Two CUM LAUDE theses at RSM on port community systems
Port Community Systems are an interesting object of study. Two RSM students, Irina Romochkina and Sascha Treppte, have studied these systems and finalized their studies in September CUM LAUDE. Irina studied the governance structure of port communities and the corresponding structure of inter-organizational systems, while Sascha Treppte studied the role of port community systems in sharing information for managing risks in container transport. Irina continues to study port community systems during her PhD research at RSM.
Irina Romochkina "Cluster Perspective on Inter-Organizational Information Systems"
Introduction
The inter-organizational information systems have been attracting researchers’ attention since
1980s. Their potential to decrease costs and improve service quality and consequently boost a firm’s
competitive position is significant (Clemons and Row, 1993; Reekers and Smithson, 1996).
Interorganizational information systems are information systems that span the boundaries of a single
organization (Chatterjee and Ravichandran, 2004). Accordingly such systems are able to enhance not
only the competitiveness of a given firm but also the competitive position of the network of
organizations connected via the system. However, the majority of inter-organizational information
systems studies are carried out at the single firm level or dyadic level (Robey et al., 2008).
The researchers that argued for the necessity to study the systems at the higher level
suggested the industry as the unit of analysis (Damsgaard and Lyytinen, 2001; Rodon, 2007). But I
believe that the nature of modern competition and structure of organizations’ connections suggest
another, more appropriate unit of high level analysis – the cluster. Market competition exists both at the
firm level and at the higher global level – cluster level (Carrie, 2000; Haezendonck and Notteboom,
2002; Porter, 2000; Schmitz, 1999).
“Clusters are geographic concentrations of interconnected companies and institutions in a
particular field” (Porter, 1998, p.78). Clusters consist of organizations producing a certain product or
service and of their supply chain partners; clusters encompass value chains that produce
complementary products; they also include governmental and other institutions that provide specific
services like authorization, training, technical support. Hence clusters have both vertically linked
organizations within them (i.e. supply chain partners) and horizontally linked organizations (i.e.
competitors, alliance partners, public institutions etc.). Industry, on the other hand, is a group of
companies which produce a particular product and their supply chain partners. Thus, the notion of the cluster subsumes the notion of the industry if the latter is limited by the geographic dimension. The industry is the part of the cluster but clusters also include other organizations like certifying agencies of the government, knowledge producing institutions etc. Therefore it is beneficial to take a cluster as the unit of analysis rather than industry as this allows accounting for a wider variance of inter-organizational relationships.
Being part of a cluster brings a number of advantages for a firm. Clusters can provide better access to employees and suppliers, access to specialized information, complementary services, access to institutions and publics goods, better motivation and measurement (Porter, 1998). The major factors that influence the competitive position of a cluster on th global scale are factor conditions, context for firm strategy and rivalry, demand conditions, and related and supporting industries (Porter, 2000). Information infratructure is a consititutive part of factor conditions. Quality of information exchange within the cluster can influece the overall cluster's competititive position (Van Baalen et al., 2008; Wrigley et al., 1994).
Implementation of inter-organizational information systems is a way of improving information
exchange quality within the cluster. Researchers suggested different dimensions of information quality.The most common ones are accuracy, reliability, completeness, timeliness, accessibility, interpretability (Goodhue, 1995; Jarke and Vassiliou, 1997; Wand and Wang, 1996; Wang and Strong, 1996; Zmud, 1978) Inter-organizational information systems have the potential to improve all of the named dimensins of the information exchange (Patnayakuni et al, 2006; Van Baalen et al., 2008; Wang and Wei, 2007).
When considering competitive position of a cluster as a dependent variable the focus on a singe independent inter-organizational information system operating within the cluster is not sufficient. The development of inter-organizational information systems is contingent on the social structure of the cluster (Rodon and Sese, 2010). As a consequence, one inter-organizational system in a given cluster can provide the services that are convered by two inter-organizational systems in another cluster. For instance, Portbase system in port of Rotterdam facilitates both communication of business community with port authority and with customs. Meanwhile in Hong Kong Oneport system enables communication between business community and port authority while Tradelink systems can cover different parts of the cluster information exchange network. Thus, when describing information exchange quality within the cluster it is necessary to consider all the inter-organizational information systems operating there. Therefore, cluster information exchange arrangement via inter-organizational information systems is the construct that is considered in the current thesis. Cluster information exchange arrangement via interorganizational information systems is the set of all inter-organizational systems functioning within the cluster at the given point in time. An inter-organizational information system is considerd to belong to this set if it connects two or more organizations belonging to the specified cluster. The term arrangement does not imply that the development of these inter-organizational information systems has been intentionally planned at the cluster level to suuport cluster's competitiveness. It can be the case. However, it can also be the case that the relevant systems have been developed by independent companies or groups of companies within the cluster in their own private interests.
