Towards a Strategic Framework for 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 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, and , 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 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 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

BB 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

Phenomenon studied and research motivation

1 Phenomenon studied and research motivation

The service sector is the fastest growing sector in economy worldwide. It is major contributor to (developed) countries gross domestic product (Wirtschaftskammer Österreich, ) and, due to industrial specialization, highly complex. Transport logistics and supply chain service providers within this service sector maintain a critical role. They interlink individual organizations, such as suppliers and customers, with goods transportation, warehousing services and supplementary services. A minor, provider-caused deviation can lead to major disruption up to the breakdown at the business partners’ side. The adverse impacts to transport logistics and supply chain service operations force providers to keep extraordinary attention towards organizational robustness and resilience.

To remain robust and resilient in organizational dynamics, risks, uncertainties and crisis as well as to respond to and to innovate in these situations are serious targets. As explored in the empirical field, transport logistic and supply chain management utilizes the concepts of organizational robustness and resilience and innovates its systems towards enhanced sustainability, survivability, innovation, competitive advantages and profitability. As presented in this dissertation, hurricane Sandy (a tropical hurricane at the latitude of New York City, ) affected Swissgold XX’s branch in New York disastrously. The whole branch was cut-off from any internal and external networks as well as resource supply (incl. infrastructure, transportation, electricity, fuel and gas, etc.). SXX’ core services – the transportation and warehousing of goods – broke down that impacted SXX’ service network negatively too. Imports and exports from and to New York and neighboring regions were not possible anymore. SXX was forced to develop mitigation strategies (before the arrival of hurricane Sandy) as well as response strategies (after hurricane Sandy) to protect its physical infrastructures (e.g. SXX in New York which were full of valuable goods) and ICT infrastructures to get back to operational business immediately. In contrast to static process innovation models and resource (allocation) models, SXX reacted dynamically: since the branch has been cut-off almost all resource supply, operational Phenomenon studied and research motivation

and strategic managers decided to shift a “minimal organization” into a hotel nearby New York’s JFK airport. This region of New York was less affected by hurricane Sandy and important resources – such as electricity, mobility and public transport – were available. Due to its organizational mobility, Swissgold XX was able to provide operational services and to orchestrate service deliveries to its service clients and stakeholders weeks before its major competitors. The relocation back to its original location in New York was accompanied by an in-depth analysis of the impacts of hurricane Sandy: managers identified innovation such as investment into physical infrastructure (e.g. electric generators in case of another disruption, an own petrol station, etc.), technology (e.g. access control) and human resources. Due to bank crises and negative bank interests, strategic management of Swissgold XX developed a new business idea to store cash in their . Operational managers as well as IT managers developed an innovative business model to gain advantage out of this crisis in the financial sector for their business. As it turned out, this business model created win-win situations for both – Swissgold XX as well as its customers. Swissgold XX achieved higher utilization of its warehouses, lower transaction costs and additional profits whereas customers did not have to pay negative interests, cash account fees and interest fees (capital gains tax) to its banks.

Although Camion Austria follows strict redundancy strategies, in , this case study partner experienced a major interruption of its geographically independent internet lines at the same time. This interruption caused a breakdown of Camion Austria’s operational business. The headquarter of Camion Austria has been cut-off from its branches (and vice versa) in the Eastern part of Austria and Europe. Branches were not able to access data and information provided, for example, by Camion Austria’s Transport Management and Warehouse Management System as well as e- mails, intranet and other internet based applications. Managers immediately decided to collaborate with an alternative internet provider and re-routed Camion’s data connection via Munich and Salzburg to their branches in the Eastern regions of Europe. This adaption allowed Camion Austria to bounce back from the event and be online within less than hours – faster than many competitors. Due to Germany’s change from conventional to renewable energy, case study partner Cargo Expert Germany faces the risks of electricity shortages and voltage fluctuations. To cope these electricity Phenomenon studied and research motivation

shortcuts, Cargo Expert Germany innovated its physical infrastructure and, additionally, implemented a fuel power generator. Now, Cargo Expert Germany can switch to the fuel power generator and thus stabilize its electricity demand. Additionally, since the Swabian Alb (region of Cargo Expert Germany’s headquarter) is a geographically remote region, internet provision is not that enlarged as expected. To survive internet connectivity disruptions, Cargo Expert Germany started to implement triple redundancy. In case of internet connectivity disruptions, Cargo Expert Germany can easily switch from its main internet provider to its back-up internet provider as well as to more innovative forms: satellite technology. This triple redundancy also supports to cope “unthinkable accidents”, e.g. the damage of internet data connections by an excavator used for road constructions km away from Cargo Expert Germany’s headquarter (as already experienced). This dissertation is theoretically manifested in Service Science (Böhmann, Leimeister, & Möslein, ). Although there is the call for building of adaptive and flexible service systems to respond to dynamic environments (Ostrom et al., ) and mechanisms to cope organizational uncertainties (e.g. Vargo & Lusch (a), Alter (b), Spohrer et al. ()), Service Science does not yet adequately consider the concepts of organizational robustness and resilience as well as how to innovate to a better position than before organizational crisis occurred. Additionally, if organizations are not prepared to respond to such events, as Weick & Sutcliffe () highlight, they often make things worse. This is in strong contrast to the empirical field, wherein dynamics, risks, uncertainties and crisis are considered as means to organizational adaption, renewal and innovation. This lack of knowledge within Service Science is core motivation to explore and to explain why some and how some organizations provide superior performance, profitability and competitive advantage. This research motivation is accompanied by the provision of better understanding on what the essence of robust and resilient organizations are, how organizations provide superior performance, profitability and competitive advantage as well as how these organizations innovate in times of organizational certainty and in times of organizational dynamics, risks, uncertainty and crisis to the Service Science community. Overall research objective and research questions

2 Overall research objective and research questions

The research motivation is accompanied by overall research objective of how a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like. To appropriately respond to and to design and develop such a framework, this research objective is split into three manageable research questions.

RQ: Which conceptual approaches are discussed in Service Science towards organizational robustness and resilience and which criteria do they meet to increase organizational sustainability and survivability?

The objective of this research question is to explore the state-of-the-art in engineering and innovation of service system towards increased levels of organizational robustness and resilience. To respond to RQ, this research is based on review literatures about the conceptual approaches towards organizational robustness and resilience in Service Science and the manifestation in the empirical field. The outcome of this research is an analytical framework – a merger of Alter's () work system framework, a static, resource-based engineering framework and Teece's () dynamic capability microfoundation framework, a dynamic capability-based engineering framework. From a Service Science perspective, this framework represents best the research endeavours within this theory and is important to structurally analyse the case study research about the concepts of organizational robustness and resilience.

RQ: What is the structure of knowledge on the concepts of organizational robustness and resilience and how do organizations act on these concepts to respond better to organizational dynamics, risks, uncertainties and crisis?

This research question advances into the lack of knowledge about the concepts of organizational robustness and resilience in Service Science. The objective of this research question is to explore research endeavors in theory and practice. Based on literature reviews about the concepts of organizational robustness and resilience, the network of interrelated concepts of organizational robustness and resilience is developed. This network is the main response of the philosophical research about the Overall research objective and research questions

concepts of organizational robustness and is important to conduct following empirical research: three single case studies within the field of transport logistics and supply chain management. This network is important to derive case study propositions about the concepts or organizational robustness and resilience as well as to structured particular single case study among the network’s nodes of cognitive capabilities, organizational culture, risk- and crisis management, business practices and technologies and extended enterprise and supply chain management.

Center to the final step is overall research question (RQ) about how a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like? Single case studies (structured among the network of interrelated concepts of organizational robustness and resilience, RQ) experience a structured analysis and evaluation by application of previously developed analytical framework (RQ). Identified strategies out of this analysis and evaluation base as elements to design and develop a Strategic Management Framework for Engineering of Organizational Robustness and Resilience. This framework guides to transform “ordinary” resources into organizational capabilities, responsiveness capabilities, cognitive capabilities and dynamic capabilities. Structure of the disseration

3 Structure of the disseration

As depicted in figure , this dissertation is divided into five main parts (I-V). Part I introduces the phenomenon studied and presents the research motivation, research objective and research questions. Additionally, part I presents the structure of the dissertation and the applied research method and design.

PART I Introduction – objective of this dissertation State of the art in Service Science — towards organizational robustness and resilience Chapter 1 Chapter 2 Chapter 3 Analytical framework

PART II PART towards organizational Conceptual approaches Operational constructs robustness and resilience in service systems Concepts of organizational robustness and resilience Chapter 1 Chapter 2

In-depth case study about organizational Case study research: Swissgold XX, Cargo

PART III PART robustness and resilience Expert Germany and Camion Austria

Strategic management framework for engineering of organizational robustness and resilience Chapter 1 Chapter 2

The strategic management framework

PART IV PART Case study analysis and evaluation: for engineering of empirically observed concepts organizational robustness and resilience

PART V Summary and conclusion

Figure : Structure of the dissertation

Part II investigates into the conceptual approaches in Service Science towards organizational robustness and resilience. This part II consists of three chapters. Chapter and present literature reviews about the state-of-the-art in Service Science among the main conceptual approaches from a theoretical and philosophical manifestation perspective and an operational constructs perspective. Based upon the results gained in these chapters, chapter presents a literately-driven analytical framework to increase robustness and resilience in Service Science. This analytical framework is based on Alter's () work system framework – a static, resource-based engineering Structure of the disseration

framework identified in chapter – and Teece's () dynamic capability microfoundation framework – a dynamic capability-based engineering framework. The work system framework and dynamic capability microfoundation framework are identified as complementary frameworks. Both frameworks are central to the structured analysis and evaluation of the case studies in chapter and the development of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience in chapter .

Since the concepts of organizational robustness and resilience are not considered appropriately in Service Science, part III investigates into the exploration of knowledge about the concepts organizational robustness and resilience from a theoretical and empirical perspective. This part III is to introduce and enrich Service Science with the concepts of organizational robustness and resilience: to sustain and survive as well as to innovate in times of organizational dynamics, risks, uncertainties and crises. This part III consists of two chapters. Chapter presents a literature review of existing knowledge and theories about organizational robustness and resilience from heterogeneous academic disciplines. Chapter presents the network of interrelated concepts of organizational robustness and resilience. This network is the base to formulate case study propositions and to structure following case study research about the concepts of organizational robustness and resilience in the empirical field. This case study research, presented in chapter , consists of three single case studies conducted with international transport logistics and supply chain management service providers, located in the area of the Lake of Constance. The single case studies enrich existing literature about the concepts of organizational robustness and resilience with empirical knowledge about how to manage, engineer and design organizational robustness and resilience in its internal and external service provision environments, how to adapt to situations and to manage, engineer and design change, renewal and innovation within crisis as well as how to gain advantage out of crisis.

Part IV presents the structured analysis and evaluation of conducted case study research and the design and development of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience. This part consists of two chapters. By the use of previously developed analytical framework (developed in part Structure of the disseration

II/chapter ), chapter presents the structured analysis and evaluation of conducted single case studies. This analysis forms the design and development base for the Strategic Management Framework for Engineering of Organizational Robustness and Resilience, which is core object of investigation in chapter . This framework is the main result of this dissertation at hand and enrich theory and practice by introduction of resource- and capability engineering towards increased levels of organizational robustness and resilience within service systems. This framework guides both – scholars and practitioners – to increase organizational robustness and resilience at resource level of a service system as well as on its operational, tactical and strategic management levels – the engineering of resources and capabilities system levels.

Part V summarizes and concludes this dissertation at hand. This part purposefully reflects the dissertation, its parts and chapters. Moreover, this part presents the contributions of this dissertation to practice and research community as well as it provides future directions. The overall structure of this dissertation is presented in figure . Research method and design

4 Research method and design

This dissertation makes use of the case study research method (Yin, ). Case study research is a qualitative research method and enables to combine heterogeneous data and information. Yin's () case study research approach provides guidance in planning, designing and preparing the case study research as well as in collection, analysis and sharing/reporting of data, information and knowledge. The collection of data, information and knowledge – the state of the art in literature about the concepts of organizational robustness and resilience – base on literature reviews about the conceptual approaches in Service Science and accompanied fields of research. Literature reviews in case study research are an important method and support to explore what is already known on a topic (Yin, ), to develop sharper and more insightful questions about the topic (Yin, ) and to go into organizations with a well- defined focus about objective of investigation (Eisenhardt, ). The analysis of data, information and knowledge base on well-established methods in literature. For example, single case study reports get structurally analyzed by application of the Grounded Theory’s processes of open-, axial- and selective coding. The sharing/reporting of data, information and knowledge is in combination with the logic modeling technique and visual mapping strategy (e.g. Langley ()). Visual mapping strategy supplements logic modelling technique and allows to present a large amount of data, information and knowledge on little space. Fundamental to design and development of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience are theoretically predicted events and empirically observed events. Theoretically predicted events are important concepts towards the engineering of increased levels of organizational robustness and resilience identified in theory and literature. Empirically observed events are activities and strategies towards the engineering of increased levels of organizational robustness and resilience identified in the empirical field. Related to the case study approach of Yin (), logic modelling is a technique of (incrementally) matching empirically observed events and theoretically predicted events.

State of the art in Service Science — towards organizational robustness and resilience

Conceptual approaches

1 Conceptual approaches

This part II investigates into the state of the art in Service Science towards organizational robustness and resilience. It origins in the RQ and explores which conceptual approaches are discussed in Service Science towards organizational robustness and resilience and which criteria do they meet to increase organizational sustainability and survivability. To respond to this research question, this part is structured in three chapters. Chapter is about the conceptual approaches in Service Science. Chapter investigates into operation constructs in Service Science. Based on the research results achieved in chapter and , chapter is about the development of an analytical framework to structurally analyze and evaluate organizational robustness and resilience within service systems. In further consequence, this analytical framework is important to structurally analyze and evaluate conducted single case studies and founds the basis of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience.

This first chapter of part II is about the research into the concepts of organizational robustness and resilience in Service Science. In the center of this chapter are the conceptual approaches in Service Science to manage, engineer and design service systems against internal and external dynamics, risks, uncertainties and which criteria do they meet to increase organizational sustainability and survivability. This chapter presents a concept-centric literature review about service-dominant logic, SSMED (service science, management, engineering and design), viable system approach and work system theory, its prerequisites, utilization and focus towards organizational robustness and resilience.

This review identifies stakeholder interaction & value co-creation, knowledge exploration & management and system development & engineering as guiding (theoretically predicted) concepts within Service Science towards increased organizational sustainability and survivability. Additionally, the work system theory is selected as the basis to develop and engineer organizational robustness and resilience at resource level into service systems. As identified in this review, Service

Conceptual approaches

Science is about the research into service, service systems, service networks and service ecosystems. Major emphasis is on the challenge how service systems interact and collaboratively create value (service) as well as how service systems innovate and evolve within the service environment/ecology (Vargo, Maglio, & Akaka, ). Service Science considers the management, engineering and design of (collaborative, open) service innovation as the most important trigger for service and service system evolution.

Figure : Conceptual approaches in Service Science

As depicted in figure , Service Science pursues of two main conceptual approaches that are service-dominant logic and SSMED (Service Science, Management, Engineering and Design). Service-dominant logic is a marketing-related theory to improve and innovate service interactions and value co-creation mechanisms among service providers and service customers. The other approach, summarized here under the label SSMED, is an operationally-driven approach to design and develop systematic service innovation. Science within the concept of SSMED is about the science into how service systems evolve. Management within the concept of SSMED examines how to improve efficiency and sustainability in service systems. Engineering within the concept of SSMED is about the development of new processes, services and technologies. Design within the concept of SSMED is about the structure of service systems (Polese et al., ).

Conceptual approaches

Service-dominant logic’s approach toward service innovation bases heavily on external integration of customers and other system stakeholders whereas SSMED’s approach toward service innovation is based on (re-) engineering and control of service systems internal circumstances. The viable system approach includes ideas of both: the service-dominant logic and SSMED, e.g. service interactions and complexity of service and service systems from the service-dominant logic as well as service system’s resources and adaption mechanisms from SSMED. The viable system approach focuses on value and competitiveness. The work system theory is a concept within SSMED and is about the operational engineering and development of service and service systems. The work system theory provides advanced frameworks for service system innovation on service system’s resource level. Service-dominant logic, SSMED, viable system approach and work system theory will be discussed in detail on the following pages.

This chapter is structured in two sections. Section describes the research design and research methodology. Section deepens into the conceptual approaches within Service Science. Section is split into five subsections. Subsections - present criteria of identified conceptual approach: the pre-requisites of the service-dominant logic, SSMED, viable system approach and work system theory as well as its focus and utilization. Subsection concludes this chapter and presents the research findings. These findings are clustered around theoretically predicted concepts towards organizational robustness and resilience and are the basis for further investigation in chapter . Additionally, the work system theory is selected as means in Service Science to increase organizational sustainability and survivability against internal and external dynamics, risks, uncertainties and crisis.

1.1 Research design: method and data

As depicted in figure , this chapter is guided by the research design of Lamnek (). This research design provides the basis to search and select literature about the conceptual approaches in Service Science.

Conceptual approaches

Figure : Applied research design in chapter /part II

The Service Science Worldwide Community is a pro-active, world-wide acting community researching within the academic field of Service Science. The purpose of this community is to provide a platform for exchanging information and ideas about Service Science education and research. Participants of the Service Science Worldwide Community1 pro-actively co-organize scientific events, such as the Hawaii International Conference on System , the Naples Forum and the Human Side of Service Engineering Conference. Additionally, this community collaborates with the International Society of Service Innovation Professionals. This community is selected as cultural manifestation of this chapter.

The community’s article database is selected as object area of this chapter. This article database captures scientific articles published in international scientific journals and conferences. However, based on an in-depth analysis and evaluation, articles form the units of analysis of this chapter. These articles have gone through

1 e.g. Spohrer, Spohrer, Satzger, Ganz. (http://service-science.info/ssme-wiki-archives/ssme-wiki-archives- karlsruhe)

Conceptual approaches

rigorous review processes and, based on the skimming and scanning of the articles’ abstracts and findings, were selected or rejected for the further concept-centric literature review. In total, scholarly articles passed this process. These scholarly articles form the sample size of this chapter at hand.

The operationalization of the theoretic-hypothetic preliminary considerations – namely the units of analysis and its underlying dimension and category – are about the concept-centric presentation of identified conceptual approaches in Service Science, their prerequisites, focus and utilization towards organizational robustness and resilience in service systems. This chapter utilizes the concept-centric literature review method of Webster & Watson (). In detail, selected scholarly articles are carefully analyzed for relevant information, knowledge and expertise towards the prerequisites, focus and utilization of particular conceptual approach. These information are captured and documented in excel tables.

. Conceptual approaches in Service Science

Four main conceptual approaches, as depicted in table , related to Service Science could be identified. These are the service-dominant logic, SSMED, viable system approach and the work system theory. The application of particular conceptual approach provides several benefits. For example, the application of service-dominant logic is beneficial to shift from goods-dominated production and paradigms towards increased service thinking. While goods-dominant logic “advocates standardization, production away from the market and the interference of customers, and storage of output until sale” (Lusch et al., ), service-dominant logic is to move forward “ordinary” service management: service can be provided through a good but service is superordinate to goods – not substitutes. Service, in this perspective, is the common dominator of social and economic exchange.

As depicted in table , focus of particular conceptual approach are clustered around eight perspectives: service thinking/thinking systems in services, value co-creation, service innovation, service resources, customer/stakeholder relationship management, resource: knowledge, service management, engineering and design and service system

Conceptual approaches

control. The utilization of identified conceptual approach can be summarized as follows.

Service-dominant logic increases value co-creation with and among service system clients and service system stakeholders. It improves the potential to launch services and service innovation.

SSMED increases services, service systems and its service interaction mechanisms by continuous service system (re-) engineering: innovation and evolution by use of knowledge gained from the service ecology.

Viable system approach increases the system's viability, sustainability and survivability through dynamic stakeholder interaction and value co-creation mechanisms.

Work system theory enables and increases service and service system innovation and evolution on resource level, which are measures of organizational sustainability and survivability.

These conceptual approaches, their prerequisites and utilization are objective within the following subsections.

Conceptual approaches

Table : Focus of particular main conceptual approach

Benefits of identified concepts of Service Science Focus Service-dominant logic SSMED Viable system approach Work system theory Service thinking Shift from Goods-dominant logic Improvement of resource- and Increased service thinking at Thinking systems in within an organization to service- process-based service thinking operational and strategic business services dominant logic - increased service within an organization: level (IT and management): increased orientation and service centricity, documentation and categorization thinking of systems as service and improved service management; of service and service systems by vice versa within a system (e.g. service production for the service consideration of internal and organization) client rather than the market external coordination mechanisms Value co-creation Close interaction with the service Close relationships to service client and the integration of its stakeholders by development of resources (e.g. knowledge, skills, interaction mechanisms: requirements) - reduction of establishment of mechanisms that complexity and increased increase service interactions and potential for service innovation; thus enable service innovation (on increased potential for value co- product-, service- and process level) creation that again drives/lead to strategic service innovation Service innovation Innovation on product-, service- Increased organizational capacity of Increased mechanisms of socio- and process level - increased service and service system technical engineering and innovation service performance, service innovation by integration of the within an organization: consideration propositions and service provision service ecology; service system of human and technology as equal within the single organization and innovation and sustainability trough resources in service systems; its service network interaction and value co-creation increased business-IT alignment Service resources Awareness and application of Better use and application of internal and external resources - resources - gain advantage out of increased ability to develop human resources but also of service innovation technology: resources as basis to improve service systems

Conceptual approaches

Customer/stakeholder Market proximity and close Increased provider/user relationship relationship to market actors interaction that results in strong management (clients and other (business) and sturdy co-creation stakeholders) - increased mechanisms service networks - resources for service innovation establishment of value networks Resource: knowledge Management, engineering and design of increased knowledge orchestration mechanisms: knowledge as a special form of the service and the service system's resource base Service management, Engineering of service and service Increased service system Increased organizational mechanisms engineering and systems according to (changed) sustainability and survivability to design, engineer and manage IT- design service needs, requirements and incl. scenario planning and reliant service systems within a single innovation: system's evolution, dynamic adoption organization and beyond (networks); sustainability and survivability as (consonance/resonance increased analyze and evaluation outcome of management, mechanisms) of situations mechanisms as antecedent to develop engineering and design of system and implement service innovation; interactions, value co-creation guidance through the support of mechanisms operational methods, frameworks and design/engineering tools Service system control Monitoring of service performance indicators (incl. service quality) that improve the operation of service systems; increased reaction time in case of deviations

Conceptual approaches

.. Service-dominant logic

The conceptual approach of service-dominant logic, according to Maglio & Spohrer (), builds the philosophical foundation for Service Science. Service-dominant logic firstly was introduced and published by Vargo & Lusch in as a new paradigm to think systems in services, including increased service centricity, service orientation and service quality. This conceptual approach is a further development of the general Marketing Theory (e.g. Vargo & Lusch (), Gummesson et al. ()). Service- dominant logic emphasis on increased service interactions and mutual, collaborative creation of value within and among service systems as well as on marketing methods (including customer relationship management and many-to-many marketing).

Table : Goods-dominant logic vs. service-dominant logic (Source: Lusch et al. ())

Goods-dominant logic Service-dominant logic Operand resources Operant resources Resources that are often intangible (knowledge and (= static, usually tangible (= dynamic, usually skills), capable of acting on operand resources and resources) intangible resources) even other operant resources to create value Resource acquisitions Resourcing Resource is turned into specific benefit and involves human knowledge and ingenuity; resource creating and integration, removing resistances Goods and services Servicing and Interaction between service provider and customer - experiencing also to design and engineer service innovation Price Value proposition Customer as an integrator of inputs and resources to create value - provider only can provide value propositions; value occurs by co-creation Promotion Dialog A process that bases on trust, learning together, and adaptation to each other - understand particular needs (many-to-many marketing) Supply chain Value-creation network Real source of wealth is knowledge and information that enable to create new opportunities for innovation and density creation Maximizing behaviour Learning via exchange Financial outcome as a dominator of success / failure: income exceeds expenses implies that the entity performs better than its resourcing efforts "Marketing to" Collaborative marketing Customer as a collaborative partner for value co- ("marketing with") creation

As table highlights, service-dominant logic is established as an alternative to the concept of the Goods-dominant logic. While service in Goods-dominant logic, as Lusch, Vargo, & Wessels () highlight, was all but ignored, the aim of service- dominant logic is to move forward “ordinary” service management. Service within the concept of service-dominant logic can be provided through a good but service are

Conceptual approaches

superordinate to goods – not substitutes. Service then are considered as a framework for thinking about value creation (Barile & Polese, a). Service-dominant logic, related to Lusch et al. (), considers “service as a process, rather than a unit of an output”. It “focus on dynamic resources, such as knowledge and skills, rather than static resources, such as natural resources” and considers “value as a collaborative process between providers and customer, rather than what procedures create and subsequently deliver to customers”. In service-dominant logic, as Vargo, Maglio, & Akaka () highlight, service is exchanged for service (value-in-use).

Core constructs and foundational premises

Service-dominant logic bases on five core constructs: service, value, system, interaction and resources (Vargo, Lusch, & Akaka, ). Service within service- dominant logic are the fundamental basis of economic and social exchange (Vargo & Akaka, ). Service are exchanged for service and, as Vargo et al. () highlight, is considered as a (collaborative) process of serving: doing something for and/or with another service system (e.g. the application of competences such as knowledge and skills for the benefit of others (Vargo & Lusch, b)). Service systems within the service-dominant logic aim to co-produce service offerings, engage in mutual service provision and collaboratively create value (e.g. Vargo & Lusch (), Vargo & Akaka ()). Since service systems within perspective of service-dominant logic are connected via value propositions, value is always co-created. Service-dominant logic’s approach towards value co-creation bases on service interactions manifested in collaborative communication (among multiple service systems: many-to-many) and learning via exchange (e.g. feedback loops). Value co-creation is influenced by service system’s ecologies – “a spontaneously sensing and responding spatial and temporal structure of largely loosely coupled, value-proposing social and economic actors” (Vargo & Lusch, ). These value-creation networks contribute to value co-creation, co-production and exchange of service offerings. Service system stakeholders openly share symmetric information – “externally (e.g., across firms and customers) and internally (e.g., within the firm)” (Vargo et al., ).

In the centre of service-dominant logic are operant resources (Vargo et al., ): resources, intangibles, competences, dynamics, exchange processes and relationships

Conceptual approaches

to learn, improve and innovate service systems, service and service propositions (Lusch et al., ). For example, service providers become a resource of the service client to cope service tradeoffs and vice versa. Goods can be a distribution channel and financial flows are a medium of exchange. Service-dominant logic is accompanied by foundational premises. Eight of these premises are originally published in (Vargo & Lusch, ). Related to feedback of scholars within Service Science and related fields of research, Lusch & Vargo revised the foundational premises incrementally and added two more premises (Vargo & Lusch, , b). Table presents the evolution of service-dominant logic’s foundational premises from the beginning until today. Additionally, table highlights that these foundational premises have found their way into the conceptual approaches of SSMED (Spohrer et al., ), viable systems approach (Barile & Polese, b) and the work system theory (Alter, a, b).

Conceptual approaches

Table : Service-dominant logic’s foundational premises and its evolution

FP Vargo & Lusch (); Vargo & Lusch () Vargo & Lusch (b); Explanation/Justification Main focus Alter (a, b) Spohrer et al. (); Vargo et Vargo et al. (a) (Barile & Polese, a) al. (); Vargo et al. (a, b) The application of specialized The application of specialized Service is the fundamental basis The application of operant Exchange between system skills and knowledge is the skill(s) and knowledge is the of exchange resources (knowledge and entities fundamental unit of exchange fundamental unit of exchange skills), "service" is the basis for all exchange. Service is exchanged for service Indirect exchange masks the Indirect exchange masks the Indirect exchange masks the Goods, money, and institutions Service for service fundamental unit of exchange fundamental unit of exchange fundamental basis of exchange mask the service-for-service nature of exchange Goods are distribution Goods are distribution Goods are a distribution Goods (both durable and non- Appliance for service provision mechanisms for service mechanisms for service mechanism for service durable) derive their value provision provision provision through use - the service they provide Knowledge is the fundamental Knowledge is the fundamental Operant resources are the The comparative ability to Distinctive resources for source of competitive source of competitive fundamental source of cause desired change drives synergistic embeddedness advantage advantage competitive advantage competition All economies are services All economies are services All economies are service Service (singular) is only now Service economy as modern economies economies economies becoming more apparent with economy increased specialization and outsourcing The customer is always The customer is always a co- The customer is always a co- Implies value creation is Consumption for coproducer creator of value creator of value interactional potential/effective transfer The enterprise can only make The enterprise can only make The enterprise cannot deliver The firm can offer its applied Consonance for mutual value propositions value propositions value, but only offer value resources and collaboratively satisfaction propositions (interactively) create value following acceptance, but cannot create/deliver value alone

Conceptual approaches

A service-centered view is A service-centered view is A service-centered view is Service is customer-determined Interactions for solutions customer oriented and customer oriented and inherently customer oriented and co-created; thus, it is relational relational and relational inherently customer oriented and relational Organizations exist to integrate All social and economic actors Implies the context of value Participation in value co- and transform microspecialized are resource integrators creation is in networks of creation processes competences into complex networks (resource-integrators) services that are demanded in the marketplace Value is always uniquely and Value is idiosyncratic, Value culture improvement phenomenological determined experiential, contextual, and by the beneficiary meaning laden

Conceptual approaches

Prerequisites towards organizational robustness and resilience in service- dominant logic

Since service-dominant logic emerged in academe (e.g. Gummesson et al. ()), this conceptual approach forms a meta-guideline within the field of Service Science how to increase customer-centricity, resource integration mechanisms and value co- creation interactions (to access, adapt and integrate resources to co-create value). Service-dominant logic provides necessary vocabulary to think and normatively talk about service as well as to implement increased service thinking and thinking systems in services. As identified, the concept of service-dominant logic is about service exchange: improved interaction mechanisms between service provider and service client and value co-creation mechanism. It bases on the application of knowledge (including customer knowledge, business stakeholder knowledge and scientific knowledge) to advance the ability to innovate and scale service and service systems. In the service-dominant logic, economic actors are resource integrators and co-creators of value that again enable service systems and service ecosystems to launch service- and system innovation. Service-dominant logic has a strong emphasize on marketing methods, including tight customer relationships and their management. As this concept-centric literature review presents, benefits of service-dominant logic are service thinking/thinking systems in service, value co-creation, service innovation, service resources and customer/stakeholder relationship management.

The utilization of the service-dominant logic increases value co-creation with and among service system clients and service system stakeholders. It improves the potential to launch services and service innovation. Although service-dominant logic offers a deeper understanding about the theory of service customer and service provider interaction, value co-creation and value propositions, Alter, a main protagonist of the work system theory, criticises that service-dominant logic says rather little things about the operationally engineering and design of service systems.

Conceptual approaches

Table : Pre-requisites towards organizational robustness and resilience in service-dominant logic

Prerequisites towards organizational robustness and resilience in service- Sources dominant logic Shift from goods-dominant logic to service-dominant logic: it is a mindset, a lens - Vargo & Lusch (a, b; ); Vargo & Lusch (); Vargo & Akaka market/economic perspective (); Vargo at al. (); Maglio et al. (); Barile & Polese (a) Right mindset & awareness - service orientation, service oriented architectures: Vargo & Lusch (a, b); Vargo et al. (); Lusch et al. (); Zhao et service can be provided through a good but service is always the common dominator al. (); Spohrer & Kwan (); Vargo et al. () of social and economic exchange (goods are not the dominator of economic exchange anymore – they can be a transmitter of service); Understanding that goods are service-delivery vehicles/transmitters of service Awareness that service interaction is driver for organizational innovation Spohrer et al. () Shift from service management to think systems in service: marketing concepts as Vargo & Lusch (a, b); Vargo et al. (); Barile & Polese (a); instrument to capture service requests, requirements, satisfaction and experience - Vargo et al. () knowledge about the shift from value in exchange (value is manufactured = goods) to value in use (service and its impact (satisfaction, experience)) Processes to build up of a common approach (normative organizational theory) and Vargo & Akaka (); Vargo et al. (); Spohrer et al. () new strategic alignment towards service and thinking systems in service (incl. SSMED, Service systems, configurations, modes of interaction, etc.) Ecosystem approach – combining organizations, resource integration and Vargo & Lusch (); Vargo & Akaka (); Vargo et al. (); Vargo technologies: awareness that all economic actors and service stakeholders are & Lusch (a); Gummesson et al. (); Spohrer et al. () resource integrators in service; Increased interaction with particular service environment – interactive processes between service provider and service client Fertile knowledge, competences and skills to serve the service clients requests and Vargo & Lusch (a, b); Lusch et al. (); Spohrer et al. (); Barile requirements; integration/activation of stakeholders: stakeholders are value co- & Polese (a); Vargo et al. (); Vargo & Lusch (); Vargo & creators and thus trigger for service density (rebundling, unbundling, liquefying …) Akaka (); Barile & Polese (b); Lusch et al. (); Vargo & Lusch (co-production is only a part of co-creation) (); Vargo & Akaka () Awareness that service is a process that base on dynamic resources (knowledge, skills Vargo et al. (), Maglio, & Akaka (); Barile & Polese (); incl. operand resource) and value co-creation: value-in-use > from product to service Spohrer (); Lusch et al. (); Vargo & Akaka (); Maglio & processes Spohrer ()

Conceptual approaches

Network-based theory/approaches, marketing approaches (e.g. many-to-many), Vargo & Lusch (a, b); Vargo & Akaka (); Barile & Polese (); customer relationship management, service marketing, many-to-many marketing: Gummesson & Polese (); Barile & Polese (a); Polese et al. (); development of dynamic configurations to access appropriate resources - Gummesson et al. (); Kieliszewski et al. (); Barile & Polese consideration of the market as the whole (a); Gummesson & Polese (); Vargo & Akaka (); Vargo & Akaka () Awareness that organizational survival base on the resources of stakeholders Vargo et al. ()

Conceptual approaches

Table : Utilization in the service-dominant logic towards organizational robustness and resilience

Focus Service-dominant logic supports to ... Sources Benefits Service think in service – service as a process; service as the fundamental Vargo & Lusch (a, b); Lusch et al. Shift from goods- thinking/think basis of exchange (); Vargo et al. (); Vargo & Lusch dominant logic systems in services () within an buildup of an organizational theory/framework to launch service Vargo & Lusch (a, b); Lusch et al. organization to and service systems (rather than goods production) - enable (); Vargo et al. (); Barile & Polese service-dominant system participations to think service in a broader context (a); Polese et al. (); Alter (); logic - increased Vargo & Lusch (); Vargo & Akaka service orientation () and service build up of a service oriented vocabulary - a service-system Maglio & Spohrer (); Maglio et al. centricity, improved abstraction (); Vargo et al. () service management; think in services/systems in services: development of an improved Vargo & Lusch (a, b); Lusch et al. service production service culture/mutual service provision system: interaction (); Spohrer et al. (); Zhao et al. for the service client orientation and value co-creation (); Polese et al. (); Vargo & Akaka rather than the (); Vargo & Lusch () market shift from 'ordinary' service management to think systems in Gummesson & Polese (); Vargo & services - to realize service: increase service centration Akaka (); Gummesson et al. (); Vargo et al. () increase service understanding - service systems as resources and Lusch et al. (); Maglio et al. (); (dynamic) resource configurations/behaviors - service system are Barile & Polese (a) resource configurations and a resource itself increase service understanding - service systems as resources and Lusch et al. (); Maglio et al. (); (dynamic) resource configurations/behaviors - service system are Barile & Polese (a) resource configurations and a resource itself stay focused on a goal Vargo & Lusch () Co-creation Value co-creation the core/basis for systematic service innovation Lusch et al. (); Vargo & Lusch (a); Close interaction and system evolution/(re-)formation: co-creation is the main Vargo et al. (); Gummesson et al. (); with the service purpose of service systems Vargo et al. (); Vargo & Akaka () client and the

Conceptual approaches

increase value (co-) creation rather than co-production; service-for- Vargo & Lusch (); Vargo & Lusch integration of its service exchange incl. learning from resource integrators (); Vargo & Akaka (); Vargo et al. resources (e.g. (); Barile & Polese (a); Alter knowledge, skills, (b); Alter (); Vargo & Lusch () requirements) - include all economic actors as resource integrators/service ecology: Maglio et al. (); Vargo et al. (); reduction of increase understanding that service systems are resource Vargo & Lusch () complexity and configurations and resources itself increased potential describe service system entities, value co-creation interactions and Spohrer et al. () for service outcomes to understand (the true nature of) exchange: interaction innovation; as means to organizational sustainability and survivability increased potential co-create value within mutually beneficial relationships (value-in- Vargo et al. (); Polese et al. () for value co-creation use principle) that again develop a holistic service profit chain/network; think in service - Lusch et al. (); Zhao et al. (); Vargo drives/lead to service as process to serve the service ecosystem et al. (); Vargo & Akaka () strategic service innovation

Service resources increase quality/service quality: quality offer, customers’ quality Gummesson et al. () Awareness and perceptions, quality certification, organizational quality: quality application of management / Total Quality Management internal and external increase organizational cognitive skills (e.g. information, Maglio & Spohrer (); Vargo et al. (); resources - increased knowledge, learning), competences incl. information-sharing, Vargo & Lusch (a); Zhao et al. (); ability to develop work-sharing, risk-sharing, goods-sharing; gain advantage of Barile & Polese (); Spohrer & Kwan service innovation extended capabilities (); Spohrer et al. (); Barile & Polese (a, b); Alter (); Kieliszewski et al. () consider technology as a resource: operand resource; alignment Zhao et al. (); Vargo & Akaka () business and IT Marketing/customer increase marketing and customer relationship management: Gummesson & Polese (); Polese et al. Market proximity relationship customer centricity to realize service, service satisfaction and (); Barile & Polese (); Gummesson and close management service experience et al. (); Vargo et al. (); Alter relationship to (b) market actors (clients

Conceptual approaches

build-up market proximity - continuous re-development of a Vargo & Lusch (); Gummesson & and other (business) (marketing) theory of the market and its stakeholders: Polese (); Maglio et al. (); stakeholders) - improvement of economic exchange (that again drives service Gummesson et al. (); Vargo & Akaka increased resources interaction) and learning from the market (, ); Spohrer (); Vargo et al. for service (); Alter (b) innovation to increase viability of systems and coherent network Barile & Polese (); Gummesson & relationships: reformulation of marketing strategies - marketing as Polese (); Vargo et al. (); Barile & a mediator between internal employees and customer demands Polese (a); Polese et al. () Service innovation increase service innovation / systematic innovation and quality: Maglio & Spohrer (); Maglio & Spohrer Innovation on service innovation and service quality as main guarantees for (); Vargo et al. (); Polese et al. product-, service- business development () and process level - create service density (resource bundling, unbundling, liquefying, Vargo & Lusch (a); Vargo & Akaka increased service etc.) and development of more systematic and reciprocal processes (); Vargo & Akaka () performance, service for value co-creation propositions and develop competitive service systems basing on orchestration Vargo & Akaka () service provision mechanisms: resource-, social- and system-integration as well as within the single systematic value co-creation (resource valorization) organization and its to survive: service systems depend on the resources of system Vargo et al. (a, b) service network stakeholders to survive incl. cognitive resources, e.g. learning and (fertile) knowledge buildup of services that can deal with emergent properties, fractal Vargo & Lusch (a) patterns, on-linear patterns

Conceptual approaches

.. Service science, management, engineering and design (SSMED)

The conceptual approach of SSMED emerged in practice (e.g. Gummesson et al. ()) and acts on strategic and operational level. SSMED, as Polese, Tartaglione, & Sarno () highlight, is established to respond to operational system challenges: how to improve knowledge/understanding (science), how to improve efficiency (management; improve capabilities, define progress measures and optimize investment strategies), how to develop new technologies (engineering; to improve control and optimize resources) and how to configure techniques and studies to correctly structure service systems (design; to improve experience and explore possibilities). Objective within SSMED is to launch productive service interactions, labour productivity and innovation measuring productivity (evolution of value co- creation and value-in-use). Related to Spohrer et al. (), measures include:

“() identify all the stakeholder system entities in a network under study (a network analysis is always done in the context of entire service system ecology), () examine existing relationships, value cocreation mechanisms, and understand the problems and opportunities the stakeholders have identified, () next try to improve existing value cocreation mechanisms (this may involve freeing up resources from existing service system entities and redistributing them), () if problems and opportunities remain, create new service system entities to address them” (Spohrer et al., ).

Further objectives of SSMED are to improve service systems’ efficiency, effectiveness, performance and sustainability as well as the innovation and evolution of service and service systems. Service innovation and evolution is a major target within Service Science and is about the continuous further development of service and service systems basing on service clients requests. Service system’s innovation, sustainability and survivability capacities, according to Vargo et al. (), highly depends on customer integration and customer interaction but also on further service system stakeholders. At the heart of SSMED are four propositions, ten foundational concepts and a broad range of methods, frameworks and tools that pave the way to think in services as well as to think systems in service.

Conceptual approaches

Propositions, foundational concepts and management frameworks

Related to Spohrer et al. () as well as Maglio & Spohrer () (as a rework of the research of Spohrer, Piciocchi, & Bassano ()), SSMED bases on four propositions. These propositions are presented in table .

Table : SSMED’s four proposition

Propositions Source Service system entities dynamically configure (transform) four Spohrer et al. () types of resources Service system entities dynamically configure four types of Maglio & Spohrer () resources Service system entities calculate value from multiple Spohrer et al. () stakeholder perspectives Service system entities compute value given the concerns of Maglio & Spohrer () multiple stakeholder Service system entities reconfigure access rights to resources by Spohrer et al. () mutually agreed to value propositions The access rights associated with entity resources are Maglio & Spohrer () reconfigured by mutually agreed-to value propositions Service system entities compute and coordinate actions with Maglio & Spohrer () others through symbolic processes of valuing and symbolic processes of communicating

Resources within SSMED are people, technology, organizations and shared information; Stakeholders are customers, providers, authorities and competitors; Access rights are assigned to resources and govern in value co-creation interactions. To reconfigure access rights, service system entities use, for example, language, contracts, laws, etc. SSMED is accompanied with ten foundational concepts (c.f. table ). These foundational concepts are about the ecology, entities, interactions, outcomes, value propositions, governance mechanisms, stakeholders, measures, resources and access rights. These concepts form the SSMED’s worldview: “The view that the world is made up of populations of service system entities that interact (normatively) via value propositions to cocreate-value” (Spohrer & Kwan, ). The outcome are value co-creation, game-theory situations (win-win, win-lose, lose-lose and lose-win situations) or ISPAR: possible outcomes (Donofrio et al., ).

Conceptual approaches

Table : SSMED’s foundational concepts

Ecology Defines the macro-scale interactions of different types of service systems (entities; diversity) and relative numbers (population size) (Spohrer et al., ) Entities Service systems within the ecology: dynamic resource value co-creation configurations that can be combined in many ways (value- creation networks, e.g. Maglio et al. (, ), Spohrer & Kwan ()). Formal entities are the focal entity that also have access (rights) to all the other resources. They are persons or group of people; informal entities are such as open source communities “and many other societal or social system that are governed typically by unwritten cultural and behavioral norms” (Spohrer & Kwan, ) Networks Service systems interact in service networks by “resource allocation and distribution, collaborative advantages, and cooperative strategies” (Barile & Polese, b). Networks are an abstraction to describe the service environment and ecology Value co- Relationships, according to Spohrer et al. (), are characterized by routine service interactions. Value co-creation interactions (“also creation known as value-proposition-based interaction mechanisms” (Polese et al., )) are the precursor of business models and are about the interactions promises and contracts that service system entities agree to (value propositions) (Spohrer et al., ) Stakeholders SSMED distinguish among customers/clients, service providers, authorities and competitors. These stakeholders not only have different needs but also by different perspectives on service (e.g. Spohrer et al. (), Barile & Polese (b)) Measures SSMED considers quality, productivity, compliance, and sustainable innovation as primary measures (Spohrer et al. (), Donofrio et al. (); these measures are underlined with key performance indicators: value co-creation can occur when the KPI’s of two or more service system entities become linked in ways that improve the key performance indicators together (Spohrer & Maglio, ) Resources SSMED considers almost every nameable physical and non-physical thing that can be renamed is a resource (e.g. Spohrer et al. (), Spohrer & Maglio (), Spohrer & Kwan (), Barile & Polese (b), Polese et al. (), Donofrio et al. ()) with/without rights Access rights Access rights are assigned to resources. Access rights support and govern in value co-creation interactions but also are mechanisms to change an entities access rights to particular resources Governance Governance interactions are a special form of value interactions/value propositions between authorities and service system entities. To interactions provide sophisticated service and to maintain complex service system relations, as Spohrer et al. () highlight, require sophisticated regulation: laws and contracts. These interactions (mechanisms) are to reduce uncertainty and to settle conflicts between service providers and service clients (Spohrer et al., ) – especially when the value is not created as mutually agreed (Donofrio et al., ) Outcomes SSMED considers () value co-creation, () game theory and () ISPAR outcomes ( possible outcomes based in part on the four stakeholder view: customer, provider, authority, and competitor (Donofrio et al., ))

Conceptual approaches

The conceptual approach of SSMED is to operationally manage, engineer and design service systems. As Freund & Spohrer () (and Spohrer et al. ()) highlight, service systems can be summarized as flow-related, development-related, governance- related systems and nested networks.

Flow-related service systems include transportation, water, materials, energy, and information and highly depend on infrastructure; development-related service systems provide unique relationships to people; governance-related service systems “provide defense, security, rule of law, penalties for noncompliance, taxation, and funding of public works”; nested networks are about the service ecology and its interaction actors.

To operationally manage, engineer and design service systems, SSMED provides a variety of frameworks and tools to shift service (system) boundaries. These frameworks can be clustered among process-based, stakeholder-network-based, and ecology-based approaches.

Process-based approaches are used for (new) service offerings and consist of frameworks such as Service Blueprinting (that is compatible with lean management and six sigma methods), Use-case Methods, Business Process Modelling, Document Engineering as well as modelling and simulation tools. Process-bases approaches are accompanied with key performance indicators (KPI) among service experience measures, e.g. the degree of service inclusion (co-creation), service quality (customer), service performance (provider) and service satisfaction.

Stakeholder-network-based approaches are used for service creation and improvements. They consist on network mapping, service responsibility tables, value nets (to map and transform complex organizations and industry networks), service intensity matrix, component business model and customer-organization-provider (COP) model.

Ecology-based approaches comprise models that support to improve, for example, nations, , online platforms, cities. It is an outcome of the service and supports scholars and practitioners to explain service interactions (that again are the

basis for value co-creation). Spohrer & Maglio (), for example, present three ecology-based approaches that are the Metamodel (including a six-step lasting framework/guideline), SPLASH (Smarter Planet Platform for Analysis and Simulation of Health) and the Resource Mapping Framework. While SPLASH is an approach to model value constellations and interactions in complex service systems (e.g. case of London Borough of Sutton), the Metamodel and the Resource Mapping Framework focus on stakeholder networks and processes. The Metamodel is to enable service- oriented economies including the development of required service oriented technology and management. Service oriented technology and management considers the service providers’ perspective and the service clients’ perspective equally. The Resource Mapping Framework aims to support managers and business professional to shift service borders from self-services to super-services and vice versa. This framework bases on five process design activities that are to observe and understand, reflect, make, socialize and implement. In contrast to Service Blueprints, which focuses inward on service delivery processes, the Resource Mapping Framework focuses outward on the larger service ecosystem. The Resource Mapping Framework and Service Blueprints complement each other.

Prerequisites towards organizational robustness and resilience in SSMED

Major to SSMED are service thinking/thinking systems in service, value co-creation and service/system innovation and evolution. Service thinking/thinking systems in service is about the shift from manufacturing-dominated paradigms to collaborative creation of services within service systems and service networks. Thereby, value co- creation through increased service interaction is the guiding principle. Service interactions are value co-creation interactions and vice versa. It is an extended form of co-production (of service) and antecedent for service as well as service system innovation.

In SSMED all service stakeholders are considered as valuable resource integrators and thus co-creators of service. SSMED aims to understand and improve value co- creation among these stakeholders: mechanisms that count for both the structure of service system entities and the patterns of their interactions as well as how these structures and patterns evolve over time (Spohrer et al., ). Value is perceived when

Conceptual approaches

one entity benefits of a transaction and/or interaction as greater than the costs (Kieliszewski et al., ). Value co-creation within SSMED is about the creation of win-win situations and advantages of all service stakeholders (e.g. Barile & Polese (), Donofrio et al. (), Polese et al. (), Spohrer (), Spohrer et al. (), Spohrer & Kwan (), Spohrer & Maglio ().

As this concept-centric literature review presents, benefits of SSMED are Service thinking/Thinking systems in service, value co-creation, service innovation, service resources, resource: knowledge, service management, engineering and design and service system control. Table summarizes identified prerequisites of SSMED towards organizational robustness and resilience. Table summarizes the utilization of SSMED towards organizational robustness and resilience.

Conceptual approaches

Table : Pre-requisites towards organizational robustness and resilience in SSMED

Prerequisites towards organizational robustness and resilience in service- Sources dominant logic Service orientation: general theory of service science and service systems: application Spohrer et al. (); Campbell et al. () and use of science (understand service system evolution), management (understand service system improvements and failures; efficiency, effectiveness and sustainability/relationship measures) and engineering (technology, information) Understanding of the importance of appropriate human capital: T-shaped Maglio et al. (); Spohrer et al. (); Spohrer et al. (); Donofrio professionals/skilled knowledge workers; awareness about human performance, et al. (); Freund & Spohrer (); Spohrer & Maglio () competence, capabilities and its limitations Awareness about resources to form services and service systems Maglio et al. () (tacit & codified) Knowledge management and skills orchestration as antecedent of Mele & Polese (); Chesbrough & Spohrer (); Spohrer (); Zhao system interaction and value co-creation: metadata, knowledge and analytics et al. (); Spohrer & Kwan (); Barile & Polese (); Barile & Polese (a); Spohrer et al. (); Spohrer & Maglio () Co-creation and interaction mechanisms (routine and fall back interactions) Chesbrough & Spohrer (); Maglio & Spohrer (); Donofrio et al. (); Spohrer et al. () Service orientation within IT; service oriented architectures, service computing - Campbell et al. (); Chesbrough & Spohrer (); Zhao et al. (); application of methods, frameworks and tools - but also improvement of capabilities Barile & Polese (a); Spohrer & Maglio (); Spohrer & Maglio (management in SSMED) - service designs (); Demirkan et al. (); Hsu & Spohrer () Awareness about business-IT alignment incl. service oriented Architectures (SOA), Chesbrough & Spohrer (); Zhao et al. (); Spohrer (); process-centricity; understanding of processes within a system (e.g. organization, Demirkan et al. (); Maglio et al. () network, social-organizational networks) - Information system management and knowledge management; ICT as critical enabler of value co-creation mechanisms Governance mechanisms, laws and contracts Spohrer et al. () Control and monitoring of service system stakeholders by use of tools and Spohrer & Maglio (); Lella et al. () technology

Conceptual approaches

Table : Utilization in SSMED towards organizational robustness and resilience

Focus SSMED supports to ... Sources Benefits Service ... increase of thinking systems in services within organizations - Maglio et al. (); Chesbrough & Spohrer Improvement of thinking/think build-up of a service culture within particular organization; (); Polese et al. (); Spohrer et al. resource- and systems in services increased organizational awareness and actions toward service (); Spohrer et al. (); Demirkan et al. process-based (thinking) () service thinking … understand the heterogeneity of service and service systems as Spohrer (); Spohrer & Kwan (); within an well as its ; define the context wherein service Freund & Spohrer (); Spohrer & Kwan organization: system act: social, technological, economic, environmental, and (); Spohrer et al. () documentation and political; improve understanding of service and service systems categorization of … spread service thinking and common understanding within an Polese et al. (); Barile & Polese (a); service and service organization - build-up of a framework/catalogue to consider Spohrer & Maglio () systems by service systems (stakeholders, relationships, value co-creation consideration of mechanisms, development of new systems); development of an internal and external agenda for service system evolution coordination … categorize and explain service systems as well as how they Maglio & Spohrer (); Spohrer et al. mechanisms interact and evolve/growth to co-create value between provider () and customer … discover mechanisms of change and value co-creation; to Spohrer & Kwan (); Spohrer et al. develop, maintain and improve service system excellence (); Lelescu et al. () … provide legal systems, contracts, laws and governance Spohrer et al. (, , , ) mechanisms (access rights) to run service systems - integration of symbolic, physical, computational and added-value systems Value co-creation … develop an organizational theory of co-creation: interactions as Freund & Spohrer (); Barile & Polese Close relationships key to customer relations - value co-creation as the guiding (a, b); Chesbrough & Spohrer (); to service principle of all service activities Maglio et al. () stakeholders by … consider value co-creation interactions as service interactions; to Maglio et al. (); Spohrer & Kwan (); development of consider contextual interactions as system Spohrer et al. () interaction

Conceptual approaches

… improve understanding of service and service systems, discover Spohrer & Kwan () mechanisms: mechanisms of change and value co-creation establishment of … co-create value: service as value co-creation mechanism and Campbell et al. (); Spohrer et al. (, mechanisms that fundamental basis of exchange; increase value co-creation ); Zhao et al. (); Barile & Polese increase service mechanisms to launch collaborative innovation - to create win-win (a, b); Spohrer et al. (); Spohrer & interactions and thus situations Maglio (); Donofrio et al. () enable service innovation (on product-, service- and process level) Service innovation … to build-up of a theory and practice about service innovation Chesbrough & Spohrer (); Spohrer et al. Increased within a system/organization basing on right mindset (= value co- (); Lelescu et al. (); Spohrer & Kwan organizational creation), right actions (= realize the value co-creation goals) and (); Spohrer et al. () capacity of service right configuration (of core resources) -break-down of silos/island and service system mentality innovation by … to consider service innovation systematically and holistically, Alter (a); Spohrer et al. (); Spohrer integration of the incl. technology, business, socio-organizational, demand to launch et al. (); Spohrer & Maglio (); service ecology; new service propositions; innovation as the most important creator Maglio & Spohrer (); Lelescu et al. service system of new opportunities - balance of service innovation, pro-active co- (); Spohrer () innovation and creation of value sustainability trough … better manage, engineer and design of service innovation that Lella et al. (); Freund & Spohrer (); improved service realize more predictable outcomes (e.g. service quality, Spohrer et al. (); Barile & Polese (a); interaction and value performance, system growth) Hsu & Spohrer () co-creation … to develop sophisticated forms of cooperation, namely value co- Spohrer & Kwan () creation with the service ecology (service stakeholders, especially the service client) … increase service system sustainability and survivability basing Spohrer et al. (); Spohrer & Maglio on (service) innovation, interaction and value co-creation; (); Demirkan et al. () innovation as concept to organizational survival; service innovation same important as IT/technological innovation Service resources … consider service systems as value-creation networks consisting Maglio et al. (); Spohrer (); Maglio Better use and of people, information, technology and organizations et al. (); Lella et al. (); Mele & Polese application of () resources - gain

Conceptual approaches

… consider the importance and engagement of human Freund & Spohrer () advantage out of capital/resource within service systems and networks of service (internal and systems: human as resource integrators external) human … make use of technology as facilitator to manage, engineer and Campbell et al. (); Chesbrough & resources but also of design service systems: IT is critical enabler to drive service, service Spohrer (); Zhao et al. (); Barile & technology: systems, e.g. service computing, service oriented technologies Polese (a, b); Spohrer & Maglio (); resources as basis to Spohrer & Maglio (); Demirkan et al. improve service () systems Service resource: … consider that knowledge as a meta-resource! Knowledge as Mele & Polese () Management, knowledge trigger of services; to enable the application of knowledge, skills engineering and and capabilities design of increased … create, gain and share (tacit, codified) knowledge of service Chesbrough & Spohrer (); Spohrer knowledge stakeholders to exchange service: knowledge as main enabler of (); Zhao et al. (); Spohrer & Kwan orchestration the concept of Service Science and value co-creation (); Barile & Polese (); Barile & mechanisms: Polese (a); Spohrer et al. (); Spohrer knowledge as a & Maglio () special form of the … recognize that knowledge and innovation goes hand in hand: Zhao et al. (); Polese et al. (); service and the knowledge about resources and learning/learning processes as a Spohrer & Maglio (); Mele & Polese service system's meta-resource in SSMED - innovation the ultimate goal in SSMED () resource base … knowledge as antecedents to service performance and quality Polese et al. (); Spohrer & Maglio () … reduce service system complexity, e.g. how to deal with Maglio et al. () information, information asymmetries, needs and demands, etc. Service … describe and frame all kinds of service systems and its entities; Spohrer et al. (); Spohrer et al. (); Engineering of management, to analyses service systems in real-world problems and Spohrer et al. (); Spohrer & Maglio service and service engineering & phenomena and provide interpretative models: understand, (); Lella et al. () systems according to design explain and improve system entities, interactions and its outcomes (changed) service … consider structures and actions of service systems that enhance Spohrer et al. (); Zhao et al. (); needs, requirements value co-creation: development of an efficient and effective service Polese et al. (); Spohrer & Maglio () and innovation: provision system basing on interactions system's evolution, … develop of service oriented business frameworks by use and Spohrer et al. (); Spohrer & Maglio sustainability and application of service oriented technologies and service oriented (); Demirkan et al. () survivability as management practices outcome of

Conceptual approaches

… design, engineer and innovate service systems: evolution and Maglio et al. (); Spohrer et al. (); management, growth of service systems Spohrer et al. (); Maglio et al. (); engineering and Spohrer & Maglio () design of system … design and re-design of service systems and its resources, e.g. Campbell et al. (); Polese et al. (); interactions, value shift resources (everything useful) from self-service, super-service Maglio et al. (); Lelescu et al. (); co-creation - service system engineering: ability to design, improve and scale Freund & Spohrer (); Spohrer et al. mechanisms service systems (efficiency, effectiveness, experience, (); Barile & Polese (); Barile & sustainability) Polese (a); Maglio & Spohrer (); Demirkan et al. () … use and take advantage of tools and methods: process-based Spohrer & Maglio (); Lella et al. () approaches, network-based approaches, ecology-based approaches; re-design it for own service advantages … align business and IT, e.g. implementation of service oriented Zhao et al. (); Spohrer & Maglio (); technology/organization, process-centric architectures, component Demirkan et al. (); Hsu & Spohrer business modelling () … increase service quality (customer); increase service Lella et al. (); Freund & Spohrer (); performance (provider) and service increasing capabilities such as Spohrer (); Polese et al. () standardization, specialization and scaling … develop business/service models, value propositions and new Donofrio et al. (); Hsu & Spohrer () standards basing on interaction and innovation Service system … keep control within a service system Lella et al. () Monitoring of service control … develop measures and indicators to quantify service system Freund & Spohrer (); Polese et al. performance improvements (interaction, value co-creation, productivity), e.g. (); Barile & Polese (); Spohrer et al. indicators (incl. service quality, service performance, service satisfaction, degree of (); Barile & Polese (a); Spohrer & service quality) that service inclusion to increase productivity of service interactions Maglio (); Hsu & Spohrer (); improve the Spohrer () operation of service systems; increased reaction time in case of deviations

Conceptual approaches

.. Viable system approach

The viable system approach emerged on the viable system model of Stafford Beer (). The viable system approach is a multiple stakeholder concept and aims to build internal and external value creating networks – “configuring the enterprise as an open system” (Barile & Polese, a). This conceptual approach considers the service- dominant logic and the concept of SSMED as approaches of equal value but with two perspectives on the same phenomenon (Golinelli et al., ). While the service- dominant logic provides the idea and culture and SSMED the design on operational level, the viable system approach provides the plan (e.g. Golinelli et al. (), Barile & Polese ()). Viability, according to Barile & Polese (a), can be understood as measure of (subjective) sustainability (e.g. ability to respond to environmental change (Spohrer et al., )) and (objective) survivability of a system. This conceptual approach acts as methodological framework to analyse the demands and requests of heterogeneous stakeholders and the environment (“a methodology for interpreting the contemporary business arena and manage in it” (Barile & Polese, a)). Its attempt is to analyse the relationships of service system entities, behaviours and interactions with the service environment as well as to describe the evolution of a system (by comparison of internal characteristics and external opportunities as well as the development of survival capacities). The viable system approach, according to Barile & Polese (b), bases on two concepts (consonance and resonance) and ten key principles.

Concepts and key principles

The concepts of consonance and resonance within the viable system approach are about coordination, harmonisation and management (e.g., Barile & Polese (), Barile & Polese (a)). Barile & Polese (a) exemplify: Consonance refers to the design of a business process in relation to, for instance, its distribution partners. A company can design potential market relations by listing distribution networks, solutions and formal agreements”. Resonance takes place through concrete, harmonic and positive interaction and add to the success of all involved parties.

Conceptual approaches

“Consonance is the static compatibility between the actors of a system and represents potential harmonic relations (static image)” (Barile & Polese, a); “potential for value creation” (Spohrer et al., ), e.g. correct design of a business process (Barile & Polese, ).

“Resonance is the effective positive interaction in and among systems and is referred to as the dynamic vision and its interactions” (Barile & Polese, ) (or: “realization of value creation” (Spohrer et al., ), contractual agreement between the same business and its distribution partners effectively realizing the win-win interaction (Barile & Polese, ).

With the concepts of consonance and resonance, the viable system approach aims to “establish harmonic interactions among numerous actors with which resources are shared” (Polese et al., ). Knowledge among these actors increase organizational survival capacity (Barile & Polese, a) and to shift from static structural customer relationships to dynamic service interactions. Knowledge within this concept is considered as a meta-resource that enables to gain new knowledge, to develop new skills and capabilities as well as to utilize resources. To become viable, service systems are requested to dynamically adjust its structures, behaviours and (resource) integration mechanisms to find the equilibrium state among its sub- and supra- systems (Mele & Polese, ). However, Figure summarizes the key principles of the Viable Systems Approach.

Prerequisites towards organizational robustness and resilience in viable system approach

The objective of the viable system approach is to establish strong, sturdy and viable relations (service networks) within the system’s environment. To remain sustainable and survivable, the viable system approach makes use of the concepts of consonance and resonance, It is about decision-making and problem solving (Spohrer et al., ). The viable system approach aims to develop a multiple stakeholder system basing on harmonic and sustainable behaviours/interactions among several value co-creating entities within service networks – increased integration of and increased interaction with service system stakeholders (customer, provider, authority, and competitor).

Conceptual approaches

Thus, the viable system approach is about more and closer service client integration and flexibility about the clients’ needs, requests and requirements. Table summarizes identified prerequisites about the viable system approach. The overall utilization (c.f. table ) towards organizational robustness and resilience than can be concluded as increase of system's viability, sustainability and survivability through dynamic stakeholder interaction and value co-creation mechanisms. Prerequisite to apply the Viable System are system management, engineering and design and customer/stakeholder relationship management.

