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To cite this document:
Christopher Durugbo , (2014),"Managing information for collaborative networks", Industrial Management &
Data Systems, Vol. 114 Iss 8 pp. 1207 - 1228
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http://dx.doi.org/10.1108/IMDS-05-2014-0144
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Abstract
Purpose The purpose of this paper is to explore the orientations of collaborative networks (CNs)
for managing integrated information flow. It seeks to analyse and shed light into the main priorities
of firms for sharing and coordinating information with CN partners. These priorities are needed
to enhance practices to trade-off and integrate flows where appropriate for maximising profits
and performance.
Design/methodology/approach In this study, inductive multiple-case logic is applied to research
how six industrial firms manage integrated information flow in relation to their collaborative
networked organisations (CNOs). Guided by an interpretivism epistemology, 22 face-to-face and
13 telephonic semi-structured interviews were conducted with 14 key informants in six industrial
firms. Interview data were analysed in line with the research agenda to understand orientations for
integrated information flow.
Findings The research finds that CN management is enhanced when flow integration for industrial
firms is skill, project, agreement and relationship oriented. The investigation also finds that CNO flow
integration could be enhanced when industrial firms confront and prioritise schemes for fluidity
prevention, systematised templates, procedural prompts, implementation checklists, confidence
building, issuance policies and concern separation.
Originality/value The major contribution of this paper is an exposition on priorities for integrated
information flow within CNs. It also offers insights that suggest industrial firms can boost the
performance of their CNOs by: working in small knit highly skilled teams, tactically implementing
manufacturability and marketability programmes, strategising their production contracts and
strengthening their company-customer-supplier ties.
Keywords Case study, Collaborative networks
Paper type Case study
1. Introduction
With industrial firms no longer competing as individual businesses but now as parts
of industrial collectives (Ball, 2007), collaborative networks (CNs) are increasingly
becoming the mainstay of manufacturing and production firms. CNs are constituted
by a variety of entities (e.g. organisations and people) that are largely autonomous,
geographically distributed and heterogeneous in terms of their: operating environment,
culture, social capital and goals and these entities collaborate to better achieve common
or compatible goals, and whose interactions are supported by computer network
(Camarinha-Matos and Afsarmanesh, 2005). Supply chains, virtual organisations,
virtual enterprises and professional virtual communities are some examples of CNs.
In these arrangements, information management poses strategic, provisioning and
complexity challenges that impact on the performance of CN partners (Afsarmanesh
and Camarinha-Matos, 2009; Afsarmanesh et al., 2009). For instance, citing examples
of firms such as National Semiconductor, Steelcase and Wal-Mart, Fawcett et al. (1997)
linked the performance of these firms to their strategies for managing information
within their networks for collaboration. They noted that the application of improved
schemes to manage the flow of information aided these firms in achieving competitive
networking and in positioning (or shaping) their businesses to meet market needs.
Managing
information for
collaborative
networks
1207
Received 13 May 2014
Revised 31 July 2014
Accepted 3 August 2014
IMDS
114,8
1208
On the flipside, through an example of how Cisco wrote off $2.2 billion due to serialised
information flow, Sherer (2005) suggested that better integrated flow of information is
needed to overcome problems of artificially inflated forecasts and overlapping orders
that fuel artificial demand spikes.
