Business networks have proliferated over the past three decades as many firms enabled by ICT have embraced the digital ecosystem form of organization. This implies that in addition to thinking of performance at the level of the individual firm, it becomes necessary to think in terms of performance at the level of the ecosystem, i.e. the business network as a whole, yet is not clear how to best conceptualize and measure business network performance. In this article, we show that business network performance can be conceptualized in three complementary perspectives: the firm perspective, the complex systems perspective and the customer perspective. We employ the customer perspective and develop two specific business network performance metrics, namely network effectiveness and network efficiency. Based on the information integration and visibility benefits that interorganizational systems (IOS) provide, we then develop a construct called network transparency. Using a series of network experiments with students, we find that an increase in network transparency increases business network performance in terms of network effectiveness and network efficiency. We thus show that the value of network transparency is measurable through clear metrics at the level of the business network as a whole.
Cover: B&T Ontwerp en advies www.b-en-t.nl and Sarita Roshni Koendjbiharie Design: B&T Ontwerp en advies www.b-en-t.nl This publication (cover and interior) is printed by haveka.nl on recycled paper, Revive®. The ink used is produced from renewable resources and alcohol free fountain solution. Certifications for the paper and the printing production process: Recycle, EU Flower, FSC, ISO14001. More info: http://www.haveka.nl/greening All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the author. To my network v Acknowledgements This is the place where soon-to-be PhDs look back on their experiences. It is usually rife with clever metaphors and sentimentality. So you are forewarned... Getting a PhD is like going on a road trip by car. The destination is clear but the journey there is not. In fact, the roads and terrains change frequently. Prof. Peter Vervest was the co-reader of my master thesis and after the defense he encouraged me to pursue a PhD. I am indebted to him for inspiring me and opening (car) doors. Throughout the journey, Peter's habit of thinking in an expansive manner often felt like he wanted the car to venture into space. While I never quite saw my car as a spaceship, this "thinking big" did provide me with novel perspectives on the journey. During the last stage Peter showed me how he can get down to the nitty gritty too, in terms of feedback, which I also appreciated. Prof. Eric van Heck watched my journey more closely as on-site promoter. Eric's support is thankfully appreciated as well as his thoughts and critical questions to help further the work. Eric tests his PhD students and when he hears convincing arguments he will gladly give the green light to continue. I highly commend him for that. Moreover, Eric dedicated more time in his schedule to pick up the speed during the last leg of my trip. I have been glad to see him around the department and to always be able to discuss matters with him. The Information-Based View on Business Network Performance 2 and IBM manages the IT infrastructure including intranet, billing and customer account management. Bharti Airtel itself focuses on the customer interface, branding, pricing and product innovation. As such, India's largest telecom provider neither manages its network nor runs its own IT systems. Bharti Airtel leverages its own competencies and those of specialized network partners to provide mobile services to 30 million subscribers (Gulati, 2010; Prahalad and Mashelkar, 2010). These cases denote the transformation of organizations into networks while in other industries and sectors such as construction, public management and health care, networks continue to exist as traditional forms of organization (
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