Conceptual approaches

Table : Key principles of viable systems approach

A multidisciplinary observation, analysis and interpretation of system construction, behaviour, evolution and relationships – considering the interpretative approach individual part of a system and the system as a whole (Barile & Polese, a). Systems of interest are, for example, customers, (between holism and business, communities, and any other economic actors (Barile et al., ) – “peoples, families, networks, enterprises, public and reductionism) private organizations” (Barile & Polese, ), which can be understood as systems. Open systems Viable System Approach considers service systems as open system (nothing happens in isolation (Barile et al., )). In Viable System Approach, all systems exchange information, energy and matter with its particular networks and environment. System boundaries Systems in the Viable System Approach are generally open to exchange resources and its boundaries are a changing concept for system’s evolution (Barile & Polese, ). “Nothing happens in isolation” (Barile & Polese, ). Autopoiesis / finality Autopoiesis describes the system’s capability to generate new internal conditions (Barile et al., ) Homeostasis and self- Homeostasis, which aims to achieve equilibrium by the use of adaptive mechanisms, is achieved by regulation of systems regulation internal and external environment, e.g., as Barile & Polese () exemplify, business code of behaviour and legal requirements Structures, systems, Viable System Approach adopts the concepts of structure and system. Structure: static, a reductionistic view of the observed and equifinality reality; System: dynamics of evolution - a holistic view of observed behaviour of the observed phenomena to enable interpretation of interactions (Barile & Polese, a) Consonance and Consonance refers to the compatibility between system elements (and is about structure; static view (Barile & Polese, )), resonance resonance refers to the elements operating in a distinctive fashion for a single purpose (and is about system; dynamic view (Barile & Polese, )) System viability Capacity to dynamically adjust its structure and behaviour in certain circumstances to achieve stability (Barile et al., ) Adaptation and To rationalise and harmonise developments with the environment relationship development Complexity and Cognitive processes enable systems to cope and to evolve form chaos, complexity, complication and uncertainty. Cognitive decision making processes, according to Barile & Polese (), are about the integration of system stakeholder participation in service processes and activities, transformation of static structural relationships into dynamic interactions with other viable systems and transformation of survival impulses into choices and decisions (Barile & Polese, a).

Conceptual approaches

Table : Pre-requisites towards organizational robustness and resilience in viable system approach

Prerequisites towards organizational robustness and resilience in viable system Sources approach Development and implementation/embedment of basic principles, premises and Spohrer et al. () foundation of the Service-Dominant Logic and SSMED - including decision-making (consonance) and problem-solving (resonance) Analysis of viable systems in a real-world problem (service system environment) / Spohrer et al. (, ); Barile & Polese (a) systematic understanding of organizations; being pro-active to solve problems and challenges Increase of value co-creation mechanisms: relations are crucial for viable service Barile & Polese (); Spohrer et al. (); Polese et al. () systems - improvement of harmonic and sustainable interaction mechanisms with multiple service system stakeholders and its interfaces to commonly understand and solve problems and phenomena T-shaped professionals: employees that have communication abilities, understand Spohrer et al. (); Polese et al. () the vocabulary of particular discipline Knowledge (e.g. about service stakeholders and the service environment) and Barile & Polese () technology that act as meta-resource and trigger of service and service systems Marketing and network approaches, e.g. many-to-many marketing, customer Barile & Polese (, a); Mele & Polese () relationship management, to interlink and engage with other viable service systems within the service environment

Conceptual approaches

Table : Utilization in viable system approach towards organizational robustness and resilience

Focus Viable system approach supports to ... Sources Benefits Service management, ... develop and increase service thinking: VSA as interface Barile & Polese (, a) Increased service engineering and between SSMED and S-D Logic - interconnection of system sustainability design heterogeneous field, e.g. marketing, operations and engineering and survivability incl. - internally and externally scenario planning and … increase/improve the analysis of within service systems: Barile & Polese (a, b); Spohrer et al. dynamic adoption development of a more comprehensive picture of the system () (consonance/resonance and its interacting entities and environment to understand, mechanisms) of design and manage smart(er) service systems, facilitate decision situations (especially making in Spohrer et al. ()) … to build up of internal and external value creating networks Barile & Polese (, a); Mele & - resource valorization through technological development, Polese () service orientation, satisfactory relationships (networking culture) - systems that are connected to other systems as resource integrators … to systematically understand organizations: development of Barile & Polese (a); Kieliszewski et al. contingencies/scenarios - what-if analysis that help to () understand relationships among stakeholders in value creating networks Customer/Stakeholder … to develop and maintain a multiple stakeholder system (VSA Polese et al. (); Barile & Polese (); Increased relationship roots in SSMED's foundation n°, that is about stakeholder Barile & Polese (a); Spohrer et al. provider/user management integration; VSA as multiple system stakeholder approach) () interaction that results … to analyze the viability of systems in real-world situation and Barile & Polese (a); Spohrer et al. in strong and sturdy how it respond to environmental change () co-creation … to develop dynamic interaction mechanisms - harmonic and Polese et al. (); Barile & Polese (, mechanisms in service sustainable behavior among numerous actors: increase a); Barile, Saviano, Polese, & Di networks - integration of and interaction with heterogeneous external Nauta (); Kieliszewski et al. (); establishment of stakeholders Barile & Polese () service value networks

Conceptual approaches

… to develop dynamic resources incl. the implementation of Polese et al. (); Barile & Polese (); marketing as interface between internal employees and Barile & Polese (a); Kieliszewski et al. customer demands and requirements; to increase relationships () and integration between provider and stakeholders that foster service innovation and system reframing … to develop interaction mechanisms (e.g. participative Barile, Saviano, Polese, & Di Nauta () processes) between service provider and customer - VSA as tool to maintain and increase relationships, value/competitiveness, and adaption of and within service systems … to develop governance mechanisms, government and rules: Barile, Saviano, Polese, & Di Nauta (); inclusion, integration and governance of social organizations Spohrer et al. () and human

Conceptual approaches

.. Work system theory

As depicted in figure , the work system theory is a conceptual approach within SSMED. It is a theory for service system engineering and development and acts as an intermediate between management focused theories and technology focused theories. Service systems within the work system theory are considered as socio-technical work systems wherein humans and/or machines perform processes and activities collaboratively (Alter, b) to produce products and/or services for service customers (e.g. Alter (a, , )). Depicted in table , the work system theory is determined by two approaches: the work system theory and the work system method. The distinction between these approaches is partly blurred. The work system theory, according to Alter, “is an integrated body of theory that includes a Type analytical theory (the work system framework) and a Type explanatory theory (the work system life cycle model), which in combination give the bases of a Type design Theory” (Alter, ). The work system method is a system analysis and design method based on analysing an “as-is” work system (identification of strengths, weaknesses, opportunities, challenges and threats (status quo analysis)) and designing an improved version called the “to-be” work system (Alter, ).

Table : Comparison work system theory vs. work system method

Work system theory Work system method Central idea: the work system supports work WSM is based on WST; development of WSM system thinking through a distinct perspective/to was guided by the essence of WST; helps to think view situations as works systesm > default about work systems assumption: work systems are socio-technical Three central frameworks: work system Two central frameworks: work system definition, work system framework, work system framework and work system life-cycle model life-cycle model; is about the structure and performance of work systems Theory for analysis: relevant for describing, A flexible system analysis and design method for analyzing, designing, or evaluation system (and business and IT professionals: helps to organize its improvement) – work system evolution a (relatively) detailed analysis by the use of work includes both: planned and unplanned change system templates > to convert the “as-is” to the “to-be” work system

The work system method is a business process approach: its focus is on service systems and its participants rather than on (information and communication)

Conceptual approaches

technologies. It is the application of either one, more or all work system theory frameworks and tools. These frameworks and tools support managers and IT experts to develop new services and service systems as well as to improve and innovate the existing systems towards organizational trends and challenges.

Frameworks

The work system theory provides an ontology about how to engineer and develop service and service systems. The purpose of the work system theory is to serve as an organizational kernel of ideas to understand how service systems operate and how they change over time. It supports to structurally analyse service systems on resource level as well as to decompose service systems into its parts for subsequent innovation activities. The objective is to promote more active participation (internal and external customer-provider interaction) by incorporating business ideas into a larger part of the analysis.

In the centre of the work system theory is the work system framework. As depicted in figure , the work system framework consists of nine resource-elements. Resource- elements participants, information, technologies and processes & activities form the inner core. Extended components of the work system theory are the work system life cycle model and the service value chain framework.

Conceptual approaches

Figure : Work system framework

The work system framework is a static framework wherein small details change incrementally over time but without change of the system’s overall structure, identity and/or integrity (Alter, ). The work system framework supports to manage, engineer and design thus to systematically design and develop valuable, rare, inimitable and non-substitutable resources (VRIN), strong and resistant structures, routines and processes.

Prerequisites towards organizational robustness and resilience in work system theory

The work system theory is a resource-based theory and deals with the (re-) design and (re-) engineering of service and service systems as well as its resources. It provides a service system ontology: frameworks, especially for operational service system innovation and evolution and thus to implement renewal and change – no matter how small/large the system is (everything is a service system). Prerequisites towards organizational robustness and resilience in work system theory are summarized in table . Table presents the utilization in work system theory towards organizational robustness and resilience.

Conceptual approaches

Table : Pre-requisites towards organizational robustness and resilience in work system theory

Prerequisites towards organizational robustness and resilience in work system Sources theory Awareness about and alignment with the general theory of Service Science incl. S-D Alter (a, c); Alter (a, b) logic and SSMED - awareness about service systems approach Awareness about service, service systems and service orientation; knowledge Alter (a, b; Alter (b) augmented with definitions by WST - FP's out of S-D Logic augmented with WST thinking to analyze service systems, economic exchange and service activities Awareness: Service system thinking - thinking service in systems and vice versa: Alter (a, b); Alter (b, c); Alter (a, b) fundamental understanding of service; fundamental understanding about how service systems interact (internal & external) Awareness: Resource-based and process-based thinking - e.g. co-production/co- Alter (b); Alter (b, c); Alter (a, b) creation as a resource (inclusion of the customer) Willingness to apply provided methods, frameworks and tools by WST for Alter (a, c); Alter (b, c) structured analysis and evaluation of service and service systems - keep purpose and activity Awareness about change and innovation within service and service systems: design, Alter (a); Alter (b, c) engineering and innovation capacities; service value propositions might will not change by application of WST - but underlying processes and services and system characteristics (e.g. resilience as a system characteristic) Openness: not only information systems are work systems but also organizational Alter (b); Alter (c) projects until supply chain networks - an information system is only one form of a work system Socio-technical alignment - alignment of business and IT: interaction of business and Alter (b); Alter (); Alter (c) IT professionals, shift from pure technical views to business integrated views; human participants and/or machines perform work

Conceptual approaches

Table : Utilization in work system theory towards organizational robustness and resilience

Focus Work system theory supports to ... Sources Benefits Service thinking/ … develop a holistic perspective on service thinking: to think in Alter (); Alter (c); Alter (a) Increased service thinking systems in services and put the customer in the center of service system's thinking at operational services economic performance and strategic business … increase of service thinking/service mindset on operational Alter (a, b); Alter (b, c); Alter level (IT and level; thinking systems in service on basis of tangible (a, b) management): frameworks and tools increased thinking of … increase of operational/practical service thinking - increase Alter (c); Spohrer & Maglio (); systems as service and the capability for design thinking - definition of activities and Alter (a, b, c); Alter () vice versa within a tasks - increase attention and responsibilities system (e.g. … increase understandability, usefulness, applicability and Alter (a) organization) teach ability of service … innovate service and service system to meet (customer's) Alter (a); Alter (b) goals, organizational success and survival … co-create value (and not only co-produce value; customer Alter (c); Alter (); Alter (a, b, first/customer centricity): increase service-related design choices c); Alter (a) Service management, … help business professionals to recognize and understand IT- Alter (a, c); Alter (a, b) Increased engineering and reliant systems in organizations: provision of operational organizational design frameworks to think and operationally modify, change and mechanisms to design, innovate service systems - maintenance and improvement of engineer and manage system characteristics through design decisions (e.g. resilience) IT-reliant service … guide within the development, engineering and management Alter (b) systems within a single of service systems organization and … structurally analyze and understand service systems as well Alter (a, c); Alter (); Alter (a, beyond (networks); as how they perform, evolve and change over time (evaluate, b, c); Alter () increased analyze and analyze, design or implement systems in real-world situations) evaluation … design, engineer and innovate service systems: application of Alter (a, b, c); Alter (); Alter mechanisms as structured methods and (reference) frameworks/concepts about (c); Alter (a, b) antecedent to develop servitization - service system innovation engineering and implement service

Conceptual approaches

… develop and engineer of sustainable service systems that Alter (a) innovation; guidance generate increased level of profit and innovation through the support of … increase design dimensions for engineering of resources, Alter (a, b); Alter (c) operational methods, processes and capabilities frameworks and … increase awareness of resources and processes within a Alter (b, c); Alter (b, c); Alter design/engineering service system (a) tools … increase capacity for service design and service innovation Alter (a); Alter (c) … create awareness towards change and renewal: innovation as Alter (a); Alter (c) necessity to meet customers' goals and demands (customer first) as well as organizational sustainability and survival Service innovation ... to consider systems as socio-technical systems made up of Alter (b, c); Alter (a, b, c) Increased mechanisms human participants and technology (collaborative work) of socio-technical … shift from pure technical views to business integrated views Alter (a, b, c); Alter (c); Alter engineering and by application of interrelated frameworks (e.g. WSF, SVCF, (a) innovation within an WSLC … as important aspects for service system innovation); IT- organization: relation work systems consideration of … to consider systems as socio-technical systems instead of pure Alter (b); Alter (c) human and technology IT systems - shift from software development to Work System as equal resources in Theory: shift from pure to work system service systems; engineering (socio-technical engineering) increased business-IT … to shift from a pure technical view on information systems to Alter (b); Alter (a, b, c) alignment a socio-technical view: human participants and technology performing work collaboratively - increase of communication between professionals

Conceptual approaches

.. Theoretically predicted concepts: criteria towards organizational robustness and resilience in Service Science (conceptual approaches)

Related to performed literature review about conceptual approaches in Service Science, three theoretically predicted concepts towards the management, engineering and design of organizational robustness and resilience against internal and external dynamics, risks, uncertainties and crisis in Service Science can be identified. These concepts are presented in the following subsections.

Stakeholder interaction & value co-creation: system/service innovation & evolution

Stakeholder interaction & value co-creation within the theory of Service Science are the key to remain robust and resilient. Customer interaction and value creation in service-dominant logic, for example, is interactional and customers are always co- creators of value (all economic actors and service stakeholders are resource integrators). These service interactions provide market proximity and enable to increase service propositions, service performance and service provision mechanisms. Additionally, service interactions, related to service-dominant logic, are a driver for innovation and requests close integration of service clients’ resources. Service client and service stakeholder resources are seen as antecedent to organizational sustainability and survival. SSMED focuses on sophisticated forms of cooperation including routine service interactions and increased service interaction of multiple service stakeholders. In SSMED, service interactions are coordination mechanisms and management, engineering and design activities due to changed needs and requests of service stakeholders. Interaction and integration of service stakeholders, their needs and requests are major to organizational sustainability and survivability. Since the viable system approach acts as intermediate between service-dominant logic and SSMED, it captures partly both approaches. In the one hand, the Viable Systems Approach aims to provide correct designs, e.g. design of business processes (by use of concept: consonance). On the other hand, the viable system approach aims to provide positive interaction within these processes (by use of concept: resonance). The work system theory promotes active, internal and external participation in service systems.

Conceptual approaches

Since customers are in the center of the work system theory’s economic performance, the concept of value co-creation is seen as an important resource of socio-technical engineering and innovation of service systems. The work system theory mainly fosters organizational mechanisms to manage, engineer and design service systems.

Knowledge exploration & management: learning, training, education

As explored within the performed literature review, knowledge is a meta-resource in Service Science. It positively influences organizational robustness and resilience. For example, within the concept of service-dominant logic, real source of wealth is knowledge and information, which again is the fundamental source of competitive advantage (FP). Service-dominant logic calls to increase cognitive skills (human knowledge and ingenuity, trust, learning together, adaption) and learning via service stakeholder interaction. In SSMED, knowledge, e.g. knowledge about resources and learning/learning processes, is antecedent to service performance and quality: knowledge and innovation go hand in hand. SSMED calls for skills orchestration, T- shaped professionals and skilled knowledge workers able to apply (tacit & codified) knowledge management. SSMED aims to manage, engineer and design increased knowledge orchestration mechanisms.

System development & (re-) engineering

Especially in SSMED and work system theory, major emphasize to remain robust and resilient is on system development & (re-) engineering. SSMED, for example, focuses on control and monitoring of service system stakeholders and monitoring of service performance indicators to increase reaction time. SSMED provides resource engineering and resource engineering frameworks that can be categorized into process- based approaches, stakeholder-network-based approaches and ecology-based approaches. viable system approach is about adoption of situations, which includes scenario planning and dynamic configuration by application of the concepts of consonance and resonance. However, the work system theory provides an ontology towards system development & (re-) engineering. It is about the structural analysis and understanding of service systems about how they perform, evolve and change. The work system theory aims pro-actively to develop and engineer – thus to innovate

Conceptual approaches

service systems and to steer its evolution by application of socio-technical frameworks and tools. System innovation and evolution, the major output of provided work system theory’s analyze, design and development frameworks, are the key to service systems sustainability and survivability.

Conclusion: work system theory to increase organizational robustness and resilience on system’s resource level

Organizational robustness and resilience are underrepresented concepts in Service Science and do not determine frameworks to maintain and increase organizational robustness and resilience within service systems. As the only approach, the work system theory considers these concepts at least as system characteristics (Spohrer et al. ()). The work system theory provides frameworks to serve as analytical tool for the development, maintenance and improvement of organizational robustness and resilience – at least on service system’s resource system level. Antecedents to remain robust and resilient within the work system theory are, for example, the analysis and understaning of real world phenomenon, design and engineering of service systems, increased interaction with the service system’s environment, use/application of extended technology, viability, service orientation and management, customer centricity, application of knowledge and skills. Thus, from a static, resource-based perspective, the work system theory appropriately serves the requirements to design and engineer increased levels of organizational robustness and resilience into systems. The work system theory seems to be appropriate to engineer (high) reliability measures into service systems and to make it manageable in times of increased dynamics, risks, uncertainties and crisis. An in-depth analysis of the work system theory is presented in section – frameworks for analysis of organizational robustness and resilience.

Operational constructs

2 Operational constructs

This second chapter of part II is about the research into the operational concepts of organizational robustness and resilience in Service Science. In the center of this chapter is the structure of knowledge within empirical literature in Service Science to design and develop enhanced levels of organizational robustness and resilience in service systems. Purpose of this section is the identification and exploration of activities and measures within Service Science that increase organizational robustness and resilience. This chapter advances the research provided in chapter by investigating into empirical literature within the field of Service Science. It is based on theoretical predicted events towards organizational robustness and resilience identified in chapter : stakeholder interaction & value co-creation: system/service innovation & evolution, knowledge exploration & management: learning, training, education, system development & (re-) engineering.

This section is structured into four main sections. The first section presents applied research design. Section two and three investigate into stakeholder interaction & value co-creation: system/service innovation & evolution and knowledge exploration & management: learning, training, education. Section four investigates into system development & (re-) engineering in Service Science. Since the concepts of organizational robustness and resilience did not arrive adequately within Service Science, section four is organized among the network of interrelated concepts of organizational robustness and resilience. This network is a major result within section (In-depth case study about organizational robustness and resilience) and captures the concepts of organizational robustness and resilience and its interrelation among each other.

2.1 Research design: method and data

This section is based on a concept-centric literature review (Webster & Watson, ) and is organized among Lamnek's () schematic representation of a qualitative

Operational constructs

study. Six promising A-ranked academic journals within the field of Information System research, proposed by Verband der Hochschullehrer für Betriebswirtschaft e. V. (), were queried with tailored search terms towards organizational robustness and resilience. For example, the literature search about resilience (resiliency, resilient) in journal “Journal of Management Information Systems” did not provide any result. However, the same search in journal “MISQ” returned three scholarly articles whereas two of these articles were selected for further investigation.

Table : Journal selection for chapter /part II

science science Journal Journal resilient innovation innovation capabilities capabilities Search termSearch resiliency or resiliency AND service AND service AND dynamic AND dynamic AND robustness AND innovation Combined search Combined AND resilience or or AND resilience (service science AND no special resilience OR robustness MISQ search term 1/2 3/12 9/54 2/3 3/5 2/4 OR dynamic capabilities required AND innovation); 2/5 Journal of JN "Journal of (service science AND Management Management no no resilience OR robustness 1/3 3/16 0/3 1/2 Information Information result result OR dynamic capabilities Systems Systems" AND innovation); 3/7 (service science AND Journal of 3/155 resilience OR robustness Information PUBID 12/120 (summarized: 0/15 2/18 4/53 OR dynamic capabilities service innovation Technology & innovation) AND innovation) AND PUBID(30075); 5/239 JN (service science AND Information "Information no no no resilience OR robustness Systems 1/1 1/3 4/32 Systems result result result OR dynamic capabilities Journal Journal" AND innovation): no result Journal or The Journal book title: of Strategic The Journal 0/98 5/66 5/74 0/66 3/41 0/46 no result Information of Strategic Systems Information Systems The (service science AND European 3/105 resilience OR robustness no Journal of PUBID (summarized: 4/9 7/24 6/98 OR dynamic capabilities result service innovation Information & innovation) AND innovation) AND Systems PUBID(30520): 5/76

In total, scholarly articles out of these six academic journals are selected for further investigation. By application of a careful skimming and scanning strategy (titles, abstracts and conclusions of these selected scholarly articles), scholarly articles

Operational constructs

are selected for further concept-centric review. This concept-centric review was determined by network of interrelated concepts of organizational robustness and resilience, which is designed and developed in part III/section of this dissertation. This network identifies important concepts to increase the level of organizational robustness and resilience in systems. Selected scholarly papers are clustered among this network and are concept-centrically processed.

2.2 Service interaction and value co-creation: emergent perspectives and approaches

Service interaction and value co-creation in the approach of Galvagno & Dalli () is about increased perception of customers’ needs and requirements: customers not only are a source of information but also become an important resource for service and service system development. This approach considers the principle of service interaction and value co-creation from service science, innovation and technology management as well as marketing and consumer research. The service science perspective within this approach is the dominant perspective and is based on service interaction between service providers and clients. The technical perspective considers technical platforms that support and mediate between the service provider, clients and stakeholders. The technical perspective is about collaborative work on increased service customer participation mechanisms: service and service system innovation. The marketing perspective supports in service innovation engineering and thus customer satisfaction. It focuses on engagement, involvement and empowerment of customers.

As depicted in figure , Ranjan & Read () present a framework wherein the essential components of value co-creation are visualized and put in relation to each other. They consider value co-creation as a cooperative act of co-working and co- production with customers to satisfy their service needs and requirements. Value co- creation within this approach is an output of co-production measures (including the components of knowledge (sharing), equity and interaction (dialogue)) and value-in- use (including the components experience, personalization and relationship).

Operational constructs

Figure : Sub-constructs of value co-creation (Source: Ranjan & Read ())

Leclercq et al. () present a resource-based perspective on service interaction and value co-creation. In their approach, value co-creation is a process that needs to be supported by engagement service platforms as well as service interactions across these integration mechanisms. Integration enables to utilize external resources offered by service stakeholders and to generate learning loops and new knowledge. Service interaction as a mean to integrate mechanisms is an essential part to exchange resources and the development of actors’ relationships.

2.3 Service system innovation and evolution: value co-creation and service

Barrett et al. (), for example, identify two approaches towards service innovation. The first approach considers service concept, client interface, service delivery system (intra- and inter-organizational), and technology as antecedent of service innovation. The second approach considers service innovation as “emergent, interactive and dynamic, as well as knowledge and information intensive” (Barrett et al., ) service interaction processes between service provider, clients and stakeholders. Within this approach, innovation emerge as ad hoc innovation, anticipatory innovation or formalization of standardized procedures across multiple service provider/client interactions.

Operational constructs

In the approach of Lusch & Nambisan (), service innovation is the “rebundling of diverse resources that create novel resource”. Lusch & Nambisan () present a tripartite framework for service innovation that consists of the service ecosystem (considered as effectual actor-to-actor networks that create their service ecosystems), service platforms (agents of the actors to increase service interactions and exchanges), and value co-creation (roles, processes and mechanisms to integrate actors’ resources). As Lusch & Nambisan () highlight, service ecosystems are emergent actor-to-actor structures (e.g. at least between service provider(s). Value co-creation depends on information technologies that form service platforms (for resource liquefaction and resource density) for efficient and effective resource integration, service exchange and increased service experience (co-developed by provider and customer). Further key are structural flexibility and structural integrity of service platforms. Information technology, has a central part on service and value co-creation.

In the approach of Randhawa & Scerri (), service innovation is a mix of product and process innovation as well as the interplay between “service concepts, service delivery systems, client interfaces, and technologies” (Randhawa & Scerri, ). Service innovation processes involves the study of service system value co-creation mechanisms and configurations of people, technology, shared information and value propositions. Innovation, according to Randhawa & Scerri (), are interactive and iterative open processes where stakeholders are encouraged to co-innovate, which also facilitate learning processes and enhance knowledge sharing in and among participating organizations. Critical success factors within this approach are dynamic capabilities. Dynamic capabilities, as Randhawa & Scerri () highlight, are “entrepreneurial alertness, co-evolutionary learning, collaborative agility, collaborative innovative capacity and customer engagement” as well as the culture for service innovation, inter-organizational collaboration capabilities and knowledge sharing.

Witell et al. () examine service innovation from the assimilation perspective, demarcation perspective and synthesis perspective. The assimilation perspective is about the development of new technology. It is in line with the Schumpeterian view of radical technical innovation. The demarcation perspective is about change, mostly

Operational constructs

examined in other/specific industries, and adopted for the own sake. This perspective highlights that innovations do not have to be new – they already can be launched in different sectors. The synthesis perspective considers innovation as renewal and change of practices and/or resources and its adoption in a new fashion. As Witell et al. () highlight, companies need to balance these perspective on innovation and must make trade-offs between incremental and radical innovation to survive.

Incremental and radical innovations are central to Kindström & Kowalkowski (). In their approach, a service business model based on strategy, structure, and business elements that are pervaded with resources (what a firm can use) and capabilities (what a firm can do) is presented. Kindström & Kowalkowski's () highlight, service innovation depend on exploitation and exploration capabilities that is about the appropriate strategy of fusing existing capabilities efficiently and creation of new offerings and market spaces that stretch capabilities.

Flath et al. () consider innovation from a technological-collaborative perspective. Open platforms and communities on the internet are of essential importance and the remix of knowledge and ideas (also captured on these platforms and communities) happens in many forms that are: merger, compilation, sibling, retrospect, fork, bouquet, customization, building templates.

.. Service system engineering toward organizational robustness and resilience

This section starts with the article of Cho, Mathiassen, & Robey (). Although this article is out of selected sample size, the approach of Cho et al. () found a solid basis to better understand the concepts of robustness and resilience in Information System research. Resilience, as Cho et al. () argue, is a (positive) capability that “allows individuals, groups and organizations to thrive in dynamic contexts” (Cho et al., ). It is a proactive and positive management process of the adaption of innovation and challenges – an adaptive process in which “specific contradictions are confronted and resolved” (Cho et al., ). Organizational resilience, according to the approach of Cho et al. (), can be increased via enthusiasm (enthusiastic employees, e.g. proud to be technological pioneer), vision (shared organizational and technological

Operational constructs

vision), individual and collective behaviour within organizations, network collaboration (e.g. focal node and non-focal node organization), continuous improvement and innovation of (individual/organizational) practices and mitigation of opportunities and threats in the environment. Organizations that do not recognize technology and innovation adequately, as Cho et al. () highlight, automatically decrease their resilience and produce contradictions.

In the approach of Park et al. (), organizational resilience is considered as a sociotechnical safety concept (including people, information, technology and facilities). Resilience and information assurance are positive enablers to reduce the impacts of hazardous and disastrous events. Risks, in contrast, deal with uncertainty in organizations and call for agility and responsiveness to respond to uncertain situations. Basing on their empirical research, Park et al. () suggest that experience with disasters is important enable of organizational resilience: “A disaster experience may bring light the positive effects of information assurance on resilience and the effect of resilience on perceived usefulness” (Park et al., ). To withstand risks, Park et al. () call for formalized business continuity plans (incl. preparation for disasters, training of employees and development of coping strategies) as well as coordination mechanisms. Similar to Cho et al. (), Park et al. () call for technological interventions to increase resilience.

Wastell et al. () consider resilience as an individual and/or organizational ability of continuous renewal and change. It is a proactive process of reform and renewal “is the hall-mark of resilient behaviour in critical situations” (Wastell et al., ). In their approach, key features of organizational resilience are development of new methodologies (incl. the development of adaptive relationships between organization and its environment), commitment (of managers and employees) towards leadership, innovator mentality, improvisation, opportunism, vision, agility, flexibility, experimentation, experience, expediency/bricolage and resourcefulness. The approach of Wastell et al. () considers organizational resilience as a cyclical learning process including the development of business process re-engineering capabilities and has a strong focus on technology.

Operational constructs

.. Cognitive capabilities

Newell () considers organizations as ambidextrous knowledge organizations that actively explore and exploit knowledge. Ambidextrous knowledge within the approach of Newell () is antecedent to produce new products, organizational arrangements and/or business models as well as to improve and innovate organizational efficiency. Knowledge can be gained from repository (e.g. databases), network, crowd (e.g. platforms) and sensor (e.g. IoT, devices). Additional, Newell () identifies big data and information collected by sensors as important knowledge that can reveal the answers (Newell, ).

To survive in uncertain and complex environments, Pagani () represents the approach that organizations need to launch incremental innovation dynamically. This approach is highly customer oriented wherein value on five levels can be utilized: value in customer access, value in common infrastructure, value in modularity, value in content access and value in orchestration to enhance organizational intelligence. Center to the approach of Pagani () is the maximization of intelligence about the customers. Organizations must become an active part in value creation systems. Value creation then is an output of a bilateral process that encourages creativity and diversity (Pagani, ) and is only hindered by organizational centralization.

Giesbrecht et al. () contributes to the concept of value co-creation by the development of service encounter thinklets and the establishment of service agents. Service encounter thinklets are a key to increase social interaction and value co-creation and facilitate in conflict management between service provider and client. In this approach, service agents are installed to take on their role as co-creators in and mediators of the advisory process.

The approach of Sharma & Rai () put leaders’ individual factors (such as hierarchical position, job tenure) and perceptions of the efficacy of the technology (IS leaders relation to the technology) into the centre. This approach considers innovation on top management, tactical management, operational management and lower-level management as well as in dependence to the organizational context: size, industry type, environment and time.

Operational constructs

IS integration and knowledge sharing are key to the approach of Saraf et al. (). Both are the most important preconditions for greater performance. Saraf et al. () adopt a dynamic capability perspective and highlight that knowledge sharing is an absorptive capacity of an organization: knowledge sharing gets increased by knowledge complementary – the inclusion of overlapping mental schemas, overlapping know-how between business units, common past experience with a customer segment. IS integration mechanisms within this approach allow “smoother conversion between tacit and explicit knowledge forms, merging information generated from multiple contexts throughout a multi-unit firm, and enabling multiple modes of knowledge conversation” (Saraf et al., ). IS integration mechanisms have moderation effects on the knowledge sharing processes.

.. Organizational culture

Ravichandran () considers organizational agility as a key to cope, survive and maintain firm performance in dynamic and hyper competitive environments. In this approach, agility is a “firm’s capacity to respond with speed to environmental changes and opportunities” (Ravichandran, ). Organizational agility bases on Information System Capabilities, IT investment orientation (that are the bases for digital platform capabilities) and the organizations’ innovation capacity. To run this model, managers need to assess customers’ needs and their preferences (“customer responsiveness”), to develop an appropriate product and service offerings (“operational flexibility”) and to apply the capacity to build up of streamlined processes (“strategic flexibility”). Ravichandran () observed a positive and significant relationship between IT competence, digital platform capability and organizational agility. Antecedents are digital platforms and organizational capacity for innovation, including the creation of new business models, digital products and services, experimentation, risk taking, pursue market opportunities and threats. To increase organizational agility, Ravichandran's () proposes to invests into the development of IT competencies.

In the center of the research of Tan, Benbasat, & Cenfetelli () is service quality. Important to service quality and to develop better services is the merger of service content quality and service delivery quality. The approach of Tan et al. () describes

Operational constructs

design principles, derives taxonomies of generic service content functions and delivery dimensions as well as validates practical value for customers tow to analyze and improve functions and consequently increase service quality.

Centre to the approach of Kumar & Stylianou () is a process model for flexibility management within Information Systems. This model enhances managers to structurally and systematically develop and manage flexibility on firm but also on process and IS level (including infrastructure, hardware, software, etc.).

Baker et al., () represent the positive feedback approach. This approach implies that IT investments have positive impacts on IT capital and IT labor. These again have positive impacts on overall productivity that in turn positively impacts IT investments. Baker et al., () propose that managers not focus on cash-flow methods and cost perspectives for future investments but also consider how “investments in IT improve organizational performance, provide gains for reinvestment, and create options for future investments” (Baker et al., ).

In the approach of Frisk et al. (), the role of managers and their decision-making (processes) are key. Frisk et al. () consider decision making as a creative and adaptive process wherein managers are demanded to interpret heterogeneous evidence, explore and test different ideas, and discover an evaluate alternatives (Frisk et al., ). Frisk et al. () present a design-oriented model that enables to apply a pluralistic business model thinking. It increases the horizontal and vertical communication, learning and increased understanding within an organization.

Dernbecher & Beck () put major emphasis on the concept of mindfulness. Drawing from individual mindfulness, Dernbecher & Beck () highlight that organizational mindfulness is to achieve reliable and performant work outcome. Dernbecher & Beck () highly rely to the research of Weick et al. (): mindfulness is about the organizational preoccupation with failure, reluctance to simplify interpretations, sensitivity to operations, commitment to resilience and under specification of structures/deference to expertise. Resilience within the research of Dernbecher & Beck () is the capability of an organization to absorb an occurring event but nevertheless endure its operations. Dernbecher & Beck () recognize a

Operational constructs

duality of IT and mindfulness whereas IT facilitates mindfulness and mindfulness shapes IT.

Roberts et al. () focus on dynamic managerial capabilities as antecedent to sense opportunities for organizational innovation. In the approach of Roberts et al. (), dynamic managerial capabilities are individual capabilities of mangers and consist of sensing, effectively seizing the opportunities and creation (reconfigure, extend and/or modify organizational resource base and organizational assets). As Roberts et al. () highlight, the use of IS is central to exploit (e.g. current products and services) and to explore (new products, markets, customers, business models, etc.): it is necessary to identify opportunities for organizational innovations, take over entrepreneurial orientation and promote organizational members’ perceptions of autonomy and innovativeness.

Based on the disruptive innovation theory, the approach of Karimi & Walter () proposes to develop first-order dynamic capabilities to respond to (digital) disruption. These capabilities reconfigure, extend and/or modify ordinary capabilities (Karimi & Walter, ). As explored in their case study research within the newspaper industry, providers started to implement radical innovation: the launch of digital platforms to cope with the loss of printed newsletters. Thereby, Karimi & Walter () explored that the higher a company’s ability to collectively reconfigure its resource base by changing, adapting, or extending its existing resources-processes-values is the higher is its response performance to digital disruption (Karimi & Walter, ).

In the centre of the approach of Chen et al. () are the alignment of IT capabilities and business process agility. They argue that organizations should develop IT capabilities (such as training, education and hiring of skilled and experienced IT managers) and align it with business process agility. Taken together, they shall foster organizational performance and growth, gain competitive and overall organizational survival. Key is the leverage of organizations’ IT capabilities, which are second-order constructs. They base on six dimensions: “IT infrastructure, IT business partnerships, business IT strategic thinking, IT business process integration, IT management, and external IT linkage” (Chen et al., ). As Chen et al. () explored, business process

Operational constructs

agility fully mediates IT capability and the performance relationship. In their approach, IT capabilities have mediating effects on business process agility, create flexible and responsive operations and enable to examine organizational environments.

.. Risk- and crisis management

In the center of the approach of Kaltenecker et al. () is disruptive innovation. The authors identify the spin-off strategy, leader strategy, expert opinion strategy and trial and error strategy to withstand disruptive innovations. As Kaltenecker et al. () observed from five empirical studies, the spin-off strategy is the most influential strategy to manage disruptive innovation. The spin-off strategy is about mediation of employees in expert groups to work on disruptive innovation. This strategy supports to avoid resource allocation conflicts. Additional, as they explored, strategies need to be augment with individual strategies as well as top-management strategies and partnership and service ecosystem strategies: development of strategies that support the innovation from outside. Individual strategies considers recruitment strategies, direct sales strategy, step-by-step strategies, partnership and ecosystem strategies and visionary top-management strategies.

Based on a case study research with a financial service provider, Hsu et al. () represent the perspective that operational risk management processes base on three phases: phase one is determined by the establishment of an operational risk management framework. Activities included information gathering, framework development, risk assessment procedure development and the establishment of a company-wide risk management database. Phase two is determined by the identification of risks, their assessment and the setting up of guidelines and procedures to prevent, cope and response to them. In the third phase, operational risk managers started to structure and to document risk identification and assessment results. Hsu et al. () highlight that proper risk management is – same as the appropriate use of technology – an organizational capability and can be reinforced with technology and IT.

Risk management in the approach of Kutsch et al. () is essential to increase service reliability. Additionally, Kutsch et al. () call for mindfulness-based

Operational constructs

reliability management. This approach supplements existing risk management processes and risk procedures, as Kutsch et al. () argue, and integrates the right people, training and education measures. It enables managers to launch individual capabilities: to assess situations and to decide of risk measures.

Granados & Gupta () propose a transparency strategy framework to cope turbulent times. Within this framework, IT is considered as key enabler to develop dynamic capabilities (“to be alert, predict the future, and effectively compete”), to gain information and to deploy technologies. The transparency framework consists of a business strategy that is trigger for the information strategy. The information strategy again triggers the IT strategy and constrain or enable transparency strategy. Major emphasis within this framework are on human resource that can play a key role in monitoring of innovation and designing a competitive response.

Ebel et al. () recognize open business model development as solution to (rapid) environmental changes (value co-creation). It includes the mobilization of the business model project team (and employees), analysis of the competitive environment (industry context, market situation, competitors, customer needs), design and implementation of the business model as well as its continuous management. To cope with environmental challenges, new business models should be open and “facilitate the interaction between the stakeholders of a company as well as between the company and its stakeholders” (Ebel et al., ) to realize collaborative objectives.

.. Business practices & technologies

In their approach, de Albuquerque & Christ () emphasize on the tension between business process modelling and flexibility. de Albuquerque & Christ () consider business process modelling as contradictory activity. Because of formalization and control, business process modelling can decrease organizational flexibility and thus can be an enabler but also disabler of change, renewal and innovation. To increase flexibility within organizations, de Albuquerque & Christ () propose to apply multidimensional flexibility measures consisting on “‘what’ activities and relationships are shown in the process models; ‘how’ the modelled activities are carried out in practice; ‘who’ should be accountable for certain organizational activities” (de

Operational constructs

Albuquerque & Christ, ). The loss of flexibility in one of these dimension can increase the flexibility in another dimension.

Trantopoulos et al. () focus on open process innovation. Within the center of their approach are data access systems and network connectivity (as moderator between individual stakeholders). These artefacts facilitate the gathering and embedment of external, codified and tacit knowledge and technology within an organization to develop internal capabilities. This approach captures the service environment including providers, customers and stakeholders. (Trantopoulos et al., ).

To keep organizational sustainability and survivability, Ren & Dewan () advocate IT productivity, IT profitability and IT risk influenced by competition, regulation and technological change. As Ren & Dewan () highlight, to cope with competiveness pressures, which is key to organizational survival, organizations are requested to improve their efficiency by using more and advanced IT. As Ren & Dewan () argue, IT is an important performance measure and is a strategic necessity.

Lange et al. () focus on a success factor model for enterprise architecture management (EAM). This factor model is a tool for strategic planning and management. Success measures within this model are quality, infrastructure quality and service delivery quality. To design such EAM, Lange et al. () recommend design principles: establish an EAM infrastructure, create stakeholder awareness, provide EA products and services of high quality and secure stakeholder commitment.

Within their research, Keith et al. () present a hybrid service-oriented project management methodology that support to better react to risky and uncertain environments. This hybrid methodology is characterized by modularization, methodology and resources assignment. Within a project, as the authors highlight, coordination, education and development of service capabilities is key.

Luftman et al. () present a Strategic Alignment Maturity approach to increase and improve dynamic relationships between IT and business. This approach consists of communication, value analytics, IT governance, partnering, dynamic IT scope and

Operational constructs

business and IT skills development. As Luftman et al. () highlight, these dimensions are statistically significant within organizations and increase performance at multiple levels: return on assets, return on equity, etc.

Setia et al. () consider effective and efficient customer service performance as means to organizational survival. Within their approach, Setia et al. () call for the development of customer service capabilities that consist of customer orientation capabilities and customer response capabilities. This approach facilitates customer- supplier participation and increase process sophistication and quality in service performance processes as well as enables to release service innovation and thus the development of new (digitalized) business models.

In the centre of the approach of Battleson et al. () is cloud computing. They consider cloud computing as a special form of a dynamic capability in organizations. Additionally, as Battleson et al. () highlight, cloud computing is a catalyst to further develop existing organizational and dynamic capabilities. In their approach, Battleson et al. () present dynamic commitment of resources, designing modular processes, customers and business processes, designing context-specific governance mechanisms as essential sense strategies. They propose to establish simple, modular and tailored processes: processes that help to learn about customer needs, orchestrating and reconfiguring of tasks that are necessary to achieve new operational capabilities, ability to integrate knowledge in collective sense-making, development of improvisational capabilities and enable innovations.

.. Extended enterprise & supply chain management

Centre to the approach of Srivastava & Shainesh () are resource exploitation, resource combination and value reinforcement. These elements are value creating mechanisms that lead to service innovation. In their approach, knowledge, technology and institutions are interactional resources within networks of dynamic interactions (service networks). By integration of IT and IT(-based) innovations, value creation between provider and customers can be increased. IT-enabled innovations, as Srivastava & Shainesh () highlight, support to bridge the service divide to access digital goods and capabilities between service ecosystem participants.

Operational constructs

In the approach of Lyytinen et al. (), innovation originates within cooperative innovation networks. Lyytinen et al. () identified project innovation network, federated innovation network, clan innovation network and anarchic innovation network as main forms of cooperation innovation networks. To become innovative in such networks, Lyytinen et al. (), participants need to apply representational flexibility (to mediate both cognitive and social translations), semantic coherence (conserve the semantics of the objects), temporal and spatial traceability (trace during and across innovation networks), knowledge brokering (social broker to disconnected communities) and linguistic calibration (mapping varying vocabularies, storing discursive context).

In the center of the approach of Selander et al. () are capability search and redeem strategies: single ecosystem actors are demanded to pro-actively pursue a pluralistic capability search and capability redeem strategy to enhance organizational innovation and sustainability.

2.4 Criteria towards organizational robustness and resilience in Service Science

With respect to findings in chapter /part II, service stakeholder interaction and integration towards organizational innovation and evolution are of major importance in empirical application too – including the perception of customers’ needs and requirements as well as stakeholder integration mechanisms. Propensity to monitor customers’ needs and requirements, increased customer orientation and value creating mechanisms, such as resource exploitation, resource combination and value reinforcement mechanisms are key. Empirical literature emphasizes on technology- driven integration mechanisms, such as open platforms, client interfaces, service platforms, etc., to increase service interactivity between service stakeholders (at least service provider and service client). Innovation is considered as emergent, interactive and dynamic processes as well as knowledge and information intensive. Service interaction and integration enables to gain new knowledge and learning: a process that highly relies on the development of organizational exploration and exploitation capabilities. In contrast to theoretical literature, empirical articles shift towards

Operational constructs

increased use of technology to drive service stakeholder interaction and integration as well as knowledge management to gain ambidextrous knowledge (knowledge acquisition, assimilation and application) and to maximize organizational intelligence. Empirical literature extends Service Sciences’ approach towards organizational robustness and resilience and – as explored – integrates organizational sensemaking & human resource management, system development & (re-) engineering and safety- & security processes, including risk management strategies.

.. Organizational sensemaking & human resource management

As observed in empirical literature, a shift towards human centricity and human factors within Service Science is carried out. The development of routines and processes – the mediation of cognitive and social acts – to explore and exploit knowledge, feedback and learning, capabilities and mindfulness reliability management (alertness and dynamic awareness to achieve reliably) shift to the center of investigation. Empirical literature considers leaders and leaders’ individual factors, leadership, mediation of employees, role of managers, dynamic managerial capabilities and decision-making, mental schemas, overlapping expertise, experience, transparency, etc. as emergent streams towards organizational robustness and resilience.

.. System development & (re-) engineering

IT and technology as well as its underlying artefact (e.g. infrastructure, business partnerships, strategic thinking, business process integration, management, external linkages, etc.) are of major importance in this stream of literature. They are considered as strategic necessity towards organizational sustainability and survivability. IT and technology takes over the role of a moderation and controlling instance within processes and services, such as increased customer interaction and integration. As highlighted in selected literature, IT and technology are important to design, engineer and develop (open) innovation and business models, provide value analytics for control, increase IT productivity, profitability and risks as well as increase organizational flexibility and agility. As explored, there is the emerging trend to consider IT as an organizational capability that enables capability search (locating of

Operational constructs

external capabilities) and capability redeem (cultivation/innovation of internal resources) in a system. IT capabilities, according to empirical literature, enables to extend high-level routines, sense opportunities for organizational innovation and to enhance organizational innovation and sustainability.

.. Safety- & security processes, including risk management strategies

Resilience within empirical literature is considered as antecedent to risk management. Resilience is considered as a sociotechnical concept and it is advantageous to have experience with disasters. Technological interventions that improve safety and security practices, such as formalized business continuity plans (including preparation for disasters, training of employees, coping strategies, etc.) are considered as means to increase the level of organizational resilience. Resilience and risk management are of higher priority to thrive through dynamic events and to increase service reliability. Identified approaches to increase safety- and security within service systems include operational risk management (including the development of a risk management framework, risk identification, knowledge sharing), mindfulness based risk management to increase service reliability and strategy development.

.. Capability development to increase organizational robustness and resilience

In contrast to theoretical/philosophical literature reviewed in chapter /part II, empirical literature shifts from static, resource-based perspectives on systems and its resources to dynamic, capability-based perspectives. Service system innovation and evolution towards increased levels of organizational robustness and resilience not only depend on customer/stakeholder interaction and value co-creation but also on dynamic internal and external response options and the development of capabilities. Within this literature, resilience is considered as a positive capability that influences service system innovation and evolution in a positive attitude: service system becomes more dynamic and the development of managerial, organizational and dynamic capabilities shift to the center of investigation. Technology, IT and risk management are considered as capabilities of an organization.

Analytical framework towards organizational robustness and resilience in service systems

3 Analytical framework towards organizational robustness and resilience in service systems

This third and final chapter in part II is about the further investigation into the work system theory and the dynamic capability approach, as identified in previous chapters. This chapter identifies Alter's () work system framework and Teece's () dynamic capability microfoundation framework as complementary frameworks to systematically analyze and evaluate organizational robustness and resilience within service systems. Based on these two frameworks, objectives of this chapter are to define and to develop an analytical framework to structurally analyze and evaluate organizational robustness and resilience within service systems. Since resources are never the only input parameters to organizations, in accordance to Penrose (), this analytical framework consists of both – a static, resource-based development and engineering framework (work system theory) and a dynamic, capability-based system innovation and evolution framework (dynamic capability approach). These approaches meet the requirements for organizational development and engineering of systems at resource- and strategic level.

This chapter splits into three subsections. Subsection and provide literature reviews about the work system theory and the dynamic capability approach. Applied research designs are presented as separate part within these sections. In subsection , Alter's () work system framework and Teece's () dynamic capability microfoundation framework are merged to an analytical framework to structurally analyze and evaluate as well as to systematically manage, design and engineer organizational robustness and resilience as well as innovation in service systems. This analytical framework is important to structurally analyze and evaluate single case studies within part III, chapter of this dissertation. Its analysis and evaluation is presented in part IV, chapter and forms an important pillar towards the overall objective of this dissertation: design and development of a strategic management framework for engineering of organizational robustness and resilience.

Analytical framework towards organizational robustness and resilience in service systems

3.1 Work system theory: resource engineering

The work system theory is an invention of Alter and can be traced back to the year (Alter, ). It is based on Alter’s work experience at a manufacturing software firm and Sysperanto. Sysperanto was a project in the late ’s and early ’s within the field of business informatics/information systems research. The project’s aim was to build up a methodology that supports business professionals and ICT experts likely wise to understand service systems from a socio-technical perspective (practical purpose) as well as to codify Information System knowledge for researchers (theoretical purpose) (Alter, ).

Central to the work system theory are work systems. A service system is a work system (and vice versa). Service systems are service-oriented because they exist to produce products and services for customers (Alter, ). Information systems, projects, self-service systems and automated systems as well as supply chains are special cases of service systems. Business organizations are viewed as a summation of internal work systems embedded in a summation of external work systems (extended enterprises within supply chain networks). In most cases, service systems are temporary.

.. Research design: method and data

This section presents a concept-centric literature review about the work system theory. It is organized among Webster & Watson's () approach performing of a concept-centric literature reviews. Initial to perform this concept-centric literature review are the nine work system theory related articles identified within article database of the Service Science Worldwide Community (c.f. part II/chapter ). By a careful review of the articles bibliographies of these scholarly articles, further work system theory related articles could be identified. Seven of these articles (out of these ) are already part of above mentioned nine articles. Additionally, the database of Association for Information Systems was queried (search query: “Steven Alter”, search date: rd Oct ). The search query returned scholarly articles whereas five articles

Analytical framework towards organizational robustness and resilience in service systems

are doubles, are already part of the sampling unit, are out of date (publication date , ) and are out of scope of this research. As In total scholarly articles are skimmed and scanned whereas scholarly articles are selected for this concept-centric literature review at hand. As depicted in table , seven concepts (frameworks) and sub-criteria of the work system theory could be identified. The concepts are the Work system framework, work system life cycle, service responsibility tables, work system snapshot, service value chain framework, service domain framework and metamodel and are objective of the following subsections.

Table : Concept-centric perspective on articles related to the work system theory

.. Work system framework

The work system framework is the heart of the work system theory. It is a static, prescriptive model about nine resource-elements and provides an analytical lens on service systems and how these resource-elements operate within. The nine resources,

Analytical framework towards organizational robustness and resilience in service systems

which are Participants, Technologies, Information, Processes & Activities, Products & Services, Customer, Infrastructure, Environment, Strategies. The work system framework aims to explicitly use Service Science terminology: the outputs of service systems thus are products and services instead of goods and service. In the work system framework, all organizational actions, no matter if they are highly structured or artful, are processes and activities.

Socio-technical system view – service systems, in the perspective of the work system theory, are always socio-technical systems: fully autonomous service systems do not exist because at least maintenance is human driven. The work system framework provides required socio-technical and system-oriented view on any (service) systems. For example, resource-element participant is a socio element and describes the actors of a service system, its competences and skills to perform process and activities. Resource-element technology is a technical element and describes the application of ICT related methods and tools and which information they need and generate. The socio-technical view support managers, employees and other business professionals to understand ICT reliant systems in organizations, to structure the service system needs as well as to systematically develop innovation to improve the service system.

Resource-elements – the work system framework consists of nine resource- elements. These are Participants, Technologies, Information, Processes & Activities, Products & Services, Customer, Infrastructure, Environment, Strategies. Resource- elements Participants, Technologies, Information, Processes & Activities found the core of the work system framework and perform the work as well as produce the output of service systems.

The output of service systems are products and services and are for the use and consumption of the customer. The customer is on the top of the work system framework and is of central interest of the work system theory: customer first! Customers within the work system framework are the main source for feedback that is essential for resource-element products and services. Service systems consist of a mix of internal and external environments – e.g. organizational culture including politics,

Analytical framework towards organizational robustness and resilience in service systems

structures, decision paths and authorities as well as political, economic, social, technological, ecological/environmental and legal environment.

Customer and innovation – customers have an important role in the work system theory and are in the centre of the work system framework’s economic efforts. Customers are co-creators, inventors and providers of feedback for the service system. They are the main sources for resource (re-) engineering, including renewal, change, adaption and innovation (e.g. of products and services, processes and activities).

Products and services – in work system theory, there is not any distinction between products and services because the resources and elements as well as their interrelation to develop products and/or services are the same. Products and services are the unique selling proposition of a service system and aim to satisfy the customers needs. Products and services are in close relation with the customer: the customer is a co-creator and provides essential feedback for improvement, renewal and change of product and service portfolio.

Risk management – the work system framework provides an analytical lens on system’s resource-elements. By the use of this framework, it creates awareness of the systems’ resource-elements and gives guidance in design, (re-) engineering and innovation of particular service system. Thus, the work system framework provides the structure for comprehensive risk management and contingency management at system’s resource-level. This framework can be used to organize many risk factors and enables managers, employees and other business professionals to develop analytical skills, to anticipate and evaluate potential failures and threats as well as to work on risk prevention and cope options.

Application and interrelations – the work system framework is meant as analytical framework to summarize service systems and its services. For in-depth analysis, the work system framework makes use of accompanied frameworks, such as the work system life cycle model, the metamodel and the work system snapshot.

Arrows – an arrow within the work system framework highlights interrelations among resource-elements and how a resource-element can influence another resource-

Analytical framework towards organizational robustness and resilience in service systems

element. A change in a resource-element triggers change in an interrelated resource- element, e.g. change in the resource-element processes and activities might call for a change in any of interrelated elements, and vice versa.

.. Work system life cycle model

The work system life cycle model is about the integration of the resources and elements in systems. It is an operational and iterative/incremental model and is divided in four interrelated phases that are operation & maintenance, initiation, development and implementation. It actively deals with planned and unplanned change: planed changes are performed in projects. Unplanned changes are seen as natural evolution and are, for example, a service systems ongoing adaptions, workarounds and experimentation. The work system life cycle model supports managers, employees and other business professionals to think systems as changing service systems.

Work system thinking – the work system life cycle model provides the basis for service system thinking towards systems as a service. It is about the service system’s redesign caused by planned and unplanned changes. Planned changes are about innovations within a service system. Unplanned changes are about unanticipated events that trigger adaption, workarounds and experimentation capabilities of service systems and demands its redesign.

Operational model; evolution and development of the work system – in the centre of the work system life cycle model are iterative process steps of redesign, initiation, development, implementation and operation of service systems. These process steps force to think, to work and – if needed – to reformulate vision, goals and/or resources if the current manifestation do not fit to changes and adaptions. Each phase of the work system life cycle model can be described as a service system using the nine resource- elements. The nine resource-elements can be underlined with WSLC that supports to improve particular element. The combination of the work system framework and work system life cycle model results into a matrix consisting of separate but clearly organized categories for resource-engineering.

Analytical framework towards organizational robustness and resilience in service systems

Risk management – the work system life cycle model aims to detect risks and to provide solutions to prevent, response and cope unplanned changes. It support service participants to capitalize adaption, workaround and experimentation skills within a system, which again improves collaboration, processes and activities, products and services, service provision and customer loyalty.

.. Service responsibility tables

Service responsibility tables especially relate to work system framework’s resource- element “products and services” and aim to build-up more service emphasis. This tool supports to identify and analyse active and passive activities, job roles and responsibilities of service system providers and its customers. This includes the identification of scope and content of services and service interactions (between provider and customer) as well as interfaces for increased service interactions. Furthermore, service responsibility tables support the documentation of products and service including the visualization of customer responsibilities in the service system.

.. Work system snapshot

The work system snapshot is used as a tool in the beginning of a service system analysis. It is a subtype and reduced model of the work system framework and produces a one page summary of the service system’s central resource-elements: Customer, Products & Services, Processes & Activities, Participants, Information and Technology. The work system snapshot supports mainly to analyse the service system “as it is” and paves the way to argue how it should be (“to be”).

.. Service value chain framework

The service value chain framework is a formative framework and emphasises to think service systems as services. The service value chain framework highly relates to the service-dominant logic and the concept of value co-creation (Vargo & Lusch (e.g. , , )). In the centre of the service value chain framework is the question about how to co-produce / co-create value. Thus, its main attempt is to identify, analyse and describe services, service components, functions and responsibilities within value creation processes and service interaction processes.

Analytical framework towards organizational robustness and resilience in service systems

.. Service domain framework

The service domain framework is an approach to explain the emerging service economy and its underlying constructs. The service domain framework splits into four layers whereas the service-dominant logic’s ten foundational premises are in the centre. Layer one is about the build-up of IT reliant service systems. This layer bases on work system framework and service value chain framework. Layer two represents the architecture layer and emphases on specification, location and interface. It focuses on co-creation of value between different parts in the service provision process. Layer three represents the economic exchange layer whereas the provider-customer interaction is of special interest. Layer four represents the service oriented layer.

.. Metamodel

The metamodel is a more detailed model than the work system framework and supports managers, employees and other business professionals to design and innovate services (transform service systems from “as is” to “to be”). It supports to perform in-depth analysis about a service system that are more rigorous then offered by the work system framework. Additional, the metamodel addresses topics and issues that are not represented in the work system framework (e.g. role of broader resources, relationships between the resource elements – interplay of resources, structure and intentions).

.. Work system framework for service system development and engineering

Since all service systems rely on resources, the work system theory provides a proper Resource Based View on service systems. The work system theory provides a broad range of frameworks and tools that enable to manage, engineer and design organizational robustness and resilience increasing measures within the service system. Based on the work system theory’s frameworks and tools, the work system framework meets best the selection criteria to develop and engineer enhanced levels of organizational robustness and resilience at service systems’ operational-base and

Analytical framework towards organizational robustness and resilience in service systems

resource-level. It serves functional and operational strategies that are about the use and application of resources and its underlying transformation processes and routines. The work system framework not only provides a vocabulary for business professionals and ICT specialists to understand common requirements about service system but also meets the criteria towards socio-technical resource-engineering, risk anticipation and continuous improvement (renewal, change and innovation of resource-elements).

Socio-technical approach

The work system framework considers service systems as socio-technical constructs wherein participants and technology perform work. Participants, such as managers, employees and ICT experts as well as customers rather than technology are major to the work system framework. In accordance with the service-dominant logic, the work system framework maintains a high level of customer orientation.

Resource engineering

The work system framework highlights the static interplay between the core resource-elements Participants, Information, Technology and Processes & Activities as well as its interplay within remaining resources to produce either products and/or services. These resources can be found in every service system – thus, the work system framework is applicable for all kind of systems (since the Work system theory considers almost everything as system). The work system framework enables to derive measures to develop and engineer the service systems’ operational-base and the resource-level. It allows to launch new resource constellations and valuable, rare, inimitable and non- substitutable (VRIN) resources – resources that are valuable, rare, inimitable and non- substitutable; VRIN resources distinguish “ordinary” organizations from superior organizations on resource-based level. VRIN resources provide competitive advantages on operational level and are the organizational unique selling proposition of products and services.

Analytical lens: risk anticipation

The work system framework provides an analytical lens on service systems’ resource-elements. The work system framework enables managers, employees, ICT

Analytical framework towards organizational robustness and resilience in service systems

experts and other business professionals to develop analytical skills, to anticipate and evaluate potential failures and threats as well as develop prevention, response and cope options. It guides to analyse the status quo (“as it is”) of a service system as well as to discuss target-oriented and define desired state of a service system (“to be”). Additional, the work system framework enables to anticipate risks and to derivate measures to strengthen particular resource-element against internal and external dynamics, risks, uncertainties and crisis.

Continuous improvement and innovation

Based on its analytical nature, the work system framework guides in continuous improvement of service systems’ resource elements and its renewal, change and innovation. The work system framework includes inventions and innovations by customers, service environment and self-awareness.

Limitations of the work system framework

The work system framework provides a mechanistic picture of the systems environment. It mainly fits in stable environments wherein organizational dynamics, risks, uncertainty and crisis are predictable. Prevention, response and cope of suddenly appeared events, adoption of crisis-situations as well as the utilization of advantages out of these are hardly to manage with the work system framework. Additionally, the work system framework misses to offer insights into organizational decline and how to manage events. The work system framework does not provide information how organizations can turn dynamics, risks, uncertainties and crisis into competitive advantage. Additionally, the work system framework says rather little things about capabilities that govern a system strategically.

Thus, the work system framework is less helpful to sense and seize opportunities (Niederman & March, ). Sensing and seizing of opportunities as well as managing threats and transform them into competitive advantage is key to prevent strategic failures accompanied with resource loss. As Teece () highlights, organizations that possess resources and competences but lack such dynamic capabilities have a chance

Analytical framework towards organizational robustness and resilience in service systems

to make a competitive return (and possibly even a supra-competitive return) for a short period; but these organizations cannot sustain supra-competitive returns for the long term except due to chance. They “earn a living by producing and selling the same product, on the same scale and to the same customer population” (Teece () cites Winter ()). The work system framework says rather little things about capabilities that govern a system strategically. The work system framework without the dynamization of engineering activities in service systems for renewal, change and innovation does not provide sufficient response options toward enhanced levels of organizational robustness and resilience.

3.2 Dynamic capability approach: strategic dynamization of service systems for innovation and evolution

The dynamic capability approach is a further development of the Resource Based View (RBV; e.g. Hutterer ()). While approaches within the RBV considers (valuable, rare, inimitable and non-substitutable) resources as organizations’ source of competitive advantage, the dynamic capability approach considers the way, how to modify system’s resources and resource allocation processes as well as how to modify the processes of resource allocation processes as source of competitive advantage, long- term sustainability and survivability of systems. Dynamic capabilities actively influence, refine and improve the organizational resource base and are related to the knowledge base of an organization.

Due to the emergent trend in Service Science to integrate dynamic capabilities into service system development, engineering and innovation, the motivation for this section is to analyze the progress among the dynamic capability approach. The objective of this section then is to identify a framework that supports previously identified work system framework to develop and engineer service system towards enhanced levels of organizational robustness and resilience.

Analytical framework towards organizational robustness and resilience in service systems

This section is structured among four subsections. Section one presents applied research design. Three presents the conceptual perspective on Dynamic Capabilities. This section splits into a theoretical section (presentation of dynamic capabilities captured in literature), practical section (dynamic capabilities recognized within the empirical work of this dissertation at hand) and a section that presents organizational robustness and resilience in conjunction with dynamic capabilities.

.. Research design: method and data

The method used to analyze and examine the dynamic capability approach is a narrative literature review. As depicted in table , this literature review adopts the work of Ambrosini & Bowman () in which the co-authors capture the research endeavors of Collis (), Danneels (), Winter () and Zahra et al. () towards the Dynamic Capabilities. However, this section augments this research by addition of the approaches of Wang & Ahmed (), Ambrosini & Bowman () and Teece ().

Table : Conceptual perspectives on dynamic capabilities

Source: Ambrosini & Bowman (2009) Wang & Ambrosini & Danneels Winter Zahra et al. Teece (2011) Collis (1984) Ahmed (2007) Bowman (2009) (2002) (2003) (2006) First First order Zero level Substantive Resources Resource base Sensing category capabilities capabilities capabilities Incremental dynamic Second and Second First order Dynamic capabilities, third order Capabilities Seizing capabilities capabilities renewing categories capabilities dynamic capabilities Higher Regenerative Managing Meta Second order order dynamic threats/trans capabilities capabilities capabilities capabilities formation Ad infinitum Dynamic meta capabilities capabilities

Analytical framework towards organizational robustness and resilience in service systems

.. Conceptual perspective: ordinary/organizational capability – dynamic capability

Capabilities, as Wang & Ahmed () highlight, encapsulate explicit processes and tacit elements embedded in the processes (such as know-how and leadership). Wang & Ahmed () consider capabilities as organization’s capacities to deploy resources, usually in combination. Teece & Leih () associate capabilities to a set of organizational activities. Literature differentiate among organizational capabilities and dynamic capabilities.