Integrated information flow in this context means the extent to which a focal firm
shares information with its partners (Rai et al., 2006). Extent relates to scope and
constraints that govern how information is accessed, exchanged and documented
(see for instance Ellis, 1989; Buchanan and Gibb, 1998; Manecke and Schoensleben,
2004; Durugbo et al., 2014). This necessitates avenues for coordination as evident in the
Cisco case where improvements were achieved through a private internet-based
network, dubbed eHub, which coordinated information by provided visibility to
partners thereby enabling Cisco to improve their responsiveness. Thus, faced by
challenges for integrated information flow, collaborating firms actively review
their information flow requirements and leverage the potentials of information and
communication technologies (ICTs) (Childerhouse et al., 2003a). This enables
collaborative networked organisations (CNOs) to re-engineer their networks and
supply chains for improve information sharing. Although the potential for enhanced
CN management through information flow has been highlighted by several sources
(e.g. Afsarmanesh and Camarinha-Matos, 2009; Afsarmanesh et al., 2009), and the
importance of information flow integration for supply chains has been suggested
by several authors (e.g. Rai et al., 2006; Klein and Rai, 2009), there is a need for clarity
on how the integrated flow of information is factored into CN management. It is this
gap that this paper attempts to address by providing insights into orientations of
integrated information flow for CN management. Orientation is used in a strategic
sense as the means employed to achieve business goals (Venkatraman, 1989) and has
been studied by researchers for developing and enhancing business philosophies
for innovation, information systems, sustainability, marketing activities and so on
(Miles and Munilla, 1993; Chan et al., 1997; Gatignon and Xuereb, 1997).
The purpose of this paper is to explore the orientations of CNs for managing
integrated information flow. It presents a multi-case exploratory study on how six
industrial firms manage integrated information flow in relation to their CNs. Related
studies have isolated and studied aspects of the flow of information and their connections
to the management of industrial firms. For instance, researchers have shown that
communication roles play a key part in transforming business processes (Yazici, 2002)
and that global competition is increasingly causing industrial firms to adopt knowledgeintensive service-driven operations (Youngdahl and Loomba, 2000). Also, the benefits of
exploring the characteristics of information within industrial firms is evident in recent
empirical works that have studied: the flow of technical information (Pedroso and Nakano,
2009), upstream/downstream information flow (Childerhouse et al., 2003a), availability/
willingness to share information (Li et al., 2005) and leveraging ICTs to achieve business
objectives and operational performance (McAfee, 2002). With this in mind, this research
was guided by the following research question: What are the main orientations
of industrial firms when managing integrated information flow within their CNs?
The remainder of the paper is structured as follows. Section 2, presents the
theoretical framework on integrated information flow that guides the research, Section
3, presents the methodology for an industry-based multi-case study to analyse
integrated information flow in six industrial firms, Section 4 presents the findings of
the study and Section 5 discusses the theoretical contributions and managerial
implications of the study.
2. Theoretical framework
For modern firms in CNs, integrated information flow is characterised by the wide
spread use of ICTs such as electronic data interchange in production and operations
management systems such as in Materials Requirement Planning (MRP), Quick
Response, Efficient Consumer Response, Vendor Managed Inventory (VMI), Collaborative
Planning, Forecasting and Replenishment, Business Process Reengineering (BPR) and
Enterprise Resources Planning (ERP) systems. These systems control the extent to which
information is shared by attempting to replace human coordination, reduce uncertainty,
improve decision-making, promote new coordination structures and substitute
information and knowledge for inventory (Wisner and Stanley, 2008, p. 316). Also,
through the use of ICTs, firms such as Chevron, Xerox, AT&T, Hewlett-Packard,
FinnAir, Mitre Corporation and 3 M have transformed their company culture from one
driven by internal rivalry to a more accessible CN (Pereira and Soares, 2007).
In spite of this, few studies in literature have isolated and investigated information
flow integration within the context of managing CNOs because most CN studies
have focused on: mapping strategies, ontology, databases and rules for semantically
and syntactically heterogeneous information (e.g. Afsarmanesh and Camarinha-Matos,
2009; Afsarmanesh et al., 2009), collaboration and information management systems
for shared work and communication spaces (Pereira and Soares, 2007), and knowledge
management initiatives that increase inter- and intra-organizational knowledge
sharing capabilities through leveraging internet-driven new economy technologies
for managing electronic business knowledge (Warkentin et al., 2001). These studies
have been driven by experiments, algorithmic formulations and decision support
systems that shed light on how a wide variety of information in organisations can be
handled and used to support functions in CNs. Additional insights have also been
provided into the role played by legacy systems and authorisation for CN stakeholders
(Afsarmanesh and Camarinha-Matos, 2009; Afsarmanesh et al., 2009). However,
there is a need to balanced current research with an exploratory perspective on
industrial firms that captures the orientations of CNs for integrated information
flow management.
