the analytic network process for managing inter-enterprise collaboration: a case study in a...
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(ANP) to identify and measure, under an integrated approach, both factors and inter-enterprise perfor-mance considering their reciprocal impact. With this innovative approach, enterprises will obtain
one ofket reqchaincreate
enterprise performance, which can be measured, and therefore,managed through performance measurement elements (objec-tives, performance indicators, etc.). In these contexts, it is impor-tant to dene inter-enterprise performance elements in order to
Despite the benets of collaboration, there are many factorsthat act as barriers to effective collaboration (Fawcett et al.,2008): lack of top management support, cross-functional conicts,lack of trust, etc. In fact, many collaborative initiatives that initiallywere developed to improve the competitiveness of the enterprises,fail due to these factors (Bititci et al., 2007; Kampstra, Ashayeri, &Gattorna, 2006; Sabath & Fontanella, 2002). For that reason, it isimportant to manage those factors as they impact on the resultingperformance. In addition, the achievement or not achievement ofthe performance element targets impact on the factors, conguringa system of reciprocal inuences between factors and performance
Corresponding author. Address: Department of Business Organization, Caminode Vera s/n, Building 7D, Universidad Politcnica de Valencia, 46022 Valencia,Spain. Tel.: +34 963877007x76888; fax: +34 963877689.
E-mail addresses: firstname.lastname@example.org (M.-J. Verdecho), email@example.com(J.-J. Alfaro-Saiz), firstname.lastname@example.org (R. Rodrguez-Rodrguez), aortiz@omp.
Expert Systems with Applications 39 (2012) 626637
Contents lists availab
Expert Systems w
.eupv.es (A. Ortiz-Bas).and higher prots than can be achieved by acting alone. These com-panies are actively working together towards common objectivesand share information, knowledge, risks and prots (Mentzer,2001). Enterprises that are collaborating look for improving theirperformance in different aspects such as increased inventory turn-over, increased revenues, cost reductions, product availability, andeconomic value added (Fawcett, Magnan, & McCarter, 2008).
However, enterprises that desire to collaborate or are collabo-rating often do not establish efcient mechanisms to manage theperformance of the enterprise association, called global or inter-
der various perspectives or dimensions so that they provide a rel-evant overview of their performance status. One of the mostimportant performance frameworks developed in the academic lit-erature and business applications is the balanced scorecard (BSC)by Kaplan and Norton (1992). In fact, the BSC, developed initiallyfor managing performance of enterprises, has been extended bydifferent authors for inter-enterprise performance managementsuch as the works by Brewer and Speh (2000), Bititci et al.(2005), Folan and Browne (2005) or Alfaro, Ortiz and Rodrguez(2007).1. Introduction
Enterprise collaboration has beenmodels to compete and adapt to marand Sridharan (2002) dene supplymore companies working together to0957-4174/$ - see front matter 2011 Elsevier Ltd. Adoi:10.1016/j.eswa.2011.07.054signicant information for the decision-making process regarding which are the factors and inter-enterprise performance elements that generate a higher impact and therefore have a high priority withinthe specic collaborative relationship. Thus, enterprises can focus their efforts on improving those mostimportant factors and performance elements, and consequently, enhancing their competitiveness.