Organizational capabilities – also known as operational capabilities, according to Teece () – are best practices and involve the performance of administrative-, operational-, or governance- related functions (Teece & Leih, ). Best practices, as Teece () highlights, help organizations to become or remain viable and are the end result of a process of learning about resource within the organization, its interlinkage, and efficient/effective usage. Organizational capabilities are key in the Resource Based View to generate and to develop sustainable competitive advantages (Schreyögg & Kliesch, ).

Dynamic capabilities are higher-level activities (e.g. (Teece & Leih, )). While organizational capabilities, as Teece & Leih () highlight, are about doing things right, “dynamic capabilities are about doing the right things” (Teece & Leih, ). Austerschulte () highlight that Dynamic Capabilities are related with a broad range of terminologies: capacity (including ability, capabilities, higher order capability, capacity, competences, strategic ability, etc.), process (including managerial process, organizational process, strategic process, etc.) and routine (including high level routine, strategic routine, operational routine, etc.) to highlight the most common (Austerschulte, ).

Capabilities ad infinitum – in the approach of Collis (), capabilities are classified into three categories. First-order capabilities are those that reflect an ability to perform basic functional activities (e.g. plant layout, distribution logistic, and marketing campaigns, more effectively than competitors do). Second-order capabilities enable dynamic improvements of the activities of a firm (e.g. repeated process or

Analytical framework towards organizational robustness and resilience in service systems

product innovations, manufacturing flexibility, responsiveness to market trends, and short development cycles). Third-order capabilities enable organizations, according to Collis (), “to recognize the intrinsic value of other resources or to develop novel strategies” (e.g. conceive, choose and implement strategies; ability to deploy the firm’s resources and to develop new ones (Collis () cites Henderson & Cockburn ()).

Because of the fact that capabilities also become vulnerable, the approach of Collis () foresees meta-capabilities. Meta-capabilities develop capabilities to develop the capabilities that innovates faster (and/or better). They are about the inclusion of flexibility to shift between capabilities more efficiently or faster than competitors, the ability to respond to or initiate radical change, the capability to resolve trade-offs and to develop the capability to identify valuable resources or market positions. As Collis () argue: a meta-capability “is just the capability to innovate the innovation that innovates the innovation that innovates … and so on ad infinitum”. There is always a higher level, as Winter (, ) argues. Capabilities, as Collis () argues, are the ability of an organization to be static, dynamic or creative.

Re-newal of first-order capabilities – Danneels () defines capabilities as a “purposive combination of firm-specific assets (or resources) which enables it to accomplish a given task”. In his approach, capabilities are classified into first-order and second-order capabilities. First-order capabilities are about the integration of existing technological and customer competences into product/service development and innovation processes. They involve tangible and intangible resources into the production process and are accompanied with sub-competences such as manufacturing plant equipment, manufacturing know-how, engineering know-how, quality assurance tools, etc. Second-order capabilities, as Danneels () highlight, are the “ability to identify, evaluate, and incorporate new technological and/or customer competences into the firm”. Second-order capabilities “enable an organization to renew itself through building new first-order competences (or strategic assets)” (Danneels, ).

Analytical framework towards organizational robustness and resilience in service systems

Process-based view – learning and knowledge – Winter (, ) differentiates between routines and capabilities. A routine, as Winter (, ) defines, is a learned, highly patterned and (semi-) repetitious behaviour, founded in tacit knowledge. An ordinary/organizational capability, in contrast, is a “high level routine (or a collection of routines) […]” (Winter, , ). However, dynamic capabilities are processes “that operate to extend, modify or create ordinary capabilities” (Winter, , ). Dynamic capabilities, according to Winter (, ), are classified in hierarchical order. He differentiates between zero level capabilities (how an organization earns a living; e.g. producing and selling), first order capabilities (change of the product/service, the production process, the scale or the customers (markets; e.g. creation of new outlets)) and higher order capabilities. Higher order capabilities, according to this approach, enable an organization to respond to highly dynamic environments.

Centre to Winter (in Zollo & Winter ()), are organizational learning and knowledge: dynamic capabilities arise from organizational learning and knowledge and the organizations’ abilities to modify operational routines. Knowledge, according to Zollo & Winter (), can be classified into knowledge articulation (knowledge sharing to achieve an improved level of understanding) and knowledge codification (an higher cognitive effort that facilitates the diffusion of existing knowledge and enables to coordinate and implement of complex activities). Learning, according to Zollo & Winter (), then could be regarded as second order dynamic capabilities (Zollo & Winter, ).

Important to Winter (, ) is the differentiation between routine, ad-hoc problem solving and capabilities. Ad-hoc problem solving, same as brilliant improvisation, is neither a routine nor a capability: “it typically appears to novel challenges from the environment or other relatively unpredictable events” (Winter, , ). It is just another way towards dynamic environments and change. Ad-hoc problem solving is not committed to specialized resources.

Managerial reliability – the approach of Zahra et al. () is in close relation to Winter (, ). Zahra et al. () define dynamic capabilities as the organizations’

Analytical framework towards organizational robustness and resilience in service systems

“abilities to reconfigure a firm’s resources and routines in the manner envisioned and deemed appropriate by its principal decision-maker(s)” (Zahra et al., ). Dynamic capabilities, related to the approach of Zahra et al. (), contain the organizational ability to reconfigure as desired (well-targeted and deployed) in order to achieve strategic goals. Organizations benefit not only form environmental dynamism but also from perceived external change, external conditions and internal pressures towards change.

Zahra et al. () differentiate between substantive capabilities and higher-order capabilities. Substantive capabilities are the organizations ability to solve a problem (e.g. development of new products and services) whereas higher order capabilities (considered as dynamic capabilities) are to alter substantive capabilities and to overcome rapidly changing environments. These capabilities are affected by and operate on substantive capabilities. Learning from the past and transformation, as Zahra et al. () exemplify, are the foundation for organizational performance. For Zahra et al. (), dynamic capabilities provide value indirectly: namely then, when a dynamic capability changes and/or reconfigures a substantive capability in such way that it again provides enhanced value. Higher-order capabilities are about to change the ways to solve problems (e.g. the way to develop new products and services, reconfiguration of the accounting system) resp. to change or reconfigure existing substantive capabilities: “A new routine for product development is a new substantive capability but the ability to change such capabilities is dynamic capability” (Zahra et al., ). Trigger for the development and/or utilization of dynamic capabilities is the organizations’ ability for integration: coordination, selection and combination are antecedents to enable an organization to build dynamic capabilities.

Integration, reconfiguration, renewal and re-creation mechanisms – Wang & Ahmed () considers external market dynamism as antecedent to organizations’ dynamic capabilities. Similar to previously presented concepts, Wang & Ahmed () represent a hierarchical approach that bases on resources (zero-order), capabilities (first-order) and core capabilities (second order). The key to develop core capabilities

Analytical framework towards organizational robustness and resilience in service systems

“is the integration of resources and capabilities in line with a firm’s strategic goals” (Wang & Ahmed, ). These third-order capabilities thus are about the integration, reconfiguration, renewal and re-creation of resources, capabilities and core capabilities to address environmental changes.

Dynamic capabilities, related to Wang & Ahmed (), base on adaption capabilities, absorption capabilities and innovation capabilities. “Adaptive capability is to align internal organizational factors with external environmental factors. Absorptive capability highlights the importance of intaking external knowledge, combining it with internal knowledge and absorbing it for internal use. Innovative capability effectively links a firm’s inherent innovativeness to marketplace-based advantages in terms of new products and/or markets”.

Adaptive capability is manifested through strategic flexibility/shift in business priorities and includes the adaption of environmental changes, alignment with internal resources and external demand, identification and capitalization of emerging market opportunities, balanced exploration and exploitation (in relation to March ()).

Absorptive capability is about the long term commitment of resources, stronger ability of learning, assimilation, replication, transformation and acquiring of new knowledge (e.g. from partners, stakeholders), integration of external information (e.g. analyse, development and utilization of new (and/or complementary) technologies), transformation of information into firm-embedded knowledge and skills. According to Wang & Ahmed (), “the higher a firm demonstrates its absorptive capability, the more it exhibits dynamic capabilities”.

Innovative capability is about the development of new products, services, methods of production, sources for supply, new organizational forms, behaviours, and/or markets. According to Wang & Ahmed (), “the more innovative a firm is, the more it possesses dynamic capabilities”.

The approach of Wang & Ahmed () considers organization-specific processes, which are about integration, reconfiguration, renewal and recreation. These processes enable an organization’s “behavioural orientation to constantly integrate, reconfigure,

Analytical framework towards organizational robustness and resilience in service systems

renew and recreate its resources and capabilities, and most importantly, upgrade and reconstruct its core capabilities in response to the changing environment to attain and sustain competitive advantage” (Wang & Ahmed, ).

Target-based view – In the dynamic capability approach of Ambrosini & Bowman (), dynamic capabilities are to face and to respond to environmental changes. As the authors highlight, dynamic capabilities “are situated in the environment, the paths the firms has followed and what people within the firm have done and are doing etc.”. Ambrosini & Bowman () differentiate between Incremental Dynamic Capabilities, Renewing Dynamic Capabilities and Regenerative Dynamic Capabilities. These capabilities originate in the resource base of an organization with the aim to purposefully create, extend or modify the resource base. The knowledge about how to change the resource base and incremental and renewing capabilities, according to Ambrosini & Bowman (), is critical.

Resources, as Ambrosini & Bowman () highlight, can be a source of superior performance but their reconfiguration and renewal is a source of organizational survival. Incremental Dynamic Capabilities then are about the incremental adjustment and adaption of the resource base (adjustment, change and adaption in stable environments). Renewing Dynamic Capabilities are about refreshing and renewing the nature of the resource base (especially requested in dynamic environments). Regenerative Dynamic Capabilities are about the renewal of previous capabilities – the Renewing Dynamic Capability and the Regenerative Dynamic Capability of an organization (identification of new opportunities, acquisition of other firms and learning of new dynamic capabilities by assimilation of quite different technologies and science base that acquired organization has; restructuring and outsourcing). The existence of Regenerative Dynamic Capabilities, according to Ambrosini & Bowman (), explain “why some firms find success in the face of environmental turbulence, whilst their competitors fail”. They “are likely to be applied where managers perceive substantial dynamism in their environments”. Unanticipated and/or underestimate

Analytical framework towards organizational robustness and resilience in service systems

dynamisms lead to the fail to refresh the resource base, Renewing Dynamic Capabilities and Incremental Dynamic Capabilities.

The dynamic capability approach of Ambrosini & Bowman () foresees reconfiguration, leveraging, learning and integration. Reconfiguration is about the transformation and recombination of assets and resources. Leveraging is about the replication of a process or system into another area and/or extending a resource by deploying it into a new domain. Learning allows to increase effectivity and efficiency. It is related to find innovative ways to operate, to break the old ways and to refresh (incremental and renewing capabilities). Integration is about the integration and coordination of assets and resources (a new resource base emerges).

Sensing, seizing and managing threats/transformation – as depicted in figure , center to Teece () dynamic capability approach are sensing, seizing and managing threats/transformation. These dynamic capabilities aim to establish new forms, innovate and improve systems as well as their structures, processes (activities, routines) and products/services. Sensing capability and seizing capability are related to March's () concepts of exploration (of new possibilities: search, variation, risk taking, experimentation, play, flexibility, discovery, innovation) and exploitation (of old certainties: refinements, choice, production, efficiency, selection, implementation, execution). The development of new dynamic capabilities is undergird with these exploration and exploitation mechanisms (including skills, processes, procedures, organizational structures, decision rules, and disciplines).

Analytical framework towards organizational robustness and resilience in service systems

Figure : Teece's () dynamic capability framework: microfoundation

Sensing, according to Teece (), is very much about scanning, creation, learning and interpretive activities about chances and opportunities. It can be facilitated through the application of analytical frameworks that enable to learn and to sense, filter, shape, and calibrate opportunities (to highlight what is important). Sensing origins in the cognitivism and creativity of individuals in the organization. It is accompanied by (extant, specific) knowledge, practical wisdom, interpretation, creativity, R&D, understanding of the decision-making process of customers, organizational decentralization, management by walking about/around, scanning and monitoring of technological developments, continuous and rapid design around new technology/components, learning about the environment and new technology, assessing computer needs, suppliers, searching for external inventions/innovations and complementary innovations.

If an organization senses promising opportunities then, as Teece () recommends, it should invest into them. Seizing, according to Teece (), is about the development/creation, adjustment and, if necessary, replacement of business models. Tight planning is part of seizing and is in strong relation to (corrective) strategies, organizational innovation (new conception and/or adaption of business models), organizational boundaries and dynamical investment into development and commercialization (e.g. customer loyalty, service performance, etc.) until a dominant

Analytical framework towards organizational robustness and resilience in service systems

design (in reference to Abernathy & Utterback ()) has emerged. But also, seizing is about the development and change of organizational culture (e.g. creation of an environment where individuals can report their honest opinion, the organization can learn from mistakes and look at objective (historical) data). Major emphasises are on managers skills for appropriate leadership and decision-making, communication of goals, (exemplification of) values, motivation of employees and accompanied stakeholders.

Managing threats/transformation capability is highly associated with the redeployment, reconfiguration and recombination of organizational resources, assets and structures. It is to maintain and increase strategic, organizational, technological and evolutionary fitness, accompanied by the guiding questions ‘how effectively a capability performs its function’ and ‘how well this capability enables an organization to make a living’. Accompanied are managerial decisions about the decentralization of management structures, but also, the avoidance of (product, service) imitations (“me- too” substitutes), the development of governance structures and incentive structures that enable organizational learning and the generation of knowledge and its integration into organizational processes and activities.

.. Findings and conclusion: dynamic capability microfoundation framework for service system innovation and evolution

The dynamic capability approach is an excellent complementary to the work system framework for service system development and engineering. The dynamic capability approach brings in a strategic component for organizational knowledge management and learning as well as the reconfiguration of the organizations’ strategic through coordination, combination, reconfiguration, re-creation, extension, modification, leveraging, integration, improvement and innovation mechanisms. Additionally, the dynamic capability approach enables to request the way of the reconfiguration of the organizations resource level. As identified, the dynamic capability microfoundation framework approach is a complement to the previously identified work system framework for system engineering.

Analytical framework towards organizational robustness and resilience in service systems

This microfoundation framework provides a structured approach to analyse case study partners’ capabilities form a dynamic, strategy-related perspective. The application of the Dynamic Capabilities microfoundation framework supports to identify strategies that enable organizations’ evolution on strategic level, including the (re-) engineering of its resource-base and its underlying processes, services, activities and capabilities. The overall aim then is to become more adaptable to new environmental situations and change – the development of new resources (VRIN resources), processes, best practices as well as the renewal of ordinary, organizational and dynamic capabilities.

3.3 Analytical framework

Basing on the knowledge and expertise gained out of the research into the work system theory and the dynamic capability approach, the objective of this section is to define an analytical framework for structured analysis of subsequent empirical research. This analytical framework serves as a coding guideline to the break-up of data, information and knowledge within particular single case studies from a static, resource-based perspective and a dynamic, capability-based perspective.

As depicted in figure , the analytical framework adopts Alter's () work system framework and Teece's () Dynamic Capability microfoundation framework. Within, the work system framework serves organizations’ resource needs: development and engineering of service systems’ operational-base and resource-level towards enhanced organizational robustness and resilience. The dynamic capability microfoundation framework serves organizations’ strategic needs: service systems’ evolution towards changing environments.

Analytical framework towards organizational robustness and resilience in service systems

Figure : Analytical framework (conceptualized on Alter () and Teece ())

.. Selection criteria: work system framework

The work system framework provides a structured guideline how to consider service systems from a static, resource-based perspective. It is selected as coding framework to structurally analyze and evaluate case studies from the organization’s resource perspective. This analysis provides the basis to identify individual strategies and transform them empirically observed events at resource level towards increased organizational robustness and resilience. The application of the work system framework allows to renew, change and innovate organizational best practices about how to orchestrate and transform service systems’ resource-elements.

.. Selection criteria: Dynamic Capability microfoundation framework

Since the work system framework is static and mechanistic in nature and does not fit when the environments are dynamic or unpredictable, the dynamic capability microfoundation framework supports to revise and innovate organizations organizational and dynamic capabilities. The dynamic capability microfoundation

Analytical framework towards organizational robustness and resilience in service systems

framework serves as active and dynamic capability engineering focused approach and considers the service systems’ from a strategic perspective.

Teece's () Dynamic Capabilities microfoundation framework relates to high- level activities that link to management’s ability to sense and then seize opportunities, navigate threats, and combine and reconfigure specialized and co-specialized assets to meet changing customer needs, and to sustain and amplify evolutionary fitness, thereby building long-run value for investors (Teece, ).

The concepts of organizational robustness and resilience

In-depth case study about organizational robustness and resilience

1 In-depth case study about organizational robustness and resilience

Part III is about in-depth case study about the concepts of organizational robustness and resilience. Within this part, the state-of-the-art of research about these concepts gets reviewed from an academic and empirical perspective. This part originates in part II: the lack of knowledge and expertise in Service Science about these concepts is the core motivation. In the center of investigation of this part III is RQ: What is the structure of knowledge on the concepts of organizational robustness and resilience and how do organizations act on these concepts to better respond to organizational dynamics, risks, uncertainties and crisis? Main outputs of this part are the network of interrelated concepts of organizational robustness and resilience and three single case studies. The network introduces interrelated concepts, methodologies and tools to increase the levels of organizational robustness and resilience in service systems. It is an output of the review of academic literature and is further important to structure and conduct case study research. Chapter in of part III presents three single case studies about the concepts of organizational robustness and resilience in the empirical field of transport logistics and supply chain management. Chapter is sprinkled with meaningful examples out of the empirical field and presents activities about how organizations act on the concepts of organizational robustness and resilience.

This first chapter of part III investigates into the concepts of organizational robustness and resilience from an academic perspective. As literature highlights, the concept of organizational robustness needs to be demarcated from the concept of organizational resilience (Tandler, ). A robust system, as she argues, remains stable in case of a disruption whereas a resilient system adapts and changes. Robustness, in her perspective, is a synonym for organizational stability and constancy, maintaining intact structure and low deviation, whereas resilience is associated with organizational agility, adaption and change. The concept of robustness, as Töpfer & Günther () argue, stands for low probability of errors and defects and is associated with high

In-depth case study about organizational robustness and resilience

reliability. Resilience denotes the ability of systems to return to original (or desired) states after being disturbed. Means to achieve resilience, as Wieland & Wallenburg () argue, are not sufficiently understood.

The chapter’s objective is to systematically explore the concepts of organizational robustness and resilience. In doing so, this chapter is organized among five sections. Section presents applied research design. Sections - literately driven research endeavors among organizational robustness and resilience. Within these sections, the network of interrelated concepts of organizational robustness and resilience get refined and engineered towards its current appearance. Section concludes this chapter and presents theoretically predicted concepts towards increased organizational robustness and resilience. Additionally, case study propositions, which are clustered among the nodes of the network of interrelated concepts of organizational robustness and resilience, are presented.

1.1 Research design

Applied research design is split into two steps. Step is determined by the search for appropriate literature about the concepts of robustness and resilience and its quantitative review. This step rigorously followed the qualitative research process of Lamnek (). As depicted in the left-hand side of figure , the cultural manifestation of this chapter bases on eligible scholarly journals from the academic fields of Management Science, Operational Science, Logistics and Supply Chain Management, Management & Leadership and Organizational Psychology. These scholarly journals have been searched by the use of the search terms “Robustness” and “Resilience”. In total, scientific articles are identified whereas are related to the concept of organizational robustness and scientific articles relate to the concept of organizational resilience. scientific articles passed applied skimming and scanning process and are selected for further review. Additionally, articles that are relevant for this research are included. Thus, scientific articles that constitute the empirical basis for this chapter.

In-depth case study about organizational robustness and resilience

Figure : Research design applied in chapter /part III

Selected scientific articles went through the Grounded Theory’s open-, axial- and selective coding scheme (Strauss (), Glaser ()). This incremental coding process is depicted in the right hand side of figure . The coding process and data management are supported electronically by the use of Atlas.ti, Acrobate PDFCreator and Microsoft Excel. Based on applied coding process, a quantitative literature review was performed, presented and discussed at the Autonomous System Conference and published in the VDI Verlag GmbH2. Within this literature review, a preliminary version of the network of interrelated concepts of organizational robustness and resilience was presented and used as basis for further qualitative investigation into the concepts of organizational robustness and resilience.

Step is about a content analysis about the concepts of organizational robustness and resilience. It investigates into the nodes “resilience” and “robustness” of the network of interrelated concepts of organizational robustness and resilience. It is about definitions about these concepts and their interrelations among remaining node of this

2 A preliminary version of this section was presented as Maurer & Lechner (a)

In-depth case study about organizational robustness and resilience

network. This content analysis is presented in section of this chapter. In further investigation into the concepts of organizational robustness and resilience, step is determined by the author-centric review of selected literature. It presents authors’ approaches (e.g. methodologies, methods and tools) towards the concepts of organizational robustness and resilience. Step changes the perspective towards the concepts of organizational robustness and resilience and presents a concept-centric review of selected literature. Identified methodologies, methods and tools out of the author-centric review are clustered among the nodes of the network of interrelated concepts of organizational robustness and resilience that is depicted in figure .

Figure : Network of interrelated concepts of organizational robustness and resilience

This network not only is important to identify the interrelated concept of organizational robustness and resilience as well as its methodologies, methods and tools but also is important as guiding framework to formulate and develop case study propositions, to conduct case study interviews and to structure single case study reports, as presented in chapter of this part. Additionally, this network is important

In-depth case study about organizational robustness and resilience

to structure the concepts of organizational robustness and resilience in Service Science – as presented in section . of part I.

1.2 Content analysis about organizational robustness and resilience3

This section investigates into the nodes “robustness” and “resilience” of the network of interrelated concepts of organizational robustness and resilience. This section makes use of a narrative literature review: it provides a qualitative description of the results of many previous studies. Narrative literature reviews are “useful for combining results from studies that may use very different methods and procedures and that address different questions” (Baumeister, ), (Baumeister & Leary, ). This section is organized in three subsections about organizational robustness, organizational resilience and rival streams of research.

.. Organizational robustness

As Vlajic et al. () highlight, “robustness is reflected in performance” and is about “insensitivity” (Gremyr & Hasenkamp, ) to deviations “over a wide range of uncertainty” (Ivanov & Sokolov, ). For Edgeman & Williams (), robustness implies “that a system subjected to external, unpredictable perturbations in its design parameters maintains its integrity by yielding output insensitive to significant input variability”. Robustness can be described as the abilities of “retaining its system structure fixed intact” (Vlajic et al., ), of being “strong or sturdy” in physique (Christopher & Rutherford, ), and of remaining “stable and achieve the planned performance” (Ivanov & Sokolov, ) “in all situations including disruptions” (Vlajic et al., ). Organizational robustness is a proactive strategy in organizations (e.g. Wieland & Wallenburg (, ), Roth et al. (), Lengnick-Hall & Beck ()) wherein management has dominant position. It requires (a) “to invoke strategies and

3 A preliminary version of this section was presented as Maurer et al. ()

In-depth case study about organizational robustness and resilience

actions inoculation it against the impact of threats” (Edgeman & Williams, ) and (b) “the allocation of scare resources” (Wieland & Wallenburg, ).

Organizational robustness, as defined in this dissertation, is associated with maintaining organizational performance under abnormal circumstances and includes the maintenance of structures and function, coping disruptions and continuity of operations. Additionally, as identified, associated terms are reliability and stability.

Maintenance of structures and functions: As Meepetchdee & Shah () highlight, robustness is “the extent to which the system is able to carry out its functions despite some damage done to it”. Similar perspectives have Wieland & Wallenburg (), Klibi et al. (), Christianson et al (). Colicchia & Strozzi () argue that robustness is “the ability of the system to maintain its function unchanged, or nearly unchanged, when exposed to perturbations”. In accordance to Klibi et al. (), Asbjørnslett (), Wieland & Wallenburg (), a robust supply chain remains effective for all plausible futures, it remains in the same situation before and after changes occur, and it is insensitive to noise factors.

Coping disruption: Wieland & Wallenburg () argue, “robustness allows withstanding risks” and thus, robustness is the ability to “withstand this ever- occurring volatility risks” (Wieland & Wallenburg, ), “to resist disruptions“ (Vlajic & Haijema, ), and “to prevent undesirable impacts” (Roy, ).

Continuity of operations: Related to Stewart et al. (), robustness is “the capability to continue operations during an incident”. Strategies into organizational robustness enhance a system’s capability to sustain its operations when a major disruption hits (Sahaym et al. (), Scholten et al. ()).

Reliability: As Peng et al. () highlight, “reliability and robustness are commonly used without rigorous distinction”. While Peng et al. () define robustness “as the system’s ability to perform its intended function relatively well in the presence of failures of components or subsystems”, “reliability is defined as the probability that a system or component performs to intended function within a given time horizon and environment”. According to them, “robustness is concerned with demand-side

In-depth case study about organizational robustness and resilience

uncertainty” (Peng et al., ) whereas “reliability is concerned with supply-side uncertainty” (Peng et al., ).

Stability: According to Ivanov & Sokolov (), stability is “the ability to cope with volatility and to continue a planned execution after being perturbed”. They follow the notion of Liao et al. () and Mesarovich et al. () and argue that stability “characterizes continuity of systems’ behavior”. According to Holling () (in Rao & Goldsby ()), stability is “the capacity of systems to return to an equilibrium state after a temporary disturbance. The faster a system returns to equilibrium, the greater its stability”. But, as Ivanov & Sokolov () argue, in comparison to robustness, stability “does not take into account system output performance”: “Stability reflects the current state of the system (i.e., inventory stability)” (Ivanov & Sokolov, ).

In the perspective of node “Business Practices & Technologies”, robustness “derives from consistency“ (Taguchi & Clausing, ) which also is about “insensitivity to variation” (Gremyr & Hasenkamp, ). Robustness is evaluated via key performance indicators. For example, “a minor deviation of a KPI from the norm represents a small disturbance. At the process level it usually represents an acceptable variation in the process outcome and it is considered as part of ‘‘business as usual’’. A major deviation of a KPI from the norm represents a large disturbance, i.e. the process is only partially realized. Extreme values of process KPIs represent a failure of the process execution” (Vlajic et al., ).

However, most dominant business practices and technologies maintaining and enhancing organizational robustness are “quality” (e.g. Mandal (), Vlajic & Haijema (), Andersson (), Taguchi & Clausing (), Atkinson et al., (), Gremyr & Hasenkamp ()), “statistical tools” (e.g. Box & Fung (), Andersson (), Gremyr & Hasenkamp ()) or “combined initiatives” (e.g. “six sigma”) (e.g. Mandal (), Christopher & Rutherford ()). As Andersson () highlights, over the last decades, “quality engineering” contributed significantly to robustness and “statistical tools are useful tools for creating robust designs” (Gremyr & Hasenkamp, ). Especially Six Sigma as a “route to creating more robust supply chain processes that reduce the risk of non-conformance and hence produce a more reliable and

In-depth case study about organizational robustness and resilience

consistent output” (Christopher & Rutherford, ). Further facilitators for robustness are, for example, “Redundancy” and “Safety stocks” (e.g. Peng et al. (), Ivanov & Sokolov (), Jüttner (), Wieland & Wallenburg (), Adenso-Diaz et al. ()), “cooperation, insurance, and postponement” (Wieland & Wallenburg, ).

In the perspective of node “Organizational Culture”, robustness drives mainly from a culture of reliability. Roberts (), LaPorte et al. (), Weick et al. (), Carroll et al. () argue that organizations achieve (high) reliability through special organizational features that allow system participants to handle hazardous tasks with remarkably few problems. Williams et al. () “suggest that an organizational culture encompasses […] continuity management”. And in deed, the perspective of organizational culture is closely accompanied with risk management strategies, which include for example “buffering (through inventory or capacity), mitigation (i.e. actions that reduce the likelihood of occurrence) and the use of contingency plans which are activated when a risk materializes” (Adenso-Diaz et al. ().

The perspective of node “Risk- & Crisis Management” represents the view that “robustness requires anticipation and preparedness” (Wieland & Wallenburg, ). Methodologies for risk anticipation and preparation are for example business continuity management and business continuity plans (BCP). BCP “reflects an organization’s commitment to operational safety and reliability” (Ohja et al., ) and helps developing solutions that “perform well across a range of scenarios, in expected performance, worst-case performance, or any of a number of other measures that have appeared in the literature over the past” (Peng et al., ). Also, “BCP leads to higher resilience […]” (Ohja et al., ).

As identified in this content analysis at hand, robustness within transport logistic and supply chain management perspective robustness is a further development of the organizational perspective. Similar to organizational robustness “supply chain robustness is a desired property of a supply chain that is reflected in supply chain performance” (Vlajic et al., ). As Vlajic et al. () define, supply chain robustness is “the degree to which a supply chain shows acceptable performance in (each of) its Key Performance Indicators (KPIs) during and after unexpected event that caused

In-depth case study about organizational robustness and resilience

disturbances in one or more logistics processes”. “Robustness is with respect to a KPI if the value of that KPI, adequately measured over an observation period, is sustained in a predefined desired range, even in the presence of disturbances” (Vlajic et al., ). “If a KPI performs above or below the range, the supply chain is considered vulnerable” (Vlajic et al., ). As Wieland & Wallenburg () highlight, in the centre of supply chain robustness is “withstanding risks and, therefore, robust supply chains will prevent risks from having negative effects on the supply chain’s customer value”. According to Scholten et al. (), “robust supply chain strategies enhance a firm’s capability to sustain its operations when a major disruption hits […] by preventing risks from having negative effects and enabling resistance to change without adapting the chain’s initial stable configuration”.

Supply chain robustness distinguishes between the terms “robustness” and “reliability”: while supply chain “robustness is concerned with demand-side uncertainty (demands, costs, lead times, or any other aspect of the distribution of goods to customers)” (Peng et al., ), “reliability is concerned with supply-side uncertainty (availability of plants, distribution centres, supply capacity, or any other aspect related to production and distribution of the product)” (Peng et al., ). In this perspective, reliability is seen as “the probability that all the required materials and products flowing through a supply network will arrive at their destination in a specified interval under stated conditions” (Adenso-Diaz et al. (). In comparison, “robustness is rather required on the supplier side (i.e. upstream in a supply chain)” (Wieland & Wallenburg, ).

.. Organizational resilience

Organizational resilience, related to Adenso-Diaz et al. (): “is both an applicable and an important concept for companies in turbulent times” that additionally “implies higher reliability”. Since not all risk events can be prevented, the concept of organizational resilience requests “to develop abroad and varied repertoire of routines for responding to uncertainty and complexity” (Lengnick-Hall & Beck, ). It is, according to Rice et al. (), Sheffi ( & ), Sullivan-Taylor & Wilson (), a by-word for significantly increased safety – “to create a company that has the capability

In-depth case study about organizational robustness and resilience

to quickly evolve without adverse effects to the organization”, as Ponomarov & Holcomb () argue.

A dominant stream of authors (e.g. Mandal (), Richardson (), Klibi et al. (), Johnson et al. (), Scholten et al. ()) consider the essence of resilience as “the capacity of a system to survive, adapt, and grow in the face of unforeseen changes, even catastrophic incidents” (Fiksel et al., ). They equate resilience, “colloquially” with “bouncing back” (e.g. Sheffi & Rice (), Johnson et al. (), Youssef & Luthans (), Rego et al. (), Stewart et al. (), Weick & Putnam (), Choo ()) from adverse events: conflicts, failures, setbacks, disruptive events, hardships, crisis, or even positive events.

Välikangas & Hamel () argue, “resilience is not about responding to a onetime crisis. It’s not about rebounding from a setback. It’s about continuously anticipating and adjusting to deep, secular trends that can permanently impair the earning power of a core business. It’s about having the capacity to change before the case for change becomes desperately obvious”. Luthans & Youssef () extend this statement and argue that resilience “cannot be limited to just a reactive capacity that is expressed in times of adversity”. In contrast, this stream (e.g. Ponomarov & Holcomb (), Johnson et al. (), Richardson ()) consider resilience as “a capacity for continuous innovation based on an analysis of strengths, weaknesses, opportunities, and threats” (Ponomarov & Holcomb, ). Reinmoeller & van Baardwijk () argue, “resilient companies continually encourage entrepreneurial behaviour to drive innovation” and as “capability to self-renew over time through innovation” (Reinmoeller & van Baardwijk, ). Renewal is seen as “the natural consequence of an organization’s innate resilience” (Välikangas & Hamel, ).

Resilience exists in many forms. Ponomarov & Holcomb (), for example, distinguishes between inherent and adaptive resilience whereas inherent resilience is the “ability under normal circumstances (e.g. the ability to substitute other inputs for those damaged by an external shock, or the ability of markets to reallocate resources in response to price signals)”. Adaptive resilience is the “ability in crisis situations due to ingenuity or extra effort (e.g. increasing input substitution possibilities in individual

In-depth case study about organizational robustness and resilience

business operations, or strengthening the market by providing information to match suppliers with customers)”. For Lengnick-Hall & Beck (), resilience exist on cognitive-, behavioural- and contextual level. Cognitive resilience is a conceptual orientation to notice, interpret, analyse, and formulate responses in ways that go beyond simply surviving an ordeal. Firms with cognitive resilience encourage ingenuity and look for opportunities to develop new skills rather than emphasize standardization and need for control (Lengnick-Hall & Beck, ). Behavioural resilience enables a firm to learn more about the situation and to fully use its own resources and capabilities through collaborative actions. Learning from both success and failure are examples of behavioural resilience (Lengnick-Hall & Beck, ). Contextual resilience provides the setting for integrating and using cognitive resilience and behavioural resilience. Contextual resilience is composed of connections and resources which are, for example, deep social capital and a broad resource network (Lengnick-Hall & Beck, ). Resilience on cognitive-, behavioural- and contextual level, as Lengnick-Hall & Beck () highlight, are organizational properties.

Gratton () distinguishes inner- and outer resilience, whereas, inner resilience “is built through the unique combination of an organization’s greatest assets and capabilities”. Outer resilience determines “anchoring the community” and is the shift of perspective from intra- to inter-organizational environment (Gratton, ). Outer resilience focuses on organizational "neighborhoods in which they reside and in the extended supply chains that serve them" (Gratton, ) to engage with the community.

Risk- & Crisis Management

As identified in the network of interrelated concepts of organizational robustness and resilience, the concept of organizational resilience highly deals with “Risk- and Crisis Management”. In the concept of resilience, “Risk- and Crisis Management” aims helping to understand vulnerabilities – “and developing specific capabilities to compensate for those vulnerabilities” (Fiksel et al., ). In turn, “reducing vulnerability means reducing the likelihood of a disruption and increasing resilience”

In-depth case study about organizational robustness and resilience

(Sheffi & Rice, ). Gaining resilience via “Risk- and Crisis Management” measures into organizational preparedness and response & recovery:

Preparedness: In perspective of Scholten et al. (), “resilience must be built […] in advance of a disturbance and incorporate readiness to enable an efficient and effective response”. In disruption phases, resilience can be seen as the organizational ability of a system “to experience disturbance and maintain it functions and controls” (Ponomarov & Holcomb, ), “to adjust and maintain desirable functions under challenging or straining conditions” (Ponomarov & Holcomb, ) and the “to learn from past disruptions to develop better preparedness for future events” (Scholten et al., ).

Response & Recovery: Sullivan-Taylor & Wilson () highlight that resilient organizations “meticulously prepare for the worst and establish routines enabling them to improvise rapid responses to crises” (Sullivan-Taylor & Wilson, ). Because of this preparation, resilience has positive impacts on response and recovery phase. Resilience thus is also seen as the organizational ability “to recover from the effects of an unforeseen disturbance and move to their original or better state of performance” Christopher & Rutherford (). Resilience then is “the ability of a system to return to its original state or move to a new, more desirable state after being disturbed”. Resilience not only supports the system’s return to its original state but potentially to a new, more desirable state (e.g. Christopher & Rutherford (), Ponomarov & Holcomb ()).

Organizational culture & agility

Williams et al. () highlight the “importance of having a culture dedicated to being proactive and vigilance towards attacks”. For Hind et al. () this culture depends on clear power structures and responsibilities, relationships, reality sense, differentiation, and communication which can be argued as follows.

Power structure (Hind et al., ) and the role of leadership (Sullivan-Taylor & Wilson, ): In a resilient social system, there is a clear structure and clear

In-depth case study about organizational robustness and resilience

responsibilities, but modifiable to accommodate changing needs of the system and its members (Hind et al., ).

Relationships (Hind et al., ) and trust (Sullivan-Taylor & Wilson, ): “Members of the system show a high level of trust; they support and provide encouragement for each other which enhances spontaneity and creativity” (Hind et al., ).

Reality sense (Hind et al., ) / staunch to reality (Weick et al., ): The resilient social system has a self-image which is congruent with reality. This enables members to process the information available without embellishment or inappropriate filtering (Hind et al., ).

Differentiation (Hind et al., ) – e.g. by “personal qualities of employees” (Furnham, ) (in (Sullivan-Taylor & Wilson, )): members see themselves as a part of the systems, but retain their own sense of identity. They are neither isolated, nor lost in “groupthink” (Hind et al., ).

Communication (Hind et al., ), “communication networks” (Mandal, ), information technology (Sullivan-Taylor & Wilson, ): Communication is “open, clear, direct and frank; members are receptive and responsive to new ideas, there are low levels of rumour and gossip”.

Related to Williams et al. (), “the organizational culture dictates to employees what is expected of them” and “can be a powerful tool that, when leveraged by managers, enables them to steer their organizations”. Williams et al. () argue, “when congruency exists between organizational culture and business or corporate- level strategies, enhanced organizational performance is believed to be one likely result”.

Cognitive capabilities

Cognitive capabilities are organized among the organizational abilities of communication, information sharing and connectedness, cooperation and

In-depth case study about organizational robustness and resilience

collaboration as well as learning and knowledge management. Concepts such as organizational learning, experimentation and information technology are effective counter-adversity and resilience-building blocks (Sullivan-Taylor & Wilson, ).

Communication, Information Sharing & Connectedness – Wieland & Wallenburg () highlight that communication and information sharing “positively influences resilience” and is a “prerequisite for both proactive and reactive resilience” (Wieland et al., ). Especially in the face of adversity, “information and communication represent the capabilities of a community to assimilate knowledge and effectively communicate with relevant stakeholders” (Stewart et al. (). Connectedness, as Wieland & Wallenburg () specify “reflects the ability of an organization or network to share and utilize information. It includes the ability to deploy jointly developed, or agreed upon, information systems such as electronic data interchange, or an enterprise resource planning system”.

Cooperation & Collaboration – “Cooperation, in general, is based on pronounced communication and integration” (Wieland & Wallenburg, ). It is, according to Reinmoeller & van Baardwijk () “to increase innovative output”: “Cooperation is the antidote to innovation stagnation and isolation“ (Reinmoeller & van Baardwijk () and generates new and synergistic resource recombinations and turns them into innovations. Additionally, cooperation „reduces the high risks“ (Reinmoeller & van Baardwijk (), e.g. in technology. Collaboration means “to work with another or others […]” (Jüttner & Maklan, ) and, related to Scholten et al. () is about generation of “common understandings and awareness of the risks that could occur within their operations”. To increase organizational resilience, collaboration requires “exchange of information and application of shared knowledge“ (Sahaym et al., ). It is important to consider that “collaboration is not only important before and during a disruption but also after a disruption, in order to share experiences among the parties to increase the ability of the system to deal with future risks” (Jüttner & Maklan, ), (Scholten et al., ). Trust is seen „as joint antecedent to collaboration” (Jüttner & Maklan, ) and “can result in benefits including joint knowledge creation” (Skipper & Hanna, ).

In-depth case study about organizational robustness and resilience

Learning & knowledge management – since resilience goes behind reactive strategies, learning “from past disruptions to develop better preparedness for future events” (Scholten et al., ), learning and knowledge management is an essential property of resilience. As highlighted by Stewart et al. (), management is demanded to “evaluate the lessons from incidents and recommend corrective actions”. Therefore, resilience capacity is learned property (Lengnick-Hall & Beck, ) and is, according to Lengnick-Hall & Beck (), “composed of organizational subroutines and characteristics”. While risk- and crisis management is about “gaining knowledge and understanding of potential risks and its directly observable effects” (Reinmoeller & van Baardwijk, ), learning and knowledge management is to keep this information and exploit it via communication and information sharing channels. It is about exploitation of existing knowledge and exploration for new knowledge, as Reinmoeller & van Baardwijk () highlight.

Considered under the roof of transport logistics and supply chain management, resilience “refers to an organization’s capacity to survive, adapt and grow when confronted with change and uncertainty” (Scholten et al., ). Key within, according to Ponomarov & Holcomb (), is to “built into a supply chain in advance of a disturbance and incorporate readiness to enable an efficient and effective response”. As Mandal () highlights, “the overall aim of building a resilient supply chain is to restore operations when disrupted, i.e. to provide the least adverse impact on supply chain performance”.

Resilience within supply chains is, according to Jüttner et al. (), considered as a “proactive risk management strategy” whereas risk management is, according to Mandal (), an important antecedent for developing and maintaining resilience. As Christopher & Rutherford () highlight, “resilience in the supply chain will be enhanced […], and indeed made possible, by the creation of a risk management culture”. To become resilient, “supply chain partners must share a common understandings and awareness of the risks that could occur within their operations” (Scholten et al., ). Additionally, the concept of supply chain resilience “also captures the reactive elements of being able to respond to a disruption and recover to

In-depth case study about organizational robustness and resilience

the same or an improved state of functioning” (Jüttner et al., ). Most frequently mentioned reactive elements are, for example, supply chain flexibility, velocity, visibility and collaboration (e.g. Christopher & Rutherford (), Johnson et al. (), Jüttner & Maklan (), Wieland & Wallenburg ()). Additionally, according to Christopher & Peck () and Scholten et al. (), further capabilities which underpin a supply network’s resilience are “supply chain (re-) engineering, collaboration, agility” and “knowledge management”.

.. Rival streams about the concepts of organizational robustness and resilience

Three rival streams about organizational robustness and resilience could be identified. The first stream represents the perspective that robustness and resilience are two terms that are used interchangeably (e.g. Christopher & Rutherford (), Autry & Bobbitt (), Colicchia & Strozzi (), Christopher & Rutherford ()) and are a complement to vulnerability (Colicchia & Strozzi, ). The second stream argues that resilience is formed by agility, that consists of reactiveness and proactive robustness (Wieland & Wallenburg, ). The third stream considers resilience as “intersection of robustness, flexibility and adaptation” (Ivanov & Sokolov, ). “A robust system has the ability to resist disruptions, retaining its system structure intact, whilst a resilient system is adaptable, i.e. it will adapt to regain a new stable position” (Vlajic et al. ).

A similar discussion about the interrelation of robustness and resilience is ongoing in the field of transport logistics and supply chain management. As Christopher & Rutherford () highlight, “in practice the two terms are used interchangeably, but in the context of supply chains they can acquire quite different connotations”. Christopher & Rutherford () continues: “A robust supply chain can deal with reasonable variability in input whilst maintaining good control over output variability. However, a resilient supply chain is certainly robust, but it offers much more; as well as being responsive to predictable input variability it is also able to respond to a sudden and unexpected shift in the level and variability of input”. Vlajic et al. () represents

In-depth case study about organizational robustness and resilience

the perspective that “robustness is considered as an important property of supply chains or as a strategy that can be used to improve supply chain resilience”.

1.3 Author-centric perspectives on organizational robustness and resilience4

Based on the content analysis about the concepts of organizational robustness and resilience, presented in the previous section, this section investigates into the methodologies, methods and tools to increase organizational robustness and resilience in service systems. The units of analysis for this review base on previously selected scientific articles. All relevant articles out of this sample size are selected for further review. In total, the units of analysis consists of robustness- and resilience related scientific articles, whereas publications are used for both concepts. In total, (out of ) scholarly publications ( rob + res – doubles = articles) are used for further analysis and evaluation. The processing of data and information out of these scientific articles is author-centric. Related to Webster et al. (), the author-centric approach in a review presents a summary of the relevant articles. This section is divided into the presentation of the author-centric perspective on organizational robustness and the author-centric perspective on organizational resilience.

.. Author-centric perspective on organizational robustness

This subsection makes use of (of mentioned) scientific articles. scientific articles have not been taken into account since they provide only marginal input or do not provide sufficient information. This section is further divided into three subsections. Subsection presents the author-centric perspective on robustness from the organizational context. Subsection presents the author-centric perspective on robustness from the supply chain managerial context. Finally, subsection presents robustness in accordance to performance. Research objectives namely methodologies,

4 A preliminary version of this section was presented by Maurer et al. ()

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methods and tools related to the concept of organizational robustness are summarized in the table .

Table : Author-centric perspective on robustness

Author Methodologies Methods & Tools Insensitivity to Statistical quality Design noise control Taguchi et Consistency - al. (1990) Traditional quality Quality meeting exact programs targets Box et al. Control over the Insensitivity to Design (1994) specifications noise/variation Design Parameter design Tolerance design Andersson Quality (1996) Quality management Voice of the Risk management Design customer

Organizational robustness Organizational Design, robust Gremyr et al. Statistics, Awarness of Insensitivity to design (2011) Statistical tools variation noise methodology Continous

applicability Responsive to (Strategic) Safety Christopher Risk management SC velocity variation stocks & Peck Quality (awareness Internal quality Six sigma & (2004) Strong processes & improvements) control statistical goals Jüttner Understanding of Process Excess capacities (2005) variability redundancies Communication / Meepetchdee Interaction et al. (2007) Statistical control Ratio computation Buffering / Adenso-Diaz (Proactive) Risk Mitigation Contingeny plans inventory et al. (2012) management Supplier audit Resource Strategic Sourcing strategies Inventory allocation Wieland & management Make-or-buy Product design Network design Supply chain robustness chain Supply Wallenburg Anticipation & (2012, 2013) Risk Management Cognition Prepardness Cognition Communication Cooperation Integration incl. Acceleration Risk Management Mandal & deceleration (2014) Culture of quality Quality Lean thinking awareness Strategic Atkinson et Control, diagnose Organizational (vertical/horizontal) performance al. (1997) & monitoring learning Coordination measurement High reliability Insensitivity to Carroll et al. theory noise & variation Prevention focus

Performance (2002) Total quality (Organizational) management Learning

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Mutual & Shared situation Shared mental contextual Cognition, awareness models knowledge Roth et al. especially Shared workspace (2006) coordination & Common ground Team cognition awareness communication Shared information Peng et al. Key performance Demand-side Supply-side (2011) measurement (Supply) Identification of Robustness range Performance supply chain (Re-) Design computation Vlajic et al. measurement scenarios (2012) Identification of Risk Management KPI's, Vulnerabilities

Robustness in the context of organizations

In perspective of Taguchi & Clausing (), organizational robustness is about “zero defect principle”. According to their research, organizational “robustness begins from meeting exact target consistently – not from always staying within tolerances” (Taguchi & Clausing, ). For them, (product-, process-, etc.) designers are in responsibility: robustness is “more a function of good design than of on-line control” as well as “quality is a virtue of design” (Taguchi & Clausing, ). Statistical quality control, quality, and other traditional quality programs, etc. are related methodologies to develop, maintain and continually improve the robustness within organizations.

In relation to Taguchi & Clausing (), Box & Fung () propose “parameter design” to develop organizational robustness. They see designers in the center: they can use “control over the specifications of the product to make it insensitive to variation of one kind or another” (Box & Fung, ).

In accordance with Taguchi (), Andersson () defines five stages towards organizational robustness: () system selection, () parameter design, () tolerance design, () tolerance specification and () quality management. The idea behind is “that the results obtained from the experiments performed in this stage, lead to redesign of the system selected in the previous stage, followed by stages -” (Andersson ().

Center to the approach of Gremyr & Hasenkamp () is “robust design methodology” (RDM). Statistical tools, as Gremyr & Hasenkamp () argue, are

In-depth case study about organizational robustness and resilience

useful for creating robust designs. They extend this approach and propose six practices and three principles to implement robustness within organizations. The practices are: focusing on the customer, identifying and understanding noise factors, checking assumptions, exploiting nonlinearities and interactions, designing for insensitivity to noise factors and using conventional design rules. The principles are: awareness of variation, insensitivity to noise and continuous applicability (Gremyr & Hasenkamp, ).

Robustness in the context of supply chain networks

At the heart of robustness (and resilience) in supply chain networks, as Christopher & Rutherford () highlight, is risk management. They argue “that risk management strategy should aim to create and maintain a supply chain that is both robust and resilient” (Christopher & Rutherford, ). To develop a robust supply chain, they propose a culture of quality awareness, internal quality control, responsive to reasonable variation in input, supply chain velocity, strategic safety stocks as well as strong processes which are stable and under control (Christopher & Rutherford, ). Christopher & Rutherford () propose Six Sigma including the use of statistical goals as a methodology for a culture of continuous quality improvement.

According to Jüttner (), robustness is “built on a thorough understanding of variability […] and may need to have planned process redundancies or excess capacities where necessary” (Jüttner, ).

Meepetchdee & Shah () consider robustness, same as efficiency, as a supply chain network characteristic that “depends on the ability of each vertex to communicate or interact, directly or indirectly, with all other vertices in the network. The interactions can be through the flow of material, goods, or information” (Meepetchdee & Shah, ). According to them, (network) robustness can be measured and is the ratio of the extent to which the network is able to fulfil demand when deleting a component from the network and total demand in network (Meepetchdee & Shah, ).

In-depth case study about organizational robustness and resilience

As Adenso-Diaz et al. () argue, strategies to develop organizational robustness require proactive rather than reactive risk management. According to them, strategies include buffering, mitigation and the use of contingency plans which are activated when a risk materializes.

In perspective of Wieland & Wallenburg (), robustness is equal to agility and contributes actively to the concept of supply chain resilience. While agility is mainly about being responsive, being fast and being able to reconfigure the supply chain (Wieland & Wallenburg, ), robustness is the ability “to resist change without adapting its initial stable configuration” (Wieland & Wallenburg, ). For Wieland & Wallenburg (), sources of supply chain robustness are, for example, multiple sources of suppliers, inventory, make-or-buy, product design and logistical network design. As Wieland & Wallenburg () argue, the development of organizational robustness “requires the proactive anticipation of change prior to occurrence”. Similar to Christopher & Rutherford (), risk management is in the center enhancing organizational robustness but also agility. But in contrast to agile supply chain, robust supply chains depends on “anticipation and preparedness, rather than visibility and speed” (Wieland & Wallenburg, ). Wieland & Wallenburg () prefer robustness as “the best approach” but in some cases “agility has to be applied as second-best option” (Wieland & Wallenburg, ). To keep robustness and agility, Wieland & Wallenburg () identified the need for increased communication, cooperation and integration.

Related to Mandal (), “robustness in supply chain refers to the principles of adopting lean thinking, building a culture of quality awareness facilitating risk management at all steps and inducing acceleration and deceleration in supply chains” (Mandal, ).

Robustness in the context of performance

In the approach of Atkinson et al. (), robustness is about (strategic) performance measurement. Atkinson et al. () introduce and propose the balance scorecard methodology. A performance measurement system deals with the management of

In-depth case study about organizational robustness and resilience

(key) performance indicators, (horizontal/vertical) coordination, “monitoring” and diagnose (Atkinson et al., ).

Performance, as Carroll et al. () highlight, “is understood as the absence of deviations or error”. It is accompanied with a prevention focus that is associated with anxiety, loss variation, avoidance or errors of commission, and a strong moral obligation to comply with rules” (Carroll et al., ). According to their approch, performance bases on learning and they propose total quality management (TQM) and high reliability theory as appropriate methodologies (Carroll et al., ) to keep robustness.

According to Roth et al. (), “performance depends on coordinated work […]”, “shared information about the situation and other team members” as well as “mutual” and “contextual knowledge”. It includes “shared mental models […]; team cognition […]; common ground […]; shared situation awareness […], and shared work space awareness” (Roth et al., ). In their perspective, “communication plays a central role in coordination work and establishing and maintaining safe operations” (Roth et al., ).

Peng et al. () advocate the measurability of organizational robustness and reliability. They conclude that robustness is “concerned with demand-side uncertainty” (Peng et al., ). It is reflected in “demands, costs, lead times, or any other aspect of the distribution of goods to customers” (Peng et al., ). In comparison, reliability is “concerned with supply-side uncertainty” (Peng et al., ) and is reflected, for example, in “availability of plats, distribution centers, supply capacity, or any other aspect related to production and distribution of the product” (Peng et al., ).

Vlajic et al. () consider robustness as “a desired property of a supply chain that is reflected in supply chain performances”. As they define, supply chain performance is “the degree to which a supply chain shows an acceptable performance in (each of) its key performance indicators (KPIs) during and after an unexpected event that caused disturbances in one or more logistics processes” (Vlajic et al., ). In continuation, “if a KPI performs above or below the robustness range, the supply chain is considered

In-depth case study about organizational robustness and resilience

vulnerable” (Vlajic et al., ). Vlajic et al. () introduce a framework for robust food supply chains. This framework bases on “() the description of the supply chain scenario, and the identification of KPIs; () the identification and characterization of unexpected events and disturbances in processes that impact the performance robustness; () the assessment of performance robustness; () the identification of sources of vulnerability; and () the identification of appropriate redesign principles and strategies” (Vlajic et al., ).

.. Author-centric perspective on organizational resilience

This subsection makes use of (of mentioned) scientific articles. scientific articles have not been taken into account since they provide only marginal input or do not provide sufficient information. This section is divided into two subsections. Subsection presents the author-centric perspective on resilience from the organizational context. Subsection two presents the author-centric perspective on resilience from the supply chain managerial context. Research objectives namely methodologies, methods and tools related to the concept of organizational robustness are summarized in table .

Table : Author-centric perspective on resilience

Author Methodologies Methods Organizational Organizational Relationship Hind et al. capability for Five-factor model attachment matrix (1996) change Team cohesion Reality sense (+ formal structure) Free of denial, Having alternatives & nostalgia, and Divert resources Välikangas awareness arrogance et al. (2003) Creed that extends beyond operational

excellence Risk Management Reinmoeller Innovation Entrepreneurship Exploration & Baardwijk Self-renew via Knowledge (2005) Cognition information Cooperation Management

Organizational Resilience Organizational Strategic Inventory / Flexibility Management Redundancy Sheffi & Risk- & Crisis Disruption profiles & Controll system Rice (2005) Management vulnerability maps Organizational Cognition culture

In-depth case study about organizational robustness and resilience

Cognitive Constructive Ideological New skills Resilience sensemaking identity Lengnick- Behavioral Action inventory / Hall & Beck Learning Collaboration Resilience functional habits (2005) Contextual Social capital Resilience Balance between Weick & Mindful prospect & High Reliability Putnam excellence, Improvisation retrospect: Organizations (2006) sensemaking anticipation <> resilience Learning and Measurement of Focus on assets, Youssef & growth (through performance (at the risks & processes Luthans challenges) workplace) (2007) Strong values & Creative and flexible Meaningful goals beliefs mechanisms Reduction of blind Information Normal Accident spots, see the Openness, applying sharing, increase Theory significance of different frames information weak signals redundancy Safety-oriented High Reliability Counterfactual Listening carefully to inormation Choo (2008) Organizations reasoning stakeholders and experts culture Develop Decision making capabilities to Preoccupied with Encourage error authority to detect, contain, the possibility of reporting people with the and bounce back failure most experience from errors Contingency Commitment from Mutual goals (goal Coordination of planning top management alignment) ressources Skipper & Use of information Hanna & information Information sharing Standardization (2009) Flexibility technology Internal & external Comprehensiveness of

cooperation contingency planning Developing new Rego et al. Authentic Creativity Improvisation ways of doing (2012) Leadership things Risk Management Preparedness Scholten et Disaster al. (2014) Response Recovery Mitigation Management Flexibility Efficiency Visibiity Fiksel et al. Understanding of Adaptability Anticipation Recovery (2014) vulnerabilities Dispersion Collaboration … Idea generation & Amplify intelligency and Inner resilience Emotional vitality Gratton innovation wisdom (2015) Engaging with the Outer resilience Social connection community

(Re-) Engineering Risk Management Collaboration Agility Christopher & Design & Peck Business Risk Management Board-level (2004) Continuity Leadership Resilience Culture responsibility

Supply Chain Supply Management

In-depth case study about organizational robustness and resilience

Strategic Supply chain Anticipation Strategy development Management mapping Public-private Risk Management Redundancy Flexibility Stewart et partnerships Agility Flexibility/Redun al. (2009) Visibility Formative (Responsiveness) dancy Resilience Structure Knowledge Collaboration, etc. Coherence Connectedness Control Agility Risk Management Visibility / transparancy Flexibility (Responsiveness) Ponomarov Reduction of & Holcomb Organizational Structure Knowledge uncertainty, (2009) learning complexity (Re-) Engineering Collaboration Integration Capacity buffers, Overtime & safety stock Production shifting Klibi et al. (Responsiveness) subcontracting pooling (2010) Policies Placement Resource flexibility strategies Supply Chain Readiness Response Recovery Risk Management Jüttner Supply Chain &Maklan Flexibility Velocity Visibility Vulnerability (2011) Formative Collaboration Resilience Supply Chain Operational Risk Structured and Colicchia & Models Risk Management Management systematic tools Strozzi Disruption Allignment of SC Stochastic (2012) SC (re-) design Management strategy optimization Flexibility Velocity Visibility Johnson et Social capital Beneficial al. (2013) Trust Shared Values relationships Ivanov & Flexibility Adaption Behavior Sokolov IT developments (2013) Anticipation Visibility Knowledge Wieland & Supply Chain Communication Cooperation Integration Wallenburg Risk Management Information (2013) Speed (Velocity) Agility Sharing Supply Chain Agility Flexibiity Responsiveness Mandal Risk Management (2014) Supply Chain Cooperation Security Performance Design Green practices Sourcing strategy

Resilience in the context of organizations

Hind et al. () introduce a “five-factor model” establishing and maintaining organizational resilience. This model consists of “perceived organizational capability for change”, “organizational attachment”, “relationship matrix”, “team cohesion” and

In-depth case study about organizational robustness and resilience

“reality sense”. While “perceived organizational capability for change” is about “positive and realistic attitude to change” and “positive support for these developments and strategies” (Hind et al., ), “organizational attachment” is about “full understanding of reciprocal rights and responsibilities” and “increasing trust and confidence in the organization” (Hind et al., ). “Organizational attachment” encourages “open communication from the highest levels in the organization to the lowest” (Hind et al., ). The “Relationship matrix” mainly aims at trust. According to Hind et al. (), “trust is fundamental to an effective contract” (Hind et al., ) which “is essential for effective performance in times of uncertainty” (Hind et al., ). With “Team cohesion”, Hind et al. () refer to the individual and their unique role in organizations. They argue, “as organizations change and flex their structures” (Hind et al., ), individuals need “to understand the part that they play” (Hind et al., ). “Reality sense” is about the “unbiased perception of the outside world […]” (Hind et al., ). Change and opportunities within reality sense “encompasses a need to develop sensitivity in perceptions about individual and organizational positions in the marketplace” (Hind et al., ).

In the perspective of Välikangas & Hamel (), to develop, maintain and continuously improve resilience, organizations must address four challenges. They must become “entirely free of denial, nostalgia, and arrogance” (Välikangas & Hamel, ), must have “alternatives as well as awareness” (Välikangas & Hamel, ), must “divert resources” and accept “a creed that extends beyond operational excellence and flawless execution” (Välikangas & Hamel, ).

Reinmoeller & van Baardwijk () consider resilience “as a process capability” (Reinmoeller & van Baardwijk, ) and as “the capability to self-renew over time through information” (Reinmoeller & van Baardwijk, ). They identify four innovation strategies which are knowledge management, exploration, cooperation and entrepreneurship. Resilient companies, as Reinmoeller & van Baardwijk () exemplify, “focus on the efficient reuse and recombination of existing resources, especially those that are tacit and unexplored”, “go beyond conventional knowledge management by simultaneously exploiting existing knowledge and searching for new knowledge”, “balance internal exploration with cooperation strategies to increase

In-depth case study about organizational robustness and resilience

innovative output”, and “continually encourage entrepreneurial behavior to drive innovation” (Reinmoeller & van Baardwijk, )

Resilience, in the perspective of Sheffi & Rice (), is a “strategic initiative that changes the way a company operates and that increases its competiveness” (Sheffi & Rice, ). According to them, resilience “can be achieved by either creating redundancy or increasing flexibility” (Sheffi & Rice, ). As they argue, “redundancy is part of every resilience strategy” (Sheffi & Rice, ) and flexibility “can create a competitive advantage in day-to-day operations” (Sheffi & Rice, ). It is important, as Sheffi & Rice () highlight, “not to underestimate the contribution of culture to an organization’s flexibility and resilience”. Additionally, Sheffi & Rice () highlight the need for risk- and crisis management. They favor the creation of disruption profiles and vulnerability maps as control systems.

As Lengnick-Hall & Beck () argue, resilience is “a multidimensional, organizational attribute that results from the interaction of three organizational properties: cognitive resilience, behavioral resilience, and contextual resilience” (Lengnick-Hall & Beck, ) that enables organizations “to move beyond survival and actually prosper in complicated, uncertain, and threatening environments” (Lengnick- Hall & Beck, ). Cognitive resilience is about the development of new skills rather than the emphasis on standardization and need for control (Lengnick-Hall & Beck, ). Behavioral resilience is about learning about the situation and to fully use the system’s resources and capabilities (Lengnick-Hall & Beck, ). Contextual resilience is about the integration and use of cognitive resilience and behavioral resilience. It bases on “deep social capital and broad resource network” (Lengnick-Hall & Beck, ).

According to high reliability theory researchers Weick & Putnam (), commitment to resilience refers to processes that support to recover from organizational setbacks, especially through improvisation (Weick & Putnam, ). Commitment to resilience, in their approach is “about concentration complemented with mindfulness as the means to achieve insights for future actions” (Weick & Putnam, ) and focuses on mindfulness and “mindful excellence” on organizations.

In-depth case study about organizational robustness and resilience

In earlier studies, Weick et al. () describe resilience as retrospect – the opposite of anticipation which is prospect. In explored, Weick & Putnam () demand a balance between prospect and retrospect.

In the perspective of Youssef & Luthans (), ways to develop organizational resilience are not only in “reactive recovery but also proactive learning and growth through conquering challenges” (Youssef & Luthans, ). In their approach, resilience is about asset-focused, risk-focused, and process-focused strategies. The basis for developing resilience lies in “creative and flexible adaptive mechanisms, guided by ethical values and strong belief system, toward the achievement of personally and organizationally meaningful goals” (Youssef & Luthans, ).

Initiating from the “Normal Accident Theory”, for Choo () accidents mostly happens because of information impairments. He proposes individual factor, work group factor and organizational factor strategies to improve vigilance and resilience. Individual factor strategy is about the use of multiple perspectives (“cognitive heuristics and biases”) on a challenge, such as from stakeholders, experts, etc. The work group factor strategy is about openness among system members. The organizational factor strategy, Choo () propose the opposite of a bureaucratic culture that proposes information dispersion. Choo () calls for responsibility assignment and information sharing. Choo () sees information dispersion as a “consequence of organizational structure” and calls for “information redundancy between organizational units” (Choo, ). For Choo (), the key difference between an “ordinary” organization and a high reliability organization lies in the management of unexpected events. According to him, high reliability organizations are “preoccupied with the possibility of failure”, “encourage error reporting, analyze experiences of near misses”, “recognize that the world is complex” (Choo, ), “attentive to operations at the front line” and “push decision-making authority to the people with the most expertise, regardless of their rank” (Choo, ). To create a commitment to resilience, as Choo () argues, organizations need to “develop capabilities to detect, contain, and bounce back from errors” (Choo, ).