An analysis of literature suggests that information flow has been conceptualised
according to flow aspects such as accessibility for ease of retrieval, exchange
during interactions, documentation for reporting, quality for free flow and formats for
clear definitions (Manecke and Schoensleben, 2004; Durugbo et al., 2014). Others have
considered system design areas such as the information seeking behaviour (Ellis,
1989) and audit practices for information management (Buchanan and Gibb, 1998).
However, in view of the focus of this research, a framework of information sharing
and coordination, as shown in Figure 1, was adopted to characterise the integrated
flow of information for CNs. This is in line with existing attempts to delineate
flow integration, for which researchers have focused on avenues for sharing and
coordinating operational, tactical and strategic information to foster sustainable
competitive advantage for firms (Hoyt and Huq, 2000; Rai et al., 2006; Patnayakuni
et al., 2006; Tsaih and Lin, 2006; Durugbo et al., 2014). The needs of operational
information are shaped by day-to-day activities, tactical information needs are dictated
by specific objectives of well-defined programme areas (e.g. projects), and strategic
information needs are governed by the overall goals, values and missions of partners
(Braverman et al., 2004; Stevens, 1990). Insights into these levels of information can
enable firms to gain clarity during short-, medium- and long-term planning (Voudouris
et al., 2008) and to fully integrate facilities, people, finance and systems (Stevens, 1990).
Managing
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Information
sharing
Information
coordination
Integrated flow of
information
Internal networks
External networks
Upstream flow
Downstream flow
1210
Collaborative network
management
Figure 1.
Conceptual framework
Flow concepts
Contributes to
Information sharing, the first factor, for organisations means exchanging information
between individuals (interpersonal), departments or groups (intra-organisational)
and organisations (interorganisational) (Dawes, 1996). It is an important contributor
to integrated information flow for two-way communications between downstream and
upstream organisations within CNOs (Li et al., 2005; Lee and Whang, 2000; Chen, 1999;
Childerhouse et al., 2003a, b; Durugbo et al., 2014). Order state information is shared
downstream whereas sale and demand forecasting information is shared upstream to
partners. The flow in these situations depends on degree levels that constitute partially
and completed shared information by partners. For instance, a supplier may obtain
shared information content from retailers about the demand distribution and the related
inventory strategies (Li et al., 2005). In this case, information provided by the retailer may
partially show forecasted patterns or real-time inventory position. Partners also require
information sharing for flow fulfilment, i.e. downstream flow of critical information
detailing progress towards order completion and in relation to stipulated criteria such
as volumes, production dates and quality standards (Childerhouse et al., 2003a). Other
important factors for information sharing include willingness to share, commitment and
connectivity between network partners (Kwon and Suh, 2005). The shared information
leads to transparency for dampening demand amplification effects and improving the
responsiveness of supply chains (Lee et al., 1997). This transparency when based on
pure information, i.e. information with high fidelity, captures moments of information
(Childerhouse et al., 2003a). According to Lummus and Vokurka (1999), a moment of
information is any occurrence where a company can gain information from a customer,
and from which a response to customer demand may be made.
The second factor, information coordination means the orchestration of how
information is exchanged (Kolbe et al., 2011). Along with sharing information,
information coordination is needed in networks to reduce information asymmetries
that bring about operational inefficiencies, transaction risks and coordination costs
(Patnayakuni et al., 2006). Information coordination is important for CNs as it controls
what a firm and its competitors/suppliers know (Anand and Goyal, 2009). Several
sources suggest that the need for improved information coordination causes CN
partners to form new networks (Lummus and Vokurka, 1999; Dimitriadis and
Koh, 2005; Fiala, 2005). Others note that information coordination offers a useful
avenue for harmonising internal and external (incl. corporate flow from customers to
firms and environmental flow from firms to partners) communication networks of
CN partners (Wisner and Stanley, 2008). Coordination in these contexts, offers
a useful strategy for overcoming the internal and external pains of information
(Childerhouse et al., 2003b). Internally, it enables firms to piece together data and link
systems with a view to generating a big picture of operations. Externally, the
challenge is to effectively handle customer-generated information and to discourage
arms-length relationships among CN partners.
