Towards a Strategic Management Framework for Engineering of Organizational Robustness and Resilience
Der Rechts- und Wirtschaftswissenschaftlichen Fakultät / dem Fachbereich Wirtschafts- und Sozialwissenschaften
der Friedrich-Alexander-Universität Erlangen-Nürnberg zur Erlangung des Doktorgrades Dr. rer. pol.
vorgelegt von
Florian Maurer, MA
aus Bregenz, Österreich
Als Dissertation genehmigt
von der Rechts- und Wirtschaftswissenschaftlichen Fakultät / vom Fachbereich Wirtschafts- und Sozialwissenschaften der Friedrich-Alexander-Universität Erlangen-Nürnberg
Promotionstermin: . .
Tag der mündlichen Prüfung: . .
Vorsitzende/r des Promotionsorgans: Prof. Dr. Markus Beckmann Gutachter/in: Prof. Dr. Kathrin M. Möslein Prof. Dr. Ulrike Lechner
Abstract I
Abstract
The concepts of organizational robustness and resilience are essential to organizations to withstand internal and external dynamics, risks, uncertainties and crisis. These concepts enable organizations to innovate within these adverse situation and to find a better position before the occurrence of events. Nevertheless, these concepts are less understood in Service Science research. Main focus within this theory is still on joint co-creation of value in service networks and less on innovation from organizational crisis situation. This dissertation at hand investigates into the concepts of organizational robustness and resilience from a theoretical and empirical perspective. Both perspectives are antecedent to design, develop and engineer the Strategic Management Framework for Engineering of Organizational Robustness and Resilience. This framework is the main result of this dissertation at hand and response to this disseration’s overall research objective how a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like. The research towards this framework consists of three independent but interrelated main parts.
The first main part (part II) of this dissertation investigates into the conceptual approaches and operational constructs within Service Science towards organizational robustness and resilience. Main results of these studies are the identification of the service-dominant logic, SSMED, viable system approach and work system theory (from a theoretically lens) and the dynamic capability approach (from an empirical lens). Based on the work system framework, a resource-engineering framework, and the dynamic capability microfoundation framework, a capability-engineering framework, is developed. This analytical framework represent best the state of the art in Service Science towards the concepts of organizational robustness and resilience and is important to analyse and evaluate case study research, which are the core of part III.
The second main part (part III) of this dissertation investigates into the concepts of organizational robustness and resilience from a theoretical and a empirical lens. Due to the fact that these concepts are less understood in Service Science research, as the first one, this part makes use of knowledge and expertise of heterogenous fields of Abstract II
research (e.g. scholarly journals from the academic fields of Management Science, Operational Science, Logistics and Supply Chain Management, Management & Leadership and Organizational Psychology). Within this part III, the concepts of robustness and resilience and its related methodologies, methods and tools get elaborated and presented in the network of interrelated concepts of organizational robustness and resilience. This network is important to structure case study research: three case studies that present best the application of the concepts of organizational robustness and resilience within the field of transport logistic and supply chain management. The empirically field of transport logistic and supply chain management is chosen because it is highly sensitive: a single, provider-caused failure easily can cascade to a major disruption within the service network and lead to the breakdown of whole value chains.