In-depth case study about organizational robustness and resilience

Organizational resilience, related to Skipper & Hanna (), has its origin in contingency planning. Centre to the approach of Skipper & Hanna () are contingency plans: “contingency planning is a valuable strategic planning tool” (Skipper & Hanna, ) and “has been identified as a crucial issue for many organizations” (Skipper & Hanna, ). A further pillar in the approach of Skipper & Hanna () is flexibility. Flexibility is “an important strategic capability” (Skipper & Hanna, ). To increase the relation between contingency planning and flexibility, Skipper & Hanna () propose: () continuous commitment from top management (top management support), () development of mutual goals (goal alignment), () coordination of resources (resource alignment), () generation, combination and using of information and information and communication technologies (ICT), () internal & () external information sharing (connectivity), () comprehensiveness of contingency planning, () standardization of common policies and procedures and () internal & () external collaboration (Skipper & Hanna, ).

Organizational resilience, according to Rego et al. (), is a concept that “promotes employees’ attitudes and behaviors and contributes to organizational performance” (Rego et al., ). “Resilience relates to creativity” (Rego et al., ) and is about improvisation “in situations predominately characterized by change and uncertainty” (Rego et al., ). In the center of the approach of Rego et al. () is “Authentic Leadership”, which bases on (a) self-awareness, (b) balanced processing, (c) internalized moral perspective and (d) relational transparency. Relational transparency “is the degree to which the leader presents his/her authentic self […] to others, openly share information, and expresses his/her true thoughts and feelings, reinforcing a level of openness with others that provides them with an opportunity to be forthcoming with their ideas, challenges and opinions” (Rego et al., ).

Related to Scholten et al. (), organizational resilience refers to “the ability of an individual, a household, a community, a country or a region to withstand, adapt, and quickly recovery form stresses and shocks such as drought, violence, conflict, or natural disasters”. In their approach, Scholten et al. () focus on an iterative four-step lasting disaster management framework contributing to the organizations evolution and

In-depth case study about organizational robustness and resilience

development basing on risk preparedness, immediate response, recovery and mitigation.

In the approach of Fiksel et al. (), systems can cultivate organizational resilience “by understanding their vulnerabilities – and developing specific capabilities to compensate for those vulnerabilities. These capabilities are “() flexibility in sourcing, () flexibility in manufacturing, () flexibility in fulfillment, () production capacity, () efficiency, () visibility, () adaptability, () anticipation, () recovery, () dispersion, () collaboration, () organizations, () market position, () security, () financial strength and () product stewardship” (Fiksel et al., ). Organizations also “can try to emulate some of the behaviors seen in natural systems – tolerance for variability, continuous adaption and exploitation of opportunities created by disruptive forces” (Fiksel et al., ).

Gratton () distinguishes between inner- and outer resilience. Inner resilience occurs “when employees are able to reach their true potential and benefit their companies through idea generation and innovation” (Gratton, ). It bases on three areas of actions which are “amplify intelligence and wisdom”, “enhance emotional vitality” and “harness social connection” (Gratton, ). When this is achieved, leaders are challenged to engage with the community (Gratton, ). The final step in developing resilience is about “addressing global challenges” that includes the utilization of “potential talent pools, future customers, and sources of innovation” (Gratton, ) as well as “rapidly degrading environment, rising inequality, youth unemployment and poverty” (Gratton, ).

Resilience in the context of supply chain networks

Christopher & Peck () consider supply chain resilience as part of organization’s “approach to risk and business continuity management” (Christopher & Peck, ). They represent the perspective that a resilient supply chain bases on () supply chain (re-) engineering, () supply chain collaboration, () agility, () the creation of a supply chain risk management culture (Christopher & Peck, ).

In-depth case study about organizational robustness and resilience

Related to Stewart et al. (), “managers can create supply chain resilience by quickly assessing areas of anticipated vulnerability, identifying actual supply chain disruptions, and developing strategies which address the actual situation”. Their work highly relates to “flexibility and redundancy” (e.g. Sheffi ()) and supply mapping (e.g. Falasca et al. ()) to understand supply chain network “density, complexity, and critical nodes” (Stewart et al., ). In perspective of Stewart et al. (), further important pillars are public-private partnerships. These partnerships are “often driven by the projected needs of the impact area, the presence of inbound supply chains to fulfill these needs, and the importance of impacted nodes within supply chains that extend beyond the devastated area” (Stewart et al., ).

Supply chain resilience, related to Ponomarov & Holcomb (), depends on formative elements as agility (responsiveness), visibility, flexibility/redundancy, structure and knowledge, reduction of uncertainty, complexity, reengineering, collaboration, integration, operational capabilities, transparency. In their approach, Ponomarov & Holcomb () propose a conceptual framework where supply chain resilience consists of event readiness, efficient response and recovery as well as coherence, connectedness, and control (Ponomarov & Holcomb, ). Facilitators within this approach are top management support, risk management and risk sharing, risk re-assessment and organizational learning.

According to Klibi et al. (), to develop resilience in supply chain network structures, responsiveness policies must be implemented. Responsiveness responsibilities, related to their approach, “provide a hedge against randomness and hazards to increase SCN expected value”.

Jüttner & Maklan () argue that supply chain resilience depends on formative elements such as flexibility, velocity, visibility and collaboration. While collaboration is related to visibility and holds the supply chain together (Jüttner & Maklan, ), “visibility, velocity and flexibility together are sometimes captured under “agility”” (Jüttner & Maklan, ). For them, supply chain resilience maintains strong relations to supply chain risk management and supply chain vulnerability. As Jüttner & Maklan

In-depth case study about organizational robustness and resilience

() highlight, the objective of supply chain risk management is to reduce supply chain vulnerability and to increase and foster resilience.

In the center of the approach of Colicchia & Strozzi () is vulnerability and, subsequently, supply chain risk management. In this approach, Colicchia & Strozzi () argue that “traditional Operational Risk Management needs some re-thinking in the era of disruption” (Colicchia & Strozzi, ) and start ogling with disruption management. Disruption management, within the approach of Colicchia & Strozzi () deals with disruption discovery, i.e. risk identification and assessment. The initial point towards supply chain network resilience is the “alignment of supply chain strategy and design to the new operating context” (redesign). Secondly, the use of stochastic optimization approach: modelling for robustness and resilience. Finally, disruption management is a key (Colicchia & Strozzi, ).

Summarized, Jüttner & Maklan (), Johnson et al. () and Scholten et al. () advocate flexibility, velocity, visibility and collaboration as “capabilities pertaining” supply chain resilience. In continuation, Johnson et al. () add social capital, namely as structural dimension (including network ties, network configuration, appropriable, organization), cognitive dimension (including shared codes and language, shared narratives) and relational dimension (including trust, norms, obligations, identifications), to these four capabilities. As Johnson et al. () highlight, social capital has both deliberate and emergent roots for increased resilience.

Related to Ivanov & Sokolov (), resilience is an “intersection of robustness, flexibility and adaption” and an “indicator of recovery capability” (Ivanov & Sokolov, ). In the perspective of Ivanov & Sokolov (), strategies fostering resilience are mainly behavior and adaption. In addition, resilience depends on IT development: “New IT initiatives will in the next few years change the landscape of decision-support systems for SCM. Different IT systems will communicate with each other and either take self-controlled decisions or provide for a user who will take the final decision” (Ivanov & Sokolov, ).

Wieland & Wallenburg () focus on robustness and agility as means to achieve resilience. Robustness, in this sense, is a proactive concept and needs “anticipation of

In-depth case study about organizational robustness and resilience

change prior to occurrence”. Agility is a “reactive answer to change” and focuses on reconfiguration in the face of unforeseeable changes (Wieland & Wallenburg, ). To become agile, “visibility is needed to gain knowledge about actual changes that are currently occurring” (Wieland & Wallenburg, ). The approach of Wieland & Wallenburg () consists of relational competencies that are, for example, communication, cooperation and integration. Communication, cooperation and integration have positive effect on both strategies. Additionally, information sharing is a prerequisite for both proactive and reactive resilience can be further improved (Wieland & Wallenburg, ).

Mandal () identified methodologies as “supply chain agility, supply chain flexibility, supply chain responsiveness, etc.” as means to foster supply chain resilience. At the basis of developing supply chain resilience, Mandal () identified supply chain risk management and supply chain design: “Resilience is very much related to the concepts of supply chain risk management and supply chain design principles”. Additionally, Mandal () identified, supply chain engineering and its design principles important to resilience. Accompanied methods developing supply chain resilience are, for example, supply chain security, supply chain performance, competitive advantage, green practices, sourcing strategies as well as quality principles and systems thinking (Mandal, ).

1.4 Concept-centric perspectives on organizational robustness and resilience5

Related to the research methodology of Webster et al. (), this subsection presents the concept-centric perspective on organizational robustness and resilience. For that, a shift from the author- to the concept-centric perspective needs to be done. This shift includes the development of a concept matrix (Webster & Watson, ). Initial basis for this concept matrix are the previous subsection about the author-centric perspective

5 A preliminary version of this section was presented as Maurer et al. ()

In-depth case study about organizational robustness and resilience

on organizational robustness and resilience: examined methodologies and methods are clustered to concepts “Organizational Culture”, “Cognitive Capabilities”, “Risk- & Crisis Management”, and “Business Practices & Technologies”. Anticipated, concept “Organizational Sense making, Management and Leadership” is integrated into concept “Cognitive Capabilities”.

.. Refinement of the network of interrelated concepts of organizational robustness and resilience

According to introduced research process, supported by the application of Grounded Theory approach, as well as the knowledge and expertise gained in this research, it is obvious that nodes (concepts) “Cognitive Capabilities” and “Organizational Sense making, Management & Leadership” of the network of interrelated concepts of organizational robustness and resilience are highly interrelated. As visualized, node “Cognitive Capabilities” is about the “organizational abilities of communication, information sharing and connectedness, cooperation and collaboration as well as learning and knowledge management” (Maurer & Lechner, ). It is obvious that node “Organizational Sense making, Management & Leadership” highly bases on these competencies too and rely particularly on the same scope. Therefore, the network needs to be refined and adapted by the inclusion of node “Organizational Sense making, Management & Leadership” into node “Cognitive Capabilities”. As result, the network now consists of six nodes (including “Resilience”, “Organizational Culture”, “Cognitive Capabilities” (including Organizational Sense making, Management & Leadership), “Risk- & Crisis Management”, “Business Practices & Technologies” and “Extended Enterprise & Supply Chain Management”) and edges. Figure depicts the new eigenvalues of each node (selective code) and its interrelations.

Referring to refined network of interrelated concepts of organizational robustness and resilience, node “Cognitive Capabilities” is the focal concept and it can be assumed that management and leadership, communication, information sharing and connectedness, cooperation and collaboration, learning and knowledge management are prerequisite. All have positive impacts on developing, maintaining and enhancing

In-depth case study about organizational robustness and resilience

organizational and supply chain resilience. “Risk- & Crisis Management” and “Organizational Culture” positively influence “Resilience”. “Business Practices & Technologies” influences mainly “Organizational Culture” which is also positively influenced by “Risk- & Crisis Management”.

Figure : Selective codes, its eigenvalue and edge strengths

As a result of this consolidation, node “Cognitive Capabilities” grew to the focal node of this graph. Its eigenvalue consists now of open codes. From this perspective, node “Cognitive Capabilities” have the most influences on developing, maintaining and/or improving a resilient organization.

Figure : Total network Figure : Strongest interrelations

Depicted in figures and , there are strong interrelations between the nodes “Resilience”, “Risk- & Crisis Management”, “Cognitive Capabilities”, “Organizational Culture” and “Business Practices & Technologies”. The strongest interrelations are “Resilience”  “Organizational Culture” (), “Risk- & Crisis Management” 

In-depth case study about organizational robustness and resilience

“Business Practices & Technologies” (), “Risk- & Crisis Management”  “Resilience” (), “Organizational Culture”  “Cognitive Capabilities” (), “Organizational Culture”  “Resilience” (), “Business Practices & Technologies”  “Organizational Culture” () and vice versa () and “Business Practices & Technologies”  “Cognitive Capabilities” ().

.. Findings – perspective on organizational robustness

Table summarizes that robustness highly depends on concepts “Business Practices & Technologies” and “Risk- & Crisis Management”. While “Business Practices & Technologies” has nominations, “Risk- & Crisis Management” relay on nominations. It seems that nodes “Organizational Culture” () and “Cognitive Capabilities” () have an accompanying character.

Table : Concept-centric perspective on robustness

Robustness Concepts

Management Management Technologies Technologies Risk- & Crisis Risk- Business Practices & Practices Business Cognitive Capabilities Cognitive Article Culture Organizational

Robust Quality 1 1 1 Quality Quandaries Is Your Robust Design Procedure Robust? 1 1 1 A semi-analytic approach to robust design in the conceptual design 1 1 phase

Org. robustness Org. Practices of robust design methodology in practice 1 1 1

Total Org robustness 4 0 3 4 Creating Supply Chain Resilience Through Agile Six Sigma 1 1 1 Supply chain risk management 1 1 Logistical network design with robustness and complexity 1 1 considerations robustness robustness Supply chain chain Supply The impact of supply network characteristics on reliability 1 1

In-depth case study about organizational robustness and resilience

Dealing with supply chain risks: Linking risk management practices 1 1 1 1 and strategies to performance The influence of relational competencies on supply chain resilience: 1 1 a relational view Supply chain resilience: a state-of-the-art review and research 1 1 1 directions

Total SC robustness 3 3 6 6 A Stakeholder Approach to Strategic Performance Measurement 1 1 Learning from experience in high-hazard organizations 1 1 1 Shared Situation Awareness as a Contributor to High Reliability 1 Performance in Railroad Operations Reliable logistics networks design with facility disruptions 1 Per-formanace Per-formanace A framework for designing robust food supply chains 1 1 Total performance 1 3 2 3 Total robustness 8 6 11 13

In the perspective of “Business Practices & Technologies” most frequent methodologies and methods mentioned are key performance indicators (KPI) measurements and statistics, (product-, service-, and process-) design, sourcing strategies and supplier audit as well as lean thinking, make-or-buy decisions, internal quality control and continuous applicability. Most frequent mentioned methodologies and methods in perspective of “Risks- and Crisis Management” are risk management, understanding of variability, insensitivity to variability (and noise) and safety stocks as well as contingency plans and scenarios. In the perspective of node “Organizational Culture”, dominant methodologies and methods are quality respectively an organizational culture related to quality and its control.

.. Findings – perspective on organizational resilience

Table summarizes that the most important methodologies and methods implementing and applying resilience are “Organizational Culture”, “Risk- & Crisis Management” and “Cognitive Capabilities”. Together, these concepts have % of the total and we conclude that these nodes are the main enhancers of organizational resilience. Concept “Business Practices & Technologies” is a “statistical outlier” and has – more or less – only marginal influence.

In-depth case study about organizational robustness and resilience

Table : Concept-centric perspective on resilience

Resilience Concepts Management Management Technologies Technologies Risk- & Crisis Risk- Business Practices & Practices Business Cognitive Capabilities Cognitive Organizational Culture Organizational Article Building the Resilient Supply Chain 1 1 1 1 Leveraging public-private partnerships to improve community resilience 1 1 1 1 in times of disaster Understanding the concept of supply chain resilience 1 1 1 1 The design of robust value-creating supply chain networks: A critical 1 1 1 review Supply chain resilience in the global financial crisis: an empirical study 1 1 1 Supply chain risk management: a new methodology for a systematic 1 1 1 literature review Exploring the role of social capital in facilitating supply chain resilience 1 1 Control and system-theoretic identification of the supply chain dynamics

Supply Chain Resilience Supply domain for planning, analysis and adaptation of performance under 1 1 1 uncertainty The influence of relational competencies on supply chain resilience: a 1 1 1 relational view Supply chain resilience: a state-of-the-art review and research directions 1 1 1 1

Total SC resilience 9 6 9 7 The resilience audit and the psychological contract 1 1 1 The Quest for Resilience 1 1 1 1 The Link Between Diversity and Resilience 1 1 1 A Supply Chain View of the Resilient Enterprise 1 1 1 1 Adaptive Fit Versus Robust Transformation: How Organizations 1 1 1 Respond to Environmental Change Organizing for Mindfulness Eastern Wisdom and Western Knowledge 1 1 1 Positive Organizational Behavior in the Workplace The Impact of Hope, 1 1 1 Optimism, and Resilience Organizational disasters: why they happen and how they may be 1 1 1 prevented Minimizing supply chain disruption risk through enhanced flexibility 1 1 1 1

Organizational Resilience Organizational Authentic leadership promoting employees’ psychological capital and 1 creativity Mitigation processes – antecedents for building supply chain resilience 1 From Risk to Resilience: Learning to Deal With Disruption 1 1 1 Building Resilience in a Fragile World 1 1

Total Org resilience 12 11 10 4

Total resilience 21 17 19 11

In-depth case study about organizational robustness and resilience

According to examined literature, in the perspective of concept “Organizational Culture” most promising methodologies implementing and applying resilience are flexibility (including adaptability & improvisation), visibility and “organizational virtues” as umbrella term for capabilities as behaviors as free of denial, openness, creativity, emotional vitality etc. In addition, important ingredients are agility and strategy resp. strategic management, velocity and innovation (including entrepreneurship). Formal structure, safety oriented organizational culture, authentic leadership, control system and (responsiveness) policies are mentioned but only have minor relevance.

In the perspective of concept “Risk- & Crisis Management”, we summarize expressions as anticipation, mitigation, exploration, understanding of vulnerabilities / reduction of blind spots, awareness, adaption, preparedness and readiness, response, recovery, etc. to umbrella term ‘risk management’. Taken together, this consolidated term covers the majority of all methods. In addition, risk management builds the foundation for methodologies and methods as contingency planning / business continuity planning and disaster management. Underrepresented is the approach of normal accident theory. It sounds promising but needs further evaluation to confirm it as methodology enhancing organizational resilience.

As already visualized in previous subsections, concept “Cognitive Capabilities” is mainly determined by communication, information sharing and connectedness, cooperation and collaboration as well as learning and knowledge management. After evaluation of the concept-centric approach, these methodologies and methods can be confirmed as most dominant strategies. Additional, (authentic) leadership, intelligence and wisdom, trust, shared values, team cohesion, etc. are mentioned.

1.5 Conclusion and case study propositions

In order to conclude this section, the findings about the research into organizational robustness and resilience are presented once in a more comprehensible way.

In-depth case study about organizational robustness and resilience

.. Theoretically predicted concepts towards organizational robustness and resilience

As the content analysis highlight, the concept of organizational robustness can be described among maintenance of structures and functions, coping disruption, and continuity of operations. It is a pro-active strategy (e.g. Wieland & Wallenburg (), Wieland & Wallenburg (), Roth et al. (), Lengnick-Hall & Beck ()) wherein mechanisms to foster organizational reliability and stability are a key. Related to the network of interrelated concepts of organizational robustness and resilience, activities and efforts into Business Practices & Technologies, Organizational Culture and Risk- & Crisis Management are the most promising towards the concept of organizational robustness. However, the concept of organizational resilience is less tangible. It is considered as a pro-active concept to develop abroad and varied repertoire of routines for responding to uncertainty and complexity (Lengnick-Hall & Beck, ) is has become a by-word for significantly increased safety. Related to the network of interrelated concepts of organizational robustness and resilience, activities and efforts into Risk- and Crisis Management, Organizational Culture and Cognitive Capabilities are the most promising towards the concepts of organizational resilience.

.. Author-centric and concept-centric perspectives towards organizational robustness and resilience

Similar results achieve the author-centric and concept-centric research. In both perspectives, risk management is identified as major a contributor to the concepts of organizational robustness and resilience. As table highlights, risk- and crisis management within author-centric perspective on robustness gained five nominations. Within author-centric perspective on resilience, risk- and crisis management gained nominations (including related concepts).

In-depth case study about organizational robustness and resilience

Table : Theoretically predicted concepts towards organizational robustness and resilience (author-centric perspective)

Author-centric concepts towards Nominations Author-centric concepts towards organizational robustness organizational resilience Nominations Risk Management 5 Risk (& Crisis) Management, incl. 17 Quality 5 (High Reliability) (2) Design 4 ((Responsivness) Policies) (1) Performance measurement 4 (Disaster Management) (1) Cognition (& Communication) 3 (Business Continuity Management) (1) High Reliabiilty 1 (Contingency Planing) (1) Strategic Management 1 (Disruption Management) (1) Cognition & Org. Learning 2 Social Capital, authentic leadership 2 Design & Innovation 2 Supply Chain Vulnerabilities & understanding vulnerabilities 2 Strategic Management 2 Capability development 1 Flexibility 1 Accident are normal 1 Resiilence terminology Formative Resilience 1 Cognitive Resilience 1 Behavioral Resilience 1 Contextual Resilience 1 Inner Resilience 1 Outer Resilience 1 Five Factor Model 1

Related to the concept-centric perspective and the network of interrelated concepts of organizational robustness and resilience, the nodes Risk- & Crisis Management and Organizational Culture are the most important organizational areas to engineer organizational robustness and resilience (c.f. . Also, Cognitive Capabilities and Business Practices & Technologies, as table highlights, need of special consideration.

In-depth case study about organizational robustness and resilience

Table : Theoretically predicted concepts towards organizational robustness and resilience (concept-centric perspective)

Network of interrelated concepts of organizational robustness and resilience

resilience resilience Leadership) Leadership) centric concepts towards centric Organizational Culture Organizational Risk- & Crisis Management Crisis & Risk- Sensemaking, Management & Management & Sensemaking, organizational robustness and robustness organizational Cognitive Capabilities (incl. Org. (incl. Org. Capabilities Cognitive Business Practices Technologies & Business Concept- Robustness 8 6 11 13 Organizational Robustness (4) (0) (3) (4) Supply Chain Robustness (3) (3) (6) (6) Performance (1) (3) (2) (3) Resilience 21 17 19 11 Organizational Resilience (12) (11) (10) (4) Supply Chain Resilience (9) (6) (9) (7) Total 29 23 30 24

1.6 Case study propositions6

Based on the knowledge and expertise gained on “what the central theories and concepts about the terms organizational robustness and resilience are” and “what the structure of the knowledge on the terms of organizational robustness and resilience is” as well as developed “network of interrelated concepts of organizational robustness and resilience”, the next step is to deep-in into empirical research. This research then is determined by research question “What are the central theories and concepts about the terms organizational robustness and resilience in practice?” and “How are these concepts are applied/implemented within the case study partners’ organizations?”. Empirical research – especially case study research – is accompanied by case study propositions.

6 A preliminary version of this section was presented as Maurer ()

In-depth case study about organizational robustness and resilience

From a theoretical perspective, case study propositions are the foundation to develop tailored survey guidelines for empirical research. As Yin () highlights, case study propositions enable to “develop sharper and more insightful questions about the topic” as well as allow to “go into organizations with a well-defined focus” (Eisenhardt, ). From a practical perspective, case study propositions as used in this dissertation support a target-oriented frame case study research and accompanied data collection. Applied case study research makes use of the following propositions towards the concepts of organizational robustness and resilience:

As highlighted above, literature is discordant about the classification and interrelationship of organizational robustness and resilience. There are three streams identifying robustness and resilience either as () two terms, which are used interchangeably, () resilience, formed by robustness and agility resp. () resilience, as intersection of robustness, flexibility and adaptation. However, the first case study proposition assumes that robustness is an organizational property whereas resilience is an organizational capability. They are highly interrelated and depend on each other:

Resilience is a process-based, organizational capability of an organization. It is an organizational (unconsciously) governance framework, orchestrating and mediating between organizational robustness, agility and innovation – in times of organizational certainty and times of organizational dynamics, risk, uncertainties and crisis.

Robustness is a resource-based property of an organization. It is, colloquially said, about organizational performance and its measurement. Pro-active “Risk- and Crisis Management” is a key and a prerequisite for organizational robustness.

Robustness is part of the “Organizational Culture” and is, as agility, a feature of the overall organizational resilience strategy. In times of organizational certainty, robustness (and its approaches) is key. In time of uncertainty and change, agility is key. Both are determined by innovation (into resources, processes, products and services) that is an antecedent to organizational robustness and resilience.

In-depth case study about organizational robustness and resilience

Resilience is the focal concept but highly basis on robustness increasing measures. In turn, robustness is highly influenced by resilience increasing measures. In this sense, it is a continuous, ongoing, never-ending process of improvement and innovation including adaption, renewal, change and entrepreneurship.

The propositions about robustness and resilience help to explore empirically the implementation and application of organizational robustness and resilience at service providers with increased safety- and security requirements and its individual approaches. Expected results/outcomes of this proposition are general insights to the application of robustness and resilience increasing measures and related approaches (e.g. reliability, stability, safety, security, etc.), its classification (e.g. implementation, application, etc.) and related business practices, methods and tools.

As it turned out in the literature review, effective and efficient “Risk- and Crisis Management” practices are a prerequisite to implement organizational robustness and resilience. It is the initial step developing organizational robustness and resilience. The pro-active detection kinds of possible organizational threats (including nearbys and black swans) by methods of risk management enables organizations to develop prevention-, response- and cope-strategies and, consequently, to survive and succeed unscathed. “Risk- and Crisis Management” practices help to transform detected risks into (business) innovations and thus value propositions.

“Organizational Culture” towards organizational robustness and resilience is about the equilibrium about robustness and agility increasing measures as well as innovation. It is situational and depends on internal and external circumstances. In times of organizational certainty, the “Organizational Culture” is characterized by control and monitoring, standardization, efficient processes and service performance. In times of organizational uncertainty, “Organizational Culture” is characterized by agility, change and adoption. However, in both circumstances, innovation (including processes, service, products, etc.) is of major importance. This proposition supports to explore the role of “Organizational Culture” as contributor and co-designer of organizational robustness and resilience.

In-depth case study about organizational robustness and resilience

As highlighted in previous literature review, frequent methods to develop, maintain and improve organizational robustness and resilience are about design and engineering, sourcing strategies and supplier audit as well as lean thinking, make-or- buy decisions, quality control and continuous applicability. They are underlined with key performance indicators (KPI) and statistics. Clear requirements into the development of appropriate methods and tools are prerequisite to enhance organizational robustness and resilience. The better these requirements, the higher the organizational robustness and resilience. Information and communication technologies (ICT) and increased digitalization are enhancers and facilitators of organizational robustness and resilience.

Organizational robustness and resilience highly depends on organizational cognitive capabilities. “Cognitive Capabilities” are mainly about communication and information sharing (among individuals and organizations) as well as cooperation, collaboration and connectedness (within a system: extended enterprise, supply chain network). It is about the organizational memory/storage and how to explore and exploit information and knowledge and expertise. Facilitators are learning and knowledge management but also sensemaking, management and leadership within an organization.

As the following section highlights, the units of analysis are three international transport logistics and supply chain service providers. These providers are excellent case study partners since they face increased safety- and security requirements and already experience major disruptions. Planned case studies will be medium in length and data collection method comprises - expert interviews. The propositions about the concepts of organizational robustness and resilience support to structurally examine how the concepts of organizational robustness and resilience and their accompanied concepts are implemented and applied in practice.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

2 Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

This chapter of part III presents three single case studies. These case studies are conducted with three well-established and specialized transport logistics and supply chain service providers from the area of the Lake of Constance (Austria, Germany and Switzerland). This case study research is structured among the Network of Interrelated Concepts about Organizational Robustness and Resilience. This network is main output of previous chapter about the concepts of organizational robustness and resilience from an academic perspective. Case study partners experience a thorough review of their activities towards the concepts of organizational robustness and resilience the network’s nodes: Cognitive Capabilities, Organizational Culture, Risk- and Crisis Management, Extended Enterprise and Supply Chain Management and Business Practices and Technologies.

Transport logistics and supply chain service providers are excellent case study partners. They act in an extraordinary vulnerable field of business: a single failure can cause cascading effects and a breakdown, as the interviewees of Cargo Expert Germany (CEG) highlight, even in minute range is a catastrophe: it causes a chaotic situation in the operational management and affects the service network negatively. For example, case study partner Swissgold XX (SXX) experienced a major breakdown of its ICT and accompanied infrastructure in . SXX was down for more than hours and was not able to dispatch their shipments worldwide. Goods could not get distributed to SXX’ service clients. Additionally, this breakdown caused a series of actions: “To solve the catastrophe, we summoned a crisis team which immediately called in a crisis meeting with ICT suppliers”, as Philipp, one of the interviewees of SXX said. “It was really frustrating. Exactly this supplier who caused the breakdown did not join … even they did not react”. At the same time, managers informed their most important customers and suppliers as well as operational employees, employees from SXX’ business units, redirected its business e-mails to its private e-mail addresses. In such situations, as Urs, another interviewee of SXX said, managers and employees should

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

comprise a clear mind to keep control, to withstand situational pressure, to know, what in extreme situations has to be done, to coordinate with managers and supervisors, to find solutions (immediately) and to be good in improvisation.

This chapter is organized in four sections. Section presents applied research design and process. Section presents the criteria for selection of case study partner and the case study partners: Swissgold XX (SXX), Cargo Expert Germany (CEG) and Camion Austria (CA). Section presents the single case studies. Section presents a cross-case conclusion. Section and are organized among the pillars of the Network of Interrelated Concepts about Organizational Robustness and Resilience.

2.1 Research design and process

To investigate into the concepts of organizational robustness and resilience in the empirical field, this chapter makes use of case study research. Case study research is an open research approach and – compared to other approaches – is not restricted to (only) one or few survey-, analysis- and evaluation methods. This chapter relies on the case study research approach of Yin (). Yin provides a method to plan, design, prepare, collect, analyse and share case study research and results. He highlights that a case study research is an appropriate research method when a contemporary phenomenon over which a researcher has little or no control or the boundaries between phenomenon and context may not be clearly evident. It allows to examine real problems and examine pragmatically but functioning solutions approaches, methods and frameworks. It allows to answer how and why solutions work in practice and to transfer them into science and scientific literature. Also, these examinations pave the way to combine academic and industrial approaches and to develop new, grounded theories: theories that combine academic effectiveness (from the perspective of scholars and researchers: doing the right things in a defined way) and practical efficiency (from the perspective of practitioners: doing the things right).

Case study research is chosen because the empirical field is full of qualitative and quantitative data, information, knowledge, expertise and best practises that are not

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

captured and considered in scientific literature and theory yet. From the practical perspective, case study research enables scholars and researchers to investigate an empirical field with many different survey methods, including, for example, expert interviews, panel interviews, interviews conducted by third parties (e.g. radio interviews) … questionnaires, reports, service level agreements, company presentations, etc. From a social science perspective, case study research enables researchers to “understand a common or uncommon social phenomenon by observing the detail of the elements that make it a phenomenon in order to provide an empirical basis for valid argument” (Hart, ). It enables to “produce recommendations or solutions to some problem faced by a specific group of people in a situation. The aim is to take theoretical insights and apply these in real-world situations” (Hart, ).

As depicted in figure , applied case study research process consists of three process steps. First, the framework conditions of the case study research have been defined. These conditions are based on the research results about Organizational Robustness and Resilience and developed case study propositions (c.f. chapter ). Afterwards, the case study surveys have been performed, recorded and carefully transcribed to case study protocols. Case study protocols again are the basis for particular single case study reports. Additional, valuable information out of organizational service level agreements, official power point presentations and organizational homepages are included into single case study reports. Furthermore, a radio interview (performed by the Austrian Television ORF Vorarlberg ()) with the former managing directors and shareholder family of Camion Austria were included. In this radio interview, the former managing directors were interviewed about their lifetime achievement “Camion Austria: transformation from a regional transport service provider to a global brand”. Finally, based on the single case study reports, cross-case conclusions have been drawn.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

Figure : Research design

The case study research was performed in winter /early spring . Each case study partner got included into several semi-structured case study interviews (medium in length: ~ ,h each) –by use of previously developed case study propositions. Semi- structured interviews enable researchers to follow structured interview guidelines but gives liberty to react to interviewees’ answers immediately and to ask for additional statements, clarifications, statements, perspectives and positions.

2.2 Case study partners and selection criteria

Case study partners of this case study research are Swissgold XX (SXX), Cargo Expert Germany (CEG) and Camion Austria (CA). All partners are well-established and specialized transport logistics and supply chain service providers from the area of the Lake of Constance (Austria, Germany and Switzerland). Their core business are holistic services about transportation and warehousing of goods (h, days per week) as well as supply chain management (e.g. track & tracing, reverse logistic). Selection criteria are presented in table as well as in the following sub-sections.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

Table : Case study partner at a glance

Swissgold XX (SXX) Cargo Expert Germany (CEG) Camion Austria (CA) Country Switzerland Germany Austria Headquarter Winterthur Swabian Alb Hohenweiler Branches global Germany & France global Employees > . ~ ~ . Employees in ICT department Transportation, Warehousing and Supply Chain Management - &h Core service Valuable goods Industrial goods Industrial goods Core market BB (&BC) BB BB (&BC) International transport logistic and supply chain service provider Internationality Global Europe Global Area: Lake of Switzerland Germany Austria Constance Between multi- national company and Small and medium sized Family owned multi- Size small and medium sized enterprise (SME) national company enterprise (SME) Experience of several Experience of several man- Experience of several man-made and natural made and natural events: damage man-made and natural events: successful of organizational internet cable, … events: mudslides that prevention and coping of Additional, CEG successfully interrupted the events, e.g. IT breakdown coped the exodus of its main organizational data for h in , hurricane service clients – and exceeded its stream from and to its Sandy in , … truck fleet at the same time headquarter Best practice example Organizational Experience for a high reliability Although CEG is a classical success story: growing organization in transport small and medium enterprise, from a regional transport logistic and supply chain CEG successfully averts logistic provider to a management: transport competitors and hostile multi-national supply service providers in the acquisitions – independent chain network provider; field of valuable goods organization; importance of the organizational durability: have to be more robust, participation of management and founded in the middle- resilience, reliable – and employees age as Turiner-Bote restrictive – than others Innovation driver and Pro-active towards Pro-active towards trend setter: CA is Attitude towards change, renewal and experimentation and recognized as innovative innovation innovation inventiveness organization by its service clients

.. Case study partner: Swissgold XX (SXX)

Case study partner Swissgold XX (SXX) is an international transport logistics and supply chain provider and specialized in the transportation and warehousing of valuable goods. Valuable goods are, for example, cash and precious metals as well as

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

(unique) art objects. SXX’ headquarter is located in Winterthur (Switzerland). SXX maintains a worldwide transportation, warehousing and supply chain service network consisting of own subsidiaries as well as supply chain service partners. Every subsidiary has one or more branches. For example, the subsidiary it the United States consists of branches in New York, Miami and San Francisco. Strategic departments at SXX’ headquarter are the ‘Board of Managers’, ‘Controlling’, ‘Business Development & Sales’, ‘Process & Quality / IT’ as well as ‘Safety & Security’ (S&S).

SXX show huge sensitivity of service provision at all time and is, compared to “ordinary” service providers in the field of transport logistics and supply chain management, extraordinary restrictive. SXX runs a strategic department for “Organizational Safety & Security” and maintains elaborate business continuity processes, emergency plans and incident plans. Additionally, SXX already defined a co-headquarter abroad if, for example, a nuclear accident hit Switzerland. Nevertheless, SXX still faces organizational dynamics, risks, uncertainties and crisis including, for example, thievery of goods (March ; cost of damage: , Mio Swiss Francs) and negligence of goods distribution (December ; cost of damage: , Mio Euro). A politically driven uncertainty for SXX, for example, is the removal of cash out of daily life: a decision by the International Monetary Fund (“The Macroeconomics of De-Cashing”) that breaks down one of SXX core business models – the transportation of cash and refilling of ATM.

SXX is an excellent case study partner for robustness and resilience in transport logistics and supply chain service systems. Service providers for valuable goods have to be more safe and secure than other transport logistics providers – at all business levels and layers. Safety and Security (S&S) are essential parts of decision-making at SXX. For example, each subsidiary maintains at least one operational S&S manager. These managers are subordinated to their branch manager and act as the continuation of SXX’ Safety-, Security- and Compliance department.

SXX’ case study interviewees are Reto Lüthimann, John Simpson and Philipp Vondrak. Reto Lüthimann leads the Safety-, Security- and Compliance department at SXX. Reto provide deep insights into SXX Safety-, Security- and Compliance approach

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

including the use and application of business continuity planning and organizational responsiveness, etc. John is operational branch manager of SXX’ subsidiary in New York (NY). Phillip is the vice CIO of SXX and head of SXX Competence Centre. He is employed at SXX since and experienced several dramatic events such as the - hour lasting IT black-out in (presented in the introduction of this section) and hurricane Sandy. All mangers were included into the reappraisal of hurricane Sandy (that dramatically hit SXX’ branch in NY in ). John, for example, was the main contact before, during and after hurricane Sandy hit.

.. Case study partner: Cargo Expert Germany (CEG)

Cargo Expert Germany (CEG) is an international transport logistics and supply chain service provider and specialized in the field of BB services. CEG’s headquarter is located in the Swabian Alb (Germany). CEG is a typically German “Small and Medium Enterprise”. The organization consists of branches whereas are located all over Germany and one in France. CEG is managed centrally and has – since the retirement of the former co-managing director and co-shareholder – one managing director who also became % shareholder of CEG. CEG is split into the classical departments in transport logistic: import, export, warehouse, finance/accounting and ICT.

CEG was founded in and was the first contact point for transportation services of the textile industry in the Swabian Alb and beyond. In the ties/ies of last century, CEG had to cope with the mass exodus of textile industry from the Swabian Alb to foreign countries in Asia. This exodus caused a significant decrease of CEG’s turnover. Additionally, the Swabian Alb is – geographically seen – a critical region for industry: it is cut-off from major motorways and thus disconnected to major economic agglomeration areas (e.g. Stuttgart, Munich, etc.). Because of Germany’s change from nuclear to renewable energy, CEG continuously suffers from electricity shortages and internet provision shortages. As the interviewees complain, especially in rural areas in Germany what are not that enlarged as expected for high-developed countries. Nevertheless, since the ies, CEG expanded and launched several logistics centres in Germany and beyond. In / CEG’s fleet exceeded the number of trucks. Anticipated, service provision, service reliability and customer integration (voice of the

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

customer principle) are CEG’s major priorities and key for CEG’s organizational sustainability and survivability.

CEG is an excellent case study partner. Compared with other organizations, as the interviewees highlight, CEG’s internal approach to stability, safety- and security, availability and performance is exorbitant: “More is not possible”.

The case study interviewees of CEG are Christoph Sutter and Bernd Müller. Christoph is the head of the ICT applications and can look back to a long company employment and experienced several events: ICT blackouts (caused by third parties), customer complaints, supplier deviations, etc. Bernd is Christoph’s deputy. While Christoph is more related to strategic planning, Bernd is responsible for operational management and the well-functioning of ICT applications. Additionally, he is responsible for the education and training of ICT and “ordinary” employees – especially apprentices. The tasks and competencies of CEG’s ICT department are all around information- and communication technologies. All ICT employees operate in CEG’s ICT infrastructure, hardware and software at equal parts. “Of course”, as Christoph said, “all employees have their specialization. But in case (of an emergency), everyone needs to act everywhere and bring-in his/her knowledge and expertise”.

.. Case study partner: Camion Austria (CA)

Camion Austria (CA) is a family owned transport logistics and supply chain service provider. CA’s headquarter is located in Hohenweiler (Austria). It is a multinational company with more than branches and subsidiaries, more than . employees and more than . service clients worldwide. CA has a long company history ranging back to the th century (Turiner-Bote, connecting the region of Vorarlberg with the region of Turin and Lombardy). Since the th century, CA has been officially registered in the company register. In their history, CA experienced several times of adversity and uncertainty (especially between – ) and continuously has been challenged to cope events. One of these events, for example, was Austria’s accession to the European Union in . Seen from a provider’s perspective, this accession was a shock: it broke down the customs broke business model and decreased CA’s turnover

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

by one third. For the first time in CA’s company history, managers were forced to lay off ~ employees at one go. However, at this time, CA and its major competitor (Transport Guru) had similar initial points (e.g. same company size, same amount of service clients, almost equal turnover, etc.; also their headquarter was at the same property in the town of Hohenweiler). While Transport Guru was sold to FastTrans and second to Logistics Revolution, CA coped successfully any acquisition: they remained in family ownership and increased their business activities and efforts. Nowadays, CA provides a worldwide transportation service and supply chain service network multiplied its turnover up to , Billion Euro in .

CA’s interviewee is David Eberle. David is the head of the department “Research, Development and Innovation” and group manager ICT. He has been employed at CA since . He has a high safety and security approach: one of his first projects at CA was to implement business continuity management. David is leading a team performing research, development and innovation projects. For example, this team pro-actively analyses and evaluates emergent trends and technologies, such as autonomous driving/driverless trucks, D-print, augmented reality, etc., as well as their impacts for the transport logistics and supply chain management industry. Additional, by the use of a radio interview, performed by the Austrian Television (ORF, first broadcasted on ..), CA’s former managing directors, Verena and Andreas Reimayr, are integrated in this case study research. Verena and Andreas have been married for~ years and collaboratively manage Camion Austria. In this period (– ), Camion Austria grew from a small and regional transport logistics service provider to a multi-national supply chain management service provider. Verena and Andreas retired in and handed over the managing responsibility to their children as well as to an external manager.

2.3 Single Case Studies

This section presents a particular single case study. The reporting format of “single- case study”, structured among the nodes of the network of interrelated concepts of organizational robustness and resilience is applied. Related to Yin (), a “single-case study” is a single text about contextual conditions.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

.. Case study “Swissgold XX”

In this section, the case study of Swissgold XX (SXX) is presented. Safety & Security (S&S) is highly important to SXX. It is managed top down and, according to Urs, the department for Safety-, Security and Compliance as well as its (decentralized/operational) S&S managers have extensive powers. These include the power to direct, to intervene and to sanction employees, departments, subsidiaries and branches. For example, if an operational branch does not implement centrally coordinated S&S service level agreements, the department S&S will instruct and – in worst case – sanction this subsidiary. Operational branches are forced to comply with SXX’ general compliance rules and “normal” employees are instructed to comply with operational S&S (managers) directions. “S&S department has direct and operational access to these managers”, as Urs said. Nevertheless, operational branches have the freedom to implement the central requirements individually. As Urs exemplified, this empowerment helps to enlarge upon customers’- and suppliers’- as well as also upon employees’ needs and to respect national cultures, behaviours and regulations.

SXX’ approach towards organizational robustness and resilience

Organizational robustness and resilience at SXX is applied management. According to Urs: “While robustness is mainly accompanied by hard facts – controlling, monitoring, key performance indicators, statistics, management (by figures), rational behaviour, etc., resilience at SXX is related to soft facts as leadership, adaption of situations and application of (human) competencies”. Urs highlights that the SXX’ approach towards organizational robustness is accompanied by key terms as stability, safety- and security and service quality. Stability at SXX is accompanied by stable costs and prices, stable business partners (suppliers, agents, carriers) and the implementation of SXX’ business standards in partners business processes and their facilities. Safety- and security are about safe- and secure warehouses and transportation routes. Service quality is accompanied by the voice-of-the-customer principle and customer services including the focus on customer needs, constant and/or increasing quality. It is underlined with key performance indicators as internal and external control and monitoring (e.g. auditing of business partners, ICT driven control and

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

monitoring of shipments: transport volume (per day, week, month, destination, etc.), lead times (per route, warehouse, etc.), financial situations (contribution margin per shipment(s), truck, route, destination, etc.), delivery timeouts, etc.). To keep the quality level high, SXX experiences at least one internal audit per year per branch and several external audits demanded by major customers as well as ISO certification offices. Also, SXX audits its business partners, suppliers and carriers.

In perspective of Philipp, robustness is a result of good/stable values and is accompanied by redundancy and the control of ICT systems and infrastructure as well as internal and external audits. It relates to conservative thinking as Philipp exemplified: “As long as we do not change our systems, as long we are maintaining stable ICT services. Critical are software updates, new releases and features”. Currently, SXX’ ICT department shows a hardware and software availability of ,%. ,% are unlikely events which occurred during the year. In total, as Philipp estimates, SXX spends - days on ICT maintenance on average. ICT maintenance services are mostly performed on Sundays and – exceptionally in urgent cases – in a timeslot ranging from midnight until three o’clock in the morning.

Technical redundancy is the most important element in SXX’ strategy towards robust and resilient business. For example, during and after the occurrence of hurricane Sandy in , SXX’ subsidy in Miami took over responsibilities of the subsidy in NY. This redundancy (or in the words of Urs: “failure management”) helped SXX to guarantee at least a minimum of operational business in the Eastern part of the United States. To keep critical ICT services robust, SXX maintains contracts with three internet providers and runs two data centre at two different locations in Switzerland. In these data centres, SXX also stores fuel. As Philipp said, if SXX’ electricity provider has shortfalls, SXX can switch immediately to electric/diesel power generators. Branches which are not connected with redundant data streams to SXX’ data centres uses SIM card technology.

At SXX, all ICT systems (servers, data bases, etc.), ICT applications and hardware artefacts are – at least – redundant. For example, every branch maintains two laser printers. Also, SXX replaces a broken laptop within minutes if an employee’s laptop breaks down. Moreover, in case of an emergency, SXX maintains external working

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

stations at business partners as last fall back. SXX’ major critical ICT-applications, its TMS- and WMS-systems, are triple redundant. They consist of a development system, test system and the actual operational system. Triple redundancy is based on Philipp’s endeavours but also partly is requested by major customers (e.g. Bank of China). Until the next audit, as Philipp said, he would like to roll-out this triple redundancy to all applications.

A further important part towards organizational robustness are human redundancies. As Philipp said, human redundancies are in continuous discussion and currently, SXX is working on and updating an employee skill matrix. It is the initial pillar to tailored employee training and education plans as well as responsibility allocations (e.g. sickness, vacation, retirement, etc.). For example, each deputy should have the same knowledge as its responsible (and vice versa). In the perspective of Urs, human resources are the most important asset that contribute to a robust and resilient organization: “Humans have behaviour, reliability and judgement: a human can intervene and manage immediately if something happens. To maintain robustness, humans have to coordinate. Therefore humans are by far the most important factor”.

Cognitive capabilities

After an introduction about the meaning of cognitive capabilities related to the field of organizational robustness and resilience, Philipp explained: “Communication and collaboration at SXX are open and direct and, from a technological perspective, supported by two main platforms”. On the one hand, this is “Key--Support” (KS) – an issue tracking and trouble ticket system that again is system changes. It supports to digitalize all support and change requirements from its employees. On the other hand, SXX’ uses “Macrohard Safepoint” (MSP). MSP is a cloud-based collaboration tool and supports in sharing digital files. Since the implementation of MSP, as Philipp said, employees distribute documents via this tool instead of outdated conventional methods (print outs, e-mails). By usage of MSP, SXX avoids information asymmetries among its employees and project members. Integral part of MSP is SXX’ wiki function. It is SXX’ organizational knowledge base and gets updated every months. Topic

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

responsibles (employees, managers) are demanded to rework provided information and upload it into MSP.

Beside conventional communication technologies, SXX is using “Call” for business. This is an extended version of Call and includes functions to perform online webinars but also online employee education and trainings. Employee education and trainings are important to SXX and, according to Urs, can contribute to SXX’ organizational robustness and resilience. At irregular intervals, SXX distributes e-learning tutorials to its employees. These tutorials are about hot topics, new features and emerging technologies and focus to educate and train the employees. Tutorials are presented in text format that do not last longer than - minutes to read.

Further important cognitive capability observed at SXX is their network connectedness. SXX maintains formally and informally contacts to its suppliers. At the one hand, Philipp formally organizes weekly telephone conferences with SXX’ TMS- and WMS software supplier. At the other hand, Philipp also possesses (informal) contacts to suppliers’ employees. These formal and informal networks help to paint a bigger picture about SXX’ suppliers and to detect emerging rumours. With this strategy, as Philipp exemplifies, SXX detected a serious argument of their suppliers of the TMS- and WMS application: “Here”, as Philipp said, “we have two suppliers. To our regrets, we observe frictions, accusations, and arguments between them! With this information we avoid to come between the fronts”. Except this case, SXX favours single sourcing as supplier strategy. SXX maintains connectedness to third parties too, e.g. blue-light organizations. For example, branch manager John maintains personal contact to the head of the New York fire brigades and continually discusses risk and crisis scenarios.

Critical to Philipp is SXX’ human resource strategy (hiring and firing of managers and employees). As Philipp said, earlier SXX maintained a buddy-system: “New employees got supervised by experienced employees”. But this approach is not in use anymore. Nowadays, new employees have to pass all operational departments with the aim to get in touch with daily business and learn the essentials. This learning process lasts one month.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

In case of the termination of an employee, SXX immediately calls a deputy. Sometimes, as Philipp said, the outgoing employee has to do this by its own. This deputy gets trained and educated by the outgoing employee. Key staff as, for example, SXX’ former head of the ICT department are still available for consultation after the resignation. As Philipp said: “The former head of the ICT department was responsible for the whole ICT infrastructure. After his retirement notice, he immediately trained his deputies. But also, after he had left, he was available for specific questions – at least within a minimum of time”. In contrast, as Philipp said, the termination of Urs was different: “Although he was responsible for safety- and security activities and compliance measures as well as business continuity management and planning, his staff position did not get replaced. Today, anyone is in charge of organizational robustness and resilience increasing measurements”. Philipp assumes that this decision relates to the recent company sale and its change from a family- to a fully capitalized organization. Fully capitalized organizations, as Philipp said, do not have any sense for robustness and resilience management: “They do not see the return on investment. Organizational emphasizes are on efficiency and revenues”. Related to the question, if resilience (thinking) at SXX is decreasing now, Philipp answered: “Yes” and exemplified: “Earlier, frequent business travellers got equipped with a medical emergency kit, including medicine as painkillers and Tamiflu. Since SXX has new owners, this service is discontinued”. This is only one example, how an organization could lose robustness and resilience, as Philipp said.

Failures at SXX are not welcomed but they do happen. They are handled openly. As Philipp said: “Definitely, and for this I would give my signature, any employee fears to admit failures”. In principal, failures do not have any impact but, according to Philipp, it is always the question if the failures are provoked or premediated. If they are provoked or premediated, the employee gets terminated immediately.

In Urs perspective, active BCM contributes to organizational learning and thus to organizational cognitive capabilities. As he exemplified, “before hurricane Sandy, we were aware that we considered all things. But after, it was clear that in future we will

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

have to invest into infrastructure as such electricity and fuel – as well as into education and the training of employees”.

Organisational culture

As it turned out during the interviews with Urs, John and Philipp, SXX organizational culture aims to find the equilibrium between robustness and resilience. SXX follows a clear guideline: “In the beginning (e.g. of a new business model), robustness is key. Afterwards, I have to engineer resilience into – e.g. improvement of process quality and sustainability. If resilience fails, robustness is key: a strong resilience needs a strong robustness”. Major importance lasts on risk management. For Urs is clear: “Robustness focuses on management, management power and centralization. However, resilience is related to monetary expenses and decentralization. Each new situation changes the equilibrium either towards robustness increasing measures or resilience increasing measures”.

In SXX’ vision, an organizational culture of employee empowerment is key. SXX’ employees are encouraged to use their competencies and skills actively. Nevertheless, competencies are assigned to financial numbers. For example, decision competencies at operational level are restricted to an amount up to . Swiss Francs. Higher amounts have to be approved by the middle management (< . SFr) and top management (> . SFr). Also, as Urs said, work to rule at SXX is definitely excluded – it is a No-Go (!). During the occurrence of hurricane Sandy, as Urs exemplified, he observed cultural differences between US and European – especially the Western European – cultures. US employees are prepared but primarily take care about their personal life (family, house, etc.). Only if they are certain that their property is safe they will return to their job. This is not the case in Europe – especially Switzerland, where employees are tightly connected to employers and clients.

Imitation and innovation, as Philipp said, are – especially in the ICT departments – daily business: “Each employee needs to be extremely innovative and flexible – only then you can succeed”. SXX follows a little formal innovation culture that differentiates between process-, service- and business model innovation strategy and an ICT/technical imitation strategy.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

Sources for SXX’ process-, service and business model innovations are its business units. They work in close relations with business stakeholders (e.g. especially customers but also suppliers and blue light organizations) and the centrally hosted ICT department. They again are in continuous exchange with its software suppliers. Any incident, problem and/or change request get recorded in SXX’ incident tracking system. Reported incidents, problems and changes result in process- and service improvements as well as changed and new business models.

To be up-to-date technically, Philipp and his colleagues continuously joining trade fairs, seminars, workshops, etc. But also, SXX actively call for supplier meetings to discuss emerging trends and future scenarios. Related to the innovation cycle, SXX acts in segment “late majority”. SXX does not actively work on technical inventions rather than on innovations. SXX does not maintain a R&D department and they do not join cooperative research projects with competitors, business stakeholders, universities, research- and academic institutions. As Phillip said: “Such cooperations are associated with costs as well as risks”.

Because of its active employees, as Philipp said, SXX is aware about emerging trends in logistic, supply chain management and ICT. D printing, autonomous driving, physical internet and other research topics are not on SXX’ agenda but, according to Philipp, they already have other topics in mind (e.g. a business model to cope with the aforementioned risk of elimination of cash out in daily life). SXX does neither maintain an employee idea exchange database, specific employee participation processes, an intrapreneurship system nor a department for research and development.

SXX is highly open to change – it is daily business and changes are seen as source for new business models. Philipp exemplified: “Because of negative interests of banks, customers preferably store their cash in SXX. It is a win-win situation: customers avoid negative interests and bank charges. SXX achieves high utilization of its warehouses”. This business model was not existent before the economic depression in . The operational units worked on appropriate business models and forced the ICT department to design and engineer digital business processes. Currently, ICT processes and tools do not adequately support change management. Operational business

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

departments have to follow a bureaucratic process. In near future, this process should be digitalized with the aim to integrate all change requests and requirements – from the first e-mail until the change implementation. Philipp, as he said, sees himself as the driving force to formalize SXX’ change and innovation capabilities and exemplified: “I continually advise my supervisors and the board of management using ICT tools as MSP application. Sometimes I am struggling – but more and more, these people recognize the value added as formalized innovation processes and systematic procedures”.

Risk- and crisis management

As Urs said, SXX differs strictly between safety-, security- and risk management. Safety- and security management comprise technical and infrastructural measures as well as operational safety regulations. Risk management is about the estimation of risks – whether in positive or negative direction – as well as chance management. Risks, as Urs said, are linked with SXX’ future and survival. –The main task of SXX’ risk management is to collect and evaluate information about its business environment, partners and their infrastructure.

Risk management at SXX differs into strategic- and operational risk management. Strategic risk management is associated with business continuity management and is triggered by a risk manager. This manager prepares risk maps and scenarios to eliminate or – at least – minimize risks. Operational risk management is handled via service level agreements (operational view) and checkpoints in SXX’ TMS- and WMS software (ICT view). For example, SXX never millions amount as a whole. SXX spreads the whole delivery into smaller shipments. ICT risks get continually assessed. It is a holistic process and happens via SXX’ internal ICT issue tracking system and accompanied management meetings. In the perspective of Philipp, risks could be avoided if the decision authority was on lower business levels. If, for example, “decisions are motivated politically, than we as ICT department definitely suffer from such decisions”. The ICT department can indicate decision makers (mostly top management), but not prevent them from false decisions.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

Risk management at SXX is strongly accompanied by internal and external audits. On a regular basis, SXX experiences customer audits but also performs partner audits. Internal audits are triggered by SXX’ mother company VTG whereas external audits are triggered by major customers and the International Standardization Organization (ISO). In internal audits, the goal attainment of defined key performance indicators get analysed and evaluated. Results get compared with each branch and deficits in one branch, as Philipp said, get compensated through the acquisition of the best practices from the top-performing branches. The headquarter continuously provides good results and acts continually above the average. This led to the result that SXX’ mother company centralized all e-mail and intranet activities to the headquarter in Winterthur.

External audits are requested by major customers (e.g. Bank of China). In these audits, SXX has to respond to business and ICT continuity questionnaires – a booklet consisting of ~ questions related to safety, security, availability, sustainability and survivability of SXX’ business models, ICT systems and ICT services. If the customer detects discrepancies, gaps and/or bottlenecks, they get fixed collaboratively. Additionally, SXX experiences audits of the International Standardization Organization (ISO). In contrast to customer audits, as Philipp said, these audits are more on the operational rather than on the ICT side and comprise mostly financial, operational and administrative things.

SXX heavily relies on its business continuity management (BCM) and its business continuity planning (BCP) approach. BCM/BCP at SXX are cooperative and collaborative and involve the board of managers same as operational management and customers. As Urs said, “with this combination we want to avoid that a BCM becomes a theoretical plan – it should be executable!”. SXX differs between standardized and customized BCP’s. As Urs said: “We define a BCP for each service (e.g. logistics of gold, cash, etc.). If the customer wants a higher standard, they can define add-ons”. Customized BCP’s get tested at least once per year. Standardized BCP’s get revised continually.

The development of BCP’s happens top down but, as Urs said, a mixed strategy – bottom-up and top-down development – would be favourable. “The top management

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

makes the first draft of a BCP and forwards this draft to operational managers in its branches. The operational managers – as specialists of daily business – discuss this plan with their safety- and security manager and contribute with suggestions and counter- proposals”. BCP’s need to be coordinated with the operational branches and augmented with national and local specifics. National laws and regulations could hinder the implementation of BCP’s, as Urs said.

Extended enterprise and supply chain management

To keep its service networks under control, SXX pro-actively audits business partners – especially new suppliers and carriers. An audit does not happen every year, as Urs said, “but every second to third”. SXX are forced to differentiate between its business partners. Big players (e.g. MBI, Switzerland Airlines) do not accept audits. Their business model says: take it or leave it! Business partner audits are about operations, less than about ICT: “Operations change its suppliers more times than ICT”, as Philipp said. Related to Urs, auditing of business partners is important because “weak partners” influence SXX’ robustness, resilience, quality, reliability and – consequently – the overall business success.

A further important method to audit and evaluate business partners, as Urs said, is to gather information from the business partners’ ecosystem: its customers, suppliers and competitors. The overall target of business partner audits is to implement (a minimum of) high safety-, security- and quality standards of SXX into business partners’ organization. SXX aims to keep their focal position in service ecosystems.

Business practices and technologies

ICT is seen as a supportive tool. It is integrated in almost all business processes at SXX. If ICT interrupts, as Urs exemplifies, the whole business breaks down. Thus, ICT is an essential part in SXX business continuity planning strategy. SXX categorizes its ICT systems and services into three categories. Category applications have the lowest significance and a breakdown would be accepted temporally. Category applications are central applications and have high strategically and operationally importance for the whole SXX/VTG group. These applications are critical to SXX. SXX maintain

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

approximately category applications that comprise SXX’ network system, user accounts and e-mail, Transport Management System (TMS), Warehouse Management System (WMS) and Electronic Data Interchange (EDI) converters. A breakdown of - hours of one of any category application, as Philipp said, is comparable with a moderate catastrophe and exemplified: “In , SXX experienced a holistical breakdown of the whole ICT environment. It was caused by a false cabling, caused by a well-known hardware supplier (MBI). Diverse databases were offline for more than hours (mostly hours)”. According to Philipp, it needed days to fix them and guarantee a normal operation of category applications. Category applications were down for more than days.

Two years ago, SXX’ actively started to control and monitor its ICT systems and services. SXX installed a monitoring system called Tseviks. This system is connected with SXX’ infrastructure as well as hard- and software. Tseviks monitors and measures trivial things as report times (e.g. up-time, ping), hard disk capacities, content, files (e.g. EDI files), exchange rates, etc. as well as variations and disruptions. It projects the observed ICT performance on a screen (at SXX’ ICT headquarter in Winterthur) and on ICT employees’ smart phones. In any cases of a deviation, Tseviks disseminates three kinds of warnings: “High critical warnings get disseminated to employees’ smart phones – hours per day. Moderate warnings are disseminated to responsible employees via e-mail and are highlighted on previously introduced screen. The screen, as Philipp said, changes its colour to red. Low warnings, for example a hard disk exceeds its storage limit, are only highlighted on the screen. The screen changes its colour to yellow”. High critical warnings need to be fixed in the range of minutes.

SXX does not have defined operational business- and ICT target values (e.g. meantime time to recovery (MTTR), maximum tolerable downtime (MTD), maximum tolerable period of disruption (MTPD), etc.) yet. Related to Philipp, such KPI’s are objective of an ongoing service level agreement, complemented between the ICT department and SXX’ operational units. This agreement also includes back-up regulations and how long a back-up must last.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

.. Case study “Cargo Expert Germany”

In this section, the case study of Cargo Expert Germany (CEG) is presented. CEG is a centrally managed organization. The managing director is the % shareholder of CEG and has, as the interviewees confirm, the ultimate power. Due to a restructuring project, a further management level has been called in. Nowadays, CEG’s ICT department is integrated into department General Services. ICT is not a formal staff position (anymore) but due to its importance for the whole organization, should be seen as formal staff position, as the interviewees said.

CEG’s approach towards organizational robustness and resilience

CEG’s approach towards organizational robustness and robust ICT services is anchored in its organizational “credo” that is about the maintenance of highest possible ICT stability, safety- and security and availability of systems and services. Related to Christoph, “ICT stability, safety- and security and availability are top priorities and are the ICT department contributions to organizational sustainability and survivability. Unstable ICT services influence negatively operational business units, thus our service to customers”. In this context, Christoph highlighted the top- approach: “Ten years ago, the board of executive managers exhort us that any ICT system should not breakdown for more than hours. Today, the requirement is that any ICT system or service should not breakdown at all”.

A breakdown of or minutes, as Christoph exemplified, is disastrous – especially in warehouse management (inventory book keeping) in combination with high-bay warehouses. In these moments, CEG employees cannot store and swap and consequently operations come to stand still. Christoph refers to the breakdown of CEG’s branch in Zwickau: “In the Zwickau case, employees used their smart phones and provided hotspot solutions and – consequently – a connection to ICT department’s servers, data bases and applications”. Such capability of improvisation and bricolage, as Christoph said, is an important source to provide robust and resilient ICT services.

Major request highlighted in CEG’s credo is “performance, performance and performance again”. This determines to keep ICT related lead times as short as

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

possible. Performance at CEG’s ICT department is measured. CEG’s overall ICT system and ICT service availability in was ,% and the year before %. This fiscal year (ends in March ), as Christoph and Bernd said, CEG anticipates an availability of ,%. The managing director as well as CEG’s sales persons, as Christoph said, make use of these figures as unique sales argument: “Everyone can transport goods from A to B. But holistical ICT services around this transport is CEG’s competitive advantage”. Most downtimes at CEG are caused by the unavailability of data streams and insufficient energy supply (caused by third parties) but also human failure.

CEG’s main approach being stable, safe and secure and keep service availability is based on technical redundancies. As both interviewees highlighted, all technical equipment is secured multiple. For example, the data streams from and to CEG’s data centers are secured via Telegear, Connect Cable and a TDSL channel. If the unexpected happens, CEG can switch easily to its fourth solution – an ISDN backup. Bernd complemented: “CEG already experimented with and tested satellite technology, LTE and UMTS, as fifth solution”. Nevertheless, as Christoph said, these radio communications, are not that technically mature as expected. “During sunny and clear weather, this solution provides good results. But on foggy and cloudy days – as it is in autumn and winter in the Swabian Alb – this solution is highly unstable”. Christoph continued with a further example: “Currently, most data streams are packed into one marked-out route. If the excavator damages this route (at any place) then all data streams are interrupted too and CEG branches are cut-off from their headquarter and vice versa. We have already experienced such cases. Therefore, we decided, each new building needs to be equipped at least with two data streams at different places. Two data streams at different places is a knock-out criteria – especially for new CEG buildings!”.