However, an overemphasis on the control of information could lead to material
flow distortion that triggers operational losses (Anand and Goyal, 2009). Growing
variation upstream in supply chains, termed the bull-whip effect, is a potent source of
information asymmetry that also poses major problems for firms (Lee et al., 1997;
Fiala, 2005). Furthermore, information sharing possesses a dark side information
leakage, which refers to how shared information could reach unintended recipients
deliberately or unintentionally (Anand and Goyal, 2009, p. 438). This occurs because
once firms share valuable proprietary information with other partners, their power to
control or limit access, exchange or documentation of this information may be severely
compromised. It therefore becomes imperative that firms strike a balance between
completeness and partialness when sharing information (Gavirneni et al., 1999; Li et al.,
2005; Durugbo et al., 2014). Thus, firms and industrial collectives are required to apply
practices to trade-off and integrate flows where appropriate, to maximise profits
and performance.
Driven by the proposed framework, this paper seeks to enhance current CN
research and practice through an analysis of integrated information flow for CN
management. Specifically, the attention and interest of this research is drawn towards
identifying the main priorities of firms for sharing and coordinating information with
CN partners.
3. Research method
The research adopts the multi-case study logic[1] (Eisenhardt, 1989; Yin, 2009) for three
main reasons. First, in view of the research motivation, the use of exploratory cases
(Marshall and Rossman, 1999) offered a useful avenue to address the research.
This motivation stirred the research towards the case study logic which offers a more
viable option to studying information-rich cases, in comparison to surveys (Yin, 2009).
Second, the multi-case variant of the case study approach is more robust and
generalisable, and offers the added benefit of replication for independent confirmation
of emerging themes and extension for revealing complementary aspects of phenomena
(Santos and Eisenhardt, 2004). Third, due to the research question, the study adopts
an interpretivism epistemology a theory of knowledge that attempts to understand
phenomena through accessing the meanings that participants assign to them
(Orlikowski and Baroudi, 1991, p. 5). This purpose is pivotal to this research
study, which concentrates on interviews and analysis of qualitative data. The next
subsections describe the case study domain and how data were captured and analysed.
3.1 Case study domain
Technology firms were chosen for this research due to their central position in modern
economies (Grinstein and Goldman, 2006, p. 121), and the focus was particularly on
Microsystems Technology (MST)[2] firms. In MST firms, operating principles aim to
deliver miniaturised sensing, processing and/or actuating systems, with dimensions
and functional parts that are typically in the order of microns, i.e. one millionth of a
metre (European Union, 1996). Due to the fragmented nature of the MST industry
(Doorn, 2006), MST firms face difficulty in positioning their businesses within the MST
value network (shown in Figure 2) so as to maximise value from their products. This is
Managing
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Research
Institutions
i Consultants
1212
ii Designers
iii Developers
Manufacturing
Foundries
Microsystems Design
Software Designer
Device
Manufacturers
Prototype
Manufacturers
Intellectual Property
Provider
iv Marketers
Figure 2.
Microsystems value
network
Chip
Manufacturers
Machine
Manufacturers
Instrument
Manufacturers
SiliconFirm
MicroInc
TechInc
Case firm
Overview
Customer Support
Manager
Chief Technical Officer
Company Director
Service Manager
(continued )
Business Director
Design Manager
Involvement of informants
in case study
Managing
information for
collaborative
networks
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Table I.
Overview of key
informants
Subsidiary of a precision
engineering firm that
manufactures microelectronic and
microsystems technology-based
machines
Company size: large (o250)
Years in operation: 30-40 years
Focus of operations: varied
MachineLtd
DesignLtd
PolymerFirm
Table I.