2011 Elsevier Ltd. All rights reserved.
the most used businessuirements. Simatupangcollaboration as two ora competitive advantage
lead the activities of all the members towards the achievementof the commonly agreed objectives (Alfaro, Rodrguez, Verdecho,& Ortiz, 2009; Bititci, Mendibil, Martinez, & Albores, 2005; Verd-echo, Alfaro, & Rodriguez-Rodriguez, 2009). Thus, it is importantfor those enterprises to dene and use a structured performancemeasurement framework that allows managing performance un-Balanced scorecardenterprise performance. This paper provides a methodology based on the analytic network processThe analytic network process for managiA case study in a collaborative enterprise
Mara-Jos Verdecho , Juan-Jos Alfaro-Saiz, Ral RoResearch Centre on Production Management and Engineering (CIGIP), Department of BuCamino de Vera s/n, 46022 Valencia, Spain
a r t i c l e i n f o
Keywords:Analytic network processCollaborationPerformance managementEnterprise network
a b s t r a c t
In the last years, collaboratmeans to remain competitbut, in real assessments, thenterprise association/intebarriers to effective collab
journal homepage: wwwll rights reserved.inter-enterprise collaboration:etwork
guez-Rodrguez, Angel Ortiz-Basss Organization, Universitat Politcnica de Valncia,
among enterprises has gained attention in the business environment as a. Enterprises that are collaborating look for improving their performanceoften do not establish efcient frameworks to structure and manage thenterprise performance. In addition, there are many factors that act astion and have to be also properly managed as they impact on the inter-
le at ScienceDirect
lsevier .com/locate /eswa
elements. For example, the achievement of one nancial objective,e.g. increase protability, impacts on trust, one of the most rele-vant factors widely analyzed in the literature. At the same time,trust among members impacts on increasing protability, andthus, a reciprocal relationship between trust and increasing prot-ability objective is established. On the other hand, both factors andinter-enterprise performance elements are linked among them-selves at the internal level. Therefore, it is needed to develop a pro-posal that identies and measures the factors and inter-enterpriseperformance elements under an integrated manner and make ex-plicit the overall real inuences that exist within the system so thataccurate and signicant results are obtained. This proposal shouldaddress some questions in order to manage effectively collabora-
to a case study is exposed. Finally, conclusions and research impli-cations are presented.
2. Literature review
2.1. Relevant factors of collaborative relationships
There are numerous works within the literature that deal withidentifying main factors of inter-enterprise relationships. Some ofthese works present classications of inter-enterprise environ-ments according to the level of maturity reached in different as-pects of their relationships, i.e. they present supply chain
Spek(200(200MohandMatopoulos, Vlachopoulou, Manthou, and Manos (2007)BoddBurg(200Moh
M.-J. Verdecho et al. / Expert Systems with Applications 39 (2012) 626637 627tive relationships (Busi & Bititci, 2006; Simatupang & Sridharan,2005): What are the relevant factors of collaborative relationships?How can these factors be associated to a performance measure-ment framework? How are these factors and performanceelements linked together? How should both factors and perfor-mance elements be measured? etc.
From a methodological point of view, it is important to select anadequate method to solve this issue. Suwignjo, Bititci, and Carrie(2000) suggest that integrating the multidimensional effects of fac-tors on performance into a single unit of measurement can only bedone through subjective, individual or group judgment. An exam-ple of this fact is the valuation of the trade-off between trust andperformance. There are not measures that can objectively dealwith this issue. For that reason, subjective measurement is widelyaccepted in Multi-Criteria Decision Analysis (MCDA) to deal withmulti-criteria problems (Suwignjo et al., 2000). MCDA comprisesa large variety of methods. One of the most extensively methodused is ANP introduced by Saaty (1996). There are three main rea-sons that suggest using ANP to model and solve the problem of thispaper. First, ANP allows modeling complex problems with a net-work structure integrating interdependences and feedback amongelements. Second, ANP is adequate to solve problems with bothqualitative and quantitative factors (Peniwati, 2007). This is impor-tant as many of the collaboration factors are qualitative such ascultural factors, and many of the methods are developed solelyfor quantitative measurement. Third, ANP has been used ingroup-decision problems (Erdogmus, Kapanoglu, & Ko, 2005; Levy& Taji, 2007), which is the case of a collaborative relationship.
The aim of this paper is to provide a methodology based on ANPthat aids to make decisions to enterprises that collaborate by iden-tifying and measuring, under an integrated approach, both factorsand inter-enterprise performance elements considering their reci-procal and internal relationships. The structure of this paper is asfollows. Firstly, a literature review regarding relevant factors ofcollaborative relationships and the application of ANP for perfor-mance measurement are analyzed. Secondly, the methodologydeveloped is described. Then, the application of the methodology
Table 1Summary of relevant factors on collaborative relationships.
Strategic factors Joint vision, design of the inter-enterprise network,equity, top management support
Business process andinfrastructurefactors
Process alignment, IS/ICTs interoperability,complementary skills, coordination between activities
Collaboration leadership, compatibility ofmanagement styles, joint decision-making,multidisciplinary teams
Cultural factors Trust, commitment, cooperation, information shared,
conict resolution management (200
Giany et al., 2000, Barrat