Development of interfirm ICT infrastructure. A case study in the Dutch construction industry
Ariane von Raesfeld
Department of Marketing, Strategy and Entrepreneurship
Faculty of Business, Public Administration and Technology
University of Twente, P.O. Box 217, 7500 AE, Enschede, The Netherlands
Tel. +31534893338, E-mail: a.m.vonraesfeldmeijer@sms.utwente.nl
Abstract
Introduction
The research aimed to enrich our understanding of ICT development within interfirm networks by advancing an approach that links macro and micro levels of analysis and directs attention to interfirm cooperation, communication and cognitions. The research proposes a socio-cognitive model of interfirm networks, which links substantive interactions in an interfirm network with an analysis of group processes. Substantive interactions are concerned with the development of business relationships and the transformation and transaction of resources and goods. Social interactions are concerned with the development of group integration through the creation and maintenance of shared understanding and communication among participating individuals. This approach is based on studies of technological development in industrial networks and on studies in social psychology. The macro level of analysis draws on the Industrial Network Approach (Ford 2002) in which technological development is described by organizations in a network, who allocate resources and perform activities together. The micro level of analysis draws on Social Integration Theory (van Dongen et al. 1996, van Dongen 1991) which describes social integration through socio-cognitive configurations. In the approach proposed here the two levels of analysis are linked by focusing on how individual actors perceive each other and the technology, and how communication and shared meaning influence cooperation and the outcome of that cooperation. Aim was to answer the following two questions:
1. How does group integration develops in the cooperation project with respect to socio-cognitive configurations?
2. How can the particular business network be characterized?
3. How do group integration and business relationships influence the interfirm ICT development?
The approach is applied to a case study in which three construction firms (belonging to the top five in their field) and two software suppliers cooperated to make a start with EDI in construction industry.
Methods
Data collection
The description of the substantive activities and results of the project are based on semi-structured interviews with all individuals participating in the project, observation during meetings, unstructured discussions with participants and secondary sources (meetings notes, correspondences and interim reports).
Group integration was operationalized through investigating the dynamics in socio-cognitive configurations in the project. Two indicators for socio-cognitive configuration were used: communication frequency and cognitive similarity. During the course of the project respondents were asked to fill in the communication frequency list, every seven weeks, i.e., with whom did they communicate and how often?. Cognitive data were gathered after four months by semi-structured interviews and after eight months by collecting responses to a cognitive similarity questionnaire. The interviews were, in part employed to develop the cognitive similarity questionnaire. In order to compare similarities in cognitions, strings of words from the interviews were bracketed. These strings captured the basic views of actors about the project. Views on the following six different subjects were distinguished: product development, market approach, customers, cooperation between subsidiaries, what has to be done in the project and possible problems. Similarities were obtained by comparing the different views of each actor with every other actor. Cognitive similarity was measured by asking respondents about their agreement (on a five-point Likert (agree/disagree) scale) with 40 statements about the project (see table 5 for sample statements). The technological cooperation activities in the project were derived from observation, unstructured discussions and secondary sources (notes and attendance of meetings, correspondence between the actors and interim reports).
Data analysis
Communication frequencies were represented in communication matrices. Covariances among actors were computed from cognitive similarity questionnaire responses. The communication and covariance matrices were analyzed quantitatively to describe the development of socio-cognitive configurations. For this analysis of the socio-cognitive configurati-ons several methods were used, these can be divided into two groups: a graphical group and a statistical group. All procedures were calculated with the program UCINET IV (Borgatti et al. 1992).
Conclusions and contribution to workshop
The general conclusions of this particular case study are:
1. That if there is no substantive interfirm network basis to support the interfirm ICT development progress will be slow.
2. That both cognitive and social fixations hinder the development of interfirm ICT infrastructure.
3. That if there is no social basis for cooperation, the result of the ICT development is poor.
Basically I think this case study can contribute to the discussion on the methods we can use to study interfirm networks. Moreover this summer I will start two case studies within the NEFOS project(1). One case study is concerned with the interfirm IT use in a network of Dutch/Belgium growers and chefs of specialty vegetables, and the second case study investigates networks of Australian beef producers who in order to compete better formed marketing groups. These bodies are usually regional and some use email to communicate in interesting ways e.g. finding out what prices are being offered. I could contribute more of this work in progress to the workshop and if you think that the Australian Beef Industry case might be intresting my Australian colleague Shirley Gregor and Dutch colleague Arjan Wassenaar probably will contribute to the workshop as well.
Biography
Ariane von Raesfeld is Assistant Professor in the Department of Marketing, Strategy and Entrepreneurship at Twente University. She received her PhD in management from the Twente University in 1997. Her research on technological development in interfirm networks has been funded by the Dutch Science Foundation. Her publications have appeared in Advances in Service Marketing, International Journal of Innovation Management, Research in Science and Technology Studies and elsewere.
Notes
1. NEFOS Net-Enabled Forms of Organizing Space, is a research project in cooperation with Marleen Huysman and Erik Stam.