A priori framework for studying context-dependency

Harland (1996) introduces different levels on which networks can be approached.

Depending on the research focus, network research can be implemented on the levels of company, dyadic relationship, supply chain or the whole network. Studies by Zheng et al. (1997), Lamming et al. (2000), Harland et al. (2001) and Lehtinen (2001) add important elements to the network level analysis, and for example the product characteristics are given extra emphasis in comparison to the work by Möller &

Wilson (1995). Albino et al. (1999) regard actors as individuals, and the relationship factors are presented as part of the external context (firm cooperation).

The dynamic interaction model proposed by Möller & Wilson (1995), later supplemented by Olkkonen et al. (2000), is used to structure the wide range of elements required in evaluating information sharing in the R&D collaboration context. These models were chosen as a basis for this study partly because of their illustrative credits, and more importantly, because they explain clearly the relation between environmental contexts, company-specific issues and task characteristics in the interaction process. Also, the idea of dividing organizational factors into several levels seems to be useful when analyzing the R&D collaboration context in terms of R&D programs, business units, and Business Area levels. However, these two models have a couple of limitations that must be taken into account.

First, the relationship-specific features do not exist as such in the original taxonomy introduced by Möller & Wilson: they are embedded in the exchange processes (for example the relationship history is part of the adaptation process). Nonetheless, considering the impact of dyadic relationships in the network as suggested for instance by Harland (1996), it is relevant to present relationship factors as a separate element. Secondly, in the original taxonomy the adaption and coordination processes were handled as part of the interaction, and this viewpoint is understandable if we look at the holistic nature and development of the buyer–supplier relationship.

However, because this study only considers the role of information sharing in the buyer–supplier relationship, this exchange (sharing) process is highly dependent on the other two processes. Therefore, the adaptation and coordination processes could actually be handled as contextual factors. For example, sufficient guidelines and the level of control belong to the coordination process in the original framework, although they are closely related to the R&D program in question. Thus, this unit is the appropriate place where to analyze the impacts of coordination efforts on information sharing.

The interaction process, namely, information sharing is supplemented by elements presented already in the previous chapter (see Section 3.1.3). To be more precise, the content, media and style are described during the different episodes of interaction.

The dynamic aspect was highlighted also by Olkkonen et al. (2000).

This study does not place great emphasis on the outcome factors, unless there are clear causalities between certain actions and reactions. A profound analysis of the outcome factors would probably require a longer period of observation and more profound analysis of the causes and consequences.

These modifications in the original taxonomy presented by Möller & Wilson (1995) have now been made, and this a priori framework is used when presenting the context-dependency of information sharing and later the empirical research results.

To summarize, the following figure illustrates the a priori framework modified from the models presented by Möller & Wilson (1995) and Olkkonen et al. (2000), as well as by Albino et al. (1999), Halinen (1997); Harland et al. (2001); Lamming et al.

(2000); Lehtinen (2001); Wagner & Boutellier (2002) and Zheng et al. (1997). Also, some of the elements required in the analysis are included in the frameworks of Wasti

& Liker (1997); Croom et al. (2000), and Knight (2000).

109 Figure 15. A priori framework for analyzing the context-dependency of networking activities

Environmental and network characteristics (Albino et al. 1999; Harland et al. 2001; Lehtinen 2001; Wagner & Boutellier 2002; Zheng et al. 1997) Market dynamics, uncertainty, infrastructure Industry environment Demand capacity and dynamics Network structure, strategy, process Economy Technological dynamics Network evolutionCustomer diversity, concentration, capacityExchange traditions Task characteristics (Möller & Wilson 1995; Sobrero & Roberts 2002) Asset specificity Innovativeness Means and goals uncertainty Importance Complexity (technical, performance, usage) Exchange frequency Substitutability

