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4. REVIEW OF THE RESULTS

5.1. Answering the research questions

The main research question of this study was formulated as follows: How can the value networks of cross-sector collaboration and partnerships be strategically managed in order to create value? In order to answer the main research question, four sub-questions were further proposed, to split the main problem into smaller issues. In the following, all four research sub-questions and their results will be presented in detail.

RQ1: What are the management challenges in cross-sector collaboration?

To be able to enhance the effectiveness of cross-sector collaboration, first it was necessary to understand and identify what are the major challenges that exist in the management of sector collaboration. The investigation started with a literature review, aiming to identify cross-sector collaboration management challenges discussed in previous studies (e.g., Carroll and Steane, 2000; Jupp, 2000; Coulson, 2005; Frisby et al., 2004; Bryson et al., 2006; Roux et al., 2008). Furthermore, in the literature review, we aimed to find out what the collaboration dimensions are (Thomson, 2001) that can help in analyzing the challenges from a strategic point of view. In previous studies, the most important management challenges were identified, without any strategic perspective.

The present study took a strategic perspective of collaboration management, classifying the identified challenges based on collaboration dimensions. The solutions for solving the challenges were analyzed further. Using a case study for cross-sector collaboration in elder care, the results show that cross-sector collaboration challenges in elder care are related mainly to two dimensions of collaboration: governance and administration. Governance involves participative decision making, problem solving and shared power arrangements, while administration implies coordinating the activities, defining the roles of the partners, and the monitoring mechanisms.

The results of the study confirm that the collaborative problem solving capacity is poorly managed in collaborative relationships. This suggests that in order to create value, the management of cross-sector collaboration should focus on social innovation: how partners’

resources and capabilities may interact in a more efficient way (Le Ber and Branzei, 2010). A well-managed partnership is needed in that sense.

RQ2: How can cross-sector collaboration be enhanced?

Based on the results obtained in the study from the first publication, P1 (which was related to the first research question), there was a need to investigate how cross-sector collaboration can be enhanced. In the study from publication P1, it was confirmed that cross-sector collaboration is generally poorly managed and that a partnership must be formed to be able to create value. With the premise that in many cases, partnerships are formed based on pre-existing collaborative relationships, publication P2 investigated what are the most important factors that must be addressed by the managerial team in these circumstances. Additionally, taking into account that relationship risks influence the quality and the outcomes of collaboration (Delerue, 2004; Chung, Hensher and Rose, 2010), the influence of risk on the critical success factors for collaboration fluency was also investigated.

The results of the empirical study (in publication P2) strengthen the results obtained in publication P1 (related to first research question) (Grudinschi et al., 2013), showing that governance and administration have a strong influence on collaboration fluency. Additionally, the study shows that communication plays a crucial role in collaboration fluency, which was also in line with previous research on this issue (Norrman and Jansson, 2004; Vanhala, 2011).

Furthermore, the study underlines the importance that should be accorded to relationship risk management. All these issues are part of the strategic management that must be addressed in a cross-sector partnership.

RQ3: How can new value be created in cross-sector collaboration and partnerships?

Despite the increasing popularity of cross-sector partnerships as a strategy for addressing huge societal challenges, there is evidence of their poor ability to create value with respect to the problems they address (Koschmann et al., 2012). The need for this research question started from this dilemma: how cross-sector partnerships can be managed more effectively, creating more value for all their stakeholders. Managing value creation and analyzing how to get the full potential of collaboration are challenging issues for the management of cross-sector partnerships.

To be able to understand and to visualize the process of value creation in partnerships, the study proposes the use of strategy tools for the management of cross-sector partnerships. More specifically, the study designed and implemented a method for value network mapping in cross-sector collaboration, which allows assessment of the current and the potential value network.

Furthermore, the value network mapping method proposed in this study allows managers and experts to understand how to get the full potential of collaboration. In order to increase the understanding of how to use the method in practice, the implementation of the method in practice was done through a case study. The value network mapping method designed and implemented in this study allows the understanding of how new value can be created in cross-sector collaboration if the partnership is properly managed.

RQ4: How can partnerships’ value networks be strategically managed?

To be able to properly manage a partnership, the strategic view is an essential part of the management. Moreover, to evaluate the performance of the management, performance measurement should be done periodically (Kaplan and Norton, 1996; Hatry, 2010). Additionally, value creation for all stakeholders should be a strategic issue in partnerships. Moreover, value creation is the core of the value network concept. For all these reasons, in this thesis, the strategic

management of value networks is proposed as a new approach for cross-sector collaboration management. The question which rose in these circumstances was: how can partnerships’ value networks be strategically managed?

The study proposed a tool for performance measurement and performance prediction in cross-sector collaboration. The proposed tool has as its central concept the value network. The performance measurement process proposed here starts from the vision and the strategy of collaboration: to solve the challenges of collaboration activity that addresses social issues and to enhance the value network (to create new value for all network participants); this way, the collaborative network can perform efficiently. Using a case study, the proposed tool was implemented in practice, providing managers step-by-step guidelines on how to use the tool in practice. The proposed tool and its implementation in practice allow the understanding of how partnerships’ value networks can be strategically managed.

Addressing the four research sub-questions constituted the groundwork for tackling the main research question: How can the value networks of cross-sector collaboration and partnerships be strategically managed in order to create value? To conclude, it must be mentioned that the need for cross-sector collaboration in the social domain starts from a lot of social challenges that must be solved. This implies that social value must be created for all citizens (network partners as well as all customers) through cross-sector collaboration. Value creation is the core of the value network concept, and in this study, the strategic management of value networks was proposed to be used for the management of cross-sector collaboration and partnerships. The results of the study confirm that new value can be created in cross-sector collaboration through a solid partnership that must be strategically managed. The study also shows that by using the proposed strategic tools in cross-sector collaboration, more value can be created.