Tero Vuorinen

A framework for a network-level performance measurement system in SME networks

The present study aims to present a theoretical framework for a network-level performance measurement system. The suggested framework for the performance measurement system is composed of the factors that enable and cause the productivity and profitability of the network form of organisation. The framework developed in this study can be divided into six subdimensions: (1) network culture, (2) resources and competences, (3) models of action, (4) internal processes, (5) customer perspective and (6) financial indicators of the network. We argue that this framework provides research opportunities to study the performance of the network form of organisation; but even more importantly, it provides a unique framework to analyse and develop network organisations in practice.

OPERATIONALIZING SME NETWORK RESOURCES

In presenting two perspectives through which SME networking can be discussed, namely a system view and a view that considers networks as entities, this paper aims to contribute to the current discourse on SME network resources. A network-level performance measurement system emphasizes win-win situations in a network between the leader company and the other members of the network. The main objective of the present paper is to develop a measurement system for analyzing the value of resources and competencies in a production network, which can be used to complement existing network-level performance measurement systems. By taking into account the resources in a network environment in this way, the value of the whole network and its resources comes to represent the sum of the resources fit with customer needs, the co-operation ability and willingness of the network, and the entrepreneurial capability of the network to create new business opportunities.

Analysing partnerships and strategic network governance

Networks as organisational forms have achieved increasing attention in recent years. Typically, discussions have focused on the efficiency of different organisational modes, such as markets, hierarchy and networks. In this research, we argue that the economic system, when organised as networks, is often governed by using three different governance mechanisms: price, authority and trust, simultaneously. The main objective of this research is to develop the method for analysing the different mechanisms of governance in a strategic network. We apply a single case-study method to illustrate the usefulness and importance of the analysis. The analysis of governance allows managers to systematically evaluate the present and future state of partnerships in strategic networks.

Explaining interfirm cooperative behaviour: three different theories in the Finnish metal industry

This study examines interfirm cooperation in business networks. The aim of the study is to identify and illustrate how three different organisational theories are involved in the construction process and activities of dyadic organisational relationships in srategic networks, where one focal firm has a dominant position. The theories discussed in this work are Transaction Cost Theory (Tce), the theory of social capital and the Resource-based View (Rbv). The roles of the different theories in the networking process are discussed at a theoretical and an empirical level. The context of the study is the Finnish metal industry. All the theories have explanatory power in the studied context, but they appear to be more useful when applied as a theoretical combination.

Business Growth in Established Companies; Roles of Effectuation and Causation

This multiple case study illustrates how ten selected industrial companies have managed to accomplish rapid growth after a long period (3–5 years) of slow growth. A particular aim was to determine whether these companies grew by adapting to the situation and responding to the demands of the market with their resources (effectuation) or by following previously determined plans and proceeding towards set goals (causation). Effectuation was originally connected to the creation of new business activities and an operating model covering the early stages of an organisation’s growth. However, recent studies have considered effectuation in the context of an existing business. This paper adds business growth to the context of established companies and explores the roles of effectuation and causation in their growth processes. The findings indicate the usage of both logics, but in nine of the ten companies’ effectuation influences as the dominant approach. Only one of the ten studied companies can be stated to follow the operating principles of causation.

Supply chain strategies in the boatbuilding industry - different ways to cope with change

The focus of this paper is the Finnish boatbuilding industry and the different ways it utilises the supply chain network to cope with change. The boatbuilding industry in Finland is a very traditional and relatively small field of business, but is not immune to global influences and the demands of change. One of the biggest differences between company strategies is the attitude towards the role and volume of supply in the production stages. The main research question in this study is: what kinds of supply strategies are companies using in a turbulent boating industry? This paper focuses on the different supply strategies found in the Finnish boatbuilding industry in a changing business environment. The paper presents how three different generic sourcing strategies presented in the literature review are utilised in practice. In addition, the paper suggests a framework for evaluating the most effective generic sourcing strategy in different situations.