The third main part (part IV) of this dissertation is about the structured analysis and evaluation of the single case studies and – based on achieved research results in parts II, III & IV – the design and development of the Strategic Management Framework for Engineering of Organizational Robustness and Resielince. This management framework is the main result of this dissertation and is important to organiztions to engineer enhanced levels of organizational robustness and resilience from a resource-, operative-, tactical- and strategic management perspective. This framework not only is the response to how a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like but also guides to discuss the path in organizations to reach higher levels of organizational robustness and resilience. This dissertation thus provides managerial implications that support organizations to innovate and evolve not only in times of certainty but also in times of organizational dynamics, risks, uncertainties and crisis. It support to keep and enhance organizational sustainability, survivability and profitability. In addition, the theoretical contributions of this dissertation at hand advance the understanding about the concepts of organizational robustness and resilience in academia. Overview of contents III
Overview of contents
Abstract ...... I
Overview of contents ...... III
Table of contents...... V
List of figures ...... XI
List of tables ...... XIII
I Introduction — objective of this dissertation ...... 1
1 Phenomenon studied and research motivation ...... 3
2 Overall research objective and research questions ...... 6
3 Structure of the disseration ...... 8
4 Research method and design ...... 11
II State of the art in Service Science — towards organizational
robustness and resilience ...... 13
1 Conceptual approaches ...... 15
2 Operational constructs ...... 62
3 Analytical framework towards organizational robustness and
resilience in service systems ...... 80
III The concepts of organizational robustness and resilience ...... 105
1 In-depth case study about organizational robustness and resilience 107
2 Case study research: Swissgold XX, Cargo Expert Germany and
Camion Austria ...... 152 Overview of contents IV
IV Strategic management framework for engineering of organizational
robustness and resilience...... 207
1 Case study analysis and evaluation: empirically observed concepts 209
2 The strategic management framework for engineering of
organizational robustness and resilience ...... 265
V Summary and conclusion ...... 309
1 Summary of part II–IV ...... 312
2 Conclusion: contributions and future directions ...... 321
References ...... 325
Annexes ...... 351
Table of contents V
Table of contents
Abstract ...... I
Overview of contents ...... III
Table of contents...... V
List of figures ...... XI
List of tables ...... XIII
I Introduction — objective of this dissertation ...... 1
1 Phenomenon studied and research motivation ...... 3
2 Overall research objective and research questions ...... 6
3 Structure of the disseration ...... 8
4 Research method and design ...... 11
II State of the art in Service Science — towards organizational
robustness and resilience ...... 13
1 Conceptual approaches ...... 15
1.1 Research design: method and data ...... 17 1.1 Conceptual approaches in Service Science ...... 19 1.1.1 Service-dominant logic ...... 23 1.1.2 Service science, management, engineering and design (SSMED) ...... 34 1.1.3 Viable system approach ...... 45 1.1.4 Work system theory ...... 52 1.1.5 Theoretically predicted concepts: criteria towards organizational robustness and resilience in Service Science (conceptual approaches) ...... 59
2 Operational constructs ...... 62
2.1 Research design: method and data ...... 62 Table of contents VI
2.2 Service interaction and value co-creation: emergent perspectives and approaches ...... 64 2.3 Service system innovation and evolution: value co-creation and service ...... 65 2.3.1 Service system engineering toward organizational robustness and resilience ...... 67 2.3.2 Cognitive capabilities ...... 69 2.3.3 Organizational culture ...... 70 2.3.4 Risk- and crisis management ...... 73 2.3.5 Business practices & technologies ...... 74 2.3.6 Extended enterprise & supply chain management ...... 76 2.4 Criteria towards organizational robustness and resilience in Service Science ...... 77 2.4.1 Organizational sensemaking & human resource management ...... 78 2.4.2 System development & (re-) engineering ...... 78 2.4.3 Safety- & security processes, including risk management strategies ...... 79 2.4.4 Capability development to increase organizational robustness and resilience ...... 79
3 Analytical framework towards organizational robustness and
resilience in service systems ...... 80
3.1 Work system theory: resource engineering ...... 81 3.1.1 Research design: method and data ...... 81 3.1.2 Work system framework ...... 82 3.1.3 Work system life cycle model ...... 85 3.1.4 Service responsibility tables ...... 86 3.1.5 Work system snapshot ...... 86 3.1.6 Service value chain framework ...... 86 3.1.7 Service domain framework ...... 87 3.1.8 Metamodel ...... 87 3.1.9 Work system framework for service system development and engineering 87 3.2 Dynamic capability approach: strategic dynamization of service systems for innovation and evolution ...... 90 3.2.1 Research design: method and data ...... 91 Table of contents VII