CEG’s critical ICT services (its TMS and WMS applications) are triple redundant. As Christoph exemplified, level one is the development area wherein all changings get programmed. Changed codes (processes data, master data, etc.) get transmitted to level two – the test area. At level two, changings get tested thoroughly by ICT employees and operational managers. After successful tests, which imply operational and

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technical accuracy, the changings get transmitted to the productive system and thus released to all employees.

An important characteristic to keep SXX’ organizational robustness upright is flexibility. In this context, Bernd refers to perennial changings of priorities and exemplifies: “We always have to be open for requirements that we did not know before. For example, a new project or short termed requirements … they require flexibility of the employees but also scalability of the hardware”. Christoph added: “An essential part of our robustness are also the individual competences of our employees. For example, how do react employees under pressure? A breakdown is definitely a critical situation for us all”.

As it turned out during the interview, the concept of organizational resilience has not arrived at CEG. Related to the question what CEG does understand under the term resilience, Christoph answered: “Resilience? … Ok. Let me think. Last time I searched for it on the internet …”. Also Bernd did not bring up a definition, example or synonym about the term of resilience.

Cognitive capabilities

Christoph joked that “not grumbling is praised enough” is a Swabian mentality but also relativized that communication at CEG is open and depends on rational behavior. For this, Christoph exemplified a conversation between the managing director and him: “There is always the discussion between him and the ICT department. The CEO follows the “Voice of the Customer” principle. We highly support this approach, but from ICT side, we have to maintain stability, safety- and security, availability and performance of ICT systems and services. If these artefacts are not stable, we cannot serve customers with electronic data (Electronic Data Interchange)”. % of CEG’s customers are integrated with EDI communication. The managing director shows deep understanding that ICT department’s contribution to the “Voice of the Customer” principle is the maintenance of its systems and services.

Managers and employees try to keep face-to-face communication – it is their preferred form of communication, cooperation and collaboration. For example, in the

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ICT department, e-mail communication is an exception and is mainly used to disseminate e-mail attachments. Main communication tools to and from CEG’s business units are telephone and e-mail. To avoid information gaps and asymmetries, CEG tries to keep project folders including documents, graphics, etc. hosted on a central storage. As Bernd added, project teams do not exchange documents – they are exchanging the links to centrally hosted folders and documents. This process is not accompanied with a specialized tool. Trigger and principal of this exchange system is CEG’s department for quality management.

ICT is basically involved into strategic decision-making. As Christoph said, on top management level, we are maintaining continuously strategy workshops. For example, recently we passed the CEG’s strategy till . This document contains all activities how to meet and pass customer- and market challenges – also the planned relocation of CEG’s headquarter to the town of Reutlingen.

As Christoph said, there is not – as in management literature described – a management or leadership style in use. It depends on the situation. “It is definitely target-oriented”, as Christoph said, “but there does not exist a golden rule: I am trying to be individual, respect each employee’s individuality and lead him, so that he can extend his skills and generate the most added value for CEG”. CEG is aiming to attract the employees’ work place through technical incentives. As Christoph said, CEG is aiming to become technology leader in its particular field of business. This strategy additionally motivates employees: “It is definitely an excellent thing when employees can works with newest technology”.

As Bernd said, employees face clear requirements. “In CEG’s ICT department, I do not know anyone who is not interested in technic or does not build on technic related things in his leisure time. This also brings innovation into our department: someone who reads something about ICT, someone who makes his own experiences with new solutions, etc. … we trust in and have faith in our employees”, as Bernd said. Christoph added: “In our job, we cannot recline. We have to be active – it does not matter if he is , or shortly before retirement. We are ICT technicians because we want and need ICT developments, new features and innovations – and that is our daily business. That

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is the interesting thing in our job!” … and yes, as Bernd said, “we are actively searching for such freaks – freaks which are doing experiments at home too”.

In addition, such freaks get brought up actively in the CEG organization. For example, Bernd, in his function as a trainer of CEG’s ICT apprentices, encourages, motivates and requests his apprentices to present on a “hot” topic in the field of ICT monthly. As he told, last time his apprentices had to give a presentation about Macrohard in front of all departmental employees. In his perspective, with this claim, the apprentices develop individual and specific skills and bring in new knowledge into the organization. That again is a catalyst for organizational renewal, change and innovation.

From the externally perspective, Christoph, Bernd and the remaining employees are active in physical and digital networking. For example, Christoph joins the workgroup “IT Leiter”, a group consisting of ICT managers in the area of the Swabian Alb and the city of Stuttgart. Additionally, they are active on trade fairs, customer events, etc. as well as actively participate in ICT related internet forums and blogs.

CEG does not maintain a department for research & development (R&D) but pursues intensively the developments in the area of “Physical Internet”, “Industry .” and “Digital Transformation” (of services and processes). For that, CEG maintains formal and informal contacts to its suppliers, research institutions and specialized networks in the field (e.g. Logistics Research Arena).

Organizational culture

Because of the retirement and the sale of his company shares to today’s managing director, CEG experienced a re-structuring of its organizational chart. As Christoph said, new organizational structure is more bureaucratical and extends the decision paths: “Meanwhile, you can feel the inertia. It feels like in major corporations”. As the marketing department and financial services, CEG’s ICT department is integrated into staff position “General Services” and is managed by top manager Thomas Halfer. Thomas, a former apprentice of Christoph, now is the direct superior of Christoph and acts as interface to the managing director. Earlier, as Christoph said, ICT were

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mandated directly from its board of managers. Nevertheless, in comparison to other departments, ICT department maintains some liberties and is relatively autarkic.

The managing director of CEG is the only shareholder and, according to Christoph, has an enormous impact and power on the organization, managers and employees: “You can feel this (pressure)”. The managing director accelerates especially the “Voice of the Customer” principle. This can be in strong contrast to ICT departmental targets of stability, availability and reliability and cause heated debates.

CEG is critical to employee-caused failures but if some happen, as Christoph said, they get handled openly: “We are aiming to set-up a climate where employee-caused failures are impossible, but if some happen, the employee should feel free and safe to report. Failure reporting help us to avoid long search- and repair times”. As Christoph added, “we are aware that people have good and bad days. But punitive actions to failures definitely decrease employees’ motivation”. If a human life is not endangered, employees do not have to fear negative consequences. But, if a failure cause the breakdown of the critical ICT services, e.g. CEG’s TMS- and WMS system, then it is highly possible that “hard words” will be spoken. If an employee-caused failure happens, this failure gets questioned afterwards. This “ritual” takes also part in case of supplier-caused failures. “One time”, as Christoph complained, “we had an employee that gainsaid every failure caused by himself. With such employees you cannot proceed …”.

CEG attaches high importance to teamwork. For example, all ICT employees are responsible for all task and activities coming up at the ICT department. “Of course”, as Christoph said, “ICT employees have their specialization and have a fix task or area of responsibility. But in case of an accident, each employee needs to be able to work in multiple areas”. Both confirmed that the teamwork approach in CEG’s ICT department is extraordinary high. “Without our high teamwork approach, it would simply not function”, as Bernd added. Important pillars for the interviewees are employee selection (hiring of appropriate employees) and motivation. Due to the fact that the region of the Swabian Alb is geographically off, Bernd highlighted that it is very

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difficult to find employees with appropriate skills and that also fit into CEG’s corporate culture. CEG put major emphasize on the recruitment of employees and apprentices.

As Christoph said, “we are having an innovation-oriented board of managers. They see ICT more and more as essential central instrument and factor for success and competitive advantage”. The ICT department is the main driver for ICT innovation. “We cannot wait until the managing director has some ideas. Suggestions and proposals for improvements, re-newal and change have to come from our side! If the managing director made such suggestions, we would recognize that we are too late”. Additionally, as Bernd said, it would be fatal and embarrassing if an operational manager came to the ICT department and an ICT employee answered that he has never heard about “Physical Internet”, “Industry .” and/or “Digital Transformation”. The approach of CEG’s ICT department is to be one-step ahead of its operational departments and to provide solutions to specific operational challenges.

Since CEG’s technology strategy aims to become “technology leader”, Christoph does not show any understanding for companies that use ICT hardware longer than its amortization: “That is a complete No-Go. These companies endanger themselves”. Based on a CEG internally modified “Innovation Adoption Lifecycle” model, Christoph explained: “Long time we acted in the field of the early and late majority. We always supported the approach that new purchases in ICT have to be tested and mature. Two years ago, we decided being more open for ICT innovations for the first time. We invested in technologies which were not on the market at that time. For example, we reserved pre-emptive rights on storage systems. Of course, before we implemented these machines into daily business, we had thoroughly tested these machines – but afterwards, we experienced a push forward. Our performance increased by factor ,”. Main driver of this shift is the ICT department but, as Christoph said, the whole boards of managers and the managing director supported this strategy.

ICT’s purchase strategy to innovation relates to the paradigm “Quality before Quantity!”. As Christoph said, “We always compare our need, the artefact’s quality

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and its functions. Occasionally the prize is a trigger of our decisions. Primarily, we are focusing on quality, innovativeness and sustainability of products”.

Risk- and crisis management

CEG’s affinity and aversion to risk depends on the situation, system and service, as the interviewees said. Related to CEG’s TMS and WMS systems, both interviewees are risk averse and exemplified: “It is easier to absorb disruptions iin systems without high priority”. Both confirmed that their affinity to risk is higher where technical redundancies are present.

CEG’s ICT department does not provide a structured risk management but – according to Christoph – it is an essential part in project management: “in ICT projects, ICT managers are requested to highlight the risks of specific hardware, software and ICT artefacts. But also, the risk of implementation gets highlighted”. CEG does not use and/or apply business continuity management (BCM) and business continuity planning (BCP) in its organization and branches. Also, CEG does not have implemented safety- and security standards related to ICT (e.g. standards provided by the German Federal Office for Information Security (BSI), ISO , etc.). As Christoph said, it is surly worth thinking about.

To avoid risks, ICT department actively spreads responsibilities, knowledge and expertise to its ICT employees. Aim is to build up human redundancies – to continue business without interruption if an employee is sick or is in its vacation.

A further approach to provide stability, safety- and security, availability and performance are external audits (including customer audits). On the one hand, the managing director actively orders external experts to audit CEG to confirm service performance and service quality. On the other hand, CEG experience customer audits on regular intervals. Customers audit CEG business units and its ICT department on the basis of standardized catalogues and individual checklists. Objective of these audits are CEG’s ICT systems and ICT services, access controls, encryption methods, etc. Both, auditors and customers, as Christoph said, prepare evaluation reports that again are

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the source for organizational improvements towards increased stability, safety- and security, availability and performance. CEG is aware that they do not have that high safety- and security regulations as, for example, Swissgold XX. Safety and security at CEG are handled casually. For example, as Christoph said, CEG does not have any high security area. Data protection declarations for employees are not in use. Employees are instructed that organizational working devices (e.g. laptops, tablets, smart phones) must not be used for private use. Also, it is not allowed to visit internet homepages with these devices or the usage of private fire-wires.

CEG is aware of the rest risk – risks that cannot be avoided. As the interviewees said, these risks mainly can be found in the field of energy supply (including its infrastructure). Both interviewees are aware that a % ICT availability does not exist. However, to fix the second decimal place of ,x% is accompanied by huge financial and investment efforts. Especially for family owned, small and medium sized companies, as Christoph said, these expenses are huge financial hurdles: “In our case, a standard license costs EUR .,- one-off expense. Additionally, per year we have to calculate at least % (of these EUR .,-) for maintenance service. If we would have a core or CPU more in our hardware, we had to pay EUR . million one-off expense plus % maintenance”. As he added, this amount is unaffordable for CEG as well as most comparable SMEs.

Sometimes it is good that events happen, as Christoph said. Afterwards, everyone recognizes that investments especially into ICT’s stability, safety- and security, availability and performance are necessary. But as he also said: “To get the budget for investments, we have to discuss and argue with the managing director really hard – mostly for years!”.

Extended enterprise and supply chain management

The ICT department has to guarantee a hours, days per week ICT support service. Thus, even truck drivers as well as CEG’s caretakers at the headquarter are equipped with notebooks and tablet PCs. Taken together, the ICT department has to serve approximately - single users. Moreover, the ICT department acts as median between business units and ICT suppliers and coordinates ICT requirements.

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Business practices and technolgies

CEG categorizes its ICT systems and ICT services into priorities ranging from (highest importance) to (lowest importance). Priority applications are CEG’s critical IT-services. For example, payroll and time accounting is classified with priority . However, CEG’s Transport Management System (TMS), its Warehouse Management System (WMS) and all related hardware communication tools (electronic data interchange (EDI) and e-mail) and are classified with priority . Because of the system’s inter-dependencies, Christoph highlighted that ICT services become priority – step- by-step.

Service performance is coupled with the CEG’s technology-purchase strategy. For example, each new piece of hardware has to be scalable. As Christoph explains: “If we buy a new server, this server has to maintain capacities for irregularities and the unexpected – for example a new business. With this strategy we want to avoid that the server reaches its limits after a short period of time”.

Tagius is an important tool for CEG. It is a pro-active system and service control- and monitoring tool and supports CEG to avoid critical ICT situations. As Christoph said, all hardware and software are coupled with this monitoring system. Tagius consists of two monitors containing traffic light function. While the green light symbolizes that everything is OK, the red light highlights a failure (e.g. a server malfunction). According to Bernd, this information supports us to localize vulnerabilities immediately and help to detect emerging system- and service accidents. “Without Tagius we could not keep our department alive – not with this low amount of employees and huge amount of systems ( virtual machines), databases, etc.”. On average, CEG faces security alerts per month. In critical months, Tagius system provides more than . alerts. CEG is trying to implement a ticket system – similar as detected in the SXX case study.

As Christoph said, a “nice-to-have” tool would be an equipment- and devices archiving system: “We already have such a process in use, but that is only an excel list”.

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With this tool, Christoph would like to document equipment’s- and device’s “life act” – including their breakdowns, repairs, etc. ranging from acquisition until resignation.

ICT department does not have business practices as Kaizen, Six Sigma, etc. in use. Nevertheless, CEG is trying to improve its organization, to solve problems, etc. with continuous working cycles. Essential part of these working cycles is open communication.

.. Case study “Camion Austria”

In this subsection, the single case study of Camion Austria’s (CA) is presented. CA is a family owned transport logistics and supply chain service provider and, within the thies of last century, has evolved from a small, regional service provider to a multi- national company. CA’s company history can be tracked back until the th century (Turiner Bote).

CA’s approach towards organizational robustness and resilience

CA is an extraordinary robust organization, as David said. Since David has been working for CA, he was not noticed any major disruptions in operations nor in ICT technical environment. Even the economic crisis in did not influence CA. Neither in the ICT department nor in the whole CA group exists a common definition about the concepts of organizational robustness and organizational resilience. As David said, organizational resilience is a “buzz word” and got popular in the last two to three years. Currently, resilience does not find entry neither in CA’s manager’s nor in employee’s dictionary. Robustness is more tangible and, as David said, mirrored in CA’s organizational culture that is: “Safety & Security, Reliability and Stability”. A synonym for these terms used at CA is service excellence: “The claim of CA is to maintain high service quality where organizational failures, mishaps and breakdowns are not existent”, as David said. Confronted with the question “what CA’s ICT department does understand under the concept of robustness and how does CA put this term into practice”, David answered: “Robustness is about reliability. There does not exist any distinction between these two terms”. In his perspective, robustness is also the organizational capability that small disruptions do not influence business operations.

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Safety & security, reliability and stability are key and best suit to develop, maintain and improve the perspective toward organizational robustness. As David continued, “under the roof of safety and security, CA understands the requirement that data are safe and secure: safety relates to data protection and data redundancy. Security relates to firewall requirements, access controls, etc. Reliability is a synonym for that our data are correct, the systems are available and reproducibility so that we can reproduce same results on different days. Under the roof of stability, we understand that our systems are available hours, days per week and do not break down. It is important that the users can count on these systems”. David exemplified that CA’s TMS and WMS applications have high availability (> ,% per year – hours, days per week). CA’s ERP system, in responsibility of David, has an availability of %. Of course, CA experiences smaller perturbations but these, according to David, got fixed immediately.

Besides technology and service level agreements, further keys to maintain and enhance CA’s organizational robustness are technical and human redundancies. As David said, all critical systems and hardware are secured with redundancies. For example, CA maintains data centers at two different locations. These data centers are connected with two different data cables. Technical redundancies, as David said, help to facilitate decision-making – without these, David and other managers would act more riskless. But, as he said also said, redundancies are not a free-ticket for mindless action: “In preliminary stage, we definitely try to include information and expert statements as much as possible. Redundancies help to avoid uncertainties and in the worst – and only in the worst case – we simply switch from data center to data center and maintain a disruption-free business”.

Technical redundancies are not a big problem at CA, as David said. CA lacks human redundancies. As David exemplified, human absences (e.g. sickness, vacation, etc.) are daily business. This topic is a continuous topic on the agenda of the managers of CA: “We try to spread skills to a wider group of employees”, as David said. Target is to call deputies that can take over responsibilities. To cope with this organizational brittleness, David is working on a skill matrix for his group – a matrix where technical,

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organizational and operational issues are listed and matched with employees’ skills, tasks and competencies. This matrix is to identify specific knowhow bearers, since knowledge is primarily in the head of the employees. For example, for some critical ICT services, CA only has single-knowledge bearers and these, according to David, are not that open to share their knowledge as expected. Especially if one or more employees fall out or cancel their working contract, CA experience problems that influences (theoretically) CA’s robustness too. Appealed to the question, if CA’s ICT department also have and fear “grey eminences” – employees, which have and do not transmit existential knowledge – David answered: “Yes, we have a few grey eminences. However, due to the heterogeneity of themes, it gets always harder to keep such a position. Employees with a holistic “overview knowledge” decrease”.

Cognitive capabilities

After a short introduction, what is meant by the term “Cognitive Capabilities” related to organizational robustness and resilience, David highlighted that CA follows the McCall’s -- model for individual and organizational learning and development. “This approach”, as David explained, “describes that an employee develops % of his work expertise from coursework and training, % from its colleagues (developmental relationships) and % from experience and learning-by- doing (changing assignments)”. David confirms that the majority of employees’ expertise is generated through their job and performed projects. Work expertise (about business operations) is introduced internally to CA’s ICT department by information sharing with business units, their managers and employees. Externally, knowledge is introduced via employee education and training, external business- and ICT consults as well as audits. Additionally, CA maintains a private college for employee training and education. Employees can take advantage of job-specification trainings as well as seminars on personality. Further, CA set-up of career programs within knowledge transfer from supervisors to fellows is key. For example, if an employee is promoted to a new or more responsible job, a senior employee acts as supervisor. CA explicitly encourages experienced employees transferring their knowledge and expertise to younger and less experienced working colleagues. But as David said, this program is in its early phase and additionally highlighted the deficit that “the compensation of

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years of working experience within three months of supervision is impossible”. Workplace models as job reframing do not exist: as long as the employee does not want to switch its job position, it is fixed and assigned to a superior.

On average, as David said, an employee is employed for CA for year. But, as David added, CA also has employees that are in business for more than year. The fluctuation rate per year is about - % that are ~ employees (projected for the ICT department).

Information asymmetries between management and employees are recognized and tolerated. As David said: “It is accepted. Managers at CA are more related to moderators and mediators than expertise and knowledge bearers. Managers have the duty to orchestrate between the employees – not being the technical expert”. Indeed, as David said, leadership rather than classical management dominates CA’s management culture and added: “CA invests huge efforts (e.g. especially money, time, energy) into leadership culture and the development of leaders rather than managers”. This again requires (extraordinary) trust between employees and their superiors. Appealed to this relationship, David confirmed that trust between employees and their superiors is high. In external provider-customer relationship, trust is secured via contracts and contractual penalties. As David said, trust in such relationships also emerges, for example, after a long period of error-free operation.

To spread knowledge, CA runs an internal wiki platform, a documentation platform and a business continuity management handbook. Additionally, CA maintains process description handbooks, e.g. including the description of “rigid processes that do not or only change a little (e.g. accounting method, employee recruitment, etc.)” as well as flexible processes. Flexible processes are, for example, individual processes for major customers.

CA maintains flat hierarchies. According to David, flat hierarchies allow good and open communication. Internally, CA experiences both formal and informal communication. CA uses all known communication channels like telephone, e-mail, intranet, events and meetings for formal communication. Informal communication

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depends on particular employees’ network. “Of course”, as David said, “this is a disadvantage for new employees”. But, as David added: “New employees are supervised by a mentor with the target to get in touch with the organization and to share and to build up their own network”. External communication is more formal. CA uses key account managers and all known classical marketing channels (including CA’s company magazine, newsletters, etc.).

David complains about the minor connection between CA’s activities regarding renewal and change and CA’s cognitive capabilities. On the one hand, CA encourages and supports employees to work cooperatively and collaboratively on imitations and innovations. On the other hand, CA does not progress the output. As David said, “we are able to bring together different (internal and external) perspectives, able to structure them and to merge the essence. But established documents und presentations “getting dusty” on individual drives and get forgotten”. Additionally, CA does not maintain an employee suggestion scheme. But to keep employees engaged, David aims to implement an intrapreneurship award.

Organizational culture

CA is split into four business units which are: “Land Transportation”, “Aviation- & Nautica Transport”, “Finance” and “Central Services”. Business Unit “Central Services” includes affiliated companies and subsidiaries, central marketing as well as central “Information and Communication Technologies” (ICT) services. CA is organized hierarchically – each business unit is managed by an independent top manager. While business units “Aviation- & Nautica Transport” and “Finance” are in responsibility of family members, business units “Land Transportation” and “Central Services” are in responsibility of non-family members. As David said, CA is decentralized in its decision and power relations. Each branch has “autonomous” branch managers with high decision competencies – but also with revenue- and cost responsibility. However, department ICT is lead by top manager “Central Services” – Benno Natter. This manager has direct access to ICT’s division manager, group managers and employees. As David said, except few ICT employees in Vienna, the ICT department is geographically and organizationally centralized in CA’s headquarter. It

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has employees. ICT department experiences a high importance but, as David said, it is clear: “ICT follows business and ICT enables business”.

CA’s ICT department is – against David’s personal and some working colleagues’ approach7 – risk averse! This aversion is reflected in CA’s organizational culture and characterized by previously introduced terms “Safety & Security, Reliability and Stability”. The terms are in strong relation to robustness but, according to David, decreases ICT department’s potential for renewal, adaption and change: it is hard to develop new “things”. Robustness and innovation at CA, as David metaphorically explained, are contrary. “A super tanker is immune against heavy swells. However, a motor boat, such as start-up organizations, is fast and agile and can avoid heavy swells. CA is a super tanker and immune against heavy swells. Even the financial crises in did not have any negative aspects on CA. But we aware, CA lacks organizational agility”. David believes that an organization can be robust and agile at the same time: “In times of uncertainty, the organization needs agility – being fast and flexible to react on specific events and cases. However, in times of certainty the organization can concentrate on its robustness so that a minor disruption does not interrupt the whole business”.

Each business unit faces central requirements, developed by the board of managers. For example, CA’s headquarter provides clear requirements, how the (organizational) infrastructure of a business unit has to be designed (e.g. every branch has an autonomous branch manager, staff position, personnel development, etc.). In context of ICT, central requirements comprise strict guidelines in purchase, use and application of hard- and software, network standards and fire-wire devices. Central requirements are resulted by the board of management, implemented top-down and rewarded/punished via an internal bonus-malus system. Related to David, this bonus- malus system highly focuses on quality: “Business units which provide minor quality have to pay contractual penalties to units, where the quality is good”. To control the

7 As David said, some employees are characterized by strong nerves. Even CA instructed its employees not doing that, some employees updating critical ICT systems and services during operations – and smiled. But, as he added, these is not the rule.

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implementation of central requirements, CA instructs internal and external auditors. As David said, two CA employees are responsible to audit CA’s business units. The focus of these internal auditors are more on investments and expenses, e.g. internal compliances, as well as the development of “negative lists” – a list of shipments that have a negative profit margin.

As David said, CA maintains clear service- and process requirements. In business units, where efficiency and low costs are key (e.g. business unit “Land Transportation”, parcel service, general cargo), CA maintains top-down implemented and standardized processes. In contrast, major service clients and key accounts experience greater flexibility and reliability. David exemplified that these service clients do have other needs than SMEs: “While SMEs are basically satisfied with the transport from A to B, corporate groups need a full service including a certain level of safety- and security, stability, enhanced reliability, the exchange of real-time information, and so on”.

ICT manager’s and employee’s decision authority is limited and restricted to financial aspects. For example, a group manager, as David, has the freedom of choice up to EUR .,-. Expenses above this amount are assigned to next management level, and so on. Expenses higher than EUR .,- need to be accepted and released by CA’s board of managers.

CA is recognized as innovative organization. Even in the ies, as David exemplified, Camion Austria put major emphasis on trucks for long distance transports. At this time, long distance transports were mainly operated by rail providers. The decision towards the use of trucks not only increased the transport lead times from km/h (rail) to km/h (truck) but also built up more flexibility, supplier independency, increased service provision and thus competitive advantage and organizational reputation. As he continued, CA has already developed and set up a business model for General Parcel Service in the beginning of the ies. In this time, General Parcel Service was a negative business and competitors hired for national funding. Over time and – of course – changed procurements strategies (e.g. single piece), warehouse strategies (e.g. outsourcing) and customer requirements (e.g. Just-in-Time), this business model changed from a “Question mark” to a “Cash cow”. Today, general

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parcel logistics is essential to CA’s turnover and supports to absorb further “Question marks” business models (which again are investments into CA’s organizational future). CA also was one of the first transport service providers entering the Chinese market in the thies. Doing so, Camion Austria decided to build up a branch in Shanghai (instead of British occupied port of Hong Kong). This decision stimulated Chinese patriotism and CA’s trade relations with Chines service clients begun to flourish. Today, Shanghai is the major port and Camion Austria can rely on huge knowledge.

All participants of CA’s departments, business units, etc. are encouraged to think about future opportunities, challenges (and trends), threats and solutions. That includes, for example, to think about how existing processes can be improved, how new business areas can be opened and new business models can be developed”. Innovations at CA are hierarchical, bottom-up as well as top-down. For example, an ICT developer and/or process engineer can immediately fix an incident (out of CA’s continuous improvement processes (KVP)). If this employee does not have enough decision competencies, he has to contact the superior. According to the competences, the superior can decide or has to contact his superior, and so on. Top-down is arranged by board of management and comprises mostly compliance issues (e.g. risks, agreements with suppliers, acceptance of gifts, etc.). Innovation imitation (strategy) is common practice and part of daily business. Imitation is represented in continuously reviewing of ICT related articles, magazines, market observation as well as maintenance of vertical and horizontal networks. For example, CA’s ICT department maintains contacts to ICT departments of associated and befriended transport logistics providers as well as global market players in region of Vorarlberg and beyond. As David said, “it is not that we have a continuous exchange of information or weekly/monthly meetings, but if we have questions, then I am calling my contact persons in these informal networks and vice versa”. David exemplified, “recently, the ICT department of Cargo Champ visited CA’s ICT department and examined some ICT implementations. It is to assume that Cargo Champ implements some features”. Crisis-driven innovation is not existent at CA.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

In his function as R&D manager, David exemplified, especially his group has the commission to observe and evaluate technology-driven business (model) innovations. A major task is to keep employees up-to-date and to lobby for hot topics and identified innovations. David said: “I can determine R&D topics. But to transfer these topics into operational business, ICT infrastructure managers can intervene”. Hot topics for them are the increasing digitalization of processes and services (Industry . and Factory of the Future), digital transformation (e.g. autonomous driving) as well as D printing. However, the implementation of emerging trends mostly struggle with internal conservative perspectives. “ICT employees are open for product-, service-, process- and business model innovation. It is their daily business to adapt and change. But if we have to establish internally new and emerging technologies and to cope with challenges, then these employees turn to the most conservative!”, as David said.

Risk- and crisis management

CA’s approach toward risk management is captured under the roof of its ISO certification. With the implementation of this standard, managers and employees are requested to think about and work on risk strategies and scenarios. For example, David and his group continuously have to develop risk strategies and scenarios. As David said, personally he prefers the complete minimization of risks. “It is not that CA did not have IT safety and security or risk management in the past. Earlier it was accepted by customers that we have redundant data centers, data streams, etc. But according to audit questionnaires of key- and major customers, top management decided to officially confirm CA’s ICT safety and security with ISO”. Risk- and crisis management as well as business continuity are requirements to employees and are daily business. “We are active”, as David said, but the ICT department, as David confirms, “does not provide formally organized risk workshops”. Also, CA does not maintain a risk manager. Related to the question, which results formally organized risk workshops would produce, David answered: “Such workshops should provide lists of risks, their probability, possible damage as well as solutions to prevent, prepare and response to identified events”.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

CA’s approach toward crisis management is captured in an internal business continuity management handbook. It was David’s first project for CA, wherein he defined business continuity plans about how to proceed when a major disruption occurs. Major topics within this BCM handbook are critical ICT topics as, for example, recovery- and restart plans and procedures for critical ICT systems and services, the documentation of dependencies, definition and designation of crisis management teams as well as emergency contact lists including telephone numbers of key personal. There are not regularly business continuity trainings but CA maintains at least two “catastrophe tests” (for several applications) per year. These tests include the change from data center to data center (and vice versa), data mirroring, functional evaluations, printing (in CA’s business units), etc. Recognized problems and incidents get documented and analyzed as well as a task force works on immediate solutions. Business continuity capability – including supply chain stakeholders and service clients into business continuity planning activities – is not in use formally (structurally). Nevertheless, if CA recognizes a threat at business partners’ side, CA takes immediate action. For example, as David exemplified, CA interrupted the VPN data connection to carrier EasyCargo: “We realized that the Loki-virus contaminated EasyCargo’s ICT systems. The VPN tunnel was closed until CA received a written statement of the EasyCargo’s head of ICT that their system is adjusted, safe and secure again”.

CA continuously invites external auditors from well-known auditing companies. As David said, especially major customers demand having a guarantee that (process- and service) standards as well as safety and security regulations will be fulfilled. In general, CA recognizes audits as helpful suggestions from external experts to realize organizational and departmental improvements.

Extended enterprise and supply chain management

CA maintains several internal and external, horizontal and vertical as well as individual and organizational relationship networks. For example, CA cooperates in the Logistics Alliance – a German association especially for transport service and supply chain management providers. The aim of this association is to develop common standards for smooth cooperation within the transport logistics and supply chain

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

community – e.g. to automatically exchange data and information. But also, CA maintains several relationships with business partners. David exemplified the visit of ICT representatives of partner Boom to analyze a specialized software implementation that now is also on Boom’s digital agenda too.

To integrate its clients more into provided services and value propositions, CA is working on a digital customer platform. This platform enables its service clients to automatically track and trace their shipments, to formulate complaints and to down- and upload transport-relevant documents (e.g. customs broke, bill of lading, invoices, etc.).

Some (major) client’s demand and anchor individual contractual agreements to audit CA’s ICT department, its hard- and software and processes. That is the reason why CA implemented ISO. The focus of this standard is on Information Security Management System: “It is not that we did not have high levels of service quality before, but recently we started to implement ISO. It gives the client trust and reliability, reduces trade barriers and we can avoid contractual penalties”. Additionally, as David explained, ISO certification is an excellent tool to provide and guarantee at least a minimum level of service quality – especially for big, international service clients.

Business practices and technologies

CA’s ICT department is an internal, * service provider for ICT infrastructure, hardware and software for CA’s business units. Its main tasks are ICT services (including IT project management) and the “conception – build – run” of IT solutions. All IT solutions and applications, as David said, are hosted centrally: “At CA, we do not maintain any local respectively decentralized system anymore”. Further service of ICT department is the management of collaborative ICT projects with its business units.

Central to CA’s ICT are continuous improvement processes. This approach is represented in CA’s alertness towards incident-, problem- and change management. It is underlined with proper defined processes and supported by an electronically help- desk/support tool. Additionally, it is CA’s initial step to continuous organizational

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

improvement processes. Doing so, CA applies evolutionary improvements step-by- step (Kaizen). There do not exist formal workshops but employees pro-actively discuss problems and changes. Only in rare cases, major discrepancies get solved via business process reengineering methods – starting green-field to implement changings and achieve major improvements.

As David explained, CA uses Macrohard Safepoint as a supportive tool for information exchange and collaboration. While a huge amount of employees from operations still use e-mail for exchange of documents, the ICT employees are forced using Macrohard Safepoint. This rule, which is monitored and sanctioned if not practiced, shall avoid information asymmetries.

Focusing on the innovation cycle, David explained that CA’s investment strategy changes between “early majority” and “early adopters”. As he exemplified: “Before technologies get adopted they have to show a certain level of majority. For example, we are still working with Windows (even Windows is available on market). On the other hand, we have already implemented ERP’s “Multi-Database Container” module”. Technologies, in perspective of CA, also contain risks. As David exemplifies: “If I am an “Innovator” or “Early Adopter” and adopt a technology which is not mature as required, then I can also experience a significant increase of failures and break downs”.

2.4 Cross-case study analysis8

This section is about the analysis of conducted single case studies. Doing so, the network of interrelated concepts of organizational robustness and resilience and its founding literature serves as analytical framework and theoretical base. This section’s subsections are structured among the nodes of the network of interrelated concepts of organizational robustness and resilience and capture important findings to design and

8 The first draft of the case study research was presented and discussed at the th Colloquium on “Innovation & Value Creation” as Maurer ()

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

develop organizational robustness and resilience from the empirical field of transport logistics and supply chain management services.

.. Approaches towards organizational robustness and resilience

As in the case study interviews observed, interviewees can speak easily about activities to increase organizational robustness but struggle to provide a definition about the importance and meaning of organizational resilience. While case study partners consider robustness as a resource-based and tangible organizational concept that is quantitative in nature, organizational resilience is rather intangible and qualitative. Robustness within the case studies is associated with “hard facts”: figures, numbers and key performance indicators about service performance and service quality. It includes, for example, terms like safety, security, availability, stability, etc. and – as literature highlights – insensitivity to failures/noise factors and withstanding risks (Wieland & Wallenburg, ), zero defects (Taguchi & Clausing, ), resistance or immunity to risk impacts (Edgeman & Williams, )). Organizational robustness in both – in literature and the empirical field – focuses on organizations’ resources, processes, services, products, service networks and business environments. It is accompanied by risk anticipation and risk management (including business continuity management/planning) against organizational threats (internally/externally). Methods to maintain the concept of organizational robustness include control and monitoring (“good control over output variability”, “bring critical path processes under control” (Christopher & Rutherford, ), “culture of quality awareness and control” (Mandal, ), “deal with reasonable variability in input whilst maintaining good control over output variability” (Christopher & Rutherford, )), business continuity management/planning (Adenso-Diaz et al. (), Edgeman & Williams (), Wieland & Wallenburg ()), strategy planning (Edgeman & Williams, ), measures into organizational/system redundancy (e.g. redundant ICT infrastructure, redundant software), (data) back-ups and automatic alert systems (e.g. in case of a stock overflows), “reliability reserves (material inventory, capacity buffers, etc.)” (Ivanov & Sokolov, ). Successful implementation of the concept of organizational robustness requests – as identified lin iterature (e.g. Wieland & Wallenburg (), Wieland & Wallenburg (), Ghadge, Dani, & Kalawsky ()) and the empirical

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field – pro-active employees. Employees, which pro-actively take over responsibilities and decision authorities, perform research and experiments, etc.

The concept of organizational resilience in case studies is perceived to be intangible. It is accompanied by methods that relate to individual and organizational cognitive capabilities (e.g. communication/interaction, information sharing, cooperation, collaboration, etc.), leadership and the adaption of situations. On the one hand, as the literature turns out that the concept of organizational resilience is highly related to risk- and crisis management – anticipation of organizational dynamics, risks, uncertainties and crisis resp. “risk assessment, vulnerability analysis, continuity planning” (Scholten et al., ). On the other hand, the concept of organizational resilience is related to organizations’ continuous learning, change/renewal and innovation capability. As identified in the case studies, it is based on organizational and employee-individual knowledge, skills and competences. In the center of the concept of organizational resilience, as literature highlights, are questions about how to be robust under conditions of enormous stress and change (Coutu, ), return to pre-disaster levels of performance (Stewart et al., ), possess of strong values and beliefs (Luthans & Youssef, ), absorb changes (Ponomarov & Holcomb (), return to its original state or move to a new, more desirable state after being disturbed (e.g. Christopher & Peck (); to regain a new stable position (recover, or return close to, its original state) (Colicchia & Strozzi, ).

As observed, there is a strong connection between the concepts of organizational robustness and resilience. Relying on the argumentation of the interviewees of SXX, the concepts of organizational robustness and resilience are of equal importance: “If I have robustness, I also have resilience”. Robustness is the initial concept of organizational resilience: First, it is necessary to make the business (project, process, etc.) robust and reliable. Afterwards, it is essential to make it resilient and sustainable. Measures into organizational resilience, in turn, stabilize and improve organizational robustness (Maurer et al., a, b). Organizational robustness and resilience get developed, maintained and increased by its continuous interplay – or in the words of interviewees of SXX: “Management is always about the equilibrium of these two

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

concepts: resilience needs a strong robustness. If robustness is challenged by unexpected or unknown events, resilience must be ready. Resilience is about techniques to prevent, response and cope disruptions and keep at least a minimum of business ongoing” (Maurer et al., a, b).

.. Approaches towards risk- and crisis management

There is a significant discrepancy of the importance and application of risk- and crisis management in practice and literature. Literature considers risk- and crisis management as a prerequisite of organizational robustness and resilience and puts major emphasis on measures into mechanisms to handle risks (e.g. Kern et al. (), Ghadge et al. (), Scholten et al. (), etc.). Risks- and crisis management practices, which include business continuity management/planning (Elliott, Swartz, & Herbane, ), disruption management (Colicchia & Strozzi, ) and emergency management (Ponomarov & Holcomb, ), are well defined. Triggers of organizational dynamics, risks, uncertainties and crisis in literature are explored systematically and comprise a broad range, including “daily interruptions arising from the loss of key suppliers, information systems failure, traffic congestion, industrial disputes, political” (Elliott et al., ), dangerously distorted perceptions of reality, “blindspots” and behavior. As observed in the case studies, only at SXX risk- and crisis management is of strategic importance. Since transport service providers for valuable goods have to be more safe and secure than “ordinary” providers, as the interviewees of SXX argue, SXX maintains a strategic department for safety, security and compliance. This department performs risk management workshops with operations – typically on a monthly basis. In these workshops, risks, chances and opportunities get analyzed and evaluated. Based on these results, business continuity plans, service level agreements and checkpoints get revised and (re-) engineered. These activities are major strategic task in organizations (e.g. Skipper & Hanna (), Sullivan-Taylor & Wilson (), Sahebjamnia et al. (), etc.) to pro-actively respond to organizational dynamics, risks, uncertainties and crisis – either anticipated or unanticipated.

CEG’s approach towards risks- and crisis is captured in project work: in each (new) project, employees have to estimate risk- and crisis potential. CEG assigns

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

responsibilities to employees and encourages them to anticipate, think and work on risks. However, CA’s approach towards risk- and crisis management is in close connection to ISO . By implementation of this standard, CA’s operational departments are encouraged to pro-actively think about and work on risks and crisis that could affect the organization. CA then has to develop and engineer prevention and cope strategies. Nevertheless, this approach is still in strong contrast to literature: “effective crisis planning aims at identifying the early warning signals for the crisis” (Paraskevas, ) – these are pro-active (Sullivan-Taylor & Wilson, ) organizational processes without the force of a third party. As identified in literature, these processes capture the development of organizational risk awareness (e.g. Sáenz & Revilla (), Scholten et al. (), Jüttner ()), development and implementation of anticipation processes (“crucial aspects of resilience are anticipation” (e.g. Wieland & Wallenburg () quote Välikangas & Hamel ()), Sullivan-Taylor & Wilson ()), development of risk mitigation processes (e.g. Scholten et al. (), Kern et al. (), Sáenz & Revilla ()), development and implementation of risk identification and assessment processes (e.g. Kern et al. (), Abhijeet et al. ()), planning of appropriate preparedness, readiness and prevention measures (e.g. Wieland & Wallenburg (), Autry & Bobbitt (), Greening & Rutherford () quote Sheffi & Rice (a), Ponomarov & Holcomb (), Kern et al. (), Wieland & Wallenburg () quote ISO ()), planning of appropriate response and recovery measures (e.g. Scholten et al. (), Ponomarov & Holcomb (), Hind et al. (), Maon et al. (), etc.), continuous predictability, monitoring and control (e.g. Kern et al. (), Hind et al. ()), change management and change management processes (e.g. Kern et al. (). Change in literature is a positive and negative characteristic: it is an opportunity for organizational innovation, but also a source of complexity (Maitlis & Sonenshein, ).

Overall objective, as explored in literature, then is to build up disaster immunity, the organizations “ability to manage its operational vulnerabilities” (Ojha et al., ). The development of routines and standardized processes towards pro-active risk- and crisis management (e.g. “standardization of benchmarking of the contingency planning process” (Skipper & Hanna, )), could be more favorable. Such processes produce

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

quicker and more efficient responses (Christianson et al., ) as well as provide sensemaking approaches: the organization do not have to start from scratch and can in advance “transform more complex tasks into simpler ones” (Maitlis & Sonenshein, ).

Case study partners of course use results out of particular risk- and crisis management activities to innovate business models, resources, processes and services, but as the interviewees of all three case studies agreed, the total elimination of risks is ideological: rest risks are everywhere and their elimination is almost impossible. “Sometimes it is good that something happens”, as the interviewees of CEG highlight. After events, managers are more prudent and investments into increased stability, safety- and security, availability and performance get released. Common dominator of case study partners’ are audits and redundancy measures. Audits – internally and externally – are a common practice at all case study partners and are performed on a regular basis. Audits support to identify organizational vulnerabilities and help to decrease organizational blind spots. Additionally, audits support the organizations’ engagement with their business and service environment, the transport logistics and supply chain network, and to consider themselves as part of a “bigger whole”. Audits enable to bring in knowledge and expertise from the organizations’ environment and to renew, change and innovate applied business models, resources, processes and services. Audits are a less considered approach in literature, e.g. Jüttner (), Khan & Burnes ().

Literature enumerates a series of measures to anticipate, response and cope with risks and crises (e.g. disruption management (Colicchia & Strozzi, ), emergency management (Ponomarov & Holcomb, ), disaster response planning (Sahebjamnia et al., ), etc.), case study partners follow a pragmatic way: redundancy! Redundancy, as for example the interviewee of CA highlights, allows to immediately switch between one data center to the other – without or with only marginal disruption.

.. Approaches towards cognitive capabilities

Cognitive capabilities, as presented in literature, are a sum of methods and activities that enable and enhance communication, information sharing & connectedness,

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cooperation & collaboration, and learning & knowledge management within an organization and beyond. It captures the development of social capital, social interaction, community competence within the system/organization (e.g. Stewart et al. (), Carroll et al. ()), development of “virtue categories”, such as wisdom & knowledge, courage, humanity, justice, temperance, transcendence (e.g. Luthans & Youssef ()), development of a value system, identity & meaning (e.g. Coutu (), Maitlis & Sonenshein (), Weick et al. ()), development of trust and respect mechanisms among system stakeholders (e.g. Jüttner & Maklan (), Johnson et al. (), Marcus & Nichols ()), development of an innovation culture and entrepreneurship (e.g. Reinmoeller & van Baardwijk ()), openness (e.g. Carroll et al. ()) and commitment (e.g. Greening & Rutherford (), Maitlis & Sonenshein ()), (good) will (e.g. Drew & Smith ()), empowerment and emancipation of system/organizational members (e.g. Amundsen & Martinsen (), Atkinson et al. ()), development and implementation of teamwork and collaboration mechanisms (including learning, information sharing, leveraging the knowledgebase; e.g. Drew & Smith (), Roth et al. ()), development of a winner’s culture (e.g. Drew & Smith ()), development and implementation of integration/integrative and coordination processes (e.g. Wieland & Wallenburg ()); development of governance mechanisms (e.g. Carmeli & Markman ()), communication (directly/indirectly) including: sensemaking, mindfulness, wisdom & heedfulness (“sensemaking is about organizing through communication”, e.g. Weick et al. (), Roth et al. (), Weick et al. (), Meepetchdee & Shah (), Carroll et al. (), Maitlis & Sonenshein ()), connectedness, exploration, situation awareness (e.g. Roth et al. (), Skipper & Hanna (), Ponomarov & Holcomb (), Reinmoeller & van Baardwijk ()), reality sense (e.g. Hind et al. ()); information sharing (e.g. Skipper & Hanna ()), development of cooperation mechanisms and risk sharing strategies (e.g. Reinmoeller & van Baardwijk (), Jüttner & Maklan ()).

As identified in the case studies, cognitive capabilities are much about the exploration and exploitation of information, knowledge/learning and expertise. It enables an organization to change, renew and innovate its business models, resources, processes and services. Cognitive capabilities at the case study partners base on

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

individual and organizational skills and competences to cooperate and collaborate within business, service and innovation networks as well as to share/communicate and to gain information within. As the case study partner exemplified, they participate in formal and informal networks and maintain and strong connectedness to their business and innovation networks. Communication and information sharing within the case study partners’ organizations and these networks is open and direct and face-to-face communication is the favored form. Only if personal communication is not possible (e.g. because of geographical distances), case study partners use conventional communication tools (telephone, cell phone and e-mail). Additionally, the case study partners utilize cloud-based document sharing software for increased cooperation and collaboration that – additionally – decreases information asymmetries within trans- organizational projects and their responsible managers and employees.

As observed in the case studies, the increase of individual and organizational cognitive capabilities are of major importance of the case study partners. In doing so, CA maintains an internal college wherein employees get educated and trained towards organizations’ goals and objectives. Additionally, employees can increase individual skills and competences that in turn benefit the organization. CA is aware that employees learn most by learning by doing and from their working colleagues. Beside conventional methods of qualification, SXX and CA provide web-based learning in webinars and wikis. Immediate reporting of failures, as the case study partners report uniformly, is part of the organizational culture and – except in case of wanton destruction or bad faith – not penalized. Learning and learning from mistakes is important to the case study partners. Early reporting of failures additionally supports to continuously refresh the overall organizational knowledge base. The case studies confirm that cognitive capabilities also depend on organizational sensemaking, management and leadership. In the center are activities such as employee recruitment, leadership/management and its retirement strategies. Case study partners SXX and CEG highlight the importance of an appropriate recruitment strategy: pro-active employees that also perform tests and experiments at home are in the center of CEG’s employee recruitment strategy.

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

Enhanced individual and organizational cognitive capabilities enable sophisticated forms of employee leadership. For example, SXX’ employee management/leadership style is dynamic and depends on the situation: in times of certainty, employees are empowered. In times of organizational dynamics and crisis, power is re-centralized to how board of management. However, CA has implemented an employee mentoring system: new employees get mentored by an experienced employee to support the build-up of a meaningful business relationships and networks and, according to initial case study propositions, to gain advantage out of the mentor’s network, his knowledge, expertise and experience.

.. Approaches towards organizational culture

To increase organizational robustness and resilience culture, literature intensively discusses and proposes an agile and flexible organizational culture towards renewal, change, adoption and innovation. Center to Mandal's () approach is the build up of an organizational culture that is influenced by Six Sigma’s philosophy and Lean Management. Further cultural developments towards enhanced levels of organizational robustness and resilience are about the development of a culture of reliability (Ojha et al. (), Ivanov & Sokolov ()) that include redundancy measures (Greening & Rutherford ()), anticipation mechanisms (Wieland & Wallenburg ()), risk sharing agreements (Jüttner & Maklan ()), response options toward change, uncertainty and unpredictability (Scholten et al. ()), strategic flexibility and flexibility mechanisms (Jüttner & Maklan (), Johnson et al. (), Ivanov & Sokolov (), Sahaym et al. (), Greening & Rutherford (), Skipper & Hanna ()), structures and processes toward change and organizational flexibility (Swafford et al., ), innovation strategy and change mechanisms (Reinmoeller & van Baardwijk ()), trust, shared values and collaboration mechanisms (Jüttner & Maklan (), Wei & Wang (), Johnson et al. (), Wieland & Wallenburg (), Williams et al. ()), handling of (scarce) resources (Wieland & Wallenburg ()), development of strategic alliances and loosely coupled relationships (Sahaym et al. ()), creativity and intrapreneurship/entrepreneurship approaches (Rego et al. (), Reinmoeller & van Baardwijk ()), visibility and

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

velocity/speed (e.g. Jüttner & Maklan (), Johnson et al. (), Wieland & Wallenburg ()).

At all case study partners, the organizational culture is determined by tight customer relationships. All case study partners are aware about high reliability performance and implemented the “voice of the customer” principle. Customer complaints, according to the interviewees of SXX and CEG, are assigned to strategic management and are managed by the strategic board of management. CA implemented key account managers. Additionally, CA works on a digital customer relationship platform. The economic activities of particular case study partners are subjected to the requirements and requests of its customers. Renewal, change and innovation – such as resource and process (re-) engineering as well as business model and service innovation – as the cases show, are part of daily business and highly base on pro-active managers and employees. All case study partners encourage their employees to think pro-actively and work on renewals, changes and innovation. As the interviewees of CEG exemplified: “We cannot wait until the managing director has some ideas. Suggestions and proposals for improvements, re-newel and change, have to come from our side! If the managing director made such suggestions, we would recognize that we are too late”. Innovation and innovative thinking, related to initial case study propositions, highly affect the case study partners’ organizational culture and enable him to engineer and improve the organizational robustness and resilience by the implementation of new and emergent processes, services, business models and technologies. An innovation oriented organizational culture, as the cases highlight, enables evolutionary fitness within particular organization, thus its long-term sustainability, survivability and profitableness.

Interviewees of SXX highlighted how to lose organizational resilience: because of a share deal, SXX was sold to a stock corporation (listed on the stock exchange). As the interviewee of SXX said, “the new board of management do not see any return on investment into safety- and security increasing measures. Managers and decision makers put major emphasis on efficiency and revenues”. Before this share deal, SXX’ organizational culture towards organizational robustness and resilience was to find the equilibrium between robustness-increasing and agility-increasing measures. Interview

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

of SXX exemplified the removal of emergency kits frequent business travellers, which again influences human resources negatively.

.. Approaches towards business practices and technologies

As observed in both – literature and the empirical field – business practices and technologies heavily focus on performance: the overall business performance/higher business performance, human performance (Luthans & Youssef, ), sales and marketing performance (Chow et al., ), quality performance (Wieland & Wallenburg, ), service performance (Ojha et al., ), logistics performance, financial performance (Huscroft et al., ), its interrelation (e.g. “quality performance is positively related to financial performance” (Wieland & Wallenburg, )) and its optimization (e.g. Carroll et al. (), Stewart et al. (). To maintain and improve performance, literature proposes a variety of activities that include the development of a performance measurement system (Bititci et al. (), Morgan ()), development of a comprehensive system of measures that monitor and evaluate the ability of its processes (Atkinson et al., ), development of IT capabilities (Huscroft et al., ), interlinkage of performance measurement to strategic planning (Atkinson et al., ) and to risk management endeavors (Kern et al., ). Literature sees a symbiotic interrelation between business practices and technologies and risk- and crisis management in an organization. Risk anticipation is key and includes business practices such as business continuity management, business continuity planning, scenario planning and development of worst-case scenarios (Sullivan-Taylor & Wilson (), Ghadge et al. (), Sáenz & Revilla ()).

Business practices and technologies to increase organizational robustness and resilience are, for example, the Balance Scorecard (e.g. Atkinson et al. (), Morgan (), etc.), Total Quality Management (Corredor & Goñi ()), Statistical Process Control (Carroll et al. ()) and Six Sigma (Christopher & Rutherford (), Gremyr & Hasenkamp ()) and formative elements such as system level (re-) engineering (Jüttner & Maklan, ), business (re-) engineering (Drew & Smith, ), supply chain (re-) engineering (e.g. Scholten et al. (), Christopher & Peck ()) and zero defects (re-) engineering (Taguchi & Clausing, ). As identified in case studies, there

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is a high relation of business practices and technologies to key performance indicators and statistical tools. As all case study partners have already experienced ICT breakdowns, case study partners are highest sensitive about the importance and protection of their ICT technologies. As observed, case study partners started to categorize their software applications into categories of high, medium and low relevance. If a malfunction occurs in a high categorized system, it must be resolved within minutes – even if the responsible employee is in his leisure time. A breakdown of a major application, such as the Transport Management System and Warehouse Management System, causes companywide deviations and operational breakdowns. Case study partners pro-actively control and monitor their ICT systems and infrastructure as well as their service performance and service quality. Case study partners make use of specialized software applications and measurement tools that control and monitor pre-defined key performance indicators. In case of deviations, these applications alert responsible managers by e-mail or text messages (SMS). As, for example, the interviewees of CEG said: “Ten years ago, in case of an ICT disruption, the board of executive managers exhort us that any ICT system should not breakdown for more than hours. Today, the requirement is that any ICT system or service should not breakdown”. However, safety- and security key performance indicators such as mean-time to recovery are not in use.

Important to SXX and CA is their digital performance control and measurement system. This system highly relates to and supports the case study partners to continuously improve and innovate processes, services, products and business models. For example, a repeatedly reported incident transforms to a problem that again – in case of repetition – transforms to a (system) change. This system is main contributor to CA’s quality approach: service excellence. As observed, CEG pro-actively interlinks its business practices and technology-related activities to its technology and technology purchase strategy: CEG aims to become technology leader in its particular field of business. For that, CEG defined a technology leader strategy and a technology purchase strategy. For example, CEG has already reserved preemptive rights on emerging technologies – e.g. server technologies that are not on the market yet. To avoid technology-caused risks, CEG decided not to keep technology longer in organization than its amortization: it is a no-go! Organizations that keep technology

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longer as the amortization period, as the interviews said, endanger themselves. SXX applies a more conservative IT innovation strategy. Since they face enhanced levels of safety and security, in perspective of SXX, technologies have to be tested and mature. CA applies a mixed strategy: on the one hand, CA fosters innovation and – in collaboration with universities and research centers – performs research and development projects. On the other hand, CA behaves cautiously and waits until the technology is tested and mature. Imitation mechanisms (e.g. copy of best practices, innovation), as observed in the case studies, is daily business, including the skimming and scanning of articles, journals, newspapers and magazines and its business and service networks.

.. Approaches towards extended enterprise and supply chain management

The case study partners consider themselves as a part of larger business and service networks. They all take part within formal vertical (similar organizations, e.g. Logistics Alliance) and horizontal (business partners, competitors and other stakeholders) business and service networks. Additionally, (most) managers and employees of case study partners maintain individual (formal and informal) value-added networks – internally as well as externally. These actions are in alignment with literature and increase transparency/visibility and knowledge (Williams et al. (), Johnson et al. (), Elliott, & Drake (), Peck (), Bititci et al. ()), flexibility (agility) (Johnson et al. (), Ponomarov & Holcomb ()), trust and commitment (Johnson et al. (), Williams et al. (), Bititci et al. ()). Additionally, as literature highlights, participation in networks enables the organization to develop mutually shared values (Johnson et al. ()), beneficial relationships/customer relationships (Johnson et al. (), Williams et al. ()), (vertical and horizontal) collaboration mechanisms (Johnson et al. (), Scholten et al. ()), efficiency and performance (Williams et al. (), Chopra & Sodhi (), Mandal ()), speed and velocity (Johnson et al. ()) as well as collaborative management of risks/sharing of risks (Sahaym et al. (), Jüttner & Maklan (), Son & Orchard (), Wieland & Wallenburg (), Ghadge et al. (), Ponomarov & Holcomb (), Colicchia & Strozzi ()).

Case study research: Swissgold XX, Cargo Expert Germany and Camion Austria

Audits, as the case studies turn out, are an essential part to increase overall organizational robustness and resilience as well as in the business environment and supply chain network. Audits, as the case study interviewees agree, are a viable practice to evaluate and increase organizational routines and standards of service performance and service quality and common practice to be engaged with the business environment and supply chain network. Identified gaps and vulnerabilities then get fixed collaboratively with particular organization (e.g. major customers, international institutions). Additionally, as the case of SXX highlights, SXX pro-actively performs partner audits with the aim to implement Swiss-quality standards within SXX’ business partner organizations. SXX aims to become a focal organization in service networks – the dominator of service performance and service quality. Literature considers a focal organization as an “innovator, and its business model is the locus of innovation” (Zott & Amit, ).

SXX and CEG maintain close relationships to their ICT suppliers. Both case study partners perform at least one telephone conference per week: these telephone conferences support them to get information about ongoing software features, releases and updates. These telephone conferences support to claim their own needs and requirements into ongoing software developments.

As observed, all case study partners participate in external events, such as specialized conferences, trade fairs and workshops. They pro-actively screen specialized industrial journals about the latest developments within their particular field of business. Additionally, CEG pro-actively takes part in dedicated internet communities. As the CEG’s interviewees said: “If we face a problem and we cannot solve it, we ask the internet. Somebody has certainly already had the same problem and can contribute to the problem solution”.

Strategic management framework for engineering of organizational robustness and resilience

Case study analysis and evaluation: empirically observed concepts

1 Case study analysis and evaluation: empirically observed concepts9

In the center of part IV is RQ: How can a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like? This part is structured among two chapters: chapter of part IV is about the structured analysis and evaluation of case study reports. Chapter is about the design and development of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience. This framework marks the main output of this dissertation and is the response to the initial research objective of how a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like.

This chapter presents the systematic analysis of single case studies. This analysis bases on designed and developed analytical framework combined with the Grounded Theory methodology. The Grounded Theory is a qualitative research methodology that uses a systematic series of procedures to develop an inductively derived, object- anchored theory about the observed phenomenon (Strauss, ). Objects for this analysis are the elements of defined analytical framework: Alter's () work system framework and Teece's () dynamic capability microfoundation framework. The purpose of this section is to develop and introduce a “grounded theory” to manage, engineer and design organizational robustness and resilience within service systems.

This chapter additionally founds the basis for the design and development of the Strategic Management Framework for Engineering of Robustness and Resilience (c.f. chapter of this part IV). This chapter proceeds on initial research interest about how managers increase organizational robustness and resilience in and among service systems to better respond to and act on organizational dynamics, risks, uncertainties and crisis. It is organized in three sections. Section highlights applied research design. Section and present descriptively results to manage, engineer and design

9 This chapter is partly based on Maurer () Case study analysis and evaluation: empirically observed concepts

organizational robustness and resilience. While section presents resource-based strategies and activities towards organizational robustness and resilience, section presents capability-based strategies and activities.

1.1 Research design

This chapter is guided by the case study analysis and evaluation methodology proposed by Yin (). It applies the “working your data from the “ground up”” and is accompanied by the Grounded Theory methodology. Grounded Theory methodology supports to carefully code and systematically analyze conducted single case studies. In detail, Grounded Theory’s open coding and axial coding is applied (e.g. Strauss (), Glaser (), Randolph (); grounded theory strategy (Langley, )). As depicted in figure , each single case study experienced twelve coding runs ( x work system framework’s resource-elements and x Dynamic Capability’s microfoundations; total: coding runs).

The work system framework serves as a tool to analyze the resource-base: to examine how case study partners engineer the organization towards increased levels of organizational robustness and resilience at resource-level towards enhanced organizational sustainability and survivability. The dynamic capability microfoundation framework serves as a tool to analyze the organizations’ strategic base: to examine how the case study partners innovate their resource-base and organizational capabilities.

Case study analysis and evaluation: empirically observed concepts

Figure : Research design – case study coding process

In doing so, first, the single case studies are uploaded into their software-application “Atlas.ti”. Within this software program, the single case studies experience rigorous coding. Similar quotations within particular single case studies (important text passages worth for further analysis and evaluation) are summarized in open codes. An open code thus is either a single quotation or an aggregation of similar quotations. Further, similar open codes are summarized in axial codes, which are the unit of analysis of this chapter. Secondly, they are exported into twelve Microsoft Excel tables for further evaluation. Similar open codes “per case study, per selective and per axial code” got adjusted and/or pooled. That again allows a smart visual presentation of the gained results within the tables. The coding processes provide deep insights into case study partners’ individual strategies, processes and activities towards the concepts of organizational robustness and resilience. They additionally found the basis for the design and development of the Strategic Management Framework for Engineering of Robustness and Resilience.

Case study analysis and evaluation: empirically observed concepts

.. Resource-based analysis and evaluation

The resource-based analysis and evaluation is determined by the work system framework and its nine resource-elements. In total, quotations are used and summarized within unique open codes. These open codes are summarized within axial codes.

Within the resource-element “infrastructure”, as the analysis turns out, redundancy ( open codes) is a major activity at the infrastructural level to increase organizational robustness and resilience. This activity is followed by development/maintenance of infrastructure for learning and education (), communication () and investment (). A further important resource-engineering activity is the development of human redundancy (). Within the resource-element “strategy”, the activity to develop/maintain a risk management strategy is of major importance ( open codes). Development/maintenance of an investment strategy and redundancy strategy ( nominations each), audit strategy (), innovation strategy (), knowledge spreading/dissemination strategy (), human redundancy strategy and networking strategies (each ) are the next ranked activities. Focusing on the frequency of used open codes within WSF element “environment”, the activity communication/interaction with the business environment (business partners, customers) is of major importance ( open codes). The next ranked activities are risk handling/management (), learning (from the environment) (), strategic departments (), human centricity (), technology () and learning form accidents (). Of major importance within resource-element “customer” is the communication with the customer (including the application of the voice of the customer principle). open codes are assigned to this activity. The next ranked activities are audits (internal, customer, external) (), business model innovation () and service provision (including service performance and quality) (). Within the resource-element “product/services”, the implementation of innovation (as a service) is of major importance. Eleven open codes are assigned to this activity. The next ranked activities towards “product/services” are interaction (as a service) (), audits (), human (participation) (), core service (), robustness as a service () and strategy as a service (). Major activity with resource-element “processes & activities” is the implementation of

Case study analysis and evaluation: empirically observed concepts

learning processes (including learning). open codes are assigned to this activity. The next ranked activities are process support tools (), technical redundancy (), human in processes () and process innovation/innovation processes (). Focusing on resource- element “participants”, pro-active employees (including flexibility, participation and teamwork) are of major importance. open codes are assigned to this activity. The next ranked activities are strategic management (), customers (), business partners, institutions and operational management ( each). Within resource-element “information”, pro-active information gathering and sharing (exploration & exploitation of information) are of major importance. This activity has open codes. The next ranked activities are information documents (), information sharing technologies (), audits as a source for information () and information redundancy (). Within resource-element “technologies”, technology availability – especially ICT – are of major importance. A breakdown of ICT, as all case study partners confirm, would cause chaotic situations in the organization within minutes. open codes are assigned to this activity. Next ranked activities are emergent technology exploration (), human before technology (), audits, control & monitoring, document sharing (technologies) and technology investment ( each).

.. Capability-based analysis and evaluation

The capability-based analysis and evaluation is determined by adopting Teece's () Dynamic Capability microfoundation framework. In total, important text passages were identified for further analysis and evaluation. These quotations are summarized within open codes and assigned to axial codes. These axial codes are assigned to the microfoundation framework’s elements of sensing, seizing and managing threats/transformation. Focusing on the open codes within the element “sensing”, the activity of (early) customer integration ( nominations) is of major importance. The next ranked activities are audits (e.g. internal, external, partners, business stakeholders, etc.) () and employees: well-educated and trained employees that pro-actively participate within the systems (+). Within the element “seizing”, enlargement/break-up of the organizational boundaries is identified as a major activity. Ten open codes are assigned to this activity. The next ranked activities are business acumen (and venture capital) () and customer interaction/voice of the customer ().

