Case study
Understanding the roles of business ecosystems in large public IT infrastructure project development: The case of M-Taipei

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Abstract

This case study examines how public–private business ecosystems play a critical role in pubic IT infrastructure project development. In studying the world's foremost wireless “cyber city,” the M-Taipei project, we argue that the symbiotic nature of relationships in business ecosystems is of critical importance in conducting the public IT project. Based on the case data, we differentiate three forms of business ecosystems – knowledge-oriented, resource-oriented, and business-oriented which emerged in the different phases of project development. We hope to provide a foundation for future discussions on this increasingly important view of research and practice.

Introduction

The constructive partnerships between private and public actors will enable creative and effective responses to tackle economic and social crises (Rangan, Samii, & Van Wassenhove, 2006). Accordingly, public–private partnerships (PPPs) are growing in popularity as a major governing model for delivering infrastructure projects (Kwak, Chih, & Ibbs, 2009), including public IT infrastructure outsourcing (e.g., Lawther, 2005). This is particularly true for the unprecedented public IT project, which needs to build up the levels of resources through a larger coalition (Rangan et al., 2006). Accordingly, the management of PPPs in outsourcing processes has become a main locus for researchers. After all, IT implementation is ongoing in the public sector at all levels of government.

Previous research on PPPs focused on many diverse perspectives, such as the formation of PPPs (Koppenjan, 2005), the way of governance (Hayllar, 2010, Pope and Lewis, 2008), the behaviors of boundary-spanning managers (Nobel & Jones, 2006), and public accountability (Forrer, Kee, Newcomer, & Boyer, 2010). Although insightful, these studies are not able to effectively address “the symbiotic nature of relationships” among various private sectors and public agencies (Moore, 2006). We agree that alliances between firms and public actors can create collaborative effects which can’t be achieved separately, but we know little about how the symbiotic nature of relationships influences the actions and outcomes of public IT infrastructure outsourcing.

As such, we need to think of each business as part of a wider economic ecosystem and environment. This responds to recent calls in literature to pursue research into the pivotal contribution of an economic community involving many companies working together in the collaborative process, and to set this research within the stage-specific context of business ecosystems rather than partnerships only. Accordingly, this paper aims to extend our understanding of public IT outsourcing in terms of public–private business ecosystems (PPBEs) in order to explore the role of the symbiotic relationships and how they impact the project development.

Section snippets

Literature review – from PPPs’ to PPBEs’ view of public outsourcing

Although research in outsourcing management has increased our collective understanding of factors influencing success, that vast majority of prior studies examine only the bilateral relationship rather than resource network. The term “business ecosystem,” first introduced by Moore (1996), defines the ecosystem as being made up of customers, market intermediaries (including agents and channels, and those who sell complementary products and services), suppliers and of course, oneself. Broadly

Research approach

The case research method is particularly appropriate for the current study and since the case research strategy offers better insights into the interdependencies among the factors in the study (Benbasat, Goldstein, & Mead, 1987). We selected M-Taipei, the world's largest public wireless network, to explore issues related to PPBEs. The case of M-Taipei's development is particularly appropriate for studying an “unprecedented public IT project” since the M-Taipei initiative is one of the first

Case context: M-Taipei initiative

This section presents the background information about the M-Taipei initiative and process by which PPBEs took shape. The M-Taipei initiative project was initiated by President Ying-jeou Ma when he was Taipei Mayor in 2004. What he saw was a “New Digital Taipei” that is leading the world into the 21st century – a cyber city that is wireless and borderless. The citywide WiFi comes in the form of near-ubiquitous Internet access and aims to encourage Taipei residents to “frequent the Net, and free

Conclusion

The main purpose of this research is to explore to role of PPBEs in public IT infrastructure outsourcing. Through in-depth case studies of the M-Taipei project, three forms of business ecosystems – knowledge-oriented, resource-oriented, and business-oriented – emerged in the different phases of project development. It is critical for public and private organizations to identify the business ecosystems and to be able to address them in terms of symbiotic relationships to better understand the

Tzu-Chuan Chou is an Associate Professor in the Department of Information Management, National Taiwan University of Science and Technology, Taiwan. He received his Ph.D. from Warwick Business School, the University of Warwick, UK in 1999. His research interests include IT outsourcing, IT governance, knowledge management, and E-government. He has papers published in a number of international journals.

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Tzu-Chuan Chou is an Associate Professor in the Department of Information Management, National Taiwan University of Science and Technology, Taiwan. He received his Ph.D. from Warwick Business School, the University of Warwick, UK in 1999. His research interests include IT outsourcing, IT governance, knowledge management, and E-government. He has papers published in a number of international journals.

Mei-Yun Huang is a PhD candidate of the Graduate Institute of Management at National Taiwan University of Science and Technology, Taiwan. Her research interests include E-government and public management.

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