Cross-organizational Settings Research Articles

From Fit to Fitting: A routine dynamics perspective on M&A synergy realization

Many mergers and acquisitions (M&A) fail to achieve anticipated synergistic benefits. The combination of resources and processes is particularly difficult. This paper uses a routine dynamics perspective to study an acquisition in the consultancy sector where the strategy of combining two routines, designed to commercialize a new offer, failed. Zooming in on the micro dynamics of synergy realization, we show how the envisioned design was challenged only once the combined routine was enacted. The joint performance of the routine revealed incompatibilities at three levels: within the combined routine; with adjacent routines; and across the merging organizations. We identify two mechanisms that drive these incompatibilities: conflicting actors’ intentions and conflicting organizational norms. We discuss how synergy realization requires both the converging of intentions and norms and the interweaving of actions, routines, and organizations. Our paper contributes to M&A research by challenging the notion of “fit” as a prerequisite for success and by developing the notion of “fitting” as an unfolding process, i.e., through a design–action loop in which sources of incompatibilities are revealed and adjusted. We elucidate the dynamic and iterative nature of synergy realization and argue for a rethinking of pre- and post-acquisition periods as fundamentally interlinked. We also contribute to research on routine dynamics by enhancing the understanding of routine interdependencies and the intentionality of routines in cross-organizational settings.

Quantifying the Cost of Distrust: Comparing Blockchain and Cloud Services for Business Process Execution

Blockchain is of rising importance as a technology for engineering applications in cross-organizational settings, avoiding reliance on central trusted third-parties. The use of blockchain, instead of traditional databases or services, is an architectural choice in the development of a software system. Architecture impacts the non-functional qualities of systems, creating design trade-offs between these qualities. The costs of execution and storage are important non-functional qualities, but as yet little is known about them for blockchain-based systems. How expensive is it to use blockchains compared to conventional execution and storage infrastructure? We investigate this question using business process execution as a lens. Specifically, we compare the cost for computation and storage of business process execution on blockchain vs. a popular cloud service. Besides monetary cost, blockchains like Ethereum limit the complexity of new blocks by capping costs through network-defined limits. For applications using such blockchains, the limit per block, thus, translates into an upper bound on throughput scalability. First, we implement and measure the cost of business process execution on blockchain and cloud services for a business process model from a large-scale industrial dataset and an example from literature. We observe two orders of magnitude difference in this cost. Second, we illustrate how cost models can be used to project the impact of different workload assumptions. Finally, we discuss throughput scalability limits as well as trade-offs between cost and other non-functional qualities in the design of blockchain-based systems.

Auditing service providers: supporting auditors in cross-organizational settings

Purpose– The purpose of this paper is to shed light on the particular information needs of external auditors performing information technology (IT) audits at service providers in cross-organizational settings and to promote a software-based approach towards their satisfaction. The approach is intended to supplement the manual approaches currently adopted by auditors to procure information in such settings.Design/methodology/approach– The authors analyzed data collected by means of a series of 16 interviews and four think-aloud sessions with experienced professionals.Findings– Information procurement is perceived as tedious by auditors and largely relies on repeat interviews and perusal of documents. Given the growing complexity of cross-organizational settings, manual approaches to information procurement are reaching their limits. A considerable portion of the information required is often stored by service providers using software that is inaccessible to auditors. The authors argue that a software-based approach providing an interface for auditors to access relevant information held by such software presents an avenue worth exploring.Practical implications– The authors outline how the information stored by service providers using software can be made accessible with reasonable effort. Complementing manual approaches to information procurement with an audit interface would reduce workload and increase quality.Originality/value– The concept of an audit interface represents a novel and promising approach to meeting the information needs of auditors performing IT audits in cross-organizational settings more effectively. Both auditors and service providers would benefit from its implementation.

Boundary spanning tactics and “traceable” connections in cross-organizational virtual alliances

Purpose – The purpose of this paper is to investigate boundary spanning tactics in a cross-organizational virtual alliance and discuss the analytical value of “digging” into technology for excavating boundaries and understanding their dynamic and emergent features. Design/methodology/approach – Although boundaries, their role and implications have been extensively investigated across a variety of online settings, the results are inconclusive as to the features of technology that create, dissolve or re-locate boundaries. This is attributed to the fact that in most cases technology is addressed as a black box – a discrete artefact of practice – without seeking justification for the inscribed functions that enable or constrain use. The paper overcomes these shortcomings by analysing digital trace data compiled through a virtual ethnographic assessment of a cross-organizational tourism alliance. Data comprise electronic traces of online collaboration whose interpretive capacity is augmented using knowledge visualization techniques capable of revealing dynamic and emergent features of boundary spanning. Findings – Boundary spanning in virtual settings entails micro-negotiations around several types of boundaries. Some of them are either enforced by or inscribed into technology, while others are enacted in practice. Knowledge visualization of digital trace data allows “excavation” of these boundaries, assessment of their implications on distributed organizing of online ensembles and discovery of “hidden” knowledge that drives boundary spanning tactics of collaborators. Practical implications – In cross-organizational collaborative settings, boundary spanning represents an enacted capability stemming from the intertwining between material and social/collective agencies. Consequently, boundaries surface as first class design constructs, directing design attention not only to features inscribed in technology (i.e. user profiles, registration mechanisms, moderation policies) but also the way such features are appropriated to re-shape, re-locate or dissolve boundaries. Originality/value – An empirical data pool compiled through virtual ethnographic assessment of online collaboration is revisited and augmented with knowledge visualization techniques that enhance the interpretive capacity of the data and reveal “hidden” aspects of the collaborators’ boundary spanning behaviour and tactics.