Case study analysis and evaluation: empirically observed concepts

However, education & training within the element “managing threats/transforming” is identified as of a major important activity. Eleven open codes are assigned to this activity. The next ranked activities are business acumen & venture capital (including specialization within new fields of business) (), decision-making (no matter of whom: managers, employees) (), technical redundancies (), emergent technology () and process documentation ().

1.2 Theory development: resource-based strategies towards organizational robustness and resilience

This section descriptively presents the results of the resource-based coding process. Related to the work system framework’s resource-elements, this section consists of nine subsections and presents resource-based activities towards organizational robustness and resilience examined within the single case studies. These activities are the axial codes of previously introduced coding processes and form the basis for theory development. Each subsection consists of a theoretical description of particular resource-elements (by the use of Alter ()), the case study findings (summarized in an introductory table and descriptively presented in a subsection) and their comparison with literature and core concepts about Service Science.

.. Work system framework element: infrastructure

Resource-element “infrastructure”, as Alter () argues, includes “relevant human, information, and technical resources that are used by the work system”. Activities and efforts towards increased organizational robustness and resilience on infrastructure can be clustered among business network infrastructure, infrastructure for employees, infrastructure for innovation, infrastructure for risk management, redundancy, control, monitoring and maintenance. The axial-selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Case study analysis and evaluation: empirically observed concepts

Development and maintenance of a business network infrastructure

As observed in the case studies, the business network infrastructure approach of case study partners that contributes to increased organizational robustness and resilience can be summarized by business network strategy, customer segmentation and business partner integration.

Business network strategy: case study partners pursue sophisticated business network infrastructure strategy. While CEG mainly emphasises to be a reliable and high-technology-oriented partner within a larger transport logistics and supply chain network, SXX aims to become the focal node. SXX actively collects information about business (network) partners and attempts to rollout their safety-, security-, risk- and compliance standards. CA’s strategy aims to build-up a global CA network structure: company expansion including the development of at least one branch in all countries along the former Silk Road.

Customer segmentation: CEG pro-actively applies the voice of the customer principle that is controlled and monitored by the managing director. SXX and CA segment their customers into A-, B- and C-customers. A-customers are served with different business models than C-customers: “C-customers (SMEs or private persons) are satisfied with the transport of particular shipment. A-customers demand additional services including increased safety-, security- and stability measures, enhanced reliability, exchange of real-time information, and so on”. In case of SXX, A-customers can define individual business continuity plans on demand. In case of CA, A-customers can define individual service and customer processes on demand. Although the exchange of experiences of a customer segment is important (e.g. Saraf et al. ()), similar activities as described in the case studies could not be found within the literature of Service Science. Roberts et al. (), for example, propose to develop dynamic managerial capabilities that again are antecedent to sense opportunities for organizational innovation.

Business partner integration: case study partners maintain close business relations to their business partners and integrate them with Exchange Data Interface (EDI) technology into service provision processes. Aim is to exchange automatically

Case study analysis and evaluation: empirically observed concepts

information and status-updates about shipments, including pick-up and delivery reports, track and tracing and thus to increase service transparency to consignees and consignors. Stakeholder integration is known as core principle within Service Science, e.g. highlighted in service-dominant logic’s FP number .

Development of an infrastructure for employees (participation)

As observed, the development and maintenance of an appropriate infrastructure for employees is of major interest to increase organizational robustness and resilience. Activities and efforts can be summarized among leadership style, communication & reporting of failures and learning & knowledge sharing.

Leadership style: while SXX aims to empower its employees (at least in times of organizational certainty), CEG centres power and decision competencies hierarchically. CEG’s managing director, % shareholder of CEG at the same time, has ultimate power and decision competencies. As CEG interviewees reported, operational managers and employees feel his pressure. CA aims to mediate and moderate between heterogeneous employees that, in perspective of CA, are seen as the specialists and topic leaders within a particular field of business. Although Service Science considers humans as important resources, none of the identified main approaches considers the management of employees within service systems. The management and leadership of employees towards innovation and evolution of service systems, as Sharma & Rai () highlights, highly depends on the IS leaders’ individual factors (such as hierarchical position, job tenure) and perceptions of the efficacy of the technology (IS leaders relation to the technology). Leadership then provides innovation at top management, tactical management, operational management and lower-level management.

Communication & reporting of failure: case study partners prefer open and direct (if possible face-to-face) communication among system stakeholders. Technologies, such as telephone, e-Mail, cloud enabled technologies and central storages, are recognized as supporting tools. Furthermore, case study partners built up an environment to freely report failures and errors. Learning from failures enable the case study partners to

Case study analysis and evaluation: empirically observed concepts

emancipate and to build up fertile knowledge. Only in cases of wanton destruction, employees have to expect negative consequences.

Learning & knowledge sharing: Internal learning and knowledge sharing is important to the case study partners. SXX and CA work on an employee skill matrix to capture and make use of particular skills and competences of employees. Additionally, these skill matrix builds the foundation to develop tailored education plans. Learning and knowledge sharing within the organization is accompanied, for example, by e- learning tutorials (SXX), teamwork (CEG) and mentoring (CA). CA additionally maintains a college for employee education and training. This college aims to sharpen employees’ skills and competences. Although learning and knowledge in Service Science is considered as meta-resource, the development of a learning and knowledge sharing infrastructure for employees within a service system is a largely neglected field. Service scholars’ emphasis is on social and technological integration of external knowledge, such as from customers and business stakeholders. In approach of Newell (), organizations are considered as ambidextrous knowledge organizations that actively explore and exploit knowledge. The objective then is to produce new products, organizational arrangements and/or business models as well as to improve and to innovate organizational efficiency simultaneously.

Development of an infrastructure for innovation

Renewal, change, adaption and innovation as observed in the case studies are a part of the daily business. Managers of SXX, for example, aim to build up a digitalized infrastructure for innovation. As a consequence, managers and employees are demanded to comply towards structured processes. CEG aims to become technology leader within its particular field of transport logistics and supply chain management. Managers and employees of CEG are encouraged to work on innovation pro-actively, which includes the detection and assessment of innovative technology, identification of ways to increase digital maturity and replacement of amortised ICT artefacts. CA heavily relies on the Kaizen approach: the continuous improvement and innovation of processes, services, products, product portfolio and business models. Kaizen at CA is accompanied by “incident – problem – change recording”. A (service, process, etc.)

Case study analysis and evaluation: empirically observed concepts

incident gets fixed immediately. If the same incident occurs more than one time, it upgrades to the status of a “problem”. Problems get carefully analysed and, in case of imperfect implementation, changed. Innovation is of major importance within Service Science. While the service-dominant logic and viable system approach mainly focuses on external systems as a key to innovate service systems, SSMED focuses on operational frameworks. SSMED bases on process-based, stakeholder-network-based and ecology-based approaches and tools such as, for example, service blueprints, business processes models, etc. to analyse and innovate service systems. However, the work system theory provides an otology about how to design and engineer – thus, to renew, change and innovate – service systems.

Development of an infrastructure for risk management

The infrastructure for risk management at all case study partners is highly based on (internal and external) audits. Audits are seen as welcomed inputs for avoidance of vulnerabilities and risks as well as the closing of vulnerabilities. Since SXX transports and warehouses valuable goods with high value and emotions behind, SXX has to be more restrictive than “ordinary” transport service providers. SXX maintains an own department for safety, security and compliance with high access right into operational businesses (operational risk managers). SXX, but also CA, implemented business continuity management in their organization and pro-actively work on business continuity plans. As the interviewees of SXX confirmed: ICT becomes more and more the centre of a particular business continuity management and planning. However, risk management within the literature of Service Science is largely neglected. Kutsch et al. () consider risk management and risk procedures as essential to increase service reliability. They call for established risk management and established risk processes to establish mindfulness-based reliability management as complementary approach in organizations. Hsu et al. () call for operational risk management processes that include the establishment of a risk management framework, identification and assessment of risks, development of guidelines and procedures to prevent, cope and response and structure as well as to document risk identification and assessment results.

Case study analysis and evaluation: empirically observed concepts

Development of redundancy measures and mechanisms

An important factor to maintain or improve organizational robustness and resilience is (technical) redundancy. Redundancy, as observed in the case studies, is a key to keep the organizations’ infrastructure, ICT (infrastructure), ICT software and services, business processes and services upright. The case study partners SXX and CEG maintain a triple-redundancy of their critical software application – their Transport Management System and Warehouse Management System. Additionally, SXX and CA maintain two geographically separated data centres. If an accident hits the organization, SXX and CA can switch easily from one data centre to the other. For example, during the occurrence of hurricane Sandy, SXX’ branch in Miami took over responsibilities from the devastated branch in New York.

Centre to the case study partners is human redundancy too. CEG aims to improve functional expansion of employees and to spread knowledge and responsibilities. SXX and CA are working on organizational skill matrices. These matrices aim to capture individual skills and competences of employees and make use of them. Additionally, these matrices are used to develop tailored education and training plans. Redundancy also facilitates decision-making, or as the interviewee of CA highlights: without redundancies, managers would act and decide more riskless. Redundancy measures are less considered within Service Science.

Development of a control, monitoring and maintenance infrastructure

Continuous control, monitoring and maintenance (including the renewal, change, adaption and innovation) of organizational infrastructure – especially ICT infrastructure – is key. In doing so, case study partners use specialized ICT applications. These applications support to control and monitor remaining ICT applications, software and hardware. In case of deviations, managers and employees have to react and solve the incidents/problem and change. SXX and CA also maintain service level agreements and continuously develop central requirements that get spread to operational branches. As observed, the main approach Service Science/SSMED puts emphasis on control. Centre is about efficiency, sustainability and

Case study analysis and evaluation: empirically observed concepts

relations, new technologies and approaches as wells as the structure of service systems (Polese et al., ).

.. Work system framework element: strategy

Strategies for service systems, as Alter () highlights, “enterprise strategy, department strategy, and work system strategy”. The work system strategy should support and be in alignment with the departmental and the organizational strategy (Alter, ). The analysis of this resource-element turns out that activities towards increased organizational robustness and resilience can be clustered among nine strategies that are about audit strategy, communication, employee management, knowledge and learning, ecosystem, organizational, redundancy, risk management and technology. The axial-selective coding, as summarized in table (annex B: coding), is basis for the following subsections wherein the findings of the case study research towards the resource-element “strategy” get presented.

Development of an audit strategy

To get engaged with the service network and business environment, case study partner apply sophisticated audit strategies (internally and externally). As observed, audits enable the case study partners to make use of and gain new knowledge from service stakeholders. SXX, for example, not only experiences customer audits (e.g. Bank of China) but also pro-actively audits its business partners. With this strategy, SXX analysis and evaluates vulnerabilities within the service provision network and encourage business partners to take over SXX- and Suisse quality standards. These standards, as the interviewees report, are higher than applied standard within business partners’ organizations. In long term, SXX aims to become the focal node within their service provision network. Centre to CA is standard ISO of the International Standardization Organization. This standard deals with Information Security Management System and is the heart of CA’s safety, security and availability approach. At the same time, this standard is used as marketing tool. It highlights to existing and future customers a qualified level of safety and security, which again enhances the levels of trust and cooperation. Development of audit strategies and their performance

Case study analysis and evaluation: empirically observed concepts

(internal, external, partner audits) are not yet included within Service Science. Audit strategies are a new field within Service Science.

Development of a communication strategy

Communication at all case study partners is open and direct. Face-to-face communication is the preferred form. Nevertheless, case study partners maintain digital technologies to increase communication, such as telephone, smart phone and e- mail as well as emergent technologies: cloud based document-sharing applications, internet based telephone providers, webinars. External communication is determined by the voice of the customer principle. It is applied at every case study partner and allows to react towards customers’ needs, requirements and complaints. While CA implemented key account managers and conventional marketing methods to get in contact with customers, SXX and CEG use the strategic board of management. At CEG, the managing director is the driving force of the voice of the customer principle. To increase customer interaction, CA started to develop and implement a digital customer relationship platform wherein customers can improve their service interaction with CA (and vice versa). Most business partners of case study partners are interconnected via Exchange Data Interfaces – a technology that allows to automatically share data and information about transport logistic and supply chain management services. Failure reporting at the case study partners is open and direct. Reporting employees do not have to face negative consequences. Reported failures, as the interviewees confirm, help to speed-up the detection of the failure/problem at its root.

As identified in Service Science, service interaction plays a central role. Service interactions are a key to launch the principle of value co-creation (Spohrer et al., ). Giesbrecht et al. (), for example, propose to install service encounter thinklets and the establishment of service agents to increase social interaction, value co-creation and problem solving/conflict management. Within this approach, front-office employees have a key role and are responsible to support the customers to establish fruitful service interaction – such as the truck drivers within the case of CEG.

Case study analysis and evaluation: empirically observed concepts

Development of an employee management strategy

Since the power and decision-making structures at CEG are centralized, CEG applies a tight, hierarchical management of employees. As the interviewees confirm, the management of the employees is individual and target oriented. At the heart of CEG employee management strategy is teamwork. SXX pursues a mixed employee management strategy between empowerment and centralization. As the interviewees of SXX confirmed, in times of certainty, employees get empowered: responsibilities and competences get assigned to employees. In times of uncertainty (e.g. hurricane Sandy), power and decision-making get centralized – either to the operational management or the strategic management. CA understands its employees as specialists within their field of business. CA managers are encouraged to mediate between these unique knowledge bearers and to connect specific human resources to fulfil the common objective. CA puts huge efforts on employee mediation and leadership. Training and education of employees, including the development of human redundancy, is a key in all case study partner organizations.

Since CEG is geographically dislocated from major urban areas, the employee recruitment process is of special interest. Team members focus on sophisticated, innovative thinking employees that suit best to the existing team. Although human factors are a key to innovation, as Sharma & Rai () highlight, the development of employee management strategies within Service Science to increase organizational robustness and resilience is not covered yet.

Development of a knowledge and learning strategy

CA is aware that, according to McCall’s -- model for individual and organizational learning and development, % of employees’ sophistication is determined by learning by doing. Nevertheless, CA maintains an own college for employee education and training. Employees can take advantage of tailored courses to improve their individual skills and competencies. CEG pro-actively educates apprentices and continuously lets them do research about emergent trends. SXX and CA provide digital knowledge dissemination channels, e.g. wikis, e-learning tutorials.

Case study analysis and evaluation: empirically observed concepts

Case study partners have learned from accidents and disastrous events and how to cope with them. For example, SXX learned from hurricane Sandy that the United States are not that technically mature as they claim (e.g. power lines are above ground and were completely damaged). As a reaction, managers decided to purchase private electric generators. CEG learned that an excavator, two kilometres away from the headquarter can damage the internet cable and cause a breakdown of CEG’s branch network. As a reaction to this threat, the managing director decided that each (new) branch has to be equipped at least with two entrances and exits for two different internet providers. Additionally, CEG started to test and experiment with satellite technology.

In line with the case studies, knowledge and learning is of major importance in Service Science (especially the service-dominant logic and viable system approach). Knowledge, as Barile & Polese (a) highlight, is a meta-resource that enables to gain new knowledge, develop skills and capabilities as well as to utilize resources. Knowledge, as Vargo et al. () highlight, “is the core source of all exchange”. Learning is a dynamic resource (Lusch et al., ) and enables to improve and innovate the systems, its service and service propositions. Knowledge, learning and mental competences enable organizational performance and to build-up competitive advantages. It can be achieved by communication and dialogue – feedback loops, which act as knowledge and learning renewal processes, as Vargo & Lusch (, ) highlight.

Development of a business/service ecosystem strategy

Case study partners are connected in formal and informal networks to their business ecosystems. Formal networks are, for example, about audits, attendance at trade fairs, excursions. Informal networks belong to managers and employees private relationships. SXX additionally provides formal and informal contacts to blue light organizations. CEG additionally is active in dedicated internet blogs: if CEG faces a specific challenge, managers and employees become active on internet blogs and forums. As reported by interviewees of SXX and CEG, both case study partners provide

Case study analysis and evaluation: empirically observed concepts

close relationships to their ICT supplier. Since a h lasting ICT breakdown in , managers maintain telephone conferences on a regular basis.

As highlighted by Barile & Polese (b), service systems are influenced by their technological, economic, political, and social ecosystems and environments. For example, service-dominant logic’s FP number not only integrates the customer but also the “voice of the market” and the “voice of the organization”. It is to achieve balanced centricity (Vargo & Lusch, , ) and, according to Lyytinen et al. (), to flourish innovation.

Development of an organizational strategy

In the centre of the case study partners’ organizational strategy is the voice of the customer principle. Applying this principle, the customers’ needs, requirements and complaints shift to the centre of the organizations’ economic activities. The application is managed, controlled and monitored by the top management. At CA, the voice of the customer principle is major to the overall organizational objective: service excellence. As observed in the case studies, further organizational strategies are the fall-back strategy, service sensitivity strategy, focal node strategy, technology leader strategy and business modelling.

Fall-back strategy: in case of a nuclear accident in Switzerland, SXX has already defined a co-headquarter; CEG discusses to relocate its data centre to a high-security building

Service sensitivity strategies: organizational members are encouraged to provide close sensitivity to operations and service provision

Focal node strategy: SXX aims to become the focal node within its business network. SXX aims to roll-out SXX’ and/or Suisse service- and quality standards to its service network

Technology leader strategy: CEG pro-actively developed a technology leader strategy that includes ICT investment plans and actions towards the digital transformation in industry

Case study analysis and evaluation: empirically observed concepts

Business modelling: development of cash-cows and question marks – even in the ies of the past century, CA developed business models that be come relevant now (e.g. General Parcel Services)

Service Science literature proposes close connectedness to service customers to collaboratively co-create service provisions. Customers are not only seen as resources but also as co-creator of value. Customers’ needs, requirements and complaints within this theory are centre to service providers’ economical efforts and the focal point of business. The service-dominant logic proposes marketing methods such as customer relationship management and many-to-many marketing but also open business model development (Ebel et al. ()). It is not only to explore the customers’ requirements but also to learn and to gain (new) knowledge from the customers. Further strategies such as observed in the case studies could not be identified within the literature of Service Science.

Development of redundancy strategies

Redundancy and the development of redundancy strategies, as observed, are less considered within the theory of Service Science. Redundancies are of major importance within the case study partners’ organization towards the concepts of organizational robustness and resilience. Case study partners focus on technical redundancy and human redundancy that can be found at all business levels of a particular organization: business level, infrastructure level, service level, technology level, software level. As observed, redundancies are essential when a service system collapses – or is close to collapse. Redundancies facilitate decision-making under certainty and pressure. As identified technical redundancy strategies are about infrastructure redundancy, ICT/technology redundancy, software redundancy and business network redundancy.

Infrastructure redundancy: a general requirement at all case study partners is that new buildings have to maintain at least two separate data streams supplied by two independent internet providers.

Case study analysis and evaluation: empirically observed concepts

ICT/technology redundancy: case study partner SXX and CA provide data centre redundancy – two geographically separated data centres with the premise to switch easily between if an event threatens one of these data centres.

Software redundancy: SXX and CEG maintain triple redundancy about critical software (TMS, WMS). As both case study partners experienced, a breakdown of these systems hurts the organization painfully and additionally impacts the service provision network.

Business network redundancy: after hurricane Sandy, SXX’ branch Miami took over the responsibilities since hurricane Sandy caused the complete breakdown of branch New York.

Of further importance to the case study partners is human redundancy. Humans are in the centre of the case study partners interest since they are the most vulnerable link. For example, SXX and CA work on skill matrices to capture particular skills and competencies of employees, to make use of these capabilities and to spread responsibilities (deputies). CEG fosters teamwork: although all employees have their specialization, in case of organizational dynamics, employees have to work together and collaborate.

Development of a risk management strategy

Case study partners are highly risk averse. The prevention, response and cope of risks is daily business. Nevertheless, case study partners are aware about rest risks. But due to high financial investments and the low probability of the occurrence of these risks, case study partners live with them. Since SXX maintains a strategic department for safety, security and compliance (that strategically deals with organizational dynamics, risks, uncertainties and crisis), SXX can be seen as a reference for the maintenance of risk management strategies. This department is tasked to pro-actively work on risks at all levels – including SXX’ business level, infrastructure level, service level, technology level and software level. In perspective of SXX, risk management is a trigger to enhance the levels of organizational robustness and resilience. Risk management processes at SXX happen top-down as well as bottom-up. For example,

Case study analysis and evaluation: empirically observed concepts

the strategic department for safety, security and compliance has direct access to operational risk managers within SXX’ branches. Additional, this department organizes bi-lateral meetings with operational managers on a regular basis (mostly once per month) to discuss risks and scenarios that threaten particular branches. Thus, SXX pro-actively assesses risks on the strategic level and the operational level. Strategic risk management is accompanied by business continuity management, business continuity planning and the development of organizational service level agreements. Operational risk management is accompanied by the implementation of developed business continuity plans/contingency plans and service level agreements at branch level.

Kutsch et al. (), for example, consider risk management and risk procedures as essential to increase service reliability. They call for mindfulness-based reliability management as complementary approach in organizations, including the right people and training and education measures that again enable people to react rapidly and flexible to unexpected events. Hsu et al. () propose a risk management process based on three steps – namely the establishment of an operational risk management framework, the identification of risks, their assessment and the drawl of guidelines and procedures to prevent, cope and response to them and to structure and to document risk identification and assessment results. Ebel et al. () recognize (open) business model development as a solution to (rapid) environmental changes. This includes the mobilization of a business model project team, analysis of the competitive environment, design and implementation of the business model as well as its continuous management. As highlighted by the co-authors, to cope with environmental challenges, new business models should be open and “facilitate the interaction between the stakeholders of a company as well as between the company and its stakeholders” (Ebel et al., ) to realize collaborative objectives. Nevertheless, within Service Science, risk management and the development of risk management strategies for increased organizational robustness and resilience is in its emerging phase.

Development of a technology strategy

Case study analysis and evaluation: empirically observed concepts

Technology enables business, as the case study partners confirm. But also, “technology follows business!”, as especially the interviewee of CA highlights. Technology at all case study partners is controlled and monitored by tailored software applications. If deviations occur, these software applications provide automatical alerts. The responsible manager/employee then has to react – according to the category of impacted technology – within minutes. To keep technology and its development under control, SXX and CEG maintain continuous telephone conferences with their ICT supplier. Objectives of these telephone conferences are to discuss the suppliers’ technology strategy about the implementation of software updates, new releases and features. Central to CEG is the development and tight planning of a technology leadership strategy. It is to become technology leader within CEG’s field of business and captures emergent technologies, scalability requirements and its investment into. These plans are captured in a vision statement – a strategy towards the future of the CEG organization (vision +).

.. Work system framework element: environment

The resource-element “environment”, as Alter () highlights, is about the “organizational, cultural, competitive, technical, regulatory, and demographic environment” wherein the service system acts and operates its business. It includes, for example, “stakeholders, policies and procedures, and organizational history and politics”, as Alter () states, and “has direct or indirect impacts on its performance results, aspiration levels, goals, and requirements for change”. As the structured analysis and evaluation of the single case studies turned out, activities and efforts towards increased organizational robustness and resilience on environment can be clustered among the organizations’ competitive environment, cognitive environment, regulatory environment and technical environment. The axial-selective coding, as summarized in table (annex B: coding), is basis for the following subsections wherein the findings of the case study research get presented.

Awareness about the business environment: competition and customer requirements

Case study analysis and evaluation: empirically observed concepts

The competitive environment of the case study partners is determined by performance of audits (internal, external) and the pro-active application of the voice of the customer principle.

Audits: internal audits are ordered by the board of managers (the managing director in case of CEG). Auditors are internal managers of related departments (e.g. department of finance to check financial compliance) or external auditors of international organizations. While internal auditors evaluate internal compliance of departments, external auditors evaluate the alignment of the organization with standards. External audits are requested by major customers, such as the Bank of China (in the case study of SXX). These audits are about a catalogue consisting of ~ questions that aim to analyse and evaluate risk, safety, security and compliance measures within the organization and its departments. Internal and external audits are considered as important source to manage, engineer and design processes, services and service level agreements towards increased organizational robustness and resilience. However, audits as a mean to be engaged with particular service networks and business environment are not yet included within Service Science.

Voice of the customer principle: applying this principle, the customers’ needs, requirements and complaints shift to the focus of the particular organisation. At CEG, the managing director is the driving force of this principle: he manages, controls and monitors customer requirements including the implementation of the complaints. Customer complaints are also of strategic importance at SXX: the board of management pro-actively manages and monitors (customer) complaints with the aim to keep service satisfaction on the highest level. Activities include the development of standardized and customized business models and business continuity plans. However, the handling of the voice of the customer principle at CA is assigned to key account managers. These managers are closely connected to the customers and manage customer’s needs, requirements and complaints. They coordinate these requests within the CA organization to keep service excellence at a high level.

As the literature about Service Science highlights, close connectedness to service customers is the core of the providers’ service provision. Service customers are not only

Case study analysis and evaluation: empirically observed concepts

seen as resources within service systems but also as co-creator of value. Customers’ needs and requirements within Service Science are centre to service providers’ economical efforts – the focal point of business. Service-dominant logic proposes marketing methods such as customer relationship management and many-to-many marketing. It is not only to explore the needs and requirements, but also to learn and gain knowledge from customers. Additionally, Service Science proposes the voice of the market and vthe oice of the organization principles. By consideration of these three voices, service providers can balance their service network and business environment. Key then is to build up and install a service-centered organization (marketing and consumer research, in the approach of Galvagno & Dalli ()).

To increase the connectivity with the service network and business environment, the case study partners make use of the Exchange Data Interface (EDI) technology. This technology enables to automatically exchange information and status updates. For example, almost % of CEG’s service clients are connected to such EDI interfaces and receive real time date about their transport and warehouse orders.

Awareness about the organizational cognitive environment

The cognitive environment of the case study partners is determined by (internal and external) communication, learning and knowledge sharing and organizational culture.

Communication with the external environment is determined by formal (oral and digital) and informal communication. Case study partners make use of Exchange Data Interfaces. Additionally, case study partners maintain informal relationships to their business and stakeholder environment. As the interviewee of CA reported, a manager of a befriended organization called him informally and arranged an excursion to observe the implementation of an emergent technology within CA’s ICT department. Internally, all case study partners encourages their managers and employees to have an open and direct communication. The preferred form is face-to-face communication, followed by the telephone technology. ICT driven technology (e.g. e-mail, cloud base technologies) are mainly used for exchange of documents and the increase of information transparency. As Service Science literature highlights, communication resp. service interactions are key to launch the principle of value co-creation (Spohrer

Case study analysis and evaluation: empirically observed concepts

et al., ) – externally and internally, since internal department can be customers of a service system too. Service-dominant logic proposes sophisticated forms of service exchange, such as collaborative communication (many-to-many marketing) and feedback loops. These exchanges then, according to Service Science/SSMED, happen along at least four dimensions: “information-sharing, work-sharing, risk-sharing, and goods-sharing” (Maglio & Spohrer, ).

Since humans are the most important resources within business processes and ICT services, continuous learning, education and training of employees is of major importance. CA maintains a college to develop the employees’ skills and competences. CEG not only educates apprentices but also pro-actively demands them to do research about emergent technologies. Apprentices then are encouraged to disseminate this knowledge to remaining employees – presentation of the research results within team meetings and department meetings. This knowledge are used for further investigations by junior and senior managers. To increase environmental learning and knowledge sharing, but also to make use and gain advantage out of particular managers’ and employees’ skills, SXX and CA are working on a skill matrix. This matrix also allows them to develop tailored education and training plans as well as a deputy system: a system to build up human redundancies and human task redundancies.

Internal and external dynamics, risks, uncertainties and crisis are considered as an important source for knowledge and learning. SXX learned from the negative impacts of hurricane Sandy and invested into its organizational infrastructure (e.g. electric power generator, fuel station). Such events contribute essentially to the improvement of business continuity plans, as developed and applied by the case study partners SXX and CA. Further important contributors to environmental learning and knowledge are customers and accompanied business partners: the conduction of audits (internal and external) enables the organization to identify vulnerabilities and fix them.

Environmental and ecology-based knowledge and learning, including the service network and business environment, is a major cognitive competence within Service Science. Knowledge, as Vargo et al. () highlight, “is the core source of all exchange” and the application of knowledge (customer knowledge, business stakeholder

Case study analysis and evaluation: empirically observed concepts

knowledge and scientific knowledge) is essential to the principle of value co-creation. It enables to learn as well as to innovate and scale service systems – including the knowledge gained from the service ecology (Vargo & Lusch, b). Learning and knowledge renewal happens by communication and dialogue, as captured in service- dominant logic.

At all case study partners, employees are in the centre. SXX and CA foster the employee empowerment and emancipation. Additionally, at CA managers are encouraged to mediate employees, which are seen as the specialists within particular field of business. As the interviewee of CA said, they experience low fluctuation and thus can keep knowledge and expertise within their organization. CEG fosters pro- active employees and encourages them for teamwork. Trust among its customers, as the case of CA highlights, is secured via contractual penalties.

Awareness about the organizations’ regulatory environment

SXX’ strategic department for safety, security and compliance is tasked to work on organizational regulatory to prevent, to response and to cope with organizational and environment dynamics, risks, uncertainties and crises. As a result, SXX maintains extraordinary restrictive instructions for action to SXX’ managers and employees as well as service- and business partners. This department additionally has enormous power and decision competencies and has direct access to operational risk managers in SXX’ branches. Under consideration of national culture, laws and regulations, operational risk managers are instructed to implement business continuity plans. On the one hand, operational risk managers experience certain liberties in implementation. On the other hand, branches immediately get sanctioned if they do not comply.

The consideration of the regulatory environment, as Freund & Spohrer () highlight, but also the social, technological, economic, environmental, political and cultural context of service systems is an important activity within Service Science. However, value propositions, e.g. safety and security regulations as in the case of SXX, make sense in one cultural context whereas the same value proposition within another cultural context does not make sense (Freund & Spohrer, ).

Case study analysis and evaluation: empirically observed concepts

Awareness about the organizations technical environment

Since the transportation of goods from A to B, as the case study partners confirm, is “not a big thing” anymore, transport logistics and supply chain service providers have to provide additional, value-increasing services. These services can be found within the technical environment and are determined by technology and innovation engineering.

Srivastava & Shainesh () consider technology as interactional resources within networks of dynamic interactions. By the integration of IT and IT(-based) innovations, as Srivastava & Shainesh (), the service divide of the organization can be improved. To underline the importance of technology, the interviewees of CEG highlight that more and more applications and software become high importance technologies and must not breakdown. All case study partners maintain specialized control and monitoring systems to keep the ICT service level high and/or to enlarge it. In case of a dynamic these systems automatically inform their managers and employees – either by e-mail or by SMS. The development of ICT/technology capabilities are of major importance in Service Science (Lusch & Nambisan ()). ICT/technology capabilities in perspective of Karimi & Walter () can change, adapt and/or extend the organizational resource-process value base as well as be a trigger to develop new sets of capabilities – or as Granados & Gupta () highlight: ICT/technology can be a key enabler to develop dynamic capabilities.

Innovation engineering and configuration of resources (people technology, organizations and shared information) is centre to the core concept of Service Science/SSMED (e.g. Spohrer et al. (), Maglio & Spohrer ()). Service Science/SSMED provides process-based approaches, stakeholder-network-based approaches and ecology-based approaches, which again capture tools, such as blueprinting and business process modelling. As observed within the case studies and literature (Golinelli et al., ), innovation engineering is objective to improve existing value co-creation mechanisms as well as to create new service systems, which base on (internal and external) audits, the voice of the customer principle, the pressure of emergent technologies, pro-active employees and other driving forces, renewal, change, adaption and innovation, as observed within the case study interviews, is daily

Case study analysis and evaluation: empirically observed concepts

business. Innovation, as observed, ranges from imitation (e.g. copy of best practices), innovation (e.g. purchase of new technologies) to pro-active research and development. While CA maintains a strategic department for research, development and innovation, which is responsible for (internal and external (cooperative)) innovation projects, CEG puts major emphasis on its pro-active employees. As the interviewees of CEG said, this process already starts with the recruitment of employees. CEG’s aim is to recruit sophisticated employees in a specific field of business – employees (“freaks”, in the words of the interviewees) that also perform experiments and tests at home for the benefit of both, the employee itself and the organization.

.. Work system framework element: customer

As Alter () highlights, the resource-element “customer” is about the recipient of provided service. Focus within this element is on who the customers are, what they want, and how they use whatever the work system produces. Customers can be internal and external user as well as system participants. The analysis of this resource- element turns out that activities towards increased organizational robustness and resilience can be clustered among interaction, service provision statement, organizational and individual approach. The result of the axial-selective coding is summarized in table (annex B: coding).

Interaction with customers: voice of the customer principle

The customer, its needs and requirements are a focal point of business within Service Science and the integration of customers into service processes is of major importance. The customer, as highlighted by the service-dominant logic, is always a co-creator of value and an important operant resource (coproducer of service). Thus, service quality is the decisive factor of a repurchase and thus sustainable business relationships. In the centre of the case study partners approach is the voice of the customer principle. This approach is managed by the board of management (SXX), the managing director (CEG) and key account managers (CA) and includes, for example, customer requests and requirements, but also customer complaints. The implementation of customer needs and requirements is critical to organizational success and causes immediate (re-)

Case study analysis and evaluation: empirically observed concepts

engineering of business processes and changes of ICT services. All partners maintain formal and informal business partner networks. Out of these networks, as the interviewee of CA reported, business partners and customers are invited to company excursions, benchmarks and the evaluation of implemented software (features). All case study partners experience audits performed by (major) customers. These audits increase transparency about business processes, ICT services and particular safety and security measures. It creates trust among the provider-customer partnership.

Development of a service provision statement

The case study partners developed different service provision statements. Since SXX is a transport logistics and supply chain management for valuable goods and artificial, their statement towards service provision is about “sensitivity at all time”. This statement is about the maintenance of the highest safety and security standards, including tight control and monitoring of operational and strategic transport logistics and supply chain management. In the centre of CEG’s service provision statement is flexibility towards the customers’ needs, requirements and complaints. CEG’s service provision statement is controlled and monitored by the managing director – the driving force behind CEG’s voice of the customer principle. CA’s approach towards service provision is captured in the slogan “service excellence”. Service excellence is a synonym for the provision of the highest service performance and service quality at all time. The provision of service provision statements, as Alter (b) highlights, is in line with Service Science, since the customer is always a co-creator of service and provides essential feedback for improvement, renewal and change of the product and service portfolio as well as service provisions.

Organizational approach that complies to customer requests

The case study partners are specialized within a particular field of business. While SXX focuses on valuable goods and artificial, CEG and CA mainly focus on BB markets. SXX educates and trains new employees towards increased service provision. For example, new employees have to go through all operational departments within one month and learn about SXX’ safety and security requirements. CEG maintains a vertical specialization including the operation of specific branches, e.g. textile,

Case study analysis and evaluation: empirically observed concepts

chemistry, etc. In contrast, CA maintains specialized departments for service provision, such as General Parcel, Aviation- & Nautica Transport, Land Transportation, etc. Within these departments, customers get segmented and categorized: A-customers, as the interviewee of CA highlighted, have different needs than C-customers. C- customers (such as small and medium enterprises) are satisfied with the transportation of the good from A to B. A-customers require additional services, including status reports, track & tracing, electronic boarder control, digital invoicing. Service Science considers specialization as key mechanisms for creating value within service systems. According to Vargo & Lusch (, b), specialization is the main driver/catalyst within service economies wherein, as Spohrer, Anderson, Pass, & Ager () exemplify, specialized knowledge is exchanged for specialized knowledge: “One individual may specialize in farming knowledge and another in fishing knowledge, so when vegetables are exchanged for fish, what is really being exchanged is farming knowledge for fishing knowledge. When a customer buys a car or a computer, they are really buying specialized knowledge”.

Individual approach that complies to customer requests

Key to SXX is the creation of internal awareness that dynamics, risks, uncertainties and crisis have negative risks on company- and on customers-side. In the centre of SXX’ individual approach is the development of (standardized/individualized) business continuity management/planning as well as insurance measures. Insurance measures include the split of shipments into smaller shipments of manageable size. CEG has a high focus on customers and pro-actively applies the voice of the customer principle: customer requests get managed, controlled and monitored by the managing director. Since CA is a transport logistics provider for almost everything, CA attaches great importance to innovation and the use of emergent technologies. The service clients recognize CA as an extraordinary innovative organization. This circumstance also enabled CA access to new markets, for example, the entrance and acquisition of the transport logistics and supply chain management market within the former Eastern bloc states, as well as the development of new markets (e.g. opening of branches in all countries along the former Silk road). CA pro-actively works on a digital customer relationship platform to enhance customer interaction.

Case study analysis and evaluation: empirically observed concepts

.. Work system framework element: product and service

As Alter () highlights, the resource-element “products/services” is about the effectiveness of the service system and its service provision: thus the benefits for the service system customers. This element consists of “information, physical things, and/or actions” (Alter, ). As the structured analysis and evaluation of the single case studies turned out, activities and efforts toward increased organizational robustness and resilience product and service include specialization on core services, service provision goals, interaction as a service and infrastructure as a service. The axial-selective coding, as summarized in in table (annex B: coding), is basis for the following subsections wherein the findings of the case study research get presented.

Specialization: core services

Case study partners are highly specialised within its particular field of business. For example, SXX is specialized within the field of transportation, logistics and supply chain management of valuable goods and artificial. This core specialization is underlined with additional satisfaction incentives for customers, such as service satisfaction mechanisms (e.g. inclusion of the customer into the service provision processes, customized business continuity plans, service discretion, high safety and security, etc.) and increased service performance and service quality. CEG and CA are specialized transport service providers within the field of BB and offer tailored transport logistics and supply chain management services to a wide range of heterogeneous service customers. At CEG the core business is augmented with high service reliability and service performance measures, or in the words of CEG’s interviewees: “Performance, performance and performance again”. At CA, the organizational core business is underlined by its organisation credo: “service excellence”, a synonym for the highest service quality at all time. Additionally, case study partners SXX and CA started to develop accompanied business models. These are, for example, the refilling of ATM’s/cash machines (SXX) and front- and back office services for major customers (CA). These office services include the maintenance of customer contact centres that include operative management and the provision of

Case study analysis and evaluation: empirically observed concepts

accompanied services – the handling of customer requests and complaints, reverse logistic, installation of products (e.g. washing machines, TV’s, etc.)).

Specialization, as Spohrer & Maglio () highlight, is one of the key mechanisms for creating value within service systems and, according to Vargo & Lusch (, b), is the main driver/catalyst within service economies. Specialization forces to increase service interaction and value co-creation mechanisms since (especially micro- ) specialization ignore quality (and satisfaction expectations) of internal as well as external customers (Vargo & Lusch, , b).

Supplementary services

Since the transportation and logistics of goods from A to be B is not a big thing in modern economies anymore, transport service providers are forced to offer supplementary, satisfaction enhancing services. As observed, these supplementary services are about customized business continuity plans, increased/customized safety and security levels plans, controlling of service provision mechanisms by use of key performance indicators, interaction with customers, exchange of status updates, flexibility to customer requests, trust mechanisms (e.g. ISO certification) and business model innovation (including the change of business process and services).

Service Science scholars mainly focus on specialization. Supplementary services in selected literature about Service Science, such as observed within the case studies, are not considered. However, newer literature proposes to develop capabilities, e.g. managerial dynamic capabilities (Roberts et al., ), service capabilities (Keith et al., ), customer service capabilities (Chen et al., ), new sets of capabilities (disruptive innovation) (Karimi & Walter, ), as means to respond to customer requests.

Development of service provision goals

Core services and supplementary services of case study patterns are underlined with service provision goals. At SXX, service quality provision includes the development, management, controlling and monitoring of key performance indicators critical to success and failure to the organization. Service provision goals at SXX aim to guarantee

Case study analysis and evaluation: empirically observed concepts

stable costs, prizes, business partners, etc. and the (re-) engineering of the subjacent processes and services. At CEG, service provision goals are in close interaction with the customer. CEG aims to provide individual and organizational flexibility according to the customers’ needs, requirements and complaints. At CA, the development of mechanisms to provide service excellence towards customers is key. It includes the development of increased safety, security, reliability and stability measures as well as contractual penalties against branches that do not comply to organizational service provision goals.

Service scholars are aware about service provision mechanisms and goals. Barile & Polese (a), for example, present a service provision system. It consists of input parameters (resources, operations, individuals, relations, knowledge, ICT’s, information) that get transformed within incremental processes into outcomes: service.

Development of interaction mechanisms: interaction as a service

Case study partners provide sophisticated interaction mechanisms captured under the roof of the voice of the customer principle. The strategic board of managers (at SXX), the managing director (at CEG) and key account managers (at CA) manage this principle. It enables organizations to respond to particular needs, requests and requirements of case study partners’ customers and thus achieve higher service acceptance, service quality and service satisfaction. This principle allows to (re-) engineer customized service provisions (of core services and supplementary services), such as individual service offerings (e.g. development of tailored service offerings) and individual business continuity plans. As the interviewees of CEG highlight, the voice of the customer principle demands organizational flexibility, including that of the managers and employees.

A further observed important interaction mechanism are audits. Audits, demanded by service customers and internal authorities, enable to interact with a particular organization and communicate facts about the organizational constitution (e.g. service quality, service performance, financial situation). Vulnerabilities identified within these audits get implemented collaboratively, so that the case study partners can correspond to the customers’ needs and requirements. Audits create trust among

Case study analysis and evaluation: empirically observed concepts

business partners and service stakeholders as well as increase the organizational reputation. Reputation, as Pascale & Athos () highlight, is valuable where a long- term relationship is presumed to exist. Since interaction depends on well-educated and trained employees, case study partners take care about employees’ education and training. It happens physically (internal colleges and digital wikis and e-learning tutorials). Learning by doing is an important source for learning, as the interviewee of CA highlights.

Interaction in Service Science is a major antecedent to value co-creation. Applying the principle of value co-creation, the customer becomes an important resource and co- producer of service. As Spohrer et al. () highlight, objective then is to increase and improve service interaction mechanisms and value co-creation, which again is antecedent for service innovation and learning. Interaction, related to Maglio & Spohrer (), happens along at least four dimensions: “information-sharing, work- sharing, risk-sharing, and goods-sharing” including formal and informal exchanges. Service systems then are tasked, as Pagani () highlights, to transform knowledge (organizational intelligence) into relations intelligence – enacting an open communication process with its stakeholders.

Implementation of infrastructure as a service

Since each case study partner already has experienced an organizational breakdown (hurricane Sandy in , excavators that damaged a data stream km away from the headquarter, two mudslides at two different geographically locations at the same time), infrastructural assets, such as data streams and internet providers are under close revision. To maintain and to provide reliable infrastructure services, almost all infrastructure – including ICT infrastructure – are redundant. To keep infrastructure upright, SXX and CEG started to experiment with emergent technologies, such as UMTS (in case of SXX) and satellite communication technologies (in case of CEG).

Since employees are the most important resource within reliable service provision, case study partners aim to build up human redundancies. This includes, for example, the education and training of deputies and the allocation of responsibilities. SXX and CA pro-actively work on employee skill matrices, not only to make use of particular

Case study analysis and evaluation: empirically observed concepts

employee competencies but also to develop tailored training and education programs to improve human redundancy. To remain robust and resilient infrastructure services, case study partners pro-actively take part in formal and informal networks (e.g. blue light organisations (SXX), IT Leiter Baden-Württemberg (CEG)).

Although Service Science considers infrastructure (especially ICT infrastructure) as important part to launch service, service scholars do not come up with activities to secure infrastructure: how to make it robust, resilient and reliable. Karimi & Walter () propose to develop first-order dynamic capabilities to respond to (digital) disruption. These capabilities, “extend, modify, change and/or ordinary capabilities” such as “high-level routine (or collection of routines)” (Karimi & Walter, ).

.. Work system framework element: processes and activities

The resource-element “processes and activities”, as Alter () highlights, is about the “production” of services and products within a service system and argues. This resource-element heavily bases on human judgement and improvisation, as Alter () highlights since processes and activities in service systems are semi-structured, and are better described as a set of related activities (Alter, ). The analysis of this resource-element turns out that activities towards increased organizational robustness and resilience can be clustered among improvement processes, knowledge and learning processes, management processes, safety- & security processes, technology improvement processes and process support tools. The axial-selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Development of improvement processes

Foundational to improve processes and ICT services at the case study partners are internal and external audits. Audits, as the case of SXX highlight, are used to analyse and evaluate the service network and business ecosystem. In doing so, SXX pro- actively audits its business partners with the aim to implement SXX- and Suisse quality standards. These standards, according to SXX interviewees, are of higher quality and thus improve SXX’ overall service network. Business stakeholder participation –

Case study analysis and evaluation: empirically observed concepts

including pro-active and flexible employees, customers and other business stakeholders – is of major importance to improve processes and activities of particular service system. Renewal, change and innovation must be a duty of managers and employees, as the interviewees of CEG argue.

Service Science pro-actively calls for the inclusion of the organizations’ service ecology/environment to manage, engineer and design renewals, change and innovation. Service Science demands to include the voice of the customer, the voice of the market and the voice of the organization, as highlighted in the service-dominant logic FP number . However, audits as a mean to get engaged with particular service network is not included within Service Science and case studies augment this theory with new knowledge.

Development of knowledge (sharing/gaining) and learning processes

Knowledge and learning is a meta-resource within Service Science as well as in the case studies. It is antecedent for successful and sustainable value co-creation. As the case studies show, partners developed and maintain tailored knowledge and learning networks – no matter if they are informal or formal, digital or physical. These networks include digital and physical artefacts, such as participation within dedicated blogs and forums in internet, wikis, digital collaboration tools, etc. For example, CEG pro-actively takes advantage of global digital knowledge networks (e.g. internet blogs). If CEG faces an insolvable challenge, according to CEG’s interviewees, they search within dedicated internet blogs for a solution (information crowd-sourcing processes). As the interviewees report, at least one of the global world has already experienced the same problem and can report the solution. Important to CA is learning by doing.

Development of management and empowerment processes

In the centre of management processes is the question about centralization of power and decision-making processes or its de-centralization. De-centralization is about the empowerment and emancipation of employees. SXX, for example, puts a premium on the empowerment and emancipation of its employees. SXX pro-actively requests its employees to use and apply skills and competencies as well as assigned

Case study analysis and evaluation: empirically observed concepts

responsibilities. However, CEG maintains centralized management processes. Within its hierarchical approach, power and decision-making is assigned to the managing director (which is the % shareholder at the same time). As the interviewees of CEG said, this managing director has enormous impact and power on the CEG branches and departments as well as to their managers: “You can feel this (pressure)”, as the interviewees said. The CEG managing director fosters the voice of the customer principle – which can be, to the dismay of the interviewees and the employees of the ICT department, in strong contrast to the “voice of the organization” (ICT department) and its high safety, security and availability approach. CA maintains flat hierarchies and managers are encouraged to mediate and moderate among employees. CA puts huge efforts into the development of a leadership culture. Managers – as, for example, the former and now retired managing directors – are used as role models. Although managers and employees of SXX and CA experience enhanced levels of liberties, decision-making is assigned to a financial limit that they must not exceed. If a decision exceeds a specific amount, than the decision-making is assigned to the next higher management level.

Although Service Science considers humans as an important resource within service systems, service scholars do not consider management and empowerment processes within service systems. Similar processes as described within this section could not be identified within the literature.

Development of safety & security processes

To keep safety- and security standards high, case study partners developed redundancies measures to decrease vulnerabilities as well as the impacts of risks and (sudden) hazardous events. Redundancies also facilitate decision-making: without redundancies, as for example the interview of CA highlights, decisions would not be that risky. Safety and security processes are essential to the case study partners. While SXX maintains an own department for safety, security and compliance, CEG and CA assign tasks and responsibility to operational managers and employees. Employees, as the interviewee of CA highlight, are the specialists within a particular field of business and can estimate risk exposures better. Risk management at CEG, including the

Case study analysis and evaluation: empirically observed concepts

assessment of safety and security, is an essential activity within project work. CA additionally relies on ISO . It is an international standard about Information Security Management System and comprises safety, security and risk management practices too. However, Service Science does not capture safety and security processes to increase organizational robustness and resilience yet. Activities towards safety and security can be summarized as: “change or die” (Spohrer et al. ()) The development of safety and security processes to increase organizational robustness and resilience – as observed within the case studies – have not arrived within this theory yet.

Development of technology improvement processes

Case study partners pro-actively explore technological changes, renewal and innovation within their service network and business environment. In doing so, case study partners put a premium on their employees. Employees are encouraged to pro- actively monitor emergent technologies. CA, additionally, maintains a department for research, development and innovation. This department is responsible to work and collaborate within (international) projects about emerging technologies – including internal and external partners such as universities and research centres. Service Science consider technology improvement processes. Service Science scholars propose to develop distinct IS capabilities (Ravichandran (), IT capabilities (Chen et al. (), exploration and exploitation capabilities (Selander et al. ().

Development of process support tools

To keep the “production” of services and products in a particular organization upright, case study partners use a wide range of supportive technologies. These include, for example, control and monitoring tools, communication and collaboration tools, standardized and emergent communication tools as well as enterprise resource- and process planning tools (e.g. Transport Management System, Warehouse Management System, including individualized modules, processes and check-points). Case study partners connect a particular service network and the business environment with Exchange Data Interfaces to operational processes. Related to future investments, interviewees of CEG highlight the need of an ICT archiving system whereas CA favours an intrapreneurship award system. This award system then would allow to

Case study analysis and evaluation: empirically observed concepts

increase the employees’ engagement with organizational measures into renewal, change, adaptions and innovation. Service Science considers support tools as independent service systems. Especially the Work system theory and SSMED proposed frameworks to increase the service provision of service systems, such as the blueprints, work system framework, etc.

.. Work system framework element: participants

The resource-element “participants”, as Alter () highlights, is about system participants who perform the work within service systems. This element, according to Alter (), not only considers users and non-users of ICT but also important participants, such as customers. The analysis of this resource-element turns out that activities towards increased organizational robustness and resilience can be clustered among employees & human resource management, management, external, direct stakeholders and external, non-direct stakeholders. The axial-selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Human resource management: coordination of employees

Employees within the case study partner organizations are considered as the most important resource. As the interviewees of SXX highlight: “Humans show a certain behaviour, reliability and judgement: a human can intervene and manage immediately if something happens. To maintain robustness, humans have to coordinate. Therefore humans are by far the most important factor”. Innovative thinking employees are at the heart of all case study partners: employees that are pro-active and are aware about emergent future trends and technologies. Case study partners report that human redundancy is of major interest: while SXX and CA aim to implement a deputy system, CEG focuses on teamwork. The interviewees of CEG are aware that employees are specialised professionals, but in the case of a sudden perturbation, employees have to enhance their functions. SXX and CA are working on employee skill matrices to make use of particular employees’ skills and competences as well as to develop tailored training and education plans. Since CA maintains a college for employee education and training, employees are invited and motivated to do so and improve their individual

Case study analysis and evaluation: empirically observed concepts

capabilities. Important to CEG is the employee recruitment: CEG emphasises on employees that fit into the organization and are sophisticated within their field of business – “freaks”, to use the word of CEG’s interviewees that also perform experiments and tests at home. Although the work system theory acts as a framework to support business professionals, human resource management resp. coordination mechanisms within Service Science could not be found. Kutsch et al. () call for mindfulness-based reliability management. Their approach is related to risk management practices rather than to human resource management.

Management of change, renewal and innovation

The management of change, renewal and innovation is considered as a duty – on the operational and strategic level. As observed, case study partners have an innovation- friendly board of managers that are open to change and innovation. Although the managing director at CEG negotiates with the ICT department, the ICT department at CEG is the main driver for innovation within the organization. As CEG interviewees said: “We cannot wait until the managing director has some ideas. Suggestions and proposals for improvements, renewal and change, have to come from our side! If the managing director made such suggestions, we would recognize that we are too late”. At SXX and CA, power and decision-making is spread to strategic managers and operational management, but controlled and monitored with service level agreements and central requirements. Central to SXX management of change, renewal and innovation is the strategic department “Safety-, Security- and Compliance”. This department centrally coordinates organizational robustness and resilience measures. It has fundamental access rights into operations and operational management. In the centre of CA is the department “Research, Development & Innovation”. This department is tasked to work on emergent trends and technologies, which are central to CA’s business success, sustainability and survivability. As captured in Service Science literature, innovation is the third major pillar within Service Science (Campbell et al., ). The major source for innovation are customers, the co-creators of value.

Cooperation with external, direct stakeholders

Case study analysis and evaluation: empirically observed concepts

As manifested in Service Science literature, case study partners pro-actively cooperate and collaborate with their external, direct stakeholders. Central to the case study partner activities and efforts are the performance of collaborative audits, the maintenance of networks to business stakeholder and the customer, especially by application of the voice of the customer principle. This principle is a core function to the case study partners and managed by the top management (e.g. managing director, board of management, key account managers). Additionally, CA will release a digital customer relationship platform to increase customer interaction and cooperation. SXX and CEG maintain a tight ICT-supplier collaboration key: on a regular basis (mostly once per week), managers of SXX and CEG perform telephone conferences to discuss emergent trends and challenges about ICT supplier’s software, and features. CEG has a healthy suspicion towards external suppliers, but it gets better when the supplier proofs its service quality, including maintenance of error-free ICT services. Service- dominant logic proposes not only to focus on the voice of the market principle, but also include the “voice of the market” as well as the “voice of the organization” into a particular organization. The overall aim then is to build up a service-centered organization wherein service interaction and service exchange flourish.

Cooperation with external, non-direct stakeholders

Central to the activities related to external, non-direct stakeholders are the active observation of the organization’s political, macro-economic and societal environment. Political changes, as especially observed within case study CA, have a major impact on business models. For example, the accession of Austria to the European Union in caused the breakdown of CA’s custom broke business model. The free movements of goods between EU member states made customs clearance superfluous. At the same time, the accession of the eastern states of Europe opened new markets – wherein CA quickly gained a foothold. Case study partners provide sophisticated mechanisms to cooperate with external, non-direct stakeholders, such as audits, contingency insurances and market observations.

Case study analysis and evaluation: empirically observed concepts

.. Work system framework element: information

The resource-element “information” is about the use/processing and creation of information. It is in a strong relationship to the resource-element “processes and activities”. According to Alter (), resource-element “information” captures both information “that is captured or represented by computers and other information that is never computerized”. The analysis of this resource-element turns out that activities toward increased organizational robustness and resilience can be clustered among artefacts for information management, information exploration and exploitation. The axial-selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Development of artefacts for information management

As the case studies highlight, case study partners pro-actively comply and develop artefacts for information exploration and exploitation. These artefacts base on social (behavioural) processes (pro-active, well-educated employees, employees, which also perform experiments and tests at home) and digital technology such as Exchange Data Interfaces, information sharing technologies, software redundancy, use of control and monitoring systems, increased ICT availabilit. The development and usage of artefacts for information management can increase both – ICT and organizational mindfulness. According to Dernbecher & Beck (), it is duality: ICT facilitates mindfulness and mindfulness shapes ICT.

Development of information exploration mechanisms

Internal information exploration and sharing of information among managers and employees happens openly and directly, including the reporting of failures. Managers and employees favor open and direct communication. Since CA provides a strategic department for research, development and innovation, this department is tasked to strategically explore new and emergent information. In doing so, CA strategically collaborates with universities and research centres and performs collaborative research projects. However, research and exploration activities at SXX and CEG are underdeveloped and are done on the side of daily business – without external partners.

Case study analysis and evaluation: empirically observed concepts

Case study partners are a part of and inter-connected to external formal and informal business ecosystems. These include business partners and service stakeholders as well as strategic alliances. For example, the interviewee of CEG is a part of the workgroup “IT Leiter” in Baden-Württemberg. This workgroup connects ~ ICT managers to jointly exchange information, experiences and the best practices about emergent trends and challenges within the field of Industry . and Physical Internet. The use of Exchange Data Interface technology enables case study partners not only to exchange information but also – by the use of analytics integrated into their Transport Management Systems and Warehouse Management Systems – to perform data mining. CA pro-actively works on a customer relationship platform to integrate the customers into particular service provision processes. A further, highly respected information exploration mechanism within the case study partners’ organizations are audits: all case study partners rate audits (internal and external) as highly positive and consider the result out the audits as an important opportunity to (re-) engineer and improve business processes, service and infrastructure.

Development of information exploitation mechanisms

Case study partners prefer open and direct information exploitation and sharing mechanism. Again, preferred forms are open and direct communication– face-to-face conversations/meetings – among managers and employees. Information gets exploited within continuous employee trainings which include physical education (e.g. in an internal college, pro-active support of apprentices, go through all operational departments) and digital education. Digital education is about the sharing of documents by the use of cloud-based platforms/central storages (all case study partners), wiki’s (SXX, CA) and e-learning tutorials (SXX). As the interviewee of CA highlights, learning by doing is an important source for knowledge. New information, as the interviewees of CEG highlight, demand employees’ flexibility: urgent customer requests as well as the requests of the managing director have to be prioritized.

.. Work system framework element: technology

As Alter () highlights, the resource-element “technology” is about both – tools that are used by physical work system participants and automated agents; that is,

Case study analysis and evaluation: empirically observed concepts

hardware/software configurations that perform totally automated activities (Alter, ). The analysis of this resource-element turns out that activities towards increased organizational robustness and resilience can be clustered among control & monitoring, technology availability, technology as a driver, technology exploration & exploitation and human. The axial-selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Development of control & monitoring mechanisms

Case study partners pro-actively control and monitor used ICT technologies. These technologies are categorized into A, B and C applications. While perturbations within A-rated applications (e.g. Transport Management System, Warehouse Management System) have to be fixed within minutes, C-rated pertubations experience less restrictive reaction times. At CEG, as the interviewees highlighted, the trend is that – step-by-step – all technologies shift to category A. Nowadays, as the interviewees explained, the requirement is that no system or service should breakdown. To respond to ICT perturbations, case study partners maintain redundancy measures on infrastructure, hardware and software level. Issue tracking – the digital reporting of issues, problems and changes on business, process and (ICT) service level – is applied at SXX and CA. Both organizations maintain a tailored software to control incidents, problems and changes. At CA, this issue tracking is seamlessly integrated into its organizational continuous improvement processes (KVP). Within Service Science/SSMED control and monitoring is mainly about the question how to improve controlling and thus to optimize resources. It is a service (re-) engineering activity and effort and thus to develop new technologies, including adequate approaches to promote information check, measurement and diffusion within service systems (Polese et al., ).

Continuous provision of technology services – increase of the availability of technology

Case study partners, as observed, maintain a high availability of their ICT systems and ICT services. It is close to ~ , %. The missing ~ ,-, %, as the case study

Case study analysis and evaluation: empirically observed concepts

partners confirm, are accompanied with huge investments. Nevertheless, objective of the case study partners is to maintain these values about ICT availability or to increase them. Case study partners categorize their ICT applications into A, B and C applications. A-rated applications must not breakdown: even a few minutes of inaccessibility are extraordinary painful for the particular organization and cause chaotic situations within its business operations. As the case study interviews turned out, case study partners have already experienced such scenarios: SXX experienced a h lasting breakdown of the whole ICT system; CEG experienced the “Zwickau-case” – a breakdown of its Transport Management System and Warehouse Management System wherein employees were asked to use their smart phones to connect to the main server; CA experienced two mudslides at the same at two geographically separated locations, which interrupted the redundant data streams of CA’s headquarter to its branches in the Eastern part of Europe.

Service Science literature does not consider availability measures as observed in the case studies. Only newer literature, e.g. Granados & Gupta (), Chen et al. (), Ravichandran (), consider ICT and its availability as organizational capability and unique selling proposition to service clients.

Technology as a driver

Due to the fact that almost all business models within the case study partner organizations are underlined with technology, technology is a driver for increased collaboration and supplementary services/new business models. For example, case study partners use technology – cloud based technologies – to share internal documents. Exchange Date Interfaces are used to automatically disseminate status updates about transportation services to its business environment. Since the transportation of a good from A to be B is not a big thing anymore, EDI interfaces and digital communication with the business environment facilitates competitive advantages. In addition, data out of this digital communication allow to develop tailored business models for customers. Ren & Dewan () support this observation and argue that advanced technology can support to cope with the competiveness pressures within and among organizations. Advanced technology can be a key to

Case study analysis and evaluation: empirically observed concepts

organizational survival and competitive advantage. ICT technology then becomes a strategic necessity (to organizational sustainability and survivability).

Pro-active technology exploration & exploitation

As the case study interviewees equally confirmed, employees (are encouraged) to pro-actively explore emergent technologies within their particular field of business. This is basically in line with Service Science: Sharma & Rai (), for example, consider human factors as a key to innovation. In the centre of the case study partners employees exploration strategy then are technologies that enable (internal and external) collaboration. These technologies, as observed within SXX and CA, are used for enhanced levels of internal communication (e.g. internet-based communication technologies that enable real-time webinars, conference calls), information exploitation and learning (dissemination of e-learning tutorials. Additionally, case study partners already integrated service clients into its Transportation Management System and Warehouse Management System. Nice to have, according to interviewees of SXX and CEG are a digitalized change management process (SXX) resp. a technology archiving system (CEG).

Humans as a trigger to launch technology

Service Science considers service systems as socio-technical constructs (Böhmann et al., ) wherein system resources – including people, technology, organizations, and shared information – cooperate and collaborate to achieve service provisions. Major resource to the case study partners are humans that use the technology: humans, as the interviewee of SXX gets to the point, have competences, skills, empathy, teamwork, solution finding and innovative thinking capabilities. Technology at all case study partners is considered as an important resource, but only secondarily. It is considered supportive to human work and business, or in the words of CA’s interviewee: “ICT follows business, ICT enables business”. As Service Science literature highlights, to gain full advantage out of human resources, its skills and competences, managers are forced to develop distinct business and IT skills – human resource practices, such as training, hiring, innovation encouragement, as Luftman et al. () argue.

Case study analysis and evaluation: empirically observed concepts

1.3 Theory development: capability-based policies towards organizational robustness and resilience

This section presents the results of the coding process by the use of the dynamic capability approach. Related to Teece's () Dynamic Capability microfoundation, this section consists of three subsections wherein the capability-based activities towards organizational robustness and resilience get presented. Dynamic capabilities, according to Teece (), assist in achieving the organization’s evolutionary fitness. Today, as he argues, it is harder to achieve this fitness then years before. Each of the following subsections consists of a theoretical description of a particular microfoundation framework element (sensing, seizing, managing threats/transformation), the case study findings (summarized in an introductory table and descriptively presented within a related subsection) and its comparison with literature and theory.

.. Microfoundation framework element: sensing (and shaping new opportunities)

Sensing (and shaping new opportunities) capability, as Teece () highlights, is very much about scanning, creating, learning, and interpretive activity. The aim of this microfoundation framework element is to “develop an analytical system that is able to learn and to sense, filter, shape, and calibrate opportunities” (Teece, ). It includes the organizational internal and external environment. It demands the strategic management: strategic managers are forced to gather and filter technological, market, and competitive information, make sense out of this information and figure out implications for actions (including the allocation of resources) (Teece, ). Activities involve “understanding latent demand, the structural evolution of industries and markets, and likely supplier and competitor responses” (Teece, ) as well as “investment in research activity and the probing and reprobing of customer needs and technological possibilities” (Teece, ). Sensing (and shaping new opportunities) is underlined with processes to direct internal R&D and select new technologies, processes to tap supplier and complementor innovation, processes to tap

Case study analysis and evaluation: empirically observed concepts

developments in exogenous science and technology and processes to identify target market segments, changing customer needs, and customer innovation.

