Sustaining extended enterprise performance: a value co-creation perspective

Maria Bobbink (), Andreas Hartmann and Geert Dewulf
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Maria Bobbink: Faculty of Engineering Technology, University of Twente
Andreas Hartmann: Faculty of Engineering Technology, University of Twente
Geert Dewulf: Faculty of Engineering Technology, University of Twente

Journal of Organization Design, 2016, vol. 5, issue 1, 1-10

Abstract: Abstract The Extended Enterprise, an advanced form of supply-chain integration, focusses on maximizing overall performance while also optimizing the performance of the stand-alone organizations involved. This necessitates not only inter-organizational collaboration but also inter-organizational performance measures. However, the continued use of and emphasis on, intra-organizational performance measures impedes collaborative efforts that transcend organizational boundaries and interests. We argue that an Extended Enterprise can only emerge and sustain through the development of a Service Logic perspective on value co-creation. Value co-creation encourages the establishment of performance measures for the evolving collaboration by taking into account the changing value-in-use of the products and services provided by all the firms involved. Our theoretical argument sheds new light on the formation of inter-organizational collaborations and addresses the role of organization design in this process.

Keywords: Extended enterprise; Service logic; Value co-creation; Sense-making; Formalization; Meaning-giving; Co-created flexible performance measures (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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DOI: 10.1186/s41469-016-0005-7

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