The companies that have the choice to join one cluster or another require a tool that allows comparing the information infrastructures of different clusters. The framework enabling the comparison of cluster information exchange arrangements via inter-organizational information systems is suggested in the current thesis. There can be different ways of evaluating the quality of information exchange supported by inter-organizational information systems. Firstly, the existing exchange can be evaluated
against the best theoretically derived solution. Alternatively, it is possible to compare information exchange arrangements across different clusters. The second approach is chosen in this work and the relative advantages of different cluster information exchange arrangements of inter-organizational information systems are discussed.
Furthermore, for the organizations responsible or interested in the prosperity of a specific cluster it is important to understand what causes differences in the information infrastructure between clusters. Is it more or less effective policies or other factors that are out of their control? On the basis of exploratory comparative case study of six port clusters this thesis demonstrates that network structure and governance power division among cluster organizations influence the character of cluster information exchange arrangements via inter-organizational information systems. Moreover a pattern in the inter-organizational information systems development is spotted showing that the probability of creation of vertical links is much higher than the probability of creation of horizontal links within the cluster. These insights contribute to the theory of information systems design. Explicit consideration of the importance of information infrastructure for the cluster development adds to the discussion on the clusters’ competition.
The construction of the research framework of the thesis as guided by the following general research question: How the differences in the cluster level arrangements of information exchange via inter-organizational information systems can be explained? The remainder of the thesis starts with the review of the relevant academic publications. A discussion is then presented that directed the development of the research framework. The cluster information exchange arrangements via interorganizational information systems of six ports are described in detail preceded by the introduction to the research methodology and data collection principles. The paper closes with the comparison of the information infrastructures of the ports and derivation of propositions suggesting the cause of the observed differences and similarities.
Sascha Treppte "The Role and Scope of Port Community Systems in Providing Data that Enhances Supply Chain Risk Management"
Introduction
Given the increasing importance of supply chain risk management (SCRM) for operational success in global trade, efficient exchange of risk-relevant information among supply chain members has become a competitive advantage. Port community systems (PCS) facilitate the information exchange in and around port communities and, therefore, might contribute to risk management of supply chain members.
To further advance research on both topics and to assist different supply chain members in identifying relevant risk factors as well as appropriate sources for risk-relevant information, this thesis investigates the role and scope of PCSs in SCRM. In particular, it studies to what extent risk managers of freight forwarders can rely on PCSs to provide them with information relevant for SCRM regarding the cross-border maritime container transport.
First, the author performs desk research in order to review researchers‟ output on both topics. The results are used to derive relevant research questions and to develop interview question-naires. Next, the author conducts semi-structured interviews with representatives of freight forwarders, Portbase as a PCS operator, and Dutch Customs. The answers are summarized to present freight forwarders‟ main processes in the cross-border maritime container transport as well as associated risk factors and information needs. Finally, the author compares forward-ers‟ information needs with the information content of PCSs and other IT systems in order to conclude on the role and scope of PCSs in SCRM.
The results characterize the role of PCSs in SCRM of freight forwarders as to serves as a source for information used to prove the validity and accuracy of risk-relevant data provided by other supply chain members. In other words, PCSs solely represent a backup information source. Moreover, the systems‟ scope is limited with respect to four subject matters: risk management process, offered services, supply chain, and geographical focus.
Further, the author also discusses three general implications regarding risk management and PCSs. First, the coordination of demand and supply of risk-relevant information in the mari-time container transport needs to be improved. Second, a global standardization of security and safety management might be beneficial. Third, general information technology advance-ments have eroded PCSs‟ business position to a certain extent. Consequently, system opera-tors need to identify new niches and alternative business models to survive in the long-run.
