Xinlin Tang

Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios

Firms are increasingly dependent on external resources and are establishing portfolios of interorganizational relationships (IRs) to leverage external resources for competitive advantage. However, the systems of information technology (IT) and process capabilities that firms should develop to manage IR portfolios dynamically are not well-understood. In order to theorize how key structural IT capabilities (IT integration and IT reconfiguration) and competitive process capabilities (process alignment, partnering flexibility, and offering flexibility) operate as systems of complements, we draw on the competitive dynamics perspective and resource dependency theory and on the literature for IT business value, interorganizational systems, and interorganizational relationship management. We also theorize how a firms IR portfolio moderates the effects of structural IT capabilities on competitive process capabilities and why a firms environmental turbulence moderates the effects of complementary process capabilities on competitive performance. We test our model using survey data from 318 firms in 4 industries. Our results provide broad support for the following: (1) structural IT capabilities and process capabilities operating as a system of complements, (2) the effects of structural IT capabilities on competitive process capabilities being contingent on IR portfolio concentration, and (3) the effects of complementary process capabilities on competitive performance being contingent on environmental turbulence. We discuss the theoretical and practical implications of how firms should develop complementary systems of structural IT capabilities and competitive process capabilities to manage IR portfolios dynamically and leverage external resources.

Organizational Assimilation of Electronic Procurement Innovations

We investigate the assimilation of electronic procurement innovations (EPIs) and its impact on procurement productivity in buyer organizations. We identify online reverse auctions, electronic catalog management, electronic order fulfillment, and electronic payment and settlement as moderate complements for the performance of the procurement process. We develop a theoretical model that is informed by the literature on innovation assimilation and by structuration theory to explain the aggregated assimilation of EPIs. Our empirical study is based on survey data collected about EPIs from 166 buyer firms. Based on our analysis, we isolate the organizational, technological, and interorganizational factors that shape the meta-structures for the aggregated assimilation of EPIs. Our results also provide evidence of a substantial impact of the assimilation of these innovations on procurement productivity. Our post hoc analysis provides insights on differences across stages and across EPIs on the factors and meta-structures that enable assimilation.

Assimilation patterns in the use of electronic procurement innovations: a cluster analysis

Electronic procurement innovations (EPI) have been adopted by many firms as a means of improving their procurement efficiency and effectiveness, but little research has been conducted to determine whether the assimilation of EPI really increases procurement productivity and which factors influence its assimilation. Drawing on data from 166 firms, we conducted an exploratory study to address these questions, using cluster analysis that revealed four different clusters or patterns of EPI assimilation: none, focused niche, asymmetric, and broad-based deployment. The level of EPI assimilation was closely related to procurement productivity. Greater levels of EPI assimilation were associated with higher levels of top management support and greater IT sophistication. Also, interesting patterns emerged between the various elements of EPI infrastructure capability, specifically flexibility and comprehensiveness of standards, EPI security, and the level of EPI assimilation.

Leveraging e-business process for business value

E-business processes can be decomposed into technical, relational and business components.A three-layer structure is presented to identify the source of e-business value at the process level.Data was collected from 196 manufacturing firms in China.Both platform capability and relational governance are integrated to develop e-business process capabilities (EBPCs).A firms EBPCs act as the key process enablers in transforming platform capability and relational governance into business value. Few studies have examined how e-business processes can be leveraged to create business value. By examining the technical, relational and business components of an e-business process, we propose a three-layer structure to identify the source of e-business value in procurement, channel management, and customer service processes. We tested research model using structural equation modeling with data collected from 196 manufacturing firms in China. Our results provide support for the following: (1) platform capability and relational governance integrated to enhance e-business process capabilities (EBPCs) and (2) EBPCs, as process enablers, facilitate digital operations activities across organizational interfaces to improve process performance.

How should process capabilities be combined to leverage supplier relationships competitively

Two process capabilities have been identified in the operations management literature to leverage supplier relationships for competitive performance: the ability to continuously improve processes with suppliers (process alignment) and the ability to make changes to these relationships (partnering flexibility). While firms may need both capabilities to be successful, it is unclear what strategy should be used to combine these two seemingly contradictory process capabilities. Using data collected from 318 manufacturing firms on a focal firm’s process capabilities to manage supplier relationships, we examine the performance impacts of two dimensions of a particular strategy: balancing (focusing on achieving a close match between the two process capabilities) and complementing (focusing on creating synergy between the two process capabilities). Our results indicate that the balancing dimension has a much stronger effect on a firm’s competitive performance than the complementing dimension. Also, when a firm pursues a high balance and strong complements strategy (combining high levels of both process capabilities), it is able to reduce its competitive performance risks more than when it pursues a high balance and weak complements strategy (combining low levels of both capabilities) or when it implements unbalanced strategies that emphasize either process alignment or partnering flexibility (combining low levels of one capability with high levels of the other). We conclude by discussing the theoretical contributions and practical guidelines.

Bridging and Bonding in Exchange Networks: A Structural Embeddedness Perspective of B2B Digital Intermediation

We adopt a structural embeddedness perspective to explore how network structure shapes the type of value-creation opportunities that digital intermediaries can exploit and to understand the capabilities that they require to be successful in the context of different network structures. Through two comparative case studies, we find that different tie architectures and exchange structures form the push forces to shape the opportunities for digital intermediaries. Based on the type of network position they intend to occupy, digital intermediaries can increase their chance of success by developing distinct capabilities for bridging and/or bonding. The two cases also show that bridging benefits may be easier to obtain but harder to defend and scale, while bonding benefits are harder to obtain but easier to defend and scale. The findings are used to develop theoretical propositions related to successful digital intermediation in different network structures.

Enhancing market responsiveness through knowledge transfer and knowledge codification: Evidence from foreign subsidiaries in China

Abstract The rising opportunities in emerging countries have attracted numerous multinational corporations to invest in the new regimes. Knowledge management between headquarters and their foreign subsidiaries, thus, becomes particularly crucial in navigating host country environmental uncertainties. Despite its criticality, how foreign subsidiaries can benefit from effectively managing knowledge remains unclear. This study examines the extent to which market and technological turbulences influence two specific knowledge management platforms, knowledge transfer and knowledge codification, and subsequently, market responsiveness of foreign subsidiaries. Results from a survey of 140 foreign subsidiaries in China show that knowledge transfer and knowledge codification serve as two important platforms to mitigate the effects of environmental turbulence on local market responsiveness.