VALUE CO-CREATION THROUGH HORIZONTAL COLLABORATION : A Case Study of a Service Partner Network in Manufacturing Industry
Schrey, Maiju (2020-05-11)
11.05.2020
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2020051126050
https://urn.fi/URN:NBN:fi-fe2020051126050
Tiivistelmä
Today’s firms operate in complex, networked value systems, where they are connected to other actors over multiple ties. Strategic value nets are intentionally formed business networks. The network actors share common goals and co-create value through collaborative value activities. The way how a strategic value net configures and coordinates its resources, capabilities and value activities is essential for the net’s competitiveness. Moreover, the net’s ability to dynamically restructure its operations and react to change is even more important.
The purpose of this study is to provide understanding on how horizontal collaboration creates value in a predominantly vertically structured service value net in manufacturing industry, and thereby contributes to the service value net’s operations. The study identifies practices and motives for horizontal collaboration, and analyses the pre-requisites, enablers, barriers and limitations to horizontal collaboration in the studied context.
The research was conducted as an explorative, single case study. The case is a service partner network of a multi-national engineering company, where the global partner network sells and provides product life cycle services to end customers. This study addresses collaboration between service partners. The applied research method was qualitative, and the research approach followed systematic combining. The empirical data was collected in ten semi-structured interviews.
The findings indicate that a good vertical relationship is a pre-requisite for horizontal collaboration. Horizontal relationships are primarily competitive and characterized by mistrust. The manufacturer has a central role in facilitating horizontal networking and increasing transparency in the network’s operations. Transparency is the key to initiate trust building, balance competitive tensions and create collaborative culture in the network. The research indicates that horizontal collaboration strengthens the value net’s shared identity and clarifies the strategic intent. Horizontal practices co-create value in daily customer service requests by providing short-term support to network members in terms of resources and knowledge, but also enable the network to learn and develop together in the long term. Finally, the study proposes that a cross-dimensional, collaborative foundation helps the network adjust to change.
This thesis contributes to previous research on management of strategic value nets and collaboration in B2B service systems. Furthermore, the study provides new insights by addressing a secondary value creation logic in a strategic net.
The purpose of this study is to provide understanding on how horizontal collaboration creates value in a predominantly vertically structured service value net in manufacturing industry, and thereby contributes to the service value net’s operations. The study identifies practices and motives for horizontal collaboration, and analyses the pre-requisites, enablers, barriers and limitations to horizontal collaboration in the studied context.
The research was conducted as an explorative, single case study. The case is a service partner network of a multi-national engineering company, where the global partner network sells and provides product life cycle services to end customers. This study addresses collaboration between service partners. The applied research method was qualitative, and the research approach followed systematic combining. The empirical data was collected in ten semi-structured interviews.
The findings indicate that a good vertical relationship is a pre-requisite for horizontal collaboration. Horizontal relationships are primarily competitive and characterized by mistrust. The manufacturer has a central role in facilitating horizontal networking and increasing transparency in the network’s operations. Transparency is the key to initiate trust building, balance competitive tensions and create collaborative culture in the network. The research indicates that horizontal collaboration strengthens the value net’s shared identity and clarifies the strategic intent. Horizontal practices co-create value in daily customer service requests by providing short-term support to network members in terms of resources and knowledge, but also enable the network to learn and develop together in the long term. Finally, the study proposes that a cross-dimensional, collaborative foundation helps the network adjust to change.
This thesis contributes to previous research on management of strategic value nets and collaboration in B2B service systems. Furthermore, the study provides new insights by addressing a secondary value creation logic in a strategic net.