The Join/Leave/Remain (JLR) decision in collaborative networked organizations

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Abstract

Collaborative networked organizations (CNOs) are a powerful mechanism to achieve competitiveness in today’s turbulent market conditions. The aim of the work reported in this article is to contribute towards CNO formal modeling and performance analysis from an economic perspective. A recently developed, combined three-dimensional approach for CNO performance assessment, based on the key metrics of cost, payoff and agility is presented, with emphasis on the Join/Leave/Remain (JLR) problem which has been defined in this project.

Section snippets

State of the art of CNO representation and formal modeling

An extensive literature survey has been conducted. The most relevant theories and approaches which can support CNO formal modeling and representation were identified and are described briefly.

Performance assessment in a collaborative–competitive networked environment

CNOs have several attributes, some quantifiable, such as costs associated with a CNO and with individual member organizations of the CNO, while others are difficult or fuzzy to quantify, e.g., trust. Literature on collaboration identifies various motives and benefits associated with the inter-organizational collaboration. Relevant motivations are summarized by Chituc and Azevedo (2005): increased market share and asset utilization, enhanced customer service, reduced time to market, reduced time

Overview

A CNO consists of heterogeneous organizations with symbiotic interests. Their inter-connected and collaborative relationships can provide opportunities, but also constrains on their actions.

In the context of a collaborative–competitive economic environment, several questions arise: how is it possible to motivate organizations to equally strive for the success of public and private business processes? Which are the most relevant criteria to measure CNO performance? Answers to such questions

Conclusions and further research

In the modern economy, organizations, in order to survive and achieve their business goals, need to collaborate by joining their valuable skills and resources. Collaborative Networked Organizations (CNOs) have emerged as a valuable instrument to effectively achieve strategic objectives in a dynamically changing cost and time constraints, with a high expected level of quality standards and service delivery.

Assessment of CNO performance metrics is a challenge in today’s collaborative–competitive

Acknowledgements

This research continues the long-term enterprise networking and e-Work research sponsored by the PRISM Center at Purdue University, and research on collaborative networked organizations by the Faculty of Engineering at the University of Porto and INESC Porto. The first author thanks Fondcau para a Ciencia e a Tecnologia for PhD grant SFRH/BD/19751/2004, and Purdue University and the PRISM Center for guidance and support.

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