Product characteristics (Fisher 1997; Lamming et al. 2000; Lehtinen 2001; Zheng et al. 1997) Complexity Innovation Volume Uniqueness Relationship characteristics (Albino et al. 1999; Halinen 1997; Wasti & Liker 1997; Croom et al. 2000; Knight 2000) Firm cooperation and importance (e.g. strategic) Closeness Expectations and socio-cultural aspects History of relationship, experience, values Sourcing strategy Positioning of the focal firm Extent of dependencies and inter-dependency Technological or process links Existence of legal ties and contractual relations Degree of power and influence of each party Performance monitoring activities Complex interface Buyer characteristics (Albino et al. 1999; Wagner & Boutellier 2002; Möller & Wilson 1995) Organizational culture Behavior, attitudes, values Experiences (interactant, task) Expectations Interactant importance Relative dependence Comparison level alternatives (costs/benefits, risks) Technical skills Technology assets

Supplier characteristics (Albino et al. 1999; Wagner & Boutellier 2002; Möller & Wilson 1995) Organizational culture Behavior, attitudes, values Experiences (interactant, task) Expectations Interactant importance Relative dependence Comparison level alternatives (costs/benefits, risks) Technical skills Technology assets Interaction process (information sharing)(Albino et al. 1999;Olkkonen et al. 2000; Möller & Wilson 1995) Content Media Episodes Style

A priori framework in the light of the present study

Here, the environmental context refers to the specific features of the telecommunication sector, the technological dynamics where information sharing interaction takes place. Also, the features of the whole R&D network, the number of suppliers, etc should be taken into account. When moving to buyer characteristics, the organizational level represents the Business Area level. The focal company as a whole is not taken as a starting point, because the Business Areas differ quite a lot.

Furthermore, the departmental level means the different business units within the selected Business Area. The group level is analyzed through the R&D programs.

Because of the limitations of the present study, the individual level is not in the core focus of the study. Still, it cannot be totally ignored due to the importance of social interaction embedded in communication.

The characteristics of each R&D supplier will be evaluated as well. However, since the interviews were implemented in the focal company, some supplier-specific characteristics may not be visible. Therefore, only those supplier characteristics are emphasized, which became most evident in the focal company. The R&D program is divided into smaller management units called projects, and the R&D supplier typically participates in these R&D projects.

In the context of this study the R&D collaboration between the focal company and their R&D suppliers represents the business exchange relationship. The focal task is defined in each R&D program and is typically a development of either a software or a hardware product, where the supplier is given certain tasks (e.g., some features or parts of the product to be developed). The interaction process refers to information sharing during the R&D phase. To be more precise, information represents the resource which is exchanged, thus carried out and controlled in the interaction process.

The content and media as well as the interaction style (e.g., openness and frequency) form the basic process of information sharing. This process can be divided into the

exchange of resources (thus R&D information) and social resources. The focus is merely on the exchange of resources, although the exchange of social resources cannot be ignored, since it refers to human communication (Möller & Wilson 1995).

The interaction process can be divided into episodes. In the present study the episodes of interaction process are the certain phases in the R&D process; they could be the R&D supplier’s involvement in the specifications phase, in the implementation phase (e.g., programming or design) or the testing phase. In the empirical part these episodes are called planning, production, and delivery, and they represent the beginning, middle and end of the R&D program. In R&D collaboration the adaption process includes the length of the relationship, and the level of trust, among other things. The R&D supplier’s participation in the previous R&D programs clearly improves the experience and capability of the R&D supplier. These features are presented in the characteristics of the supplier.

In this study the coordination efforts are the guidelines generated for collaboration in general (including the supplier management process: supplier selection and supplier involvement, among other things), guidelines concerning the R&D process (e.g., list of documents required at different phases of the process), and guidelines concerning the communication policy (what does ”company confidential” mean, what kind of visibility could be given to the supplier, etc). As found out by Katz (referred from Brown & Eisenhart 1995, 367–368), “teams with a short history together tend to lack effective patterns of information sharing and working together.” Thus, the relationship history has an influence on the guidelines and procedures of information sharing, which in turn has a direct influence on the success of information sharing.