Disciplining and Custodianship: How Big Data Shapes Inter-Organizational Relationships

Abstract

The introduction of big data systems to inter-organizational business processes changes the practices and nature of inter-organizational relationships. Big data technology enables a faster, cheaper, and more exact exchange of information between the organizations. Existing theory on inter-organizational relationships and firm boundaries fails to adequately explain these changes. In this comparative multiple case study we discover two new inter-organizational practices. Asymmetries of competence between long-term collaborative partner firms drive the adoption of disciplining and custodianship practices. In both, great amounts of new information is exchanged across organizational boundaries in novel processes, accompanied by substantial modifications in task configurations. As a result, firm boundaries of information, power, and competences shift. We contribute to theory in three ways. First, we advance theory of collaborative long-term inter-organizational relationships by demonstrating how big data makes inter-firm governance more responsive and calculative. Second, we further theory of organizational boundaries by revealing how the changes in information, power, and competence are strongly interdependent. Third, we add to the understanding of the effects of big data on management processes.