3.2.2 Conceptual perspective: ordinary/organizational capability – dynamic capability ...... 92 3.2.3 Findings and conclusion: dynamic capability microfoundation framework for service system innovation and evolution ...... 100 3.3 Analytical framework ...... 101 3.3.1 Selection criteria: work system framework ...... 102 3.3.2 Selection criteria: Dynamic Capability microfoundation framework ...... 102
III The concepts of organizational robustness and resilience ...... 105
1 In-depth case study about organizational robustness and resilience 107
1.1 Research design ...... 108 1.2 Content analysis about organizational robustness and resilience ...... 111 1.2.1 Organizational robustness ...... 111 1.2.2 Organizational resilience ...... 115 1.2.3 Rival streams about the concepts of organizational robustness and resilience ...... 122 1.3 Author-centric perspectives on organizational robustness and resilience ...... 123 1.3.1 Author-centric perspective on organizational robustness ...... 123 1.3.2 Author-centric perspective on organizational resilience ...... 129 1.4 Concept-centric perspectives on organizational robustness and resilience ...... 139 1.4.1 Refinement of the network of interrelated concepts of organizational robustness and resilience ...... 140 1.4.2 Findings – perspective on organizational robustness ...... 142 1.4.3 Findings – perspective on organizational resilience ...... 143 1.5 Conclusion and case study propositions ...... 145 1.5.1 Theoretically predicted concepts towards organizational robustness and resilience ...... 146 1.5.2 Author-centric and concept-centric perspectives towards organizational robustness and resilience ...... 146 1.6 Case study propositions ...... 148 Table of contents VIII
2 Case study research: Swissgold XX, Cargo Expert Germany and
Camion Austria ...... 152
2.1 Research design and process...... 153 2.2 Case study partners and selection criteria ...... 155 2.2.1 Case study partner: Swissgold XX (SXX) ...... 156 2.2.2 Case study partner: Cargo Expert Germany (CEG) ...... 158 2.2.3 Case study partner: Camion Austria (CA) ...... 159 2.3 Single Case Studies ...... 160 2.3.1 Case study “Swissgold XX” ...... 161 2.3.2 Case study “Cargo Expert Germany” ...... 172 2.3.3 Case study “Camion Austria” ...... 182 2.4 Cross-case study analysis ...... 193 2.4.1 Approaches towards organizational robustness and resilience ...... 194 2.4.2 Approaches towards risk- and crisis management ...... 196 2.4.3 Approaches towards cognitive capabilities ...... 198 2.4.4 Approaches towards organizational culture ...... 201 2.4.5 Approaches towards business practices and technologies ...... 203 2.4.6 Approaches towards extended enterprise and supply chain management 205
IV Strategic management framework for engineering of organizational
robustness and resilience...... 207
1 Case study analysis and evaluation: empirically observed concepts 209
1.1 Research design ...... 210 1.1.1 Resource-based analysis and evaluation ...... 212 1.1.2 Capability-based analysis and evaluation ...... 213 1.2 Theory development: resource-based strategies towards organizational robustness and resilience ...... 214 1.2.1 Work system framework element: infrastructure ...... 214 1.2.2 Work system framework element: strategy ...... 220 1.2.3 Work system framework element: environment ...... 228 1.2.4 Work system framework element: customer ...... 234 1.2.5 Work system framework element: product and service ...... 237 Table of contents IX
1.2.6 Work system framework element: processes and activities ...... 241 1.2.7 Work system framework element: participants ...... 245 1.2.8 Work system framework element: information ...... 248 1.2.9 Work system framework element: technology ...... 249 1.3 Theory development: capability-based policies towards organizational robustness and resilience ...... 253 1.3.1 Microfoundation framework element: sensing (and shaping new opportunities) ...... 253 1.3.2 Microfoundation framework element: seizing ...... 257 1.3.3 Microfoundation framework element: managing threats/transformation (reconfigure) ...... 261
2 The strategic management framework for engineering of
organizational robustness and resilience ...... 265
2.1 Research design ...... 267 2.2 Organizational capabilities: VRIN resource engineering ...... 269 2.3 Responsiveness capabilities: system adaption & change ...... 269 2.3.1 Risk & redundancy management ...... 270 2.3.2 Business continuity management & planning ...... 273 2.3.3 Reliability engineering ...... 276 2.4 Cognitive capabilities: system innovation ...... 280 2.4.1 Stakeholder interaction & value co-creation ...... 281 2.4.2 Knowledge & organizational learning ...... 284 2.4.3 Organizational sensemaking & leadership ...... 287 2.5 Dynamic capabilities: system evolution ...... 289 2.5.1 Sensing (and shape new opportunities) ...... 290 2.5.2 Seizing ...... 294 2.5.3 Managing threats/ transformation (reconfigure) ...... 298 2.6 Discussion and conclusion ...... 303 2.6.1 Validity and generalizability of the SMFRR ...... 304 2.6.2 Benefits and advantages of the SMFRR ...... 306 2.6.3 Relevance of the SMFRR ...... 307 Table of contents X
V Summary and conclusion ...... 309
1 Summary of part II–IV ...... 312
2 Conclusion: contributions and future directions ...... 321
References ...... 325
Annexes ...... 351
Annex A: Related publications ...... 353 Annex B: Coding ...... 355
List of figures XI
List of figures