Overview
(1st wave)
(1st wave)
(1st wave)
Licensing Coordinator
Applicant Support
Marketing
Communications Engineer
Involvement of informants
in case study
Head of Operations
Commercial Director
Company Director
1214
Case firm
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operational focus of different firms. This focus is reflected in the different design,
development, consultancy and marketing functions undertaken within value networks
for the MST industry (Durugbo et al., 2011). Consequently, the unit of reference is
integrated information flow, and the unit of analysis is MST firms in relation to
their CNs.
To capture data on CN orientations for integrated information flow, semi-structured
interviews were held with 14 information managers who acted as key informants, as
shown in Table I. These informants were provided by the different case firms following
initial telephone conversations to request permission to carry out the study. Key
informants reflect participants who possess special knowledge, status, or
communication skills, who are willing to share their knowledge and skills with the
researcher (Gilchrist, 1992, p. 75). The decision to use informant was also made to
establish a form of purposive sampling, which allows for such deviant cases to
illuminate, by juxtaposition, those processes and relations that routinely come into
play, thereby enabling the exception to prove the rule (Barbour, 2001, p. 1116).
Using the conceptual framework shown in Figure 1, 22 semi-structured interviews
were conducted with the 14 key informants. This involved developing questions based
on the key concepts of the framework such as: what information is shared on a
by day-to-day basis, to achieve specific objectives or to support the goals of the
collaborating partners? how is information coordinated internally when working with
partners? and what technologies are used for managing exchanges with partners?
These interviews were conducted on site face-to-face with the informants in two waves:
DesignLtd, MachineLtd and TechInc took part in the first wave while SiliconFirm,
PolymerFirm and MicroInc participated in both waves. Interviews lasted between
30 and 95 minutes and were conducted after a six-month period of negotiations to gain
approval from management and to reach mutually acceptable dates with the provided
informants. In total, 13 additional telephonic-based interviews were also conducted
with informants to gain clarity on discussed concepts.
During interviews, notes were taken after which they were analysed in line with the
research agenda. For the analysis, a six-stage technique (Radnor, 2002) was followed in
which: topics were ordered, categorises were constructed, contents were read, coded
sheets were completed, coded note contents were generated and interpretation was
driven by analysis. Notes were subject to critical analysis to determine important (and
interesting) points that were raised during the interviews. The idea behind the analysis
was to synthesise, from note contents, the main priorities for information sharing
and coordination with CN partners. By applying the multiple-case logic, a range of
orientations for integrated information flow management were explored and captured
as shown in Table II. The study therefore generalises at a level of theory as opposed to
statistical representativeness or significance.
4. Research findings
Much like supply chain integration, information flow integration is built up from
relationships and enables firms to collaborate and to successfully apply competences
(e.g. Hoyt and Huq, 2000; Klein and Rai, 2009), and for the case firms studied as part of
this research, this building process revolved around CN partners coherently and
contextually sharing strategic, tactical and operational information downstream with
clients and with particular emphasis on client feedback. Table III summarises the
focus of information sharing and coordination within case firms for which orientations
with identified.
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Flow integration
orientation
Approach to prioritisation
Sample quotes
Agreement oriented
Skill oriented
Relationship oriented
1216
Table II.
Orientations for
flow integration
from case firms
(continued )
Flow integration
orientation
Project oriented
Flow integration
concepts
Approach to prioritisation
Sample quotes
Managing
information for
collaborative
networks
1217
Table II.
Generally, working in CNs was favoured by case firms in view of support for rapid
access to content (MachineLtd, TechInc, SiliconFirm, PolymerFirm, and MicroInc),
better presentation (SiliconFirm, PolymerFirm, DesignLtd, and MicroInc) and ease of
manipulation (TechInc, DesignLtd and MicroInc), even though participants agreed that
IMDS
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Relationship
oriented
TechInc
MicroInc
SiliconFirm
PolymerFirm
MachineLtd
TechInc
MicroInc
SiliconFirm
PolymerFirm
Transforming concepts to
physical prototypes and final
work products
Establishing feasibility of
solutions, baselines for
production, and rationale for
updates to production statuses
Agreement oriented
Skill oriented
Project oriented
Integration focus
Flow integration
orientation
Managing
information for
collaborative
networks
1219
Table IV.
