Lecture 4a - Analyzing Network Performance Flashcards
Who creates the network?
- Neutral intermediaries
- Industry consortia (representatives from several different companies)
- A major player in the network
- A non-competing player in the network
Who controls the network?
- customer driven
- supplier driven
- a neutral market
7 Prescriptions for action
- Examine the value nets in which you participate. What are the purposes of the value net?
- Identify those value nets that contribute directly to your core business model.
- Identify those value net’s in which the business processes to be coordinated align well with your firm’s core business model.
- Determine whether your firm’s hosting of the value net’s technical platform would threaten any of the value net partners.
- Assess whether your firm’s hosting of the value net’s technical platform would threaten any of the value net partners.
- Ensure that a revenue path exists through which a portion of the value being created can be appropriated.
- Protect the knowledge embedded in the value-net platform to prevent replication.
Interorganizational performance
the performance of networked organization (NetOP) is obviously network measure, one that captures output activity at the level at which the researcher defines the network of organizations.
Nomology
Line of reasoning
Individual performance
Examines the task outputs of individuals in organizational settings; measures include time to complete, quality, and so on.
Group performance
Looks at group outputs; measures include consensus, quality of decision of decisions, and so on.
Organizational/firm performance
Reports on firm or organizational outcomes; measures include return on investment (ROI), profits, inventory turnover, and so on.
Networked organizational performance
Aggregates firm-level outputs to a network configuration; directly gathers data about specific network outcomes; may be thought of as the performance of an entire set of networked organizations or an entire ‘system’ of firms; measures include network ROI or network inventory turnover.
Three perspectives on the performance of Networked firms
- Unstructured: simple or derived measures that are concerned with the absolute performance of a defined set of partner firms and their performance relative to each other.
- Vertical specialization: measures that capture the nominal performance of a supply network by tier, relative performance of member firms in a tier, and relative performance of member firms across tiers.
- Cooperating organizations is dyads: complicated. Relationship 1 and 2 cross only one level and one layer. These can be thought of as strategic alliances and partnerships. Relationship 3 occur when firms are not immediately dependent on firms that supply the suppliers, and have alternative resources.
Assumptions about Internodal tiers
a. Tier 0 nodes interact with Tier 1 nodes and Tier 1 nodes interact with Tier 2 nodes.
b. There is no direct interaction between Tier 0 and Tier 2 nodes.
c. Interactions between Tier 2 nodes are not considered.
Information sharing
Extent to which firms share information and the symmetry of this sharing in a network.
Dependence
Extent to which firms are dependent upon a network, that is, extent to which they invest time, effort and finances in customizing linkages.
Networked organizational performance (NetOP)
Aggregated performance of digital supply network partners.
Propositions for NetOP nomology
- Greater information sharing in a digital supply network, which encompasses both the extant and symmetry of sharing, leads to higher NetOP.
- Greater dependence of a digital supply network, which encompasses both the extant and symmetry of dependence, leads to higher NetOP.