Figure : Structure of the dissertation ...... Figure : Conceptual approaches in Service Science ...... Figure : Applied research design in chapter /part II ...... Figure : Work system framework ...... Figure : Sub-constructs of value co-creation ...... Figure : Teece's ( ) dynamic capability framework: microfoundation ...... Figure : Analytical framework ...... Figure : Research design applied in chapter /part III ...... Figure : Network of interrelated concepts of organizational robustness and resilience ...... Figure : Selective codes, its eigenvalue and edge strengths...... Figure : Total network ...... Figure : Strongest interrelations ...... Figure : Research design ...... Figure : Research design – case study coding process ...... Figure : Strategic management framework for engineering of organizational robustness and resilience (SMFRR) ...... Figure : Risk management & redundancy towards organizational robustness and resilience ...... Figure : Business continuity management & planning towards organizational robustness and resilience ...... Figure : Reliability engineering towards organizational robustness and resilience ...... Figure : Stakeholder interaction & value co-creation towards organizational robustness and resilience ...... Figure : Knowledge & organizational learning towards organizational robustness and resilience ...... Figure : Organizational sensemaking & leadership towards organizational robustness and resilience ...... Figure : Sensing: concepts towards organizational robustness and resilience ...... Figure : Seizing: concepts towards organizational robustness and resilience ...... List of figures XII
Figure : Managing threats/transformation: dynamic capabilities towards organizational robustness and resilience ...... Figure : Strategic management framework for engineering of organizational robustness and resilience (SMFRR) ...... List of tables XIII
List of tables
Table : Focus of particular main conceptual approach ...... Table : Goods-dominant logic vs. service-dominant logic ...... Table : Service-dominant logic’s foundational premises and its evolution ...... Table : Pre-requisites towards organizational robustness and resilience in service-dominant logic...... Table : Utilization in the service-dominant logic towards organizational robustness and resilience ...... Table : SSMED’s four proposition ...... Table : SSMED’s foundational concepts ...... Table : Pre-requisites towards organizational robustness and resilience in SSMED ...... Table : Utilization in SSMED towards organizational robustness and resilience ...... Table : Key principles of viable systems approach ...... Table : Pre-requisites towards organizational robustness and resilience in viable system approach ...... Table : Utilization in viable system approach towards organizational robustness and resilience ...... Table : Comparison work system theory vs. work system method ...... Table : Pre-requisites towards organizational robustness and resilience in work system theory ...... Table : Utilization in work system theory towards organizational robustness and resilience ...... Table : Journal selection for chapter /part II ...... Table : Concept-centric perspective on articles related to the work system theory ...... Table : Conceptual perspectives on dynamic capabilities ...... Table : Author-centric perspective on robustness ...... Table : Author-centric perspective on resilience ...... Table : Concept-centric perspective on robustness ...... Table : Concept-centric perspective on resilience ...... List of tables XIV
Table : Theoretically predicted concepts towards organizational robustness and resilience (author-centric perspective) ...... Table : Theoretically predicted concepts towards organizational robustness and resilience (concept-centric perspective)...... Table : Case study partner at a glance ...... Table : Work system framework resource-element “infrastructure” ...... Table : Work system framework resource-element “strategy” ...... Table : Work system framework resource-element “environment” ...... Table : Work system framework resource-element “customer” ...... Table : Work system framework resource-element “products & services” ...... Table : Work system framework resource-element “processes and activities” ...... Table : Work system framework resource-element “participants” ...... Table : Work system framework resource-element “information” ...... Table : Work system framework resource-element “technology” ...... Table : Dynamic capability microfoundation element “sensing” ...... Table : Dynamic capability microfoundation element “seizing” ...... Table : Dynamic capability microfoundation element “managing threats” ......
List of abbreviations XV
List of abbreviations
B B Business-to-Business CA Camion Austria (Case study partner; anonymized) CEG Cargo Expert Germany (Case study partner; anonymized) CEO Chief Executive Officer CIO Chief Information Officer DC Dynamic Capability e.g. exempli gratia (lat.); for example et al. et alii (lat.); and others etc. et cetera (lat.); and so forth i.e. id est (lat.); that is ICT Information & Communication Technology IT Information Technology p. page pp. pages R&D&I Department for Research, Development & Innovation resp. respectively SDL Service-Dominant Logic SME Small- and Medium-sized Enterprise S&S Safety- & Security SXX Swissgold XX (Case study partner; anonymized) WSF Work Sytem Framework WST Work System Theory
Introduction — objective of this dissertation