The beginning of this dissertation discussed business networks as a prevailing form of organization. In various industries and sectors multiple, interdependent firms coordinate and combine efforts to deliver products and services to end customers or clients. This proliferation of business networks presses the need to move theoretical development on processes and outcomes forward, beyond actor and dyadic level to the network level of analysis. The objective of this dissertation was therefore to enhance our practical and theoretical understanding of business network performance through conceptualization research, laboratory experiments and a field case study. This chapter contains a summary of the findings including the integrated framework drawn from the three studies, discusses the generalizability and limitations of these findings, elaborates on the theoretical and practical contributions made in this work and finally addresses directions for further network performance research.
5.1 Summary of the findings
We will summarize the main findings of the three studies from Chapters 2, 3 and 4. In this dissertation the central questions formulated in Chapter 1 were: How can business network
performance be conceptualized, validated and measured and what are the main factors
that explain business network performance?
Chapter 2 Conceptualization study
Questions of conceptualization, measurement and explanation were answered here by thoroughly analyzing the extant network performance literature.
First, a clear and precise definition of the networks under study was provided. In this dissertation we focused on business networks that are consciously created, goal directed,
multi-sourcing networks consisting of three or more differentiated, complementary, interdependent but autonomous firms that coordinate for the joint production of products
followed. The literature search for network level performance studies thereafter yielded dearth, in total number of studies as well as diversity in terms of the concepts, definitions and measures used. The selected literature was organized based on performance concept and measure but also on evaluation perspective. These evaluation perspectives or different views on what network performance meant correspond with different dimensions of the concept and led to the introduction of the firm, customer and systems lenses. Each lens was discussed based on its theoretical foundations, key concepts and stakeholders. A definition for network performance resulted from combining all three lenses. Network performance is defined as the ability of the network to fulfill the objectives of member
organizations, provide benefits and recurring value for end customers under multiple conditions including internal and external shocks.
The next step in the analysis focused on the explanatory studies in the selected literature and identified and categorized drivers of network performance. Based on this categorization and an existing conceptual model for public network effectiveness (Turrini et al., 2009), a preliminary framework was developed with the building blocks: network processes, network structural characteristics, network contextual characteristics and network performance and their (inter)relations. Finally, when further analyzing the network processes consisting of actor strategies, network governance and knowledge and information sharing, we found that the nature and degree of these processes depended on information that was available to organizations in the business network. The concept of network information architecture was introduced which is defined as the overall level of
actor, dyadic and network information that is available to and relevant for the decision
making processes and actions of organizations in a business network. Theoretical
arguments were provided for the interrelation between this concept and network processes. Through the observations and findings in this chapter two guidelines for research on interorganizational networks are also presented. The propositions and guidelines developed in Chapter 2 are displayed in Table 5.1
Table 5.1 Propositions and guidelines Chapter 2
Chapter 3 Laboratory experiments
The question of explanation and measurement were answered in this chapter through laboratory experiments on the relation between network information architecture and network performance via actor strategies and network structure. The laboratory experiments use an environment that is specifically designed to study business network phenomena and that has been calibrated with empirical data. Within the experiments participants operate a firm in the insurance industry and fulfill customer demand for
Proposition 1: Network performance is a multi-dimensional construct
Proposition 2: Network structural characteristics are, all else being equal, main determinants of network
performance
Proposition 3: Network processes are, all else being equal, main determinants of network performance Proposition 4: Network structural characteristics are, all else being equal, main determinants of network processes
Proposition 5: Network processes are, all else being equal, main determinants of network structural
characteristics
Proposition 6: All else being equal, network contextual characteristics moderate the relation between network
structural characteristics and network performance
Proposition 7: All else being equal, network contextual characteristics moderate the relation between network
processes and network performance
Proposition 8: Understanding and influencing the performance of interorganizational networks requires a
configurational as opposed to a universal approach.
Proposition 9: Network information architecture is, all else being equal, a main determinant of network
processes
Proposition 10: Network information architecture is, all else being equal, a main determinant of network
stability
Proposition 11: Network processes are, all else being equal, main determinants of network information
architecture
Guideline 1: Theory building on interorganizational networks is enhanced by a precise definition of the
network under study with specification of: the set of actors, the ties, the nature of the interdependence between organizations and the potential purpose of the network.
Guideline 2: Theory building regarding network performance in interorganizational networks is enhanced by authors’ explicit specification and justification of the lens and performance type of interest: firm, customer or systems.
With these experiments we demonstrated the indirect effects of actor, dyadic and network information on network performance through partnering, disintermediation and density strategies. Findings in this chapter are:
• Under conditions of network transparency the overall density of the business network can be increased through partnering strategies which can lead to higher network effectiveness. In the presence of increased information on other firms, dyads and the network, firms can identify more potential partner firms and span ties with these. Firms will also have more information for their competitive responses to the developments in the network. When there are more connections among firms and their capabilities, the network as a whole, can more adequately meet customer demand for a wider variety of products and services.
• Under conditions of network transparency the level of disintermediation in the business network can increase through such actor strategies which can lead to higher network efficiency. In the presence of increased information on other firms, dyads and the network structure, firms will rely less on intermediate partners to fulfill demand because the firms will have more information on the location, prices and capabilities of the other firms. Disintermediation means that there can be an overall lower cost structure because there are fewer costs and margins in the prices of products and services.
• Under conditions of network transparency firms can increasingly adopt operational excellence strategies thereby enhancing the efficiency of the business network. In the presence of increased information on other firms’ prices and capabilities, firms will focus on operational efficiency and lower their production costs. Under conditions of price transparency and competition these cost economies will be used to lower the prices of supply in the network and lead to more competitively priced products and services delivered by the network.
Chapter 4 Case study
Questions of measurement, validation and explanation were answered here through a field case study. First is a description of the selected business network from the road assistance industry and how the network possesses the characteristics from the definition provided in