) interchange/interaction arrangements

Environment

Strategy
Enterprise
Organisation
E
Enterprise

IOS SS04 - 02: emergence of networks and organisation theory - summary

The big picture: from traditional to network view

A. Traditional view: the enterprise as the dominating
research object (within its environment)

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

B. Expanded (network) view: the enterprise as part of

(complex) interchange/interaction arrangements
5.
5. Theories
Theories of
of network
network formation
formation
and
and network
network structures
structures

Environment

E
2.
2. Theories
Theories of
of organisationorganisationenvironment
environment relations
relations

Strategy

Organisation

3.
3. Theories
Theories of
of strategy
strategy
formation
formation && strategic
strategic planning
planning
1.
1. Organisational
Organisational theories:
theories: the
the
structure
structure of
of the
the organisation
organisation

4.
4. Theories
Theories to
to explain
explain network
network
and
and cooperation
cooperation phenomenon
phenomenon
Enterprise
E

Enterprise

6.
6. Theories
Theories of
of inter-organisational
inter-organisational
(network)
(network) management
management

IOS SS04 - 02: emergence of networks and organisation theory - summary

Agenda

1. Networking and the extended enterprise

2. Network emergence from a theory perspective
3. Networking and the firms life cycle perspective
4. Facilitating conditions and formation processes

IOS SS04 - 02: emergence of networks and organisation theory - summary

10

3. Networking and the firms life cycle

perspective

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

Explain the emergence of networks from a firms development

perspective.

Networking/cooperating becomes promising in some stages of

a firms life-cyle ...

IOS SS04 - 02: emergence of networks and organisation theory - summary

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Stages of enterprise development by Bleicher

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

time and firmss turnovers

Internal
Internal enterprise
enterprise development
development
Pioneer
Pioneer phase
phase

Market
Market
development
development

Technology
Technology
mastery
mastery

Market
development

Product
Product
development
development

Hierarchical
organisation
Management
Information
systems

Diversification
Diversification
Controlling
Divisional (re-)
organisation
central vs.
decentral
organisation

External
External development
development
Acquisition
Acquisition
Strategic
portfolio
planning
Holding
character
Internationalization

Cooperation
Cooperation

Int.
Int. ++ Ext.
Ext.
Restructuring
Restructuring

Joint-Ventures

Consolidation

Strategic
Alliances

Shrinkage

Outsourcing
Networking

Merge with
other firm(s)
Sell parts of the
company

IOS SS04 - 02: emergence of networks and organisation theory - summary

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Agenda

1. Networking and the extended enterprise

2. Network emergence from a theory perspective
3. Networking and the firms life cycle perspective
4. Facilitating conditions and formation processes

IOS SS04 - 02: emergence of networks and organisation theory - summary

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Facilitating conditions and formation processes

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

Empirical explanation of the emergence networks (and

networking as a popular strategy) from an outside
perspective.

Certain conditions facilitate network formations ...

IOS SS04 - 02: emergence of networks and organisation theory - summary

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Formation of inter-organisational networks and

IOS
Environmental
Environmental Drivers:
Drivers:
Globalization,
Deregulation
Globalization, Deregulation
Technological
Technological Changes
Changes
Changing
Changing customer
customer behaviour
behaviour
Increasing
Increasing importantce
importantce of
of
information
information and
and knowledge
knowledge

Motives
Motives of
of the
the cocooperating
operating parties:
parties:
Enhance:
Enhance: service/
service/
product
portfolio,
product portfolio,
competence
competence portfolio
portfolio
(pool
(pool resources)
resources)
Improve
Improve processes
processes
(efficiency)
(efficiency)
Share
Share risks
risks and
and
development
development costs
costs
Learn
Learn &
& Innovate
Innovate

Enabling
Enabling
conditions:
conditions:
institutional:
institutional:
state,
state, industry,
industry,
institutions
institutions
relational:
relational:
social
social ties,
ties,
industry
industry
positions,
positions,
interdepeninterdependencies
dencies

1. Ext. enterprise
2. Org. theory
3. Firm life cycle
4. Conditions

Strategy:
Strategy: network
network strategy
strategy
inter-firm
strategic
inter-firm strategic planning
planning
configuring
configuring networking
networking
initiative
initiative
Network
Network
Arrangements
Arrangements
Formation processes:
emergent vs. engineered

Management

Interorganisational
Interorganisational
Information
Information Systems
Systems
IT:
IT: Role
Role of
of IT:
IT:
enable:
enable: make
make the
the
collaboration
collaboration feasible
feasible
support:
use
support: use IOS
IOS to
to
coordinate
coordinate interdependencies
interdependencies
or
or to
to pool
pool information
information

IOS SS04 - 02: emergence of networks and organisation theory - summary

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Summary

Extended enterprise
networking and the theory of the company
boundaries, relations and markets
Organisation Science
various lenses and perspectives
expanding the scope towards networks
Life-cycle of the company
path dependency of networking strategies
Facilitators
institutional perspective
relational perspective

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B: Course Outline

Basics

Theoretical
Theoretical explanation
explanation
of
of networks
networks

Contingencies,
Contingencies, motives
motives
and
and examples
examples

basics for

basics for

Networks:
Networks: definition,
definition, types,
types,
characteristics
characteristics

IOS:
IOS: definition,
definition,
classification
classification and
and examples
examples

Examples, special explanation

organisat. The
The impact
impact of
of IT
IT on
on the
the
organisation
structure organisation

Strategy

IOS
IOS building
building blocks:
blocks: EDI
EDI
and
and standardisation
standardisation

special
issues

E-Commerce:
E-Commerce:
introduction
introduction and
and examples
examples

Electronic
Electronic marketplaces:
marketplaces:
characteristics,
characteristics, types
types etc.
etc.
ASP
ASP and
and IT
IT outsourcing
outsourcing

Strategy:
Strategy: strategic
strategic planning
planning
of
of networks
networks and
and IOS
IOS

E-Commerce:
E-Commerce:
strategy
strategy discussion
discussion

serves

Network
Network configuration
configuration and
and
management
management

IOS
IOS development
development and
and
management
management

E-Commerce:management
E-Commerce:management
and
and organisation
organisation

Management

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