Flow integration
challenges from case
firms in relation to
their collaborative
network (CN) partners
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Managing
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5. Discussion
In the next subsections the theoretical contributions and managerial implications of the
research are discussed.
5.1 Theoretical contributions
The paper makes two contributions. First, the paper analyses integrated information flow
in the context of CNs. As in existing literature (e.g. Afsarmanesh and Camarinha-Matos,
2009; Afsarmanesh et al., 2009), the importance of effective management of a wide
variety of information was highlighted within case firms. However, the dominant
rhetoric encountered during the research, was the need to demonstrate feasibility,
through technical and business reports, that communicate manufacturability and
marketability for firms and their clients. Manufacturability and marketability tend to
apply in manufacturing firms and are tied to technological and business functions that
generate high yields from fabrication processes and capital investments. Along these
lines, the importance of communicating feasibility reports and surveys to demonstrate
manufacturability and marketability was central to operations within the CNOs
of case firms. Also tied to this point is the need for creating sub-nets that reflect
concern separation in CNOs, e.g. manufacturing- and marketing-focused sub-nets.
With insights from the case firms, the paper makes a second contribution in the
form of a conceptual framework to manage flow integration. For supply chains, the
extent to which information is shared, contributes to lower risks and cost (Li et al.,
2005). These contributions centre on cooperation to improve return on investment and
resource sharing, competitive positioning of firms and planned actions in the market,
as well as coordinated sales and marketing initiatives with operational requirements
(Klein and Rai, 2009). Within this research, the orientations of CN for integrated
information flow management have been studied and the findings of the study reflect
mitigation attitudes that attempt to minimise risks and cost associated with production
processes, as shown in Figure 3. The figure combines the findings from the case study
with the original framework. It conceptually connects the CN orientations (shown as
frames) from the case study with the flow concepts identified from the literature. It also
posits priorities for CN management (shown as dotted line rectangles) captured from
the cases firms. From the fluidity prevention attitude that reinforces production
contracts to strict issuance policies that make individuals accountable for processes,
the extent to which information is shared among CN partners has enabled case firms to
create philosophies and collaborative cultures rich in risk mitigation and cost
management. These philosophies as suggested in literature promote competitive
advantage of firms and supply chains (Fiala, 2005).
5.2 Managerial implications
The findings of this study have some managerial implications. To begin with, driven
by the increasing transition to paperless communication encountered in case firms,
the findings of the study highlight the domineering role of e-mail networks for
coordination. The attractive prospect of rapid access at low communication cost,
made e-mails favourable to case firms for interacting in their CNs. However, informants
within top management of the case firms (i.e. Business Director at MicroInc,
Commercial Director and Head of Operations at PolymerFirm, and Business Stream
Manager at TechInc) all agreed that some form of face-to-face discussions was also
needed during early stages of projects or during initial contact with new CN partners.
During these discussions, the main priority for firms centred on how tactical
Agreement orientation
Relationship orientation
Information
sharing
Skill orientation
Project orientation
Integrated flow of
information
Information
coordination
Managing
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Flow
concepts
Contributes to
Priority for
integrated flow
Collaborative
network orientation
Figure 3.
Revised framework of flow
integration for enhancing
collaborative network
management
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4. Sidestream exchanges in this context refers to flows and interactions with competitors and
colleagues in alliances or other industrial firms.
5. Virtual teams are temporary arrangement involving highly skilled staff for achieving intraand inter-organisational goals.
6. This involves using technologies such as telephone conferencing, video conferencing, and
electronic meeting systems.
7. Dynamic virtual organisations are established in response to market opportunities and are
usually short lived.
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Managing
information for
collaborative
networks
1227
IMDS
114,8
1228
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Corresponding author
Dr Christopher Durugbo can be contacted at: christopher.durugbo@bristol.ac.uk