Ambient affiliates in virtual cross-organizational tourism alliances: A case study of collaborative new product development

The paper presents intrinsic properties of cross-organizational collaboration in shared information spaces and motivates the concept of ambient communities with particular reference to the tourism sector. Our approach is informed by an ethnographic analysis of assembling innovative information-based products for tourists. Qualitative data collection methods combined with online ‘tells’ reveal that in cross-organizational settings togetherness stems from ambient affiliates’ recurrent co-engagement in computer-mediated distributed collective practices. Intriguing aspects of such practices are its boundary function, an underlying emergent knowledge process and its entanglement with socio-material realities of partners.

ENHANCING BUSINESS COLLABORATIONS WITH CLIENT-ORIENTED PROCESS CONTROL

Nowadays, business collaborations have to be highly dynamic and flexible to allow companies to operate efficiently and effectively in complex and volatile markets. To increase the business agility of service consumers, it is fundamental that service providers enhance the visibility of parts of their collaborative processes. Service providers are required to release both the process structures of the services offered and their status during execution. To further increase the flexibility of business collaborations, certain control over the process execution has to be offered to service consumers. In this paper, we present a framework for the support of process control in cross-organizational settings. We specify the control primitives that can be used to exert control on activities and processes before, during and after their executions. These primitives empower service consumers to postpone activity and process executions, bypass minor activities, repeat their executions, etc. We describe an approach to the support of these control primitives by service providers. We demonstrate the application of our framework with a case study from the healthcare domain. A proof-of-concept prototype implementation based on Web service technology is presented.

Amoeba

Business service engagements involve processes that extend across two or more autonomous organizations. Because of regulatory and competitive reasons, requirements for cross-organizational business processes often evolve in subtle ways. The changes may concern the business transactions supported by a process, the organizational structure of the parties participating in the process, or the contextual policies that apply to the process. Current business process modeling approaches handle such changes in an ad hoc manner, and lack a principled means for determining what needs to be changed and where. Cross-organizational settings exacerbate the shortcomings of traditional approaches because changes in one organization can potentially affect the workings of another. This article describes Amoeba, a methodology for business processes that is based on business protocols . Protocols capture the business meaning of interactions among autonomous parties via commitments. Amoeba includes guidelines for (1) specifying cross-organizational processes using business protocols, and (2) handling the evolution of requirements via a novel application of protocol composition. This article evaluates Amoeba using enhancements of a real-life business scenario of auto-insurance claim processing, and an aerospace case study.

Exception representation and management in open multi-agent systems

One of the major issues in dealing with exceptions in open multi-agent systems (MAS) is lack of uniform representation of exceptions and their shared semantics. In the absence of a uniform framework different business organizations may use different representations for the same exception or may interpret the same exception in different ways. In order to address this issue we apply an ontological approach as a uniform way of representing and interpreting exceptions in cross-organizational settings. This helps agents from different organizations interpret exceptional situations in an unambiguous way and exchange exception related information using standard structures. We believe that an exception ontology along with a domain ontology increases the open MAS reliability and also enhances its fault tolerance capability. The proposed ontology is built using the ontological support provided by the JADE agent framework and exception diagnoses agents are implemented using the JACK™ agent framework.

Exception Handling for Conflict Resolution in Cross-Organizational Workflows

Workflow management systems (WfMSs) are being increasingly deployed to deliver e-business transactions across organizational boundaries. To ensure a high service quality in such transactions, exception-handling schemes for conflict resolution are needed. The conflicts primarily arise due to failure of a task in workflow execution because of underlying application, or controlling WfMS component failures or insufficient user input. So far, little progress has been reported in addressing conflict resolution in cross-organizational business processes, though its importance has been recognized. In this paper, we identify the exception handling techniques that support conflict resolution in cross-organizational settings. In particular, we propose a novel, “bundled” exception-handling approach, which supports (1) exception knowledge sharing—sharing exception specifications and handling experiences, (2) coordinated exception handling, and (3) intelligent problem solving—using case based reasoning to reuse exception handing experiences. A prototype of this exception handling mechanism is developed and integrated as a part of the METEOR Workflow Management System. An evaluation of our approach is also presented through some sample workflow applications.