The analysis of this microfoundation framework element turns out that cognitive capabilities of organizations (the knowledge database, including its managers and employees) are of major importance. Cognitive capabilities enable to develop and launch further capabilities as information sharing, internal & external collaboration, vertical & horizontal collaboration, training and education of employees. The axial- selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Processes to direct internal R&D and select new technologies

Since case study partner CA maintains a strategic department for research, development and innovation, this organization can be seen as a reference to direct internal R&D and select new technologies. As CA’s interviewee highlights, this department has the duty to collaboratively perform research into and test emergent technologies as well as (re-) engineer and design new organizational processes and services. In doing so, this department performs internal and external projects that include internal operational departments and external organizations and institutions, such as universities and research centres.

As the case study interviews turn out, pro-active and flexible managers and employees are a key to direct internal change, renewal and innovation. As the interviewees of CEG highlight, it must be a duty of an employee to think innovatively. It can be achieved by the development of an appropriate employee management and leadership culture, e.g. empowerment/emancipation (in case of SXX), target-oriented management (in case of CEG) and mediation/mentoring (in case of CA). However, as Teece () argues, “to sustain dynamic capabilities, decentralization must be favoured because it brings top management closer to new technologies, the customer, and the market”.

Case study partners SXX and CA pro-actively work on an employee skill matrix. This matrix not only captures and makes use of employees’ skills and competences to

Case study analysis and evaluation: empirically observed concepts

develop human redundancies, but also to develop targeted education and training plans to impart organizational knowledge and expertise.

To direct internal R&D and select new technologies, case study partners maintain innovation networks (formal/information, vertical/horizontal, internal/external, digital/physical). Within these networks, case study partners pro-actively participate in events. Furthermore, information to direct R&D and to select new technologies are gained out of dedicated journal (articles), magazines, newspapers and internet blogs (especially in case of CEG). CEG also put major emphasis on the recruitment of employees – “freaks”, in the words of the interviewees, that also perform experiments and tests at home.

Processes to tap supplier and complementor innovation

In the centre to tap supplier and complementor innovation are audits. For example, major customer of SXX pro-actively demand business audits, a catalogue consisting of ~ questions related to service quality, service provision and performance as well as to safety and security mechanisms. Identified gaps and vulnerabilities then get collaboratively improved according to the customers’ demands. Additionally, SXX applies processes to audit, control and monitor its business partners and stakeholders (e.g. carriers). These processes include, for example, the control and monitoring of the partners’ infrastructure, business services, service performance and service quality as well as finance (e.g. cash flow, balance sheet, etc.).

Case study partners CEG and CA pro-actively include business and ICT consults into their efforts. Networking (within formal and informal business networks) are of further importance to the case study partners. A further important process is ICT supplier collaboration. (Mostly) On a weekly basis, SXX and CEG perform ICT supplier telephone conferences to tap innovation related to developments within the Transport Management System and Warehouse Management System software. As observed in cases of SXX and CA, the development of customized business continuity plans and business models are possible.

Case study analysis and evaluation: empirically observed concepts

Processes to tap developments in exogenous science and technology

Pro-active, independent and curious employees are a key to case study partners to trigger to tap developments in exogenous science and technology. To increase this interest among science and technology, CA, for example, aims to implement intrapreneurship award processes: a platform where managers and employees can submit project ideas, innovation ideas, etc.

An important part towards the case study partners is the maintenance of physical and digital processes that breaks down organizations’ “isolation”. Case study partners skim and scan relevant literature (e.g. journals, newspaper, magazines, etc. – hardcopies as well as digital) to explore trends, challenges and innovation about emergent technologies within their particular field of business. But also, case study partners pro-actively participate in trade fairs and workshops (e.g. IT Leiter Baden- Württemberg) to discuss emergent topics within its field of business. CA pro-actively maintains business relationships and offers excursions to befriended companies. However, CEG pro-actively collaborates within internet blogs (information crowd- sourcing). As the interviewees said, if we face a challenge and do not have the solution yet, at least same one in the digital world can support and provide the answer. CA pro- actively collaborates with universities and research centers and performs research projects (including international, national funded project and student projects).

Processes to identify target market segments, changing customer needs, and customer innovation

In the center to identify target market segments, changing customer needs, and customer innovation are customer integration processes, but also service ecology/environment screening processes. Customer integration processes, as observed, are about the integration of case study partners’ customers into service provision processes as well as work and update particular service portfolios. Case study partners apply the voice of the customer principle. At CEG, this principle is managed, controlled and monitored by the managing director. Everything else at CEG is subordinated to this principle.

Case study analysis and evaluation: empirically observed concepts

Case study partners pro-actively screen their political environment and maintain processes to turn political decisions into new business models. Due to “The Macroeconomics of De-Cashing” by the International Monetary Fund, SXX has already worked on new and innovative business models to sustain and survive within this field of business. Due to its geographically dislocation, the managing director of CEG decided to move the headquarter to the town of Reutlingen – a medium-sized town in Baden-Württemberg and closely related to major cities like Stuttgart, Karlsruhe, Frankfurt, Basel and Munich. Due to the accession of the former Eastern Bloc states to the European Union, CA used this opportunity and chance and expanded to Hungary, Romania, Bulgari, and further Eastern Bloc states. Their continuous investment into innovation and thus their high innovation maturity, as the interviewee confirmed, opened these markets. CA has already identified further market segments and aims to release branches in all countries among the former Silk Road.

.. Microfoundation framework element: seizing

Microfoundation framework element seizing, as Teece () highlights, is accompanied by the maintenance and improvement of technological competences and complementary assets as well as business modelling. Additional seizing is about the up-front investments into development processes, the recognition of “dominant design/technologies” – a design that has prevailed over other designs (Abernathy & Utterback, ) – and the most favourable investment point in time into these dominant design/technologies. Related to Teece (), seizing’s microfoundations are about delineating the customer solution and the business model (“selecting the technology and product architecture, designing revenue architectures, selecting target customers, designing mechanisms to capture value (Teece, )), selecting decision- making processes (“recognizing inflexion points and complementaries, avoiding decision errors and anti-cannibalization proclivities (Teece, )), selecting enterprise boundaries to manage complements and “control” platforms (calibrating asset specificity, controlling bottleneck assets, assessing appropriability, recognizing, managing, and capturing cospecialization economies (Teece, )) and building loyalty and commitment (demonstrating leadership, effectively communicating, recognizing non-economic factors, values, and culture (Teece, )). The axial-

Case study analysis and evaluation: empirically observed concepts

selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Delineating the customer solution and the business model

Since the transportation of goods from A to B is not a big thing anymore, case study partners highly involve customer into service provision processes. Case study partners collaborate with the customer to provide targeted customer processes and business models. These processes and business models base on increased physical and digital interaction mechanisms with the customers. Strategic managers, as observed, have shown business acumen and the ability to carefully deal with venture capital. Due to negative bank interests, for example, SXX developed a business model to store cash within their warehouses. This business model is a win-win model: SXX customers avoided negative bank interests whereas SXX at the same time increased their warehouse utilization. In the ies and ties, CEG had to cope with the mass exodus of the textile industry from the Swabian Alb to Asia. As a reaction, CEG developed business models and entered new market segments: now, CEG is a transport service provider in further business segments, such as the chemistry industry, pharma industry and the transportation of dangerous goods. CA pro-actively developed business models for General Parcel Services. Due to changed procurement strategies of customers and increased internet purchases, this business model turned into CA’s cash-cow. Today, the General Parcel business model supports business models that are under development or in the phase of a question mark.

Selecting decision-making processes

Case study partners have to react to several dynamics per day. Fast and immediate decision-making resp. change (management) is daily business at all business levels. In doing so, SXX and CA developed processes to empower and emancipate their employees. Both case study partners assigned responsibilities and decision-making competences to their employees. However, if a decision and/or change is above this defined financial amount, the decision/change is assigned to the next management level and so on – until the strategic board of managers. Although the ICT department of CEG experiences some liberties (compared to other departments), decision-making

Case study analysis and evaluation: empirically observed concepts

at CEG is hierarchical and is in charge of the managing director. This managing director, additionally the only shareholder of CEG, has the ultimate power, as the interviewees confirm. Decision-making processes at SXX and CA, are additionally captured in business continuity plans, service level agreements and central requirements, which are in turn an important scenario and contingency planning processes to the particular organization. Additionally, SXX and CEG implemented check-points within their Transport Management System and Warehouse Management System. Basing on these check points, employees get demanded by “smart and intelligent” digital processes to comply with SXX’ internal processes.

Selecting enterprise boundaries to manage complements and “control” platforms

Since enterprise boundaries have become more blurred, customers and related business partners get involved into case study partners’ service provision processes. Case study partners, as observed, keep formal and informal, vertical and horizontal networks to business partners and suppliers. These networks are used to exchange information on the short path and to perform benchmarks. These integration processes are accompanied by the engineering, design and maintenance of physical and digital customer and business partner interfaces. Based on Exchange Data Interfaces (integrated in ERP systems), case study partners’ pro-actively exchange and share real- time information about a particular service with their service and business network. Data exchanges not only include track & tracing about shipments and accompanied documents (invoice, delivery note, pick-up order, etc.), but also information about dangerous goods, customs broke, inventory lists, etc. To keep physical customer interaction upright and to manage complements, CA implemented key account managers. Additionally, CA aims to launch a digital customer relationship platform to increase customer interaction. At SXX and CEG, customer interaction is managed, controlled and monitored by the board of managers (at SXX) resp. the managing director (at CEG) – especially customer complaints. To keep service performance and service quality high, SXX developed processes to audit business partner. Partners, such as carriers get audited by SXX’ strategic department for safety, security and compliance. Identified vulnerabilities then need to be closed according to SXX demands – otherwise SXX rejects the business relationship. The aim of business partner

Case study analysis and evaluation: empirically observed concepts

audits, according to SXX’ interviewee, is to become the focal node in the service network – a strategic position within its service network that enables SXX to define and build-up service performance measures and service quality standards.

Building loyalty and commitment

To build-up enhanced levels of loyalty and commitment, internal and external system participants is of major importance. Commitment, as observed within the case study, relates to trust mechanisms, employee centricity and role models. CA, for example, can look back on a very long company tradition. The first documentary mention dates back to the th century. Since the th century, CA has been officially registered in the Austrian company register. Since this time, CA has emerged from a national transport service provider to a multi-national provider for all kind of transport logistic and supply chain management services. Commitment (trustful supplier- customer relationships), according to the interviewee of CA, builds up on many years of flawless cooperation with customers. As the case of CA additionally highlights, former managing directors showed huge evidence for business acumen and the right use of venture capital. They transformed CA from a national transport service provider to a global corporation, a fact that is highly honoured by international business and economy. Service customers, as the interviewee of CA told, have great trust and confidence into the CA organization and see it as an innovative and sustainable organization.

Case study partners consider humans as a unique resource. In case of a sudden issue, humans can intervene, search for alternatives and – although in organizational distress – successfully finalize the customer service. SXX, for example, built-up processes to empower and emancipate employees so they can bring in individual competences and skills. CEG applies a target-oriented management of employees. Managers serve the needs of the employees but also define the employees’ individual targets and measures to achieve them. CA fosters employee mediation: managers are seen as mediators between specialists (employees). Specialists, according to these processes need to be mediated to achieve better results. As the interviewee of CA said, in the centre to these processes are huge investments into education and training of both – managers and

Case study analysis and evaluation: empirically observed concepts

employees. CA aims to keep employee fluctuation rate low and equips its employees with long-term employment contracts. Incentives, such as flat hierarchies, internationalisation, innovation, technology, etc. support this approach.

.. Microfoundation framework element: managing threats/transformation (reconfigure)

In the center of the microfoundation framework element managing threats/transformation dynamic capability is the avoidance of “structural rigidities and perversities that in turn handicap customer and technological responsiveness” (Teece, ). Managing threats is about the ability to recombine and reconfigure, for example, assets and organizational structures to pursue “evolutionary fitness”. Evolutionary fitness consists of both – incremental innovation (adaption of routines and structures) and radical innovation (science based; new/different set of structures and procedures). This includes business model redesign, asset-realignment activities and revamping routines (Teece, ). Related to Teece (), managing threats/transformation is about the decentralization and near decomposability, governance, knowledge management and cospecialization. The axial-selective coding, as summarized in table (annex B: coding), is the basis for the following subsections wherein the findings of the case study research get presented.

Decentralization and near decomposability

Case study partners SXX and CA pro-actively involve employees into decision- making processes. Both organizations assign responsibilities to employees. As the interviewee of SXX said, empowerment and emancipation support to make use of individual skills and competencies of the employees. CA invests huge efforts (e.g. financial, time, etc.) into leadership culture processes. In their approach, employees are specialized experts. Managers then are demanded to mediate and mentor between these experts.

At SXX, each branch is equipped with an operational risk manager. Although this risk managers report to the operational branch, the strategic department has direct access to this risk manager. Risk managers receive direct orders (business continuity

Case study analysis and evaluation: empirically observed concepts

plans, service level agreements and central requirements) from the strategic department that – with respect to and consideration of cultural differences – have to be implemented. If orders do not get implemented, the branch will face contractual penalties. Branches at CA experience certain liberties and decision authorities. Nevertheless, top management defines the attributes of (new) branches: how it has to be structured, including branch management, staff position and personal development. Redundancy management at all case study partners is centralized. Redundancy is a key mechanism at case study partners’ organizations and facilitates decision-making. As the interviewees confirm, without redundancy, decision-making would not be so risky.

Governance

Within the case study partners’ organizations, governance is an activity of the strategic management. These managers are in charge to develop and manage processes to maintain and increase a particular service reliability approach. In doing so, case study partners implemented processes to control and monitor service performance and service quality to keep sensitivity to service provision, service performance and service excellence up to the highest possible level. At CEG, the managing director is the driving force to maintain this high reliability approach. As CEG’s interviewees confirm, this director creates high pressure on high service performance. SXX and CA make use of business continuity planning processes. Both case study partners pro-actively designed and developed business continuity plans, central requirements and service level agreements. Additionally, they punish non-complying and non-performing branches with contractual penalties. Case study partners apply tight collaboration with the customer. Customers’ needs, requirements and complaints are the heart of the case study partners business’. Case study partners developed distinct processes that support the voice of the customer principle. ICT infrastructure at the case study partners is centralized. This includes ICT infrastructure (e.g. data centers, buildings), hardware and software as well as to implement central ICT governance mechanism. Maintenance services, for example, happen mostly on Sundays within a timeframe where least users are active (midnight until three o’clock in the morning at SXX). ICT

Case study analysis and evaluation: empirically observed concepts

infrastructure (e.g. data centers, buildings), hardware and software are secured by redundancy measures. These include processes to easily switch from one data center to the other.

Knowledge Management

Centre to knowledge management are processes related to sharing and gaining of data, information and knowledge. The use of physical and digital collaboration methods and tools is a matter of course! It includes the facilitation of open communication processes, such as face-to-face meetings, telephone, smart phone, but also the use of emergent digital tools: internet telephony and cloud based document- sharing platforms. To increase knowledge and its management, case study partners implemented pro-active processes towards the education and training of employees. At SXX each new employee has to go through all operational departments within a month. CEG pro-actively educates and trains apprentices and instructs to perform research projects within emergent fields of business and/or ICT. CA runs and maintains an internal college wherein employees get educated and trained as well as they can increase individual skills and competencies. To make use of employees’ individual skills and competencies, SXX and CA are working on skill matrices. These matrices aim to support to identify internal knowledge, expertise and resources as well as to develop human redundancies. CA runs a strategic department for research, development and innovation. In this department, employees are tasked to systematically perform innovation projects. These projects can be internal; but most projects are in collaboration with external knowledge bearers, such as universities and research centers.

Cospecialization

Cospecialization, as observed in the case studies, highly relates to business acumen and venture capital. Case study partners maintain a second economical leg (or even more): CA emerged from a regional transport service provider to a multi-national company within ~ years. CA invested into technology and business models engineering. Due to these investments, CA was able to enter new markets, e.g. in the former Eastern Bloc states, China, etc. and new market segments (General Parcel

Case study analysis and evaluation: empirically observed concepts

Services). General Parcels Services had already been developed in the ties. At this time, it was a highly negative business and competitors were funded with public money. On demand, CA operates front office services for its customers, including the customer handling, logistic, installations, etc. Due to the banking crisis in , SXX immediately developed business models to store cash. These business models generated win-win situations for both: the service customers were able to avoid negative bank interests. SXX was able to increase its warehouse utilization. SXX managers pro-actively work on the ongoing trend of “The Macroeconomics of De- Cashing” (a theses paper of the International Monetary Fund): a politically driven decision/future scenario towards the removal of cash of daily life. This political decision will break down one of SXX core cospecialization business models – the refilling of ATMs. Due to the migration of the textile industry from the Swabian Alb to low labour cost countries in Asia, CEG was forced to develop alternative business models. CEG opened its business models and nowadays, CEG is a sophisticated service provider within the BB markets and is specialized in many market segments, such as the textile industry, chemistry, transportation of dangerous goods, pharmaceuticals, etc.

The strategic management framework for engineering of organizational robustness and resilience

2 The strategic management framework for engineering of organizational robustness and resilience

In the centre of this chapter is the introduction and presentation of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience (SMFRR; c.f. figure ). The SMFRR originates in previous chapters about theoretically literature about Service Science and Organizational Robustness and the empirical field. Foundational base of design and development of the SMFRR are theoretically predicted concepts and empirically observed concepts within these chapters. The SMFRR captures the findings of these chapters under one roof and acts as response to overall dissertations’ research question about how a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like. The SMFRR is to plan for an uncertain organizational future and to develop and engineer increased levels of organizational robustness and resilience, system participants are advised best to work on organizational capabilities – to transform “ordinary” resources into competitive advantages (resources that are valuable, rare, inimitable and non- substitutable (VRIN)) – responsiveness capabilities, cognitive capabilities and dynamic capabilities.

The strategic management framework for engineering of organizational robustness and resilience

Figure : Strategic management framework for engineering of organizational robustness and resilience (SMFRR)

The SMFRR is designed and developed to support system participants (e.g. scholars, mangers, decision makers and employees) to analyse and evaluate as well as to manage, engineer and design enhanced levels of organizational robustness and resilience in service systems. Capabilities captured in the SMFRR enable to build up enhanced responsiveness, cognition and dynamic towards organizational dynamics, risks, uncertainties and crisis. The capabilities foster VRIN resource engineering, system adaption & change, system innovation and evolution as well as a new organizational culture towards organizational robustness and resilience. At resource level, as depicted in figure , the SMFRR adapts Alter's () perspective on service systems and its resources. At this level, the SMFRR supports managers, decision makers and employees to design and develop organizational capabilities, which again are origin for the (re-) engineering of valuable, rare, inimitable and non-substitutable

The strategic management framework for engineering of organizational robustness and resilience

(VRIN) resources. Organizational capabilities, as identified in literature, are about the development of best practices and routines on resource, which again create competitive resource advantages. Additionally, the SMFRR supports the development of capabilities that increase organizational robustness and resilience at system’s operational-, tactical- and strategic management level. These are responsiveness capabilities towards system adaptation and change at operational level, cognitive capabilities (including interaction, value co-creation and mindfulness) towards system innovation at tactical level and dynamic capabilities towards system evolution at strategic level.

This chapter is structured consists of five sections. Section one presents applied research design and the description of the design process of the SMFRR: clustering of empirically observed concepts and theoretically predicted concepts at strategic, tactical, operational and resource management level. Section two presents the heart of the SMFRR – the resource-based work system framework and its main mission: engineering of VRIN resources and organizational capabilities towards organizational robustness and resilience. Section three presents the operational management level, which is tasked to design and develop responsiveness capabilities towards enhanced levels of organizational robustness and resilience. Tactical management level, as presented in section four, is tasked to develop cognitive capabilities towards enhanced levels of organizational robustness and resilience. Section five is about the development and engineering of dynamic capabilities towards enhanced levels of organizational robustness and resilience. This level is based on the Dynamic Capability microfoundation framework.

2.1 Research design

The design and development of the SMFRR bases on the logic modelling technique. Related to the case study approach of Yin (), logic modelling is a technique of matching empirically observed events and theoretically predicted events. Theoretically predicted concepts identified in literature and empirically observed concepts identified in case studies get matched. The process of matching of theoretically predicted

The strategic management framework for engineering of organizational robustness and resilience

concepts and empirically observed concepts is incremental. The SMFRR towards its current appearance had to go through several design iterations wherein the SMFRR and its management levels got refined in multiple steps. Point of origin is the developed analytical framework in chapter /part II. The analytical framework is a merger of Alter's () work system framework and Teece's () dynamic capability microfoundation framework and builds the foundation to further develop and engineer the SMFRR towards its present appearance.

Afterwards, concepts as used in the SMFRR are developed. These concepts are rooted in theoretically predicted concepts identified in literature and empirically observed events in case studies and are purposive abstractions. Concepts as used in the SMFRR on operational and tactical management level and are: “risk & redundancy management”, “business continuity management & planning” and “reliability engineering” as well as “stakeholder interaction & value co-creation”, “knowledge & organizational learning” and “organizational sensemaking & leadership”. These concepts are assigned to SMFRR’s management levels of operational and tactical importance. At the same time, purposive designations of management levels have been made. The designation of the resource management level is “organizational capabilities: VRIN resource engineering” and captures the nine resource-elements of the work system framework (participants, information, technologies, processes & activities, product/services, customer, infrastructure, strategies and environment). The designation of the operational management level is “responsiveness capabilities: system adaption & change” and consists of three theoretical predicted concepts, namely “risk & redundancy management”, “business continuity management & planning” and “reliability engineering”. The designation of the tactical management level is “cognitive capabilities: system innovation” and consists of three theoretically predicted events, namely “stakeholder interaction & value co-creation”, “knowledge & organizational learning” and “organizational sensemaking & leadership”. The designation of the strategic management level is “dynamic capabilities: system evolution” and consists of three theoretically predicted events, namely “sensing”, “seizing” and “managing threats/transformation”. The application of these management levels enables managers, decision makers and employees to design and

The strategic management framework for engineering of organizational robustness and resilience

develop distinct capabilities towards increased organizational robustness and resilience: connect system’s resource level and organizational capabilities with operational responsiveness capabilities, tactical cognitive capabilities (knowledge management, individual and organizational learning) and strategic dynamic capabilities. Thus, the SMFRR supports to increase organizational robustness and resilience on four management levels: the service system’s resource management level, the operational management level, the tactical management level and the strategic management level.

2.2 Organizational capabilities: VRIN resource engineering

The heart of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience (SMFRR) adopts Alter's () work system framework. The work system framework provides a static, resource-based view on service systems (Alter, ). It consists of nine system resources wherein the resources participants, information, technology and processes & activities form the inner core of the work system framework. Resources products/services, customer, strategy, environment and infrastructure complement the work system framework. Note that the work system framework within the SMFRR not only provides a socio-technical and system-oriented perspective to understand the system’s resources and its dependencies (Alter, ): the work system framework supports to provide status quo analysis about the system and its resources as well as to define target states and conditions for targeted renewal and change at system’s resource level. Related to Alter & Sherer (), the work system framework within the SMFRR can be used as initial framework for risk management: to analyse sources of uncertainty within service systems at resource level.

2.3 Responsiveness capabilities: system adaption & change

The concept of “responsiveness capabilities: system adaption & change” is about the prevention, response and cope of organizational dynamics, risks, uncertainties and crisis and are assigned to SMFRR’s operational management level. This concept

The strategic management framework for engineering of organizational robustness and resilience

originates in both: literature and practice. From a theoretical perspective, this management level is related to the chapter Organizational Robustness and Resilience (c.f. chapter /part III). Within this section, risk- and crisis management (element of the network of interrelated concepts of organizational robustness and resilience) are identified as antecedents for increased organizational robustness and resilience. To increase the levels of organizational robustness and resilience, managers, decision makers and employees are demanded to preoccupy with failures and to put emphasis on anticipation (Lekka, ) (aggressively seek to know what is not known yet (Roberts & Bea, )). Additionally, managers, decision makers and employees are demanded to prioritize safety and security issues (Shrivastava et al., ), redundancy, organizational design and management (of, for example, structures, functions, operations). Since a minor deviation can lead to the breakdown of service performance, sustainability and survivability, case study partners put emphasis on operational risk & redundancy management, business continuity planning & management as well as reliability engineering. The management of dynamics and risks is daily business in case study partners organizations’. It captures failure-free service performance and service quality as well as high reliability of services.

Within the SMFRR, this operational management level aims to develop responsiveness capabilities in systems toward the awareness about organizational dynamics, risks, uncertainties and crisis: to prepare for events and to pre-define activities after an event hit. Additionally, this management level supports to share this knowledge among system participants and to provide system adaption and change. Activities at this management level support system participants to anticipate risks, preoccupy with failures, to better handle with the unexpected and build up enhanced levels of commitment towards organizational robustness and resilience at operational level. In the next three subsections, the operational management level and how to develop responsiveness capabilities are presented.

.. Risk & redundancy management

The concept of “risk & redundancy management” captures organizational activities of risk anticipation, risk and redundancy management. As a part of the SMFRR, this

The strategic management framework for engineering of organizational robustness and resilience

concept describes how to implement an organizational infrastructure for risk and redundancy management: an infrastructure that enables to establish continuous risk management structures, control and monitoring processes, safety and security processes as well as redundancy mechanisms for organizational robustness and resilience at operational level. Risk & redundancy management concept emerged in both – Service Science theory and the empirical field.

From a theoretically perspective, literature identifies risk anticipation and its management as initial pillar for enhanced levels of organizational robustness and resilience (e.g. Wieland & Wallenburg ()). As identified in Kutsch et al. (), risk anticipation and management establish the basis to increase reliability. Risk anticipation and management are to manage, engineer and design a minimum level of organizational robustness and resilience within systems (Mandal, ). Additionally, risk anticipation and management is antecedent to design and develop organizational redundancies and safety stocks (e.g. Peng et al. (), Ivanov & Sokolov (), Jüttner (), Adenso-Diaz et al. ()), and the following concepts of business continuity management and reliability engineering. Risk management, as Kutsch et al. () describe, is a trigger for mindful-based reliability management and, related to Hsu et al. (), an organization’s capability (same as the appropriate use of technology).

From a practical perspective, as depicted in figure , the concept of “risk & redundancy management” emerged from six empirically observed concepts. Within the SMFRR, these concepts guide managers to design and develop a culture towards enhanced awareness about organizational robustness and resilience: to early anticipate and to manage dynamics and risks once they have occurred and to prevent negative effects on the organization.

The strategic management framework for engineering of organizational robustness and resilience

Risk management & redundancy Awareness Development Development Development Development Pro-active about the of safety & of an of redundancy of a control, technology organizations’ security infrastructure measures and monitoring exploration & technical processes for risk mechanisms and exploitations environment management maintenance infrastructure

Figure : Risk management & redundancy towards organizational robustness and resilience

As observed in the case studies, risk management structures range from risk anticipation mechanisms in projects (CEG), over cooperation with international organizational (CA) to the maintenance of operational risk management officers (SXX). Essential part of risk management structures are control and monitoring processes. These processes are, in example of the observation of organizational key performance indicators, service reliability indicators, checkpoints in software. Of further importance are safety and security measures. As observed, measures include the categorization to keep close eyes on critical (ICT) infrastructure, technology and software. The concept of “risk & redundancy management” supports to keep (internally) man-made risks low and to carefully deal with system interventions. SXX avoids unnecessary changes of its ICT systems. If necessary, SXX updates its software only on Sundays, ranging from a.m. until a.m. in the morning (SXX). CA provides yearly catastrophe tests, wherein critical infrastructure is loaded. CA immediately interrupts EDI communication channels with business partners if managers and employees recognize threats (e.g. LOKI virus).

Redundancy within this concept is to secure (critical) infrastructure, e.g. ICT infrastructure (data centers), ICT systems and software, internet connections, etc. Additionally, it is to create organizational buffers, definition of back-up branches (as observed in case SXX) and human redundancy: the implementation of deputy systems and knowledge dissemination channels. As observed in the case studies, to keep infrastructure upright, case study partners provide triple redundancies. Redundancy is a major lesson learned for SXX out of hurricane Sandy. SXX experienced the

The strategic management framework for engineering of organizational robustness and resilience

importance of branch redundancy (during hurricane Sandy, SXX’ branch Miami took over operational work), infrastructure redundancy (purchase of a power generator and to invest in an appropriate storage tank for fuel (since hurricane Sandy damaged these infrastructures)) and human redundancy (since all employees were affected by hurricane Sandy). Redundancy is a key to control, monitor and assess key performance indicators, service reliability indicators and work on its redundancy. Redundancy facilitate decision-making, or as the interviewee of CA said: “Without redundancy, managers would act less risky”.

The “risk & redundancy management” concept, as observed within case study SXX, highly depends on the human factors, including the recruitment of suitable employees. SXX puts emphasis on (former) employees of armed forces – which are well-educated and disciplined people, as the interviewees highlight. SXX invests in business continuity activities, including the re-engineering of the organizations’ ERP-system to a cloud-based architecture and change from desktop to laptop PCs (as well as the development of a “safety stock” of laptops for quick replacement in case of a system breakdown). Overall target is to provide global access to SXX’ systems: cloud based applications and laptops that enable access anywhere in the world at any time. These technologies turned out to be important to keep business going during the hurricane Sandy.

.. Business continuity management & planning

While the concept of “risk & redundancy management” forms the initial base to increase organizational robustness and resilience, the concept of “business continuity management & planning” advances risk & redundancy management. As identified in literature, business continuity reflects an organization’s commitment to operational safety and reliability (Ojha et al., ): to develop strategies to no more important risk than the closure of the entire organization (Kaye, ). The concept of “business continuity management & planning” finds its roots in disaster recovery (Elliott et al., ) and contingency planning (Elliott & Johnson, ). Within the SMFRR, this concept is about the development of an organizational framework against dynamics,

The strategic management framework for engineering of organizational robustness and resilience

risks, uncertainties and crisis as well as its adverse impacts and include, as observed, the development of contingencies, scenarios and recovery plans).

As identified in literature and observed in case studies, concepts of “risk & redundancy management” and “business continuity management & planning” consist of a set of methodologies. These include disaster management, disruption management and responsiveness policies. Although scholars argue that business continuity management leads to higher resilience (Ojha et al. ()), this concept receives no attention in the theory of Service Science. The empirical field draws a different picture: as observed in the case study of SXX and CA, business continuity management & planning are established concepts and are used to plan risk exposures, which include active contingency planning, risk planning and scenario planning.

Business continuity management & planning Development of an Development of a Development of Development of a risk audit strategy knowledge and redundancy strategies management strategy learning strategy Development of a Development of Development technology strategy process support tools of control & monitoring mechanisms

Figure : Business continuity management & planning towards organizational robustness and resilience

As depicted in figure , seven empirically observed concepts related to business continuity management & planning are identified. These empirical concepts describe the needs of development of audit strategies (internal, external: service stakeholders and business partners), knowledge and learning strategies, redundancy strategies, risk management strategies and technology strategies as well as the development of process support tools and control and monitoring mechanisms as trigger to increase organizational robustness and resilience.

The strategic management framework for engineering of organizational robustness and resilience

Within the concept of “risk & redundancy management”, system participants are demanded to take over pro-active roles: to pre-plan risk exposures, to disseminate continuity strategies and to keep business continuity plans updated. Knowledge is an important ingredient to successfully keep business continuity management upright. Although knowledge and learning, as observed in Service Science literature, are meta- resources of systems, service literature does not take audits as a source for organizational knowledge and learning into account. Within the SMFRR, audits enable to include differentiated perspectives on systems and are of valuable source for managers and decision makers to improve systems against internal and external vulnerabilities. Audits provide the basis for business continuity management and planning of scenarios (what-if scenarios if a (strategic) business partner gets bankrupt) and to sharpen organization’s business continuity strategies and redundancy strategies. As identified in case studies, case study partners rely on infrastructure redundancy, ICT/technology redundancy, software redundancy, data redundancy and business network redundancy. Additionally, audits facilitate technology exploration and exploitation strategies (e.g. control of technology providers) as well as control and monitoring mechanisms (e.g. control of business partners, ICT suppliers). In the centre is the development of technology strategies (e.g. vision statement, purchase strategies, etc.). Control and monitoring also relates to the development of key performance indicators, recovery indicators and penalties (if, for example a target value is not achieved) as well as service level agreements. Such service level agreements regulate firewalls and spam-filters as well as the use of private devices, visits of homepages, private e-mails, etc. within the organization. An important activity is to transform business continuity plans into service level agreements and to disseminate these among system participants. At SXX this activity is coordinated by the department of Safety-, Security- and Compliance and branches have to comply with set rules. To disseminate information, case study partners rely on digital and physical communication and collaboration tools: webinars, data interface technologies, messengers, telephone and meetings.

The concept of “business continuity management & planning” within the SMFRR is much about the planning of risk prevention strategies, redundancy strategies, cope and

The strategic management framework for engineering of organizational robustness and resilience

response measures as well as – once an event has occurred – the documentation and learning from this event. Key is to define pro-active control and monitoring mechanisms, which include, for example, key performance indicators, control and monitoring of key performance indicators and redundancy measures. Although case study partners are high-reliability oriented, they are aware that not all risks can be eliminated. Nevertheless, to keep risk awareness on a high level, case study partners SXX and CA, for example, conduct business continuity tests (e.g. the simulation of a server failure and its impacts on the organization). This yearly event provides information for organizational learning and to update of business continuity plans.

.. Reliability engineering

The third concept at the operational level is “reliability engineering”. The notion of this concept is determined by the empirical base: major to case study partners’ activities is reliability. It includes safety, security, availability and stability. Or as the interviewee of case study partner CA argues: “Robustness is about reliability”. Within the SMFRR, the concept of “reliability engineering” originates in the concepts of “risk & redundancy management” and “business continuity management & planning” and extends the Service Science’s approach towards the engineering of (service) reliabilities. The concept of “reliability engineering” includes both – long-term and short-term actions. As exemplified in case study SXX, after hurricane Sandy, the branch New York tried to come back coordinated to normal business: first, managers tried to get in contact with their employees and ask for their health and financial conditions as well as their mobility (when they could come back to work, since all infrastructure was broken). Second, SXX managers created a damage report as a basis for the adaption of a “minimal-organization”, including the relocation of the administrative departments and the IT department from the subsidiary into a hotel close to the JFK airport. After - days, relocated departments moved back to the original location in New York. Ten days after, that the branch was supplied with electricity again – before SXX had been cut-off the public electricity supply and had to rent an emergency power generator. However, the damage report provides the basis for investments into reliability:

The strategic management framework for engineering of organizational robustness and resilience

infrastructures, such as a fuel plant, power generators, etc. that now all branches of SXX have to implement10.

As identified in literature about the conceptual foundation in Service Science, service systems are socio-technical constructs (Böhmann et al., ) and the engineering of their resources (people, technology, organizations, and shared information) to achieve common results is of major importance (Maglio & Spohrer, ). Although the conceptual approaches of SSMED and the work system theory provide elaborate frameworks for (re-) engineering, focus in Service Science is on customer requirements and less – as observed in the empirical field – on system’s reliability towards enhanced levels of organizational robustness and resilience.

Reliability engineering Development of Development of Development of Development of an artefacts for improvement technology infrastructure for information processes improvement innovation management processes Technology as a driver Human as trigger to Implementation of Continuous provision launch technology infrastructures as a of technology services service – increase of the availability of technology

Figure : Reliability engineering towards organizational robustness and resilience

As depicted in figure , eight empirically observed concepts can be identified. These concepts relate to improvement processes and innovation, technology (and its infrastructure to provide continuous technology services) and human resources. From a process and innovation perspective, the concept of “reliability engineering” is about the use of results of internal and external audits to (re-) engineer particular services and processes. Audits, as observed, provide external perspectives towards increased

10 This paragraph is based partly on Maurer & Lechner (b)

The strategic management framework for engineering of organizational robustness and resilience

service reliabilities and broaden the system’s internal perspective towards increased organizational robustness and resilience. But also it is mandatory to include employees and their individual perspectives about organizational robustness and resilience into reliability engineering. At CA, for example, employees are considered as the “real experts” of service provision and managers are the people who mediate between these experts. At SXX, employees are obliged with a variety of responsibilities to orchestrate services and their underlying processes. Practices towards the inclusion of employees are about the development of an infrastructure for innovation, including digitalization of change management processes, continuous improvement processes (Kaizen), technology/innovation investment strategy, continuous workshops and working cycles. Challenge is not to disregard and loose employees’ ideas towards adaption, change and innovation of the system.

Since almost every business process and business model of case study partners is underlined with digital ICT services, from a technical perspective, the concept of “reliability engineering” within the SMFRR is about the high availability of ICT technology infrastructure and its services. As observed in the case studies, case study partners availability of strategic ICT technology is above , % – h per day, seven days a week. If an incident occurs, managers and employees have to react within minutes to implement corrective measures. The case study partners still work on the increase of their ICT availability and provision of interruption-free ICT services: it is about continuous reliability engineering. Adaptions and changes are daily business within the case study partners’ organizations that not only aim to increase service quality and service performance (as demanded in Service Science), but also to strengthen the organizations’ robustness and resilience towards organizational dynamics, risks, uncertainties and crisis. CA heavily relies on continuous improvement processes (Kaizen): incidents can emerge to problems, which again can emerge to changes. SXX has already defined to implement a digitalized infrastructure to improve existing improvement processes (digitalized change management system). Technology within the concept of “reliability engineering” is considered as a driver for increased reliability in organizations. Technology fosters collaboration among (internal and external) system participants and consists of physical processes (as, for example, pro-

The strategic management framework for engineering of organizational robustness and resilience

active employees, experimentation) and digital technology (as, for example, EDI interfaces, information sharing technologies, control and monitoring technologies, etc.). This concept aims to develop mechanisms that facilitate the development of artefacts for increased information management: use of advanced information sharing tools, cloud-based tools to share information and documents, digitalization of change management processes, implementation of continuous improvement processes (Kaizen) and EDI interfaces as well as the development and engineering of control and monitoring systems. But also, this concept is to improve technological redundancy, investment into digital maturity and digital connectedness with the service environment: implementation of technology as competitive advantage and sales argument.

From a socio-technical perspective, the concept of “reliability engineering” heavily relies on system participants. The human factor, as observed in the case studies, is of major importance: employees, as the case study partners argue, maintain distinct competences – behavior, reliability, judgement, innovativeness, empathy – and are superior to technology. As the case of CA gets to the point: “ICT follows business. ICT enables business”. Activities within this concept include the (continuous) training and education of system participants towards system adaption and changes, make use of (individual) skills and competencies as well as the development of human redundancies (including the allocation of responsibilities). Skilled employees enable organizations to better observe and recognize their technological environments, including technological changes, renewals and innovation within. They foster collaboration among system stakeholders and increase the commitment to each other. At SXX, these activities happen top-down (e.g. vulnerabilities are collected in a strategic risk-map) and bottom-up (e.g. collection of process requirements for discussion with the strategic department on a regular basis). SXX aims to create a close engagement at all business levels towards organizational robustness and resilience.

The strategic management framework for engineering of organizational robustness and resilience

2.4 Cognitive capabilities: system innovation

The concept of “cognitive capabilities: system innovation” is about the development of capabilities towards service interaction, value co-creation, knowledge management, learning and organizational sensemaking. Activities are assigned to tactical management. In relation to Pascale et al. (), the overall target of the concept of “cognitive capabilities: system innovation” is to innovate service systems at the tactical management level by the use of system participants’ experiences, requirements, skills, competences, creativity and individual talents. Basis for this innovation processes are increased service interactions with the system’s service customers, service participants and business stakeholders as well as the system’s political, economic, social, technological, ecological and legal environments. This management level aims to process data and information out of these interactions and to transform these into new knowledge for system innovation towards increased levels of organizational robustness and resilience in systems.

The concept of “cognitive capabilities: system innovation” finds its roots in both – literature and the empirical field. The concepts of service interaction and value co- creation, for example, are of major importance in the theory of Service Science. Within Service Science, the customer is considered as the most important resource of all resources and value co-creation only happens if system participants are integrated into service provision processes. Value co-creation is about the collaborative and interactive development of services. Service Science is based heavily on system participants’ knowledge. All kind of knowledge – including the knowledge about systems, its service customers and service environments – is considered to be a valuable resource in Service Science. Knowledge is key to satisfy the customers’ requirements and main determinant in engineering sustainable and survivable service systems. Additionally, this concept origins in literature about Organizational Robustness and Resilience – the nodes “Organizational Culture” and “Cognitive Capabilities” of the network of interrelated concepts of organizational robustness and resilience. Within these nodes, it is important to develop and implement a pro-active culture against organizational dynamics, risks, uncertainties and crisis (Williams et al. ()). As Hind et al. ()

The strategic management framework for engineering of organizational robustness and resilience

highlight, such a culture depends on power structures, responsibilities, relationships, reality sense, differentiation, and communication.

From an empirical perspective, the case study partners advance the concepts of service interaction and value co-creation. The case study partners consider themselves as part of larger, more heterogeneous service networks and business environments and aim to integrate knowledge from all of the service stakeholders into their organization. This knowledge again is a trigger to implement system innovations – including the renewal of the organization’s culture towards enhanced levels of organizational robustness and resilience. The concept of “cognitive capabilities: system innovation” as used in the SMFRR aims to establish a culture of open communication, information sharing and connectedness, cooperation and collaboration as well as learning and knowledge management with and among internal and external system participants.

This tactical management level of the SMFRR (c.f. figure ) consists of “stakeholder interaction & value co-creation”, “knowledge & organizational learning” and “organizational sensemaking & leadership”. While the concept of “stakeholder interaction & value co-creation” is about the interaction and integration of the system’s environments (break down of system’s island mentality), concept of “knowledge & organizational learning” is about the exploration, processing and exploitation of gained data and information to system participants. Activities include, for example, training and education of organization’s managers, decision makers and employees to develop improved and new (individual and organizational) skills and competences. The concept “organization sensemaking & leadership” is about awareness and behavioral changes: create mindfulness in the system. That includes the mediation, empowerment and emancipation of employees versus their management, as observed in the case studies.

.. Stakeholder interaction & value co-creation

The concept of “stakeholder interaction & value co-creation” is a core theme in the field of Service Science literature. Stakeholder interaction and value co-creation are of major importance to service provision. Customer interaction and collaboration are the

The strategic management framework for engineering of organizational robustness and resilience

focal points for service system innovation. This concept is determined by resource coordination and allocation towards the customers’ needs and provides close proximity to service customers, its (changed) requirements and markets. From a service perspective, customer requirements and market changes are triggers to system innovation. As identified in the network of interrelated concepts of organizational robustness and resilience, to become robust and resilient, service systems need to be considered to be a part of larger systems: as extended enterprises and entities in supply chain networks. In both – literature and the empirical field – data and information about stakeholder interaction & value co-creation, the needs and requirements of the customers, are antecedent for knowledge and organizational learning, thus the development of new and improved (individual, organizational) skills and competences.

Stakeholder interaction & value co-creation Awareness about the Development of a Development and Cooperation with business environment; business/service maintenance of a external, direct competition and ecosystem strategy business network stakeholders costumer infrastructure requirements Cooperation with Specialization: core Supplementary Development of external, non-direct services services service provision goals stakeholders Development of Interaction with Development interaction customers: voice of the of a service provision statement mechanisms: customer principle interaction as a service

Figure : Stakeholder interaction & value co-creation towards organizational robustness and resilience

As depicted in figure , empirically observed concepts relate to stakeholder interaction & value co-creation that increase organizational robustness and resilience are identified. These concepts are about the development of a business/service network

The strategic management framework for engineering of organizational robustness and resilience

infrastructure, the awareness about these networks and their continuous service provision: the development of service provision statement and goals, including the system’s specialization and supplementary services. Additionally, this concept includes the development of interaction and cooperation mechanisms with direct and non-direct system participants.

The concept of “stakeholder interaction & value co-creation”, as observed in the case studies, is part of daily business. Case study partners apply the voice of the customer principle, which is augmented with the voice of the market and the voice of the organization principles. These mechanisms not only capture service customers and other direct service stakeholders but also indirect parties enlisted into service provision processes, such as universities, research centers, blue light organizations and alliances. Case study partners in continuous exchange with these stakeholders and pro-actively learn from them and develop new knowledge. These mechanisms include the proactive collaboration within (internal and external) system participants and business stakeholders to adopt data, information and knowledge for their own sake. Within their (internal) systems, case study partners promote an open communication: a communication preferably based on face-to-face meetings wherein failures are reported freely.

The concept of “stakeholder interaction & value co-creation” aims to remove organizational island mentality and to consider a particular organization as a part of a larger, dependent service network – enterprises, which are embedded into networks of loosely coupled system entities within a larger service ecology that pro-actively learn and gain knowledge from its internal and external service environment. It is an initial concept to foster a learning organization: an organization that pro-actively “read” its environment, draws conclusions and disseminates this new knowledge to its system participants. It is antecedent to develop organizational awareness about its cognitive capabilities to develop and to apply these as well as to launch system innovation: to foster “Schumpeterian innovation” within service system including the development of a positive culture towards renewal, change and innovation including the continuous questioning of the systems economic, social and technological purposes.

The strategic management framework for engineering of organizational robustness and resilience

.. Knowledge & organizational learning

Once data and information about the system’s environments are set, system participants are demanded to (quickly) learn about them and transform them into valuable relations. The concept of “knowledge & organizational learning” advances the previous concept of “stakeholder interaction & value co-creation” and is about how to make use of collected data and information. The concept of “knowledge & organizational learning” within the SMFRR enables to transform data and information into valuable sources of learning. Learning, as Pascale & Athos () highlight, flourish when trust is established and risk levels are lowered. This concept interrelates with literature, which considers knowledge as a core driver of organizational competitive advantage, sustainable profit and success (Spohrer et al., ). The application of knowledge, as Spohrer at al. () highlight, is the main trading product within service systems.

In the center of “knowledge & organizational learning” as used in the SMFRR are the management of knowledge (knowledge exploration, exploitation) and continuous organizational learning. Knowledge, as Vargo et al. () identify, “is the core source of all exchange”. Knowledge enables to gain new knowledge, to develop new skills and capabilities as well as to utilize resources (Mele & Polese, ): to develop and increase organizational and individual skills and capabilities. The concept of “knowledge & organizational learning” aims to the development of a knowledge-sharing culture (Hsu et al., ) towards organizational robustness and resilience: the maximization of intelligence (Pagani ()).

The strategic management framework for engineering of organizational robustness and resilience

Knowledge & organizational learning Awareness Awareness Development Development Development Management about the about the of information of information of knowledge of change, organizational organizations’ exploration exploitation (sharing/gaining) renewal and cognitive regulatory mechanisms mechanisms and learning innovation environment environment processes

Figure : Knowledge & organizational learning towards organizational robustness and resilience

As depicted in figure , six empirically observed concepts related to knowledge and organizational learning towards increased organizational robustness and resilience are identified. These concepts are about awareness about the organizational cognitive and regulatory environment, the development of knowledge exploration and exploitation mechanisms and implementation activities: the development of knowledge and learning processes as well as the management of renewal, change and innovation towards increased levels of organizational robustness and resilience. These concepts support to leverage organizational intelligence and develop an organizational culture wherein communication and organizational learning can happen. It creates awareness about the organizational cognitive environment and captures internal and external communication, learning and knowledge sharing culture.

Case study partners explore and exploit (explicit and tacit) knowledge among system participants (individuals and the system as a whole). Activities include open and direct communication, formal and informal connectedness to the system’s environment, active research, internal audits, development and experimentation as well as (digital and physical) customer interaction processes. In the center are the development of knowledge exploitation and exploration processes as well as organizational learning processes. These processes are about networking, excursions and sophisticated employees, their continuous education and training as well as empowerment and emancipation.

A further key element within this concept is the learning from risks and accidents. Case study partners learn actively from hazardous events and it is a mandatory task to

The strategic management framework for engineering of organizational robustness and resilience

increase organizational robustness and resilience. For example, at SXX, mangers can rely on deep knowledge about the impacts of already occurred hurricanes in Florida (branch Miami), blizzards in NY and other (natural and/or man-made) events. Experiences of hazardous events provide unique knowledge to prepare for upcoming adversity. Learning from risks and accidents enables to increase the preparation towards upcoming events. It creates awareness towards dynamics, risks, uncertainties and crisis as well as black swans.

Open, direct and face--face is the favorite form of communication. Nevertheless, to increase knowledge and organizational learning, case study partners implemented digital technologies and processes. SXX makes use of e-learning tutorials that again facilitate to implement knowledge gaining and sharing mechanisms – the exploration and exploitation of data and information. Case study partners SXX and CA implemented wikis to store and disseminate knowledge among managers and employees. Organizational learning and knowledge sharing – the education and training of managers and employees – as observed is key in all case study organizations. In doing so, CA maintains its own college to improve skills and competencies of managers and employees towards the organizations’ changing environments. Learning, as explored at CEG, is much about experimentation and innovative thinking employees. CEG’s managers and employees have already experimented with satellite technology. Drivers of such experiments are “freaks”: innovative thinking employees that perform experiments in their leisure time. Communication and knowledge also influence the organizational culture. They enable to build up a culture towards increased organizational robustness and resilience: pro- active employees, flexibility, empowerment and emancipation, trust, flat hierarchies and decentralization. A major challenge as observed in the case studies is to turn acquired knowledge into system innovation. It requires innovative thinking system participants (managers, decision makers and employees), driving forces, active service customers, tools and technologies.

The strategic management framework for engineering of organizational robustness and resilience

.. Organizational sensemaking & leadership

The concept of “organizational sensemaking & leadership” describes the utilization of the outputs of previous concepts of “interaction & value co-creation” and “knowledge & organizational learning” within the organization. It is about the implementation of mindful management towards increased awareness about organizational dynamics, risks, uncertainties and crisis. This concept facilitates the delimitation of management culture towards enhanced levels of organizational robustness and resilience. Core of this concept is, as identified in literature and observed in empirical field, to develop a culture of organizational sensemaking and leadership – a culture that promotes internal interaction, conscious information processing, coordination and mindful behavior (McAvoy et al., ). Coordination, as Pascale & Athos () highlight, are creative side of organizations that facilitate communication, relationships, control and effectiveness. In the center are the lead and further education and training of system participants towards “T-shaped people” (Spohrer et al., ): managers and employees that are able to shape their knowledge and apply multi-disciplinary skills to design, develop and implement the shift towards increased organizational robustness and resilience.

As identified in case studies, this activity fosters the incorporation of employees into activities of the organization and to make use of their experiences, requirements, skills, competences, creativity and talents of people (Pascale et al., ). It aims to consider system participants as objects to be used (e.g. skills, competences, creativity and talents for innovation in systems) and subjects to be honored in achieving of system’s purposes. This concept results into increased individual and organizational mindfulness to manage, engineer and design organizational resources, processes and capabilities towards enhanced organizational alertness, accessibility, decisiveness, swiftness and agility (Gligor et al., ).

“Organizational sensemaking & leadership” as used in the SMFRR are based on increased knowledge and cognitive skills of system participants. Managers, decision makers and employees are demanded to provide organizational sensemaking. Sensemaking, in this sense, is a process that changes and innovates cognitive patterns

The strategic management framework for engineering of organizational robustness and resilience

and behaviours (on individual and organizational level). In accordance to Alberts & Hayes (), this management level then not only means to have the right resources but also to manage, engineer and design the right doctrine towards increased levels of organizational robustness and resilience.

Organizational sensemaking & leadership Development of a Development of an Development of an Development of communication employee organizational strategy management and strategy management strategy empowerment processes Development of an Human resource Organizational Individual approach infrastructure for management: approach that that complies to employees coordination of complies to customer customer requests (participation) management requests

Figure : Organizational sensemaking & leadership towards organizational robustness and resilience

As depicted in figure , ten empirically observed concepts that relate to organizational sensemaking & leadership to increase organizational robustness and resilience are identified. These concepts are about the development of communication strategies, employee management strategies, organizational strategies, management and empowerment processes and an infrastructure for employee (participation). Identified concepts aim to human resource management and the development of coordination mechanisms of employees as well as organizational and individual approaches towards customer needs and requirements. The objective of this concept is to foster a mindful organization: an organization that pro-actively makes use of new knowledge and innovates its system towards new circumstances – resources, processes, structures, decision-making, capabilities, etc.

An emergent discussion within case study partners’ organizations is about the management or leadership of employees. CEG applies hierarchical management: decision-making is assigned to the managing director. CA decentralized all decision-

The strategic management framework for engineering of organizational robustness and resilience

making competencies to its employees (up to a specific financial limit). According to CA’s sensemaking, employees are the specialists within the field of business and managers are only mediators between specific competences. At SXX, employees are empowered in times of organizational certainty. In times of adversity, managers re- centralize decision-making competences.

This concept supports to increase organizational sensemaking by the tailored education and training of managers and employees towards system organizational robustness, resilience and innovation. As observed in the case studies, this concept is based on the development of skill matrices, which are the initial base to further educate and train managers and employees towards increased organizational robustness and resilience. It is to further engineer and make use of distinct and heterogeneous capabilities of system participants, to develop new forms of management and leadership as well as trust relationships. This concept is to investigate into the improvement of organizational and individual approaches to customer requests, the processing of customer requests and increase of their service satisfaction.

2.5 Dynamic capabilities: system evolution

The concept of “dynamic capabilities: system evolution” within the SMFRR is about the engineering of dynamic capabilities for system’s strategic evolution. Strategic evolution, in this sense, is about the change of the system towards increased organizational robustness and resilience: increase of the system’s fitness by strategic realignment and transformation of resources, processes, capabilities and technologies that increase the system’s abilities to respond to organizational dynamics, risks, uncertainties and crisis. This strategic management level is rooted in Dynamic Capability literature and adapts Teece's () Dynamic Capability microfoundation framework. The SMFRR makes use of introduced dynamic capabilities of sensing, seizing and management of threats/transformation. As observed within the case studies, activities cover a set of internal and external concepts, including strategically driven challenges on political, economic, social, technological, ecological and legal level. The concept of “dynamic capabilities: system evolution” is to define and to

The strategic management framework for engineering of organizational robustness and resilience

develop strategies towards the system’s organizational robustness and resilience on strategic management level. These strategies foster the system’s long-term sustainability and survivability on strategicthe management level.

.. Sensing (and shape new opportunities)

Sensing is about scanning, creating, learning and interpretive activities about organizational chances and opportunities (Teece, ). Sensing highly depends on individual capabilities of system participants and extant knowledge about internal and external technological developments and customer needs. Strategies, as Teece () highlights, are accompanied by a set of methodologies, which include, for example, knowledge, practical wisdom, interpretation, creativity, R&D, understanding of the decision-making process of customers, organizational decentralization, management by walking about/around, scanning and monitoring of technological developments, continuous and rapid design around new technology/components, learning about the environment and new technology, assessing computer needs, suppliers, searching for external inventions/innovations and complementary innovations.

The sensing perspective of Teece () is of strategic importance to an organization and deals with high-level risks and opportunities. Sensing has less emphasis on the prevention, response and cope of organizational dynamics, risks, uncertainties and crisis, as used in the SMFRR and observed in the empirical field. It has a macro- economic perspective is much about research, development and innovation by inclusion of internal and external service environments to increase organizational robustness and resilience in a system.

The strategic management framework for engineering of organizational robustness and resilience

Figure : Sensing: concepts towards organizational robustness and resilience

As depicted in figure , concepts out of the case studies that relate to sensing capability are identified. These empirically observed concepts engage managers, decision makers and employees into research and development activities (emergent trends and technologies), to increase knowledge exploration and organizational learning (internal, external and environmental) and increase collaboration within and among system’s internal and external service networks and business environments. Their aim is to sense organization’s internal and external opportunities and chances and thus is to foster the system’s long-term sustainability and survivability in times of certainty and adverse.

As the cases highlight, sensing capability is much about research, development and innovation, knowledge integration and their management. In doing so, case study partner CA maintains a strategic department for research, development and innovation. Within this department, emergent trends and technologies are researched, piloted and brought to market maturity. Trends and technologies of investigation are, for example, Blockchain technology, D printing and autonomous driving –

The strategic management framework for engineering of organizational robustness and resilience

technologies that have the potential to revolutionize the transport logistics and supply chain management service sector. Pro-active research not only generate internal incentives, but also external creditability. Service customers of CA recognize CA as a highly innovative service provider.

Processes to direct internal R&D and select new technologies

An important key is the early engagement of system participants into research and innovation activities. Managers and employees at all business levels need to actively participate in research, development and innovation processes and bring in individual skills, competences and talents. To engage system participants, case study partners pro- actively work on skill matrices and deputy system, education and training, internal connectedness to operations, internal culture, flexibility and teamwork. Additionally, case study partners develop an environment wherein experimentation can happen: learning by doing instead of improvisation. These processes to direct internal R&D and select new technologies within the SMFRR are to build up an environment wherein system participants can openly and freely can bring in ideas, proposals and innovation about new services, processes and technologies. These ideas, proposals and innovation complement systematic research and development activities.

Processes to tap supplier and complementor innovation

In the centre of these processes are the improvement of interaction mechanisms with the service environment. Activities, as observed in the case studies, range from audits (internal and external: customer, business partner), over the control and monitoring of business partners, to audit of suppliers and cooperation. All case study partners maintain internal and external, formal and informal networks wherein managers and employees collaborate and discuss trends and technologies. Within the SMFRR, processes to tap supplier and complementor innovation support to increase (internal and external) collaboration to cooperatively work on emergent trends and challenges that threaten a system.

Processes to tap developments in exogenous science and technology

The strategic management framework for engineering of organizational robustness and resilience

Beside active R&D, innovation and experimentation, case study partners make use of digital and printed news. Case study partners skim and scan tailored journals, newspapers, magazines, internet blogs, etc. and participate in trade fairs and alliances related to transport logistics, supply chain management and ICT. Additionally, as especially observed in the case study of CA, managers and employees organize excursions from and to befriended business partners. CA pro-actively cooperates with universities and research centres and performs collaborative projects. Within the SMFRR, processes to tap developments in exogenous science and technology are to get in contact with non-direct service stakeholders. These service stakeholders provide distinct knowledge towards a specific challenge. This process is to “buy in” knowledge and innovation into the system.

Processes to identify target market segments, changing customer needs, and customer innovation

Processes to identify target market segments, changing customer needs, and customer innovation within the SMFRR aim to capture customer- and market needs towards increased organizational robustness and resilience. Pivotal to these processes are active and continuously maintained customer integration mechanisms. As observed, case study partners apply the voice of the customer principle, which is managed and controlled by the key staff (e.g. managing director at CEG, strategic board of management at SXX, key account managers at CA). Additionally, all case study partners pro-actively observe their service environment and also work on identified (business, geographical, infrastructural) inequalities. For example, to equalize geographically disadvantages, case study partner CEG emphasises on relocating its headquarter from the Swabian Alb to the town of Reutlingen. With this action, CEG now has direct access to motorways to the metropole regions in Baden- Württemberg, Bavaria and remaining Germany as well as its neighbouring regions (e.g. Basel, Strasbourg, etc.).

The strategic management framework for engineering of organizational robustness and resilience

.. Seizing

Dynamic capability seizing is about investment into design, development, adjustment and, if necessary, replacement of services and business models. This dynamic capability is about business model planning and the capitalization of opportunities. This capability also includes corrective strategies: to make up wrong decisions and re-align strategies that enable the development and change of organizational cultures towards new conditions (Teece, ). Organizational opportunities, as literature on this capability highlights, emerge from strong service stakeholder integration. It considers a positive environment, wherein service stakeholders provide stable demand and supply of services: a positive environment wherein service systems can flourish. However, strategies on organizational robustness and resilience in times of dynamics, risks, uncertainties and crisis are less considered within this capability. Seizing towards organizational robustness and resilience relates to market proximity, customer integration and the development of an organizational culture, including decision-making structures and processes. As identified, this dynamic capability highly depends on (strategic) manager’s capabilities for leadership, communication of goals, values and decision-making: the motivation of system participants. Seizing is much about service stakeholder loyalty and investment, e.g. into new services, technologies, markets and market segments that increase organizational robustness and resilience.

The strategic management framework for engineering of organizational robustness and resilience

Figure : Seizing: concepts towards organizational robustness and resilience

As depicted in figure , empirical observed concepts within the case studies that support seizing capability towards increased organizational robustness and resilience are identified. Related to Teece's () Dynamic Capability microfoundation framework, these concepts are clustered among predefined processes of sensing capability. As identified, these concepts contribute to develop service customer and stakeholder integration processes, to develop decision-making processes (including the allocation of decision-making and task responsibilities) and to develop trust mechanisms, control and monitoring as well as management/leadership strategies.

Delineating the customer solution and the business model

Both, literature and case studies emphasize the importance of customer integration processes. Within the SMFRR, concepts to support organizational robustness and resilience are about the strategic customer integration and the development of individualized business models and processes (standardized and customized business models). Concepts within this process support to develop market proximity and business acumen: venture capital investment into emergent business models, markets,

The strategic management framework for engineering of organizational robustness and resilience

market segments, as observed in the case studies. For example, due to the International Monetary Fund’s macroeconomics of de-cashing (a politically driven decision towards the removal of cash), case study partner SXX is forced to work on capabilities that innovate or replaces existing business models. These engineering processes demand pro-active system participants: the orchestration of internal and external capabilities to sense and seize new opportunities. Within the SMFRR, this process is to early anticipate and to early develop strategies to cope and capitalize strategic trends and challenges.

Case study partners maintain a capability that cannot be learned or purchased: sensibility towards ongoing trends. They are close to the market and its developments and – in the right time – they show business acumen. CA has already invested into General Parcel Services in the ies. Due to digitalization and internet purchases, this business model has turned from a negative business into an organizational “cash cow” and is now one of the main pillars of organizational revenues. Revenues again are invested into new, innovative and emergent business models that are not on the market yet.

Selecting decision-making processes

With the SMFRR, this process is to find and to work on decision-making towards increased organizational robustness and resilience. As observed in case studies, decision-making is daily business to keep operational and technically business ongoing. Managers and employees have to react within minutes to avoid service deviations and to keep service reliability upright. Decision-making, as observed, ranges from hierarchical management (e.g. case of CEG) to participative leadership. SXX and CA emancipate and empower their employees and assign responsibilities to them. Of course, these responsibilities are subjected to financial and environmental conditions, but the overall target is to make use of the employees’ dedicated knowledge, wisdom and expertise.

Service level agreements and central requirements are proven mediums to capture decision-making. Branches of SXX have to implement centrally developed safety- and security measures. If not, strategic mangers impose financial and contractual penalties

The strategic management framework for engineering of organizational robustness and resilience

to non-complying branches. To keep compliance with internal requirements, as observed, case study partners conduct internal audits. For example, the financial department audits the ICT department and their compliance with organizational financial rules.

Selecting enterprise boundaries to manage complements and “control” platforms

This process within the SMFRR facilitates to shift service boundaries. This shift is about the removal of silo thinking and the integration of service stakeholders into the service provision processes. This process facilitates the valuable embedment of a particular system into the network of service networks. Case study partners, as observed, see themselves as a part of a larger service network. Although organizational boundaries get more and more blurred, they keep control and provide access gates to manage complements. SXX aims to become the focal node in the service network. On regular intervals, manager’s audit business partners with the aim to improve the overall service network performance and quality. With this audit strategy, SXX aims to implement high standards within their service network. CA aims to implement a customer relationship platform. This is a platform wherein customers have access to service participation tools and feedback functionalities. Within this platform, CA aims for a higher integration of its customers into service provision processes. Especially case study partners SXX and CEG include their ICT suppliers into service provision processes. On regular intervals, telephone conferences are coordinated among these organizations to control and monitor suppliers’ software developments and innovation.

Building loyalty and commitment

From a customer- and market perspective, the voice of the customer principle, as observed in the case studies, builds high external loyalty and commitment. It is based on several concepts and includes, for example, the right mix between management, mediation and leadership of employees, target oriented management (individual needs), responsibilities and decision-making, role models, vision, company history and reputation. It enables to keep employees – thus knowledge, expertise and wisdom – in

The strategic management framework for engineering of organizational robustness and resilience

the organization. Due to low employee fluctuations, as observed, CA has not experienced a system accident since . Additionally, the innovation orientation of particular case study partner attracts employees. At case study partner CEG, even the housekeeper and truck drivers are equipped with digital devices: laptops and smart phones. Thus, the process of building loyalty and commitment within the SMFRR enables managers to build an environment of internal and external participation: an environment, wherein system participants get valued and encouraged.

.. Managing threats/ transformation (reconfigure)

Managing threats and transformation capability focuses on the redeployment, reconfiguration and recombination of organizational resources, structures and assets (Teece, ). This framework element captures four processes to develop combination, reconfiguration and asset protection skills. These elements objetices, as Teece () describes, are to keep strategic, organizational, technological and evolutionary fitness by continuous incremental and radical innovation. It includes, for example, the decentralization of management structures, avoidance of (product and service) imitations, development of governance structures and learning structures (Teece, ). Decentralization, as Teece () exemplifies, brings the management closer to organizational resources – resources such as system participants, information, technologies, processes and customers as well as their needs. Proximity to resources within the SMFRR is a major challenge: to transform “ordinary” resources into VRIN resources that enable competitive advantages in times of organizational certainty and times of organizational adversity and crisis.

The strategic management framework for engineering of organizational robustness and resilience

Figure : Managing threats/transformation: dynamic capabilities towards organizational robustness and resilience

Management of threats/transformation within the SMFRR is very much about organizational governance towards increased levels of organizational robustness and resilience. As depicted in figure , concepts within the case studies that support managing threats/transformation capability towards increased organizational robustness and resilience could be identified. Related to Teece's () Dynamic Capability microfoundation framework, these activities are clustered among predefined processes that support managing threats/transformation capability within systems. These concepts contribute to improved risk management strategies and redundancy, control and monitoring (by use of key performance indicators), knowledge exploration and communication as well as tentativeness – to better live with (rest) risks.

Decentralization and near decomposability

This process within the SMFRR supports to develop an appropriate mix of centralization and decentralization in organizations. As observed, case study partners are governed by central departments. SXX maintains a strategic department for safety-

The strategic management framework for engineering of organizational robustness and resilience

, security- and compliance. CEG maintains a department for quality and CA maintains a strategic department for research, development and innovation. Additionally, at all case study partner organizations, ICT is centralized. It is a cost issue, as the interviewees said. However, ICT centralization is accompanied with tight controlling and monitoring. Managers and employees are demanded to react within minutes after the occurrence of a deviation. An ICT breakdown, even in a minute range, as the interviewees of CEG highlighted, is inexcusable and triggers the breakdown of the operations.

This process within the SMFRR enables to develop the structure for decentralization. As observed in the case studies, to foster decentralization, the definition and development of redundancy strategies are key. Redundancy, as the interviewee of CA highlighted, enables to take more risk. In case of any deviation, CA can switch from one data center to the other – without any operational breakdown. Redundancy increases organizational robustness and resilience against internal but also external (man-made) events. Additionally, this process within the SMFRR allows to define supportive strategies. Case study partners SXX and CA, for example, have already defined co-working stations. SXX maintains contracts with key business partners in which both parties agreed to maintain co-working stations at business partners’ facilities. In case of a physical breakdown of its headquarter, CA has already organized emergency working stations in a town close to the headquarters location. Especially at SXX and CA, employees experience liberties. CEG fosters teamwork. It is a major key to survival, as CEG’s interviewees highlighted.

Governance

Governance within the SMFRR supports to steer the organization in times of certainty and times of organizational adverse. The governance of a service system, as observed in the case studies, range from centralized management to de-centralized management. Within CEG’s approach of centralized management, decision-making power is hierarchically and – in the last instance – assigned to the managing director. SXX and CA have a de-centralized governance: both case study partners foster emancipation and empowerment of system participants. The approach behind this

The strategic management framework for engineering of organizational robustness and resilience

strategy is, as the interviewee of CA highlighted, that employees and operational managers are the experts within their field of business and decisions should be made at this “expert level”. Both, SXX and CA, maintain central conditions (e.g. service level agreements, central requirements). If, for example, a branch does not comply with the given conditions, it will experience contractual and financial penalties. Thus, branches are willing to keep service targets (e.g. performance and quality) on a high level. To better steer the organization and make decisions, case study partners defined key performance indicators. These key performance indicators are about service performance and service quality (e.g. customer complaints).

Since SXX is de-centralized in structure and decision-making, branches are obliged to work on organizational processes, practices and routines. The best practices are takenover and rolled-out to remaining branches – such as the host of the e-mail server, which now is centered to SXX’ headquarter in Winterthur. Governance towards organizational robustness and resilience, as observed, is also about the strategical risk approach of an organization. It support, as explored in the case studies, to make decisions about unthinkable circumstances. SXX, for example, has already defined back-up branches – branches that can take over operational business if another branch breaks down (e.g. hurricane Sandy). Also, SXX has already defined a co-headquarter if, for example, a nuclear accident hits Switzerland.

One observation common to case study partners is their risk adversity. New technology has to be mature, software updates and software features need to be tested, branches must not violate service level agreements, processes need to comply to ISO regulations, etc. Nevertheless, case study partners make exceptions: for example, CEG invested into preemptive rights of emergent server technologies – technologies that are not on the market yet. Also CA, as one of the first transport logistics and supply chain management service providers, invested into software features that have the potential to revolutionize the transport logistics market.

The strategic management framework for engineering of organizational robustness and resilience

Knowledge Management

Knowledge is of major importance and an important topic to case study partners. They educate and train system participants towards the highest system pro-activity. To increase knowledge and its management, case study partners make use of collaboration tools, such as conventional tools (e.g. telephone, smart phone, e-mail, service level agreements, central requirements, etc.) as well as modern tools (e.g. cloud-based technologies, wikis, e-learning, etc.). But also, case study partners observe their technological environment and facilitate individual skills, competence and knowledge of employees. An important activity towards strategic evolution at CA is research, development and innovation. In doing so, CA maintains a strategic department, which is in charge to actively perform research about emergent trends within the field of business and beyond. CA performs (internal and external) research projects and cooperates with (vertical and horizontal) business partners, universities and research centers to improve its knowledge about emergent topics and technologies and its impacts on transport logistics and supply chain management industry. Knowledge management within the SMFRR not only stimulates organizational cognition on the tactical management level but also at the strategic management level.

Especially at SXX and CA, individual skills, competence and knowledge of employees are captured in skill matrices. These matrices enable to develop targeted education and training plans, to assign responsibilities and to determine deputies. Knowledge, as observed in case of CEG, is actively handed over to apprentices. Apprentices are considered to be the organization’s future. On regular intervals, apprentices have to make a presentation about their individual research into emergent technologies. Senior managers and employees than are demanded to give feedback and further directions.

Cospecialization

The process of cospecialization within the SMFRR supports to highlight the importance that organizations not only depend and rely on their core business. As observed in the case studies, case study partners maintain multiple business legs. CA

The strategic management framework for engineering of organizational robustness and resilience

performs front-office services for its major competitors. These services not only include transport logistics and reverse logistics, but also the installation of delivered goods. Years ago, the case study partner CEG actively opened its branch-specific business models to other sectors (as response to the mass exodus of its major customers from the Swabian Alb to Asia). Since then, CEG has grow from a specialized supply chain service provider for textile industry to a provider for the general field of BB.

As observed in the case studies, the development of a vision towards strategic system evolution is an important activity at the case study partners. Examples include “technology leader strategy” (as observed within case study of CEG) and “market leader strategy” (case study of CA). Such vision has already enabled CA first mover advantages in former states of the Eastern bloc. Due to this high digital maturity, managers could build up market barriers against competitors within these markets.

2.6 Discussion and conclusion

This chapter introduces and presents the main result of this dissertation at hand: the Strategic Management Framework for Engineering of Organizational Robustness and Resilience (SMFRR). From a theoretical and practical perspective, the SMFRR is important to design, develop and engineer system resources, system innovation and service innovation within and among service systems towards enhanced levels of organizational robustness and resilience. The SMFRR enables scholars, managers, decision makers and employees in the field of Service Science not only to improve organizational resources towards valuable, rare, inimitable and non-substitutable resources, but also to innovate existing capabilities at system’s resource-, operational-, tactical- and strategic management level. The design, development and engineering of capabilities – as presented in the SMFRR – are essential to service systems sustainability, survivability, innovation capacity and profitability in dynamic environments.

At the resource management level, the SMFRR is important to transform “ordinary” resources into valuable, rare, inimitable and non-substitutable resources and

The strategic management framework for engineering of organizational robustness and resilience

organizational capabilities. This management level guides practitioners to cope with system’s daily dynamics and risks by use of available resources. The operational management level is important to engineer responsiveness capabilities, which are the organization’s competences to anticipate and mitigate organizational dynamics, risks, uncertainties and crisis. Additionally, the SMFRR is important to plan business continuity strategies to prevent, prepare, respond to and cope with negative impacts. The operational management level guides practitioners to cope with short termed dynamics, risks and uncertainties. The tactical management level is about increased interaction among system participants as well as organizational learning and sensemaking of gained information and knowledge. This management level is important to develop innovation capacities and guides practitioners to design and (further) develop cognitive capabilities within an organization and its service environment. Activities are medium-termed. The strategic management level of the SMFRR is important to the design, development and engineering of dynamic capabilities – capabilities that are either new and/or re-designs of existing capabilities. Dynamic capabilities as used in the SMFRR are intended to serve the system’s strategic needs and are in the long-term focus of an organization.

.. Validity and generalizability of the SMFRR

The design and development of the SMFRR followed processes which are grounded in rigorous scientific work. It is accompanied by the research into Service Science and its conceptual approaches towards organizational robustness and resilience, the research into the work system theory and the dynamic capability approach. These chapters are guided by quantitative literature reviews and qualitative concept-centric literature reviews. Based on the findings within these literature reviews, an analytical framework to analyze service systems from a resource-based and capability-based perspective could be developed. The research into Organizational Robustness and Resilience is guided by quantitative literature review, guided by the Grounded Theory, and qualitative literature reviews that are accompanied by content analysis, author- centric and concept-centric reviews. Based on the findings within these literature reviews, the network of interrelated concepts of organizational robustness and

The strategic management framework for engineering of organizational robustness and resilience

resilience could be developed. According to this network, the three case study partners experienced targeted expert interviews among the networks nodes that are: “resilience”, “risk- and crisis management”, “cognitive capabilities”, “organizational culture”, “business practices and technologies” and “extended enterprise and supply chain management”. The result of this empirical research are case study reports that again got structurally analyzed by the use of developed analytical framework. Each framework element within this analytical framework provided a distinct perspective on how managers increase organizational robustness and resilience in and among service systems to better respond to and act on organizational dynamics, risks, uncertainties and crisis. The identified strategies out of this analysis as well as the concepts identified in the literature reviews are used to design and develop the SMFRR. The design and development of the SMFRR was accompanied by the logic modelling technique and the visual mapping strategy.

Each research step towards the design and development of the SMFRR is accompanied by the reflection of intermediate results within individual supervision meetings and the presentation and discussion of results with the scientific community (e.g. submission of scholarly articles). These events guided to continuous re-design, re- work and improvement of particular chapters and their accompanied sections as well as the SMFRR towards its current appearance. The design and development of the SMFRR thus experienced an evolutionary, scientific-guided development progress.

The SMFRR emerged in the theoretical field of Service Science and Organizational Robustness and Resilience as well as in practice: the field of transport logistics and supply chain management. It captures and integrates new empirical knowledge and augments literature about Service Science and Organizational Robustness and Resilience with emergent strategies and concepts from the empirical field. Thus empirical knowledge is relevant for the SMFRR and its application by scholars and practitioners. The SMFRR provides generalizability and validity to the whole branch of transport logistics and supply chain management as well as its accompanied fields of service industry. Furthermore, the SMFRR can be applied in small and medium sized

The strategic management framework for engineering of organizational robustness and resilience

enterprises (as case study partner CEG) and multi-national companies (as case study partners SXX and CA).

.. Benefits and advantages of the SMFRR

The SMFRR is a practicable framework to design and develop enhanced levels of organizational robustness and resilience in systems. The SMFRR facilitates an advance shift towards the development and engineering of capabilities in service systems. Capabilities, as identified in this dissertation, are superior to resources. Especially in times of organizational dynamics, risks, uncertainties and crises, capabilities make the difference and enable sustainability, survivability, innovation capacity and profitability of particular service system. The SMFRR is important to build up organizational and psychological readiness against organizational dynamics, risks, uncertainties and crisis.

The SMFRR mergers interdisciplinary and heterogeneous literature about Service Science and Organizational Robustness and Resilience to act against organizational dynamics, risks, uncertainties and crisis. It represents a simplification of existing literature about organizational robustness and resilience and fosters a new and innovative way of thinking towards organizational sustainability, survivability, innovation capacity and profitability. The SMFRR is a response to the lack of methods and concepts in Service Science to cope with organizational dynamics, risks, uncertainties and crisis in service systems. It is important to scholars and practitioners in the field of Service Science to turn organizational challenges into opportunities and competitive advantages. It facilitates the understanding of organizational robustness and resilience in service systems as meta-capabilities to enhance service performance, service quality and service satisfaction within service systems. The SMFRR is a tool to provide superior performance – in times of both: organizational certainty and uncertainty.

The SMFRR fosters dynamic processes in service systems: the capabilities as presented in the SMFRR are in continuous motion among and between each other. The boundaries between the capabilities as used in the SMFRR are agile and dynamic

The strategic management framework for engineering of organizational robustness and resilience

capabilities at service systems strategic management level provide impacts on responsiveness capabilities at the operational management level same as organizational capabilities at the resource management level to cognitive capabilities at the tactical management level. The design and development of capabilities is incrementally and radical. They are about pro-active systems participants that are in continuous interaction with each other to launch system improvements: system engineering, adaption, change, innovation and evolution. The SMFRR is advantageous to provide short-, medium-, and long termed perspectives on service system innovation against organizational events. It supports the organization in steering dynamics and risks; work on uncertainties and crisis.

.. Relevance of the SMFRR

Changing environments, such as climate change, geo-political upheavals and socio- demographic changes as well as terrorism, cyber-crime and other men-made events are more important as ever before. The SMFRR is a response towards these new circumstances in business, industry and society. The SMFRR proofs true to work on and cope with organizational dynamics, risks, uncertainties and crisis. Although the SMFRR consists of a strong grounding within the theoretical field of Service Science and Organizational Robustness and Resilience as well as the empirical field of transport logistics and supply chain management, this framework is applicable beyond these boarders too. As identified in scientific discussions accompanied with this dissertation at hand, the SMFRR is important and valuable not only to the fields of academic discipline of Service Science and the empirical field of transport logistics and supply chain management. The field of organizational robustness and resilience is per se a heterogeneous field of research and, as used in this dissertation, consists of academic disciplines such as Management Science, Operational Science, Logistics and Supply Chain Management, Management & Leadership and Organizational Psychology. Since the SMFRR finds its validity in these disciplines, the SMFRR is important to scholars and practitioners in this field too. Scholars and practitioners within these disciplines can apply the SMFRR and thus increase organizational sustainability, survivability, innovation capacity and profitability in a particular system.

Summary and conclusion

This final part is to summarize and to conclude the dissertation at hand. It is structured in two sections. In accordance with the research design (c.f. figure ), section provides the summary of parts II-IV. Section presents the contributions to management and theory (of this dissertation) and discusses future directions. Summary of part II–IV

1 Summary of part II–IV

Part II investigates into the conceptual foundations in Service Science and presents the state of art in engineering of organizational robustness and resilience in service systems from a theoretical and empirical perspective. This part investigates into research question (RQ) and examines which conceptual approaches are discussed in Service Science towards organizational robustness and resilience and which criteria do they meet to increase organizational sustainability and survivability? Part II consists of three chapters that investigate into organizational sustainability, survivability and innovation capacity of service systems in dynamic environments.

Chapter of part II originates in the scientific article database of the Service Science Worldwide Community. This database consists of scholarly articles of theoretical/philosophical nature, whereas articles out of this database have been chosen. Chapter is about a narrative concept-centric literature among identified main conceptual approaches in Service Science: service-dominant logic, SSMED, viable system approach and work system theory. It presents the prerequisites towards organizational robustness and resilience of these conceptual approaches, its benefits and utilization. Furthermore, chapter presents the (theoretically predicted) concepts of stakeholder interaction & value co-creation, knowledge exploration & management: learning, training, education and system development & (re-) engineering as means to increase organizational robustness and resilience in service systems. These concepts are Service Science’ response against organizational dynamics, risks, uncertainties and crisis. Finally, the decision was made to select the work system theory. The work system theory within this dissertation is used as socio-technical perspective on service systems and provides the base for structured analysis, evaluation and engineering of service system’s resource base.

Chapter of part II builds up on the concepts of stakeholder interaction & value co- creation, knowledge exploration & management: learning, training, education and system development & (re-) engineering. Chapter advances chapter by presenting the concepts towards organizational robustness and resilience within the empirical

Summary of part II–IV

field of Service Science. It extends previously selected articles by a narrative review of empirical articles within the field of Service Science. These articles are selected from six A-ranked academic journals within the field of Information System research. In the center of this chapter is the research interest into the structure of knowledge within the empirical findings in Service Science to design and develop enhanced levels of organizational robustness and resilience in service systems. Identified knowledge is structured among the nodes of the network of interrelated concepts of organizational robustness and resilience. This network is a main result of part III and identifies “risk- and crisis management”, “cognitive capabilities”, “organizational culture”, “business practices and technologies” and “extended enterprise and supply chain management” as major concepts to increase organizational robustness and resilience. In chapter (part II), the concepts of organizational sensemaking & human resource management, system development & (re-) engineering and safety- & security processes, including risk management strategies to increase organizational robustness and resilience in the empirical field of Service Science are identified and presented. Additionally, this chapter identifies a shift from conventional, static and resource-based system engineering perspective in Service Science towards a dynamic and capability-based system engineering perspective. It identifies the emergent trend of engineering of capabilities towards dynamic environments, e.g. from resource acquisition to capability building (Chen et al., ). Finally, the decision was made to select the dynamic capability approach as a complementary framework to the work system theory for service system engineering and innovation.

Chapter of part II is about the review of the work system theory and the dynamic capability approach. The review of the work system theory consists of a concept-centric review of scholarly articles about the work system theory, wherein criteria, clustered among seven concepts are identified. Identified concepts are the work system framework, work system life cycle model, service responsibility tables, work system Snapshot, service value chain framework, service domain framework and metamodel. The review of the dynamic capability approach originates in and advances the conceptual perspectives on dynamic capabilities of Ambrosini & Bowman (). Seven perspectives on dynamic capabilities could be identified that are as follows: capabilities ad infinitum, process-based view, managerial reliability, integration,

Summary of part II–IV reconfiguration, renewal, re-creation, target-based view and microfoundation framework. These perspectives experienced an in-depth review. As identified in this dissertation, the work system theory and dynamic capability approach complement each other to increase service system’s sustainability, survivability and innovation capacity in dynamic environments.

Main result in chapter /part II is the identification and selection of the work system framework and dynamic capability microfoundation framework for design and development of the strategic management framework for engineering of organizational robustness and resilience in service systems. These two approaches are selected as means to serve engineering and innovation in Service Science towards increased organizational robustness and resilience in and among service systems. The work system framework, as used and presented in this dissertation, serves resource needs of organizations and is about (re-) engineering (of resources and its underlying processes) within service systems. The Dynamic Capability microfoundation framework, in turn, serves the strategic alignment of service systems towards their internal and external opportunities and challenges as well as their utilization. The microfoundation framework as used in this dissertation is about the design, development, engineering and realignment of system’s capabilities. Based on these frameworks, an integrated analytical framework could be designed and developed. This framework represents the status quo in engineering of organizational robustness and resilience in Service Science: to analyze and evaluate system engineering activities towards increased levels of organizational robustness. This analytical framework is the response to the research question about how an analytical framework to analyze and evaluate organizational sustainability and survivability in service systems looks like.

Summarized, part II contributes to Service Science by the presentation of a state of the art literature reviews about organizational robustness and resilience to build flexible and adaptable service systems that are able to respond to dynamic environments (Ostrom et al., ) and to change systems in face of organizational dynamics, risks, uncertainties and crisis (Spohrer et al., ). Within this part, the concepts of stakeholder interaction & value co-creation, knowledge exploration & management: learning, training, education and system development & (re-) engineering as well as organizational sensemaking & human resource management

Summary of part II–IV

and safety- & security processes, including risk management strategies to increase organizational robustness and resilience are identified. Based on the work system theory and the dynamic capability approach, this chapter augments Service Science with the development and introduction of an integrated analytical framework for analysis and evaluation of service systems from the perspective of organizational robustness and resilience. This framework captures the resource-based perspective and capability-based perspective towards organizational robustness and resilience and enables scholars and practitioners in the field of Service Science to structurally analyze and evaluate service system from a static and resource-based perspective as well as from a dynamic and capability-based perspective. Both perspectives, as identified in this dissertation, are of equal importance to develop, engineer and innovate service systems towards organizational sustainability, survivability, innovation capacity and profitability especially in times of organizational certainty and dynamic, risks, uncertainty and crisis. This part introduces a dynamic component to static resource- engineering in Service Science literature and builds the basis of this dissertation’s main result: the Strategic Management Framework for Engineering of Organizational Robustness and Resilience.

Part III investigates into the concepts of organizational robustness and resilience. In the center of part III is research question (RQ), which discusses the structure of knowledge on the concepts of organizational robustness and resilience and how organizations act on these concepts to better respond to organizational dynamics, risks, uncertainties and crisis. This part is split into two chapters and presents endeavors from a theoretically and empirically perspective to withstand dynamics, risks, uncertainties and crisis as well as to gain innovation and organizational competitive advantages out of such events.

Chapter of part III investigates into organizational robustness and resilience from a multi-disciplinary perspective. scholarly articles out of scientific journals from the academic fields of Management Science, Operational Science, Logistics and Supply Chain Management, Management & Leadership and Organizational Psychology have been selected for quantitative and qualitative literature reviews as well as a content analysis. The basis for the presented literature reviews and the content analysis is a

Summary of part II–IV rigorous coding of selected scholarly articles, guided by the Grounded Theory. In total . quotations, clustered to open and axial codes, are used. These codes provide the basis to work on definitions, concepts and methods of organizational robustness and resilience from a theoretical perspective.

Main result of this chapter is the network of interrelated concepts of organizational robustness and resilience. Interrelated concepts are: “resilience”, “risk- and crisis management”, “cognitive capabilities”, “organizational culture”, “business practices and technologies” and “extended enterprise and supply chain management”. These concepts are of major importance to increase organizational robustness and resilience in and among service systems.The network of interrelated concepts of organizational robustness and resilience presents the interrelation of identified concepts among each other. Examples include the strong interrelation of concepts “resilience” and “organizational culture”, “risk- & crisis management” and “business practices & technologies”, “risk- & crisis management” and “resilience”, “organizational culture” and “cognitive capabilities”, “organizational culture” and “resilience”, “business practices & technologies” and “organizational culture” and vice versa and “business practices & technologies” and “cognitive capabilities”. This network is important to both – scholars and practitioners within the fields of Service Science and Organizational Robustness and Resilience – and enables them to structure knowledge, methods and methodologies among six core concepts about organizational robustness and resilience. It provides guidance to explore and manage organizational robustness and resilience within service systems and their organizational anchoring.

Within this chapter, the methods of risk management, quality, design, performance measurement and cognition (& communication) are identified as means to foster organizational robustness. Risk management (including a broad range of related terms), cognition & organizational learning, social capital, design & and innovation are identified as methods to foster organizational resilience.

Chapter of part III is about the empirical research into the concept of organizational robustness and resilience within the field of transport logistics and supply chain management. This chapter consists of a case study research and investigates into three transport logistics and supply chain service providers from the area of the Lake of

Summary of part II–IV

Constance (Austria, Germany, Switzerland). Service providers within this field of business maintain a critical role since a small, provider-caused deviation easily can cascade to a major disruption at the service customers’ side until a breakdown of the service network. Robust and resilient transport logistics and supply chain service providers thus are of major importance for the overall (service) economy. Case study research as used in this chapter proofed to be an appropriate methodology to investigate into the empirical field. Case study research is not restricted to just one survey method. It allows to make use of almost all data and information related to the case, e.g. interview, radio interview, case study partners’ homepages, online newsletter and articles, as used in this chapter. Based on the network of interrelated concepts of organizational robustness and resilience, representatives of particular case study partners got involved into expert interview. Each interview lasted about ~, to hours and they were performed between and . Interviewees were asked about organizational activities, processes and strategies towards the concepts of organizational robustness and resilience. Results out of the single case studies are captured in single case study reports and a cross-case conclusion, structured among the network of interrelated concepts of organizational robustness and resilience. Single case study reports and cross-case conclusions are sprinkled with varieties of interrelated activities and responsibilities how to increase organizational robustness and resilience within service systems. This chapter augments Service Science by the presentation of new and innovative visions and sophisticated strategies towards increased organizational robustness and resilience in service systems.

Part IV is about the structured analysis of case study research and the design and development of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience (SMFRR). The SMFRR marks the main result of this dissertation and provides novel value for scholars and practitioners in the field of Service Science to design, develop and engineer increased levels of robustness and resilience in service systems. Part IV is structured into two chapters that investigate into the overall research questions: how can a Strategic Management Framework for Engineering of Organizational Robustness and Resilience look like?

Summary of part II–IV

Chapter of part IV is about the structured analysis and evaluation of the conducted single case studies. Each single case study experienced twelve coding runs, guided by the Grounded Theory methodology. The coding runs consist of the use of previously defined analytical framework and elements: nine work system framework elements and three dynamic capability microfoundation framework elements. These elements provided an individual perspective on the case studies. In total, . quotations, clustered to unique open codes and axial codes in work system framework perspective are used. However, quotations, clustered to open codes and predefined axial codes in Dynamic Capability microfoundation perspective are used. The coding and clustering processes resulted into the identification of strategies towards design and development of increased levels of organizational robustness and resilience in service systems. From a process-dominated perspective, these strategies are important to strategically plan organizational robustness and resilience in service systems. From a design-dominated perspective, these strategies form the basis to design and develop the Strategic Management Framework for Engineering of Organizational Robustness and Resilience, as presented figure (& figure , chapter /part IV).

Summary of part II–IV

Figure : Strategic management framework for engineering of organizational robustness and resilience (SMFRR)

The second chapter of part IV is about the design and development of the Strategic Management Framework for Engineering of Organizational Robustness and Resilience (c.f. figure & (chapter , part IV)) and its underlying management levels. The SMFRR marks the main result of this dissertation and is the result of iterative design processes, accompanied by intensive scientific discussions in individual supervision meetings and presentations and discussions at scientific conferences (e.g. EURAM Early Career Colloquium, Competitive Advantage in the Digital Economy Forum (CADE )).

The SMFRR, as presented in this dissertation, not only is the response to the overall research objective about how a Strategic Management Framework for Engineering of Organizational Robustness and Resilience can look like, but also how scholars within the academic field of Service Science can plan for an uncertain future and develop and

Summary of part II–IV engineer increased levels of organizational robustness and resilience in responding to internal and external environmentally challenges. Within the SMFRR, the work system framework is about the transformation of ordinary resources and their underlying processes and structure into valuable, rare, inimitable and non-substitutable resources (VRIN) and the engineering of organizational capabilities (superior processes and routines). Teece's () dynamic capability microfoundation framework as used in the SMFRR is to increase the system’s evolution: long-term sustainability, survivability and innovation capacity by design, development and (re-) engineering of capabilities as well as its strategic governance. Considered from an organizational perspective, the work system framework is located at the resource management level. The dynamic capability microfoundation framework is located at the strategic management level. The operational management level is about the development of responsiveness capabilities and aims to change and adapt systems towards organizational dynamics, risks, uncertainties and crisis. It deals with the development of risk management, business practices and system (re-) engineering towards enhanced organizational robustness and resilience. The tactical management level is about the development of cognitive capabilities and aims to increase system innovation by service interaction, value co-creation, knowledge management, learning and organizational sensemaking. Activities capture service stakeholder interaction and value co-creation as well as internal and external knowledge integration and their management towards enhanced levels of organizational robustness and resilience.

Conclusion: contributions and future directions

2 Conclusion: contributions and future directions

This dissertation contributes to the academic discipline of Service Science and introduces and presents the concepts of organizational robustness and resilience to this field of research. Although service system engineering and service system innovation are about the further design and development of service systems towards increased sustainability, survivability and profitability, Service Science lacks knowledge about how to remain robust and resilient against organizational dynamics, risks, uncertainties and crisis. Compared to the empirical field, the concepts of organizational robustness and resilience are not addressed adequately and captured in Service Science literature. The empirical field provides meaningful examples to prevent, response to and to cope with organizational dynamics, risks and uncertainties as well as to get out of a crisis stronger than before.

This dissertation points of the concepts of organizational robustness and resilience as capabilities of service systems to respond to organizational dynamics, risks, uncertainties and crisis. Both, the concept of organizational robustness and resilience, foster and facilitate the design, development and engineering of capabilities that enhance the organization’s sustainability, survivability, innovation capacity and profitability within these times. The concepts of organizational robustness and resilience are complementary to each other and of synergistic nature that reinforce each other. Both are about the design, development and engineering of organizational capabilities, responsiveness capabilities, cognitive capabilities and dynamic capabilities. Organizational capabilities within this concept of organizational robustness and resilience are to transform resources into valuable, rare, inimitable and non-substitutable resources that create competitive advantages of an organization. Responsiveness capabilities are about anticipation and the management of risks, the planning of business continuity measures and the adaption and change of the system towards dynamic environments. Cognitive capabilities are about organizational interaction, learning and sensemaking mechanisms. In the centre is system innovation based on organizational learning and the utilization of the system participants’ skills,

Conclusion: contributions and future directions competences and talents. Dynamic capabilities are about the systems strategic alignment: the sensing and seizing of organizational challenges and opportunities as well as management and transformation of threats into opportunities. Dynamic capabilities, within the concepts of organizational robustness and resilience, are about the strategic alignment of a particular service system towards political, economic, strategical, technological, environmental and legal changes.

As a main result, this dissertation presents the Strategic Management Framework for Engineering of Organizational Robustness and Resilience (SMFRR) as a mean to increase organizational sustainability, survivability, innovation capacity and profitability in times of organizational certainty and dynamics, risks, uncertainties and crisis. The SMFRR is important to design and develop innovation to cope with organizational adversity. It provides guidance to scholars, managers, decision makers and employees to design, develop and engineer organizational robustness and resilience at a system’s resource and its operational, tactical and strategic management level. It supports to create positive and opportunistic organizational behavior to launch innovation in both: times of certainty and stability as well as in times of organizational crisis situation. The SMFRR’s validity originates in both: academicism (Service Science, Organizational Robustness and Resilience and its accompanied field of research) and empiricism. Due to its interdisciplinary origin, design and development, the SMFRR is not restricted to a single field of research. The SMFRR and its management levels are valid and applicable in several fields of research, business and industry. Service systems, as represented at SMFRR’s resource-level, was – are – and will be in future bundles of resources. Service systems thus are best represented by this management level, which finds validity in almost all systems – from projects up to global supply chains. To work on and respond to organizational dynamics, risks, uncertainties and crisis, the development of appropriate capabilities is of major importance. Capabilities, such as used in the SMFRR, are not restricted to service systems in transport logistics and supply chain management. These capabilities are interdisciplinary and are important to systems in heterogonous fields of research and empiricism.

This dissertation makes two main contributions. First, this dissertation contributes to a better understanding about organizational robustness and resilience as well as innovation engineering in times of organizational dynamics, risks, uncertainties and

Conclusion: contributions and future directions

crisis within the academic disciplines of Service Science and Organizational Robustness and Resilience and accompanied fields of research. It extends the literature base and the empirical field by addressing and discussing of the why and how question. As explored in this dissertation, the theoretical field of this dissertation can respond to why the concepts of organizational robustness and resilience are important – but not how these concepts can get applied. The empirical field of this dissertation can respond to how the concepts of organizational robustness and resilience can get applied but do not know the inner essence, its interrelations and dependencies. This dissertation extends known approaches and presents new and emergent approaches to scholars and practitioners in these fields of research. It introduces empirical knowledge to science and presents new perspectives how to handle organizational dynamics, risks, uncertainties and crisis.

Second, this dissertation simplifies the notion of organizational robustness and resilience: instead of looking at definitions, this dissertation presents practicable concepts and capabilities to increase organizational robustness and resilience – to create competitive advantages and innovation in times of organizational dynamics, risks, uncertainties and crisis. It enriches the theoretical discussion about organizational robustness and resilience in literature by design, development and presentation of tangible artefacts: the analytical framework, the network of interrelated concepts of organizational robustness and resilience and the Strategic Management Framework for Engineering of Organizational Robustness and Resilience. These artefacts support and guide managers, decision makers and employees to increase the level of organizational robustness and resilience within service systems. The SMFRR is a framework that guides to work on renewal, change and adaption. It represents an important framework to design, develop and engineer sustainable innovation.

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Annexes

Annexes

Annex A: Related publications

Parts of this dissertation have been presented at scientific conferences:

Maurer, F., Lechner, U., & Schumacher, J. (). Performance Engineering in a Supply Chain – A Case Study. Presented at the th International Symposium on Logistics (ISL), Ho Chi Minh City.

Maurer, F., & Lechner, U. (). From Disaster Response Planning to e-Resilience: A Literature Review. –. Retrieved from http://aisel.aisnet.org/cgi/viewcontent.cgi?article=&context=bled

Maurer, F., & Lechner, U. (). Resilience in Transport Logistics – Best Practice Case Study (D. Kundisch, L. Suhl, & L. Beckmann, Eds.). Presented and discussed at the Multikonferenz Wirtschaftsinformatik (MKWI), Paderborn. Retrieved from http://www.mkwi.de/Content/Tagungsband_MKWI.pdf

Maurer, F., Lechner, U., & Schumacher, J. (). Robust Designs for Logistics Service Providers—A Case Study. International Journal of Advanced Logistics.

Maurer, F. (). Propositions on Organizational Robustness and Resilience— Research in progress. Proceedings th Research Colloquium on “Innovation & Value Creation.” Presented at the th Research Colloquium on “Innovation & Value Creation,” Leipzig. Retrieved from http://www.hhl.de/de/home/ & https://www.conftool.net/de/references/references_.html

Maurer, F., & Lechner, U. (). Robustness and Resilience in Transport Logistics – A Literature Review. In H. Unger & W. A. Halang (Eds.), Autonomous Systems : Proceedings of the th GI Conference: Vol. Fortschritt-Berichte VDI (pp. –)

Maurer, F., & Lechner, U. (). Robust and Resilient Designs for Logistics Service Providers. Supply Chain Management - Recent Trends and Future Perspectives. Presented at the th CEMS Research Seminar on Supply Chain Management, Riezlern. Retrieved from http://www.bpl.uni-koeln.de/riezlern.html?&L=

Annexes

Maurer, F., & Lechner, U. (). The Object of Organizational Robustness and Resilience: A Content Analysis. Presented at the URBE - URban freight and BEhavior change, Rome. Retrieved from http://host.uniroma.it/eventi/urbe/apfp.php

Maurer, F. (). Robustness and Resilience in Critical IT Services—Research Proposal. Presented at the Doctorial Colloquium: EURAM - European Academy of Management, Paris. Retrieved from www.euram-online.org

Maurer, F. (). Robustness and resilience as catalysts for continuous value cocreation in dynamic service networks. Presented at the th Research Colloquium on “Innovation & Value Creation,” Linz.

Maurer, F., Lechner, U., & Fritzsche, A. (). Perspectives on Organizational Robustness and Resilience: A Qualitative Literature Review. Presented at the EURAM - European Academy of Management, Paris. Retrieved from http://www.euram- online.org/

Maurer, F., & Fritzsche, A. (). System Protection and the Benefit of Others – a Service Perspective. Presented at the SPT (The Society for Philosophy and Technology), Darmstadt.

Maurer, F., & Fritzsche, A. (). Boosting innovation for the development of smart service Factories of the Future: The cases of the Federal State of Vorarlberg and its neighbouring regions. Presented at the st Bled eConference: Digital Transformation – Meeting the Challenges, Bled.

Maurer, F. (). A strategic management framework to manage, engineer and design enhanced levels of organizational robustness and resilience into service systems: Research in progress. Presented at the Euram Early Career Colloquium: th Edition of EECC - , Nuremburg. Retrieved from http://www.euram- online.org/annual-euram-ecc.html

The papers are mainly conceptualized by Florian Maurer. The data collection and analysis process as well as the findings and discussion are primarily created and conceptualized by Florian Maurer.

Annexes

Annex B: Coding

Table : Work system framework resource-element “infrastructure”

A c t i v i t i e s Perspectives on work system framework resource-element: Infrastructure Swissgold XX Cargo Expert Germany Camion Austria

Overall aim: development and maintenance Overall aim: continuous engineering towards a of a global network, incl. customers, Overall aim: become the focal node stable node in a greater business network of suppliers, carriers and other transport within the business network transport logistics and supply chain services: service related business stakeholders. Vision: focus on reliability and performance relaunch of the former silk road Continuous collection of information Development of an infrastructure for about business partners and their Close interaction with service clients - major increased customer participation (customer infrastructure(s) - auditing of business emphasizes on voice of the customer principle platform); use of account managers and partners conventional marketing channels Development of infrastructure to business partners - e.g. ICT driven infrastructure for Roll-out of SXX/Swiss standards to Development and maintenance automatically data exchange (of data about Participation within (strategic) alliances business partners - force/encourage of a business network transport orders and shipments) - % of the within the field of transport logistics and business partners to take over SXX' infrastructure service clients are connected with EDI interfaces supply chain management services business standards, practices and quality into production processes of transportation and supply chain services Development of an infrastructure to serve different needs (e.g. A-customers (e.g. Increase stability of business partners major/multi-national companies) have and its environment/infrastructure different needs than C-customers (e.g. customers of the CA's general parcel service) Development of an infrastructure to Development of infrastructure to business serve different needs (e.g. A-customers partners - e.g. EDI converters and interfaces; have different needs than C-customers) but also: immediate interruption of these

Annexes

digital channels to customers (e.g. because of the Loki-virus)

Development of infrastructure to business partners - e.g. ICT driven infrastructure for automatically data exchange (of data about transport orders and shipments) Employee mediation: development of Employee empowerment: employees are infrastructure to leadership and mediation Employee awareness: employees as service- the creators of their internal instead management, control and monitoring oriented providers to business services infrastructure (e.g. social interaction, etc.) - development of trustful relationships between employees and superiors Development of an infrastructure for Development of an infrastructure for Development of an employee education and communication (open, direct - communication (open, direct - training college: education of skills and inclusion/exclusion of technology) inclusion/exclusion of technology) competences Development of an infrastructure for (individual/organizational) learning (e.g. Development of an infrastructure for team work Infrastructure to attract employees - to keep mailing, skill matrix to develop tailored and employee collaboration employees within the organization training plans) Development of an Development of an infrastructure for employee Development of an infrastructure for infrastructure for employees Development of an infrastructure for new sourcing and employee selection preferences: (individual/organizational) learning (e.g. (participation) employees (e.g. have to go through all employees that also perform experiments and mailing, skill matrix to develop tailored operational departments) tests at home training plans) Development of an infrastructure for Development of an infrastructure for new Development of an infrastructure for the (individual/organizational) learning (e.g. employees (e.g. have to go through all exit of employees (e.g. retirement, sensing for new information, sophisticated operational departments) and employees termination) employees, education and assignment of tasks that changed their job and/or department and responsibilities to apprentices) within the organization Infrastructure to attract employees - truck Development of an infrastructure to drivers and the caretaker are equipped with Development of an infrastructure to report report failures digital incentives (e.g. tablet PC's, smart phones, failures etc.) Failure reporting infrastructure

Annexes

Investment strategy: technology leader within Structured ITIL processes as basis to renew Development of an infrastructure for particular field of business incl. Qualitative ICT processes; continuous renewal of change, renewal, innovation - less investments into ICT, its infrastructure and infrastructure, business models and hierarchical (bottom-up as favored way, applications with the aim to increase digital Development of an processes, e.g. from rail to road, Shanghai, top-down) maturity and service performance, ICT infrastructure for innovation general parcel service hardware not longer than its amortization Fail: loss of individual/employees innovation Digitalization of change mgmt processes ideas and projects by missing infrastructures ISO as basis for internal and external Maintenance of a strategic department Fail: no appropriate risk management and risk management - standard forces to for organizational safety-, security- and business continuity management/planning conduct risk management workshops on compliance structures Development of an regular basis Development of an infrastructure for risk infrastructure for risk Development of an infrastructure for internal Business continuity management as management/business continuity management and external audits infrastructure to risk avoidance and recovery planning, internal and external audits BC management as infrastructure to risk Development of an infrastructure for internal

avoidance and recovery and external audits (Technical) Redundancy as key to keep (Technical) Redundancy as key to keep (Technical) Redundancy as key to keep service infrastructure, ICT, ICT services, processes infrastructure, ICT, ICT services, performance of ICT, ICT services, processes and and business services upright (e.g. technical processes and business services upright business services upright (e.g. technical redundancy, control and monitoring of (e.g. technical redundancy, control and redundancy, control and monitoring of digital physical and digital infrastructure - monitoring of physical and digital infrastructure; special emphasis on data streams) separated data centers); maintenance of two infrastructure - separated data centers) geographically dislocated data centers Development of redundancy Triple redundancy of critical software Triple redundancy of critical software (e.g. Technical redundancy as facilitator to measures and mechanisms (e.g. Transport management system, Transport management system, warehouse decision making; e.g. maintenance of two warehouse management system) management system) geographically dislocated ICT data centers Human as major source of organizational Development of human redundancy (e.g. Functional expansion of employees - brittleness: development of human skill matrix, deputy system): human specialization, but also employees need to work redundancy (e.g. skill matrix, spread skills, resource as the most important asset in multiple areas: spread of responsibilities and tailored training): human resource as the towards organizational robustness and knowledge to and among employees most important asset towards organizational resilience robustness and resilience

Annexes

Continuous control and monitoring of ICT Internal and external measurement, Control and monitoring of ICT infrastructure - and its infrastructure incl. the conduction of control and monitoring of infrastructure incl. hardware and software at least two catastrophe tests per year; (internal & external) and related artifacts increase reliability in infrastructure and data Development of a control, Continuous control of achievement of monitoring and maintenance internal/organizational goals, departmental structure Development of safety and security processes and its alignment with the overall measures as well as Service Level business strategy; control of the application Agreements to increase infrastructure of Service Level Agreements towards compliance

Annexes

Table : Work system framework resource-element “strategy”

A c t i v i t i e s Perspectives on work system framework resource: strategy Swissgold XX Cargo Expert Germany Camion Austria

Make use and gain advantage of audits from Make use and gain advantage from internal departments and external internal and external audits - conducted Make use and gain advantage of external audits, organizations (e.g. major customers) and through internal departments, external e.g. performed by customers and institutions institutions (e.g. International organizations and institutions Standardization Organization) Development of an audit Pro-active audit of business partners and strategy stakeholders with the aim to implement at least a minimum standard about ISO as basis for ICT audits safety, security, reliability, performance and quality Pro-active exploration of information of

business partners and stakeholders Preference of open and direct (face-to- Preference of open and direct (face-to-face) Preference of open and direct (face-to-face) face) communication instead of digital communication instead of digital communication instead of digital communication channels (e.g. e-mail) communication channels (e.g. e-mail) communication channels (e.g. e-mail) Use of technology to communicate and Use of technology to communicate and Use of technology to communicate and collaborate collaborate collaborate Failure reporting: open and direct Failure reporting: open and direct Failure reporting: open and direct Development of flat hierarchies to enable Digital communication with service clients: Use of emergent technologies for open and direct communication and almost % of the customers are connected to Development of a communications (e.g. Call for business) collaboration among managers and the TMS and WMS system communication strategy employees Development of a customer relationship management tool to increase customer participation Digital communication with service clients - immediate intervention if business partners' systems are infected with ICT viruses Key account managers to serve customers

and its requirements and needs

Annexes

Use of ISO as communication channel to disseminate enhanced levels of security, safety, quality, etc. to customers Continuous education and training of Empowerment of employees to make use Development of structures to increase teamwork employees: maintenance of a college to about their competencies and skills and employee collaboration increase employees' competences and skills - development of pro-active employees Development of trust relationships between Development of active employees that Individual management of employees: each managers and employees and among observe developments and emergent employee is unique and needs tailored themselves: managers act as leaders and trends within particular field of business leadership mediators Development of an employee Specialization of employees with high tendency management strategy Development of strategies if employees to enlarge their function to become at least an Development of a leadership culture leave the organization appropriate deputy of responsible employee (human redundancy) Development of employee recruitment process Development of mentoring processes for Development of learning processes for that focus on pro-active employees that perform new employees and employees, which new employees experiments and tests at home too changed their job role Long term relationships with employees and Innovation by organizational and private managers: make use of organizational experiments and tests experience and wisdom Continuous education and training of Learn from accidents and experienced Active dissemination of knowledge (teamwork), employees: maintenance of a college to events (e.g. hurricane Sandy, h ICT e.g. education and training of apprentices but increase employees' competences and skills - breakdown) also active involvement of them development of pro-active employees Development of a deputy system (to cope Awareness that % of learning happens by

absences: sick leave, vacation, etc.) doing (learning by doing) Development of a knowledge Development of physical and digital and learning strategy Technology (e.g. Macrohard Safepoint) to knowledge dissemination channels, e.g.

avoid information asymmetries Wiki-Platform, process documentation platform, business continuity handbook Development of physical and digital knowledge dissemination channels, e.g. Transformation of (individual) knowledge

Wiki-Platform, e-learning tutorials by into organizational routines, best practices mail

Annexes

Inclusion of all business partners and network stakeholder, e.g. blue-light Development of formal and informal Development of formal and informal organizations (incl. personal contact to its networking structures networking structures leaders and decision makers) Development of a customer relationship Development of formal and informal management tool to increase customer Development of a networking structures business/service ecosystem participation Innovation exploration strategies, e.g. strategy Formal and informal contacts to a ICT Innovation exploration strategies, e.g. attendance at trade fairs, skimming of dedicated supplier - conduction of telephone attendance at trade fairs, skimming of journals, newspapers, etc. … digital networks: conferences on weekly basis dedicated journals, newspapers, etc. blogs Formal and informal networks - physical and Formal and informal networks digital (e.g. blogs, crowd working) Key principle: voice of the customer - managed, Development/re-engineering of business Employee empowerment - facilitation of controlled and monitored by the top models decision making up to a certain amount management (managing director) Development of a technology strategy - Development of the equilibrium: development of a catalogue for investments into centralization vs. decentralization or technology and ICT: development of a vision Redundancies as trigger to decision making management/control & KPI's vs. (e.g. technology leader within particular field of empowerment/leadership business) Development of an appropriate innovation investment strategy - e.g. mix between early Development of an Development of fallback strategies (e.g. Clear decision making structures and adopter and early majority, mix between organizational strategy co-headquarter) responsibilities innovation, imitation, research & development Development of a service strategy: Development of a service strategy: increase sensitivity to operations and service of service excellence provision Development of business strategy: Development of pro-active employees that Engineering of new business models due to become the focal node in particular think about and work on innovation; open environmental changes network for renewal, change and innovation Bureaucratic structures with additional liberties Development of "Cash-Cows" that support

for the ICT department "Question marks"

Annexes

Development of redundancies - key Development of infrastructural and Development of redundancies - key strategy strategy towards organizational technological (ICT) redundancies - redundancy keep operational business alive but also as robustness and resilience as knock-out criteria facilitator of decision making Redundancy as synonym for fall-out (e.g. Development of human redundancies - a branch can take over operations from Redundancies as facilitator for riskier decision human as the most vulnerable source (e.g. another branch that is impacted by an making sick leave, vacation, etc.) event) Development of redundancy Development of human redundancies - Development of human redundancies - human Infrastructure redundancy to cope break strategies human as the most vulnerable source as the most vulnerable source (e.g. sick leave, downs of supply, e.g. two data centers at two (e.g. sick leave, vacation, etc.) vacation, etc.) different geographical locations Infrastructural redundancies, e.g. fuel

station, power generators Development of infrastructural and technological (ICT) redundancies - redundancy as knock-out criteria Development of a strategic department Development of risk management structures Risk management as part of daily that deals with safety, security, risk and within projects life/business operations compliance issues Development of business continuity Development of business/ICT continuity

strategies strategies Development of behavior that change, renewal and risk are part of Risk aversion - focus on high reliability Risk aversion - focus on high reliability organizational life (e.g. The Macroeconomics of De-Cashing) Development of a risk Development of risk management strategy assessment/estimation mechanism: Allocation of responsibilities - distribution of strategic - business continuity planning; Risk management captured within ISO knowledge and expertise operational - service level agreements and checkpoints Forbidden to use external ICT infrastructure Inclusion of safety, security and risk Conduction of formally organized risk (e.g. fire-wires) as well as to use internet for aspect into decision making workshops private use Development of channels to directly access into branches - intervention Application of catastrophe tests mechanisms

Annexes

Risk management as process of technical Acceptance of rest risks - sometimes good that Acceptance of rest risks resp. change, and infrastructural measures but also as events happen that again highlight safety and renewal and innovation (e.g. new process of continuous training and security gaps technologies) as source of new risks education (behavior, awareness) Risk management as trigger to enhanced Immediate interruption of digital levels of organizational robustness and Improvisation if risks occur/events happen communication channels to customers resilience Development of a technology strategy - Development of a strategy to implement development of a catalogue for investments into software updates, features and new Technology as enabler of business technology and ICT: development of a vision releases (e.g. technology leader within field of business) Control and monitoring of ICT & Control and monitoring of ICT & technology Control and monitoring of ICT & technology Development of a technology technology strategy Focus on data redundancy and reliability (to Technology as enabler of business Scalability of new purchases (e.g. server) reproduce business cases) Active technology exploration - e.g. trade fairs, Active technology exploration - e.g. trade Development of key performance formal/informal business networks … but also fairs, formal/informal business networks … indicators experimentation and test (at home) but also active research & development

Annexes

Table : Work system framework resource-element “environment”

A c t i v i t i e s Perspectives on Work System Framework resource: environment Swissgold XX Cargo Expert Germany Camion Austria

External audits: receives audit requests External audits: receives audit requests from External audits: receives audit requests from from (major) customers (major) customers (major) customers External audits performed by audit External audits performed by audit institutions: institutions: receives audit requests External audits performed by audit receives audit requests from the managing from the board of management - at institutions: receives audit requests from the Competitive director to evaluate service performance and least one audit per branch per year board of management environment: service quality (role model branches) business/market/techno- Audits as basis to avoid risks - Internal audits performed by accompanied logy alignment via (continuous) improvement through the departments (e.g. finance): receives audit audits results of audits requests from the board of management Pursues business partner audits - to evaluate service performance and ISO: certification service quality as well as to increase performance and quality standards Customer integration of major importance: Use of account managers and conventional requirements requirements Customer complaints managed by the integration of the customer into the service marketing methods to serve customers’ board of managers processes needs, requests and requirements Standardized and individual business Standardized and individual business % of service customers are integrated via EDI models and business continuity plans models for customers (e.g. General Parcel vs. Competitive interfaces (according to customers' requests) System Logistics) environment: voice of VOC as the major principle: managed, the customer Trust relationships with customers - trust Audits conducted by service clients controlled and monitored by the managing secured via contracts and penalties director Interruption of EDI communication channels

Awareness about the business environment: competition and customer and customer competition the business environment: about Awareness Customer complaints managed by the (if, for example, customers' ERP system is managing director infected by viruses) Open and direct internal Cognitive environment: Open and direct internal communication: Open and direct internal communication: communication: preferred ways are internal and external preferred ways are face-to-face and telephone preferred ways are face-to-face and the the Awaren face-to-face and telephone instead of e- communication instead of e-mail, sms, etc. telephone instead of e-mail, sms, etc. ess about about ess mail, sms, etc.

Annexes

Collaborative information sharing between Maintenance of physical and digital Maintenance of physical and digital networks departments to realize change, renewal and networks (formal/informal) (formal/informal) innovation Development of trust relationships among Maintenance of formal (and informal) Environment to report failures and errors employees, managers and business partners contacts to blue-light organizations - but also: contractual penalties Active exploration of business Maintenance of physical and digital partners: audit and feedback to networks (formal/informal); external business partners about service communication happens more formal and is performance, service quality, safety & Teamwork within the department maintained by key account managers, security - buildup of the focal position classical marketing channels and a customer in the business network and roll-out of relationship platform (that will be released company standards to business in close future); excursions partners institutions Environment to report failures and Environment to report failures and errors errors ISO: certification as Tight control of suppliers; conduction communication channel (e.g. provision of a of telephone conference on weekly certain level of service performance, service basis quality, safety, security, risk handling, etc.) Digital technologies as supportive tools to Digital technologies as supportive tools to internal and external communication (EDI Digital technologies as supportive tools internal and external communication (e.g. % converters) - immediate interruption of tools to internal and external communication of the customers are connected with EDI if it endangers the organization (e.g. by interfaces to the service provision process) viruses) Continuous education and training of Integration of external knowledge and Education and training of deputies "ordinary" employees and apprentices expertise: ICT and business consults Tight collaboration with operational units - Digital channels to educate and train Use of apprentices to do research into emergent exchange of knowledge between Cognitive environment: employees: wiki & e-learning tutorials technologies and trends heterogeneous employees and managers learning & knowledge among departments sharing Learning from accidents and events, Learning from accidents, e.g. ICT breakdown Digital channels to educate and train e.g. hurricane Sandy but also reported (caused internally and externally) - derivation of employees: wiki platform, documentation failures from employees measures to cope such events platforms, business continuity handbooks New knowledge by internal & external New knowledge by internal & external New knowledge by internal & external audits audits audits

Annexes

Business continuity plan that capture experienced knowledge about events: Learning from customer complaints - derivation Education and training of deputies standardized and customized business of measures to increase service quality continuity plans for service clients Implementation of business continuity Questioning of employee-caused as well as Learning mechanisms: % of learning plans by recognition of national supplier-caused failures happens by learning by doing legislative, laws and culture Loss of business continuity Maintenance of a college for employee management is equal to learn from education and training: improvement of accidents skills and competences Education and training of new Development of a mentoring program for employees that have to pass through new employees and employees that changed all operational departments within one their job within the organization month Development of a skill matrix to develop tailored education and Learning from accidents and events training plans and make use of employees' skills and competences Development of a skill matrix to develop tailored education and training plans and

make use of employees' skills and competences Kaizen workshops to increase continuous improvement on all levels: business, employee, High focus on customer integration: voice of the Respect of cultural differences and customer principle managed by the managing Great company history ranging back until requests director - service satisfaction by incentives to the the th century transport service (e.g. EDI communication) Cognitive environment: Internationalization incl. hierarchical organizational culture Internationalization incl. hierarchical Internationalization incl. hierarchical subsidy/branch system: management by subsidy/branch system: access rights of subsidy/branch system: managing director with central requirements, service level the headquarter into, for example, comprehensive management, control and agreement and penalties if performance safety- and security aspects monitoring rights indicators do not fit to set goals

Annexes

Re-structuring after the retirement of the former managing director - development of new, Flat hierarchies that allow open and direct Strategic department for organizational sustainable structures; relocation of the communication among employees and safety-, security-, risk- and compliance headquarter to a more urban area (Town of managers Reutlingen) Innovative thinking employees: pro-active Specialization within particular field of Specialization within particular field of business employees that are aware about emerging business technologies, trends and challenges Flexibility: open for new and immediate Focus on service excellence and service Empowerment of employees (at least in requirements - prioritization of requests, reliability: reliability as equal to times of organizational certainty) especially from the service clients organizational robustness Find the equilibrium: mix between High importance on teamwork (within the robustness and agility increasing Empowerment of employees: managers as department): specialization of employees but measures - mix between management mediators between employees; managers as also extension of their functions and & controlling vs. leadership and role models competences - buildup of human redundancies empowerment Human as the most importance Trust relationships among employees and resource within service provision Innovation culture: innovative thinking of managers: low fluctuation of employees, process: human have skills and employees as duty and their responsibility long term contracts with employees competencies to make decision Development of emergency packages, Innovation begins with the human recruitment Trust relationships among the organization e.g. medical emergency kit for frequent process: focus on innovative thinking and ist customers incl. penalties if service business travelers within the employees (freaks) that also perform performance and quality do not fit to organization experiments and tests at home defined goals Pro-active employees that are aware about emerging technologies, trends Managing director as driving forces and challenges Strategic planning of (ICT) investments: development of a vision (e.g. ) and definition of measures and activities to achieve

(e.g. technology leader - equipment of truck drivers and caretaker with tablet pc's and smart phones) ISO certification as external sign that Awareness about the Extraordinary restrictive - risk Internal goals, e.g. ICT systems must not guarantee a defined standard of risk organizations’ avoidance incl. business continuity breakdown anymore management

Annexes

regulatory environment: management and planning (on risk handling standardized and customized) level Strategic department for organizational safety-, security-, risk- and compliance Risk management as part of project Risk aversion with access right to operational management branches Operational and strategic risk management incl. business continuity Spread of responsibilities, knowledge and Individual elaboration of risk - employee planning - BCP as trigger to expertise level (no formal workshops) organizational learning Cultural differences: disaster trainings Conduction of catastrophe test (for the ICT

in US data centers) Business continuity management/planning System monitoring System monitoring as source for risk management Accompanied with audits (internal, customer, standardization organizations) Awareness about rest risks and risks Awareness about rest risks: sometimes it is good that are not experience yet (e.g. tropic Awareness about rest risks that events happen - investments get released hurricane Sandy in New York) Digital technologies to increase Digital technologies to increase Digital technologies to increase communication communication and collaboration communication and collaboration (internally and collaboration (internally and externally) (internally and externally) and externally) System monitoring by use of System monitoring by use of specialized System monitoring by use of specialized specialized software software software Categorization of ICT systems Categorization of ICT systems according to their Categorization of ICT systems according to according to their importance for the importance for the organization their importance for the organization Technical environment: organization technology Redundancy Redundancy Redundancy ITIL processes

Update of ICT systems on Sundays Vision development: become technology leader Conduction of catastrophe test (for the ICT between : - : am to guarantee within particular field of business data centers) system availability at all times ICT as essential part of business ICT as essential part of business continuity

continuity management management wrns aot h ognztos technical organizations the about Awareness environment

Annexes

Imitation and innovation: key Forced to think innovative due to company size, Imitation, innovation and research & importance on innovative thinking, geographically location and macro- development: emphasize of the department pro-active and flexible employees from economic/political driven changes (renewable "R&D" but also highly relies on pro-active all departments and branches energy, internet, etc.) employees from all dptm and branches Lobbying for innovation within the Change as daily business - Innovation/innovative thinking considered as organization: reduce change- and innovation development of new business models duty and policy resistance among managers and employees Early implementation of emergent Digitalization of change and Focus on enhanced levels of service satisfaction technologies, ways of business, e.g. road innovation processes since everyone can transport a good from A to B transport, General Parcel Service, Technical environment: development of subsidy in Shanghai innovation engineering Innovation investment strategy changes Innovation investment strategy: medium/long- between early adopter and early majority - term strategic investment planning depends on the technology Highly customer driven: customer as key to Vision and business model engineering, e.g.

change, renewal and innovation branches in all countries among the silk road Green-field engineering to achieve major

improvements Innovation fails: employees ideas are not appreciated adequately - innovative ideas get lost on employees drives

Annexes

Table : Work system framework resource-element “customer”

A c t i v i t i e s Perspectives on Work System Framework resource: customer Swissgold XX Cargo Expert Germany Camion Austria

(Major) customers perform audits (e.g. a (Major and international) customers questionnaire about safety and security (Some) customers perform audits perform audits measures sent to the board of managers) Institutional audits: certification as Institutional audits: certification as evidence evidence of service performance and Marketing department of service performance and service quality - service quality ISO certification Business model (re-) engineering: customer requests (e.g. storage of cash Key account managers and conventional Management of customer complaints by the within the warehouses) and change marketing channels but also development of managing director Interaction with customers: requests as form of organizational a digital customer relationship platform voice of the customer principle evolution Digital interconnection of ERP systems (EDI Digital interconnection of ERP systems Digital interconnection of ERP systems (EDI interfaces and converters) - interruption if, (EDI interfaces and converters) interfaces and converters) for example, the customers ERP system is infected by viruses Collaborative development of Maintenance of formal and informal, Maintenance of formal and informal networks customized business continuity plans horizontal and vertical networks Voice of the customer principle: customer

complaints managed by strategic mgmt Integration of the customer into the service Focus on service excellence - synonym for Human redundancy - call of service development processes: voice of the customer highest service performance and service deputies that serve customer requests principle managed by the managing director quality Infrastructure redundancy - call of back- Service performance orientation: keep lead times Human redundancy - call of service deputies Development of a service up branches in case of disruption as short as possible that serve customer requests provision statement Increased service quality since "everyone" can transport goods from A to B: development of Infrastructure redundancy, e.g. two data Service sensitivity at all times service incentives as increased interaction (e.g. centers status updates)

Annexes

Provision of a standardized quality - individual development of higher standards with customers Audit of the service network (business partners) to maintain service performance and service quality within the whole network; termination of weak business partners Business model innovation by integration of Pro-active employees: work to rule as a Innovative (thinking) employees: innovation as customers but also by observation of the no-go - empowerment of employees a duty, change as ongoing process development within particular markets and market segments Service specialization on BB (business to Service specialization: focus on valuable Service specialization within strategic business) services incl. vertical specialization on goods departments industries (e.g. textile, chemistry) Organizational approach that Human redundancy - call of service Maintained of close relation to local Estimation of risks in (new) customer projects complies to customer requests deputies that serve customer requests businesses Employee training and education towards increased service provision, e.g. Customer segmentation: standardized and

new employees have to go through all customized services and processes operational departments Respect of national culture, legislative Employee sophistication: long term contracts

and laws of international branches with employees Voice of the customer: flexibility towards Development of an external picture: Customized business continuity plans customer requests and requirements - customer recognize CA as extraordinary customers’ needs as the highest duty innovative organization Awareness that dynamics, risks, Individual approach that Technology driven: implementation of uncertainties and crisis have negative Employee responsibilities: clear words/hard complies to customer requests emergent technologies, e.g. ERP's Multi- impacts on customer side (e.g. hurricane words if TMS and WMS breakdown Database Container Module Sandy) Split of shipments if the value exceed a

maximum limit

Annexes

Table : Work system framework resource-element “products & services”

Perspectives on Work System A c t i v i t i e s Framework resource: product & services Swissgold XX Cargo Expert Germany Camion Austria

Specialization on transportation and Specialization on transportation and Specialization on transportation and warehousing - global player serving different warehousing of valuable goods warehousing of BB goods business segments (e.g. General Parcel, Full Truck Loads, Air, Sea, etc.) Huge sensitivity to core service and service provision mechanisms since the High reliability of services incl. service Specialization: core services Service excellence as synonym to provide transportation and warehousing needs quality and service performance, high(est possible) service quality supplementary services about safety, performance, performance security, risk Supplementary services for selected customers, Supplementary services as refilling of e.g. front-office, back-office, reverse logistics, ATM/cash machines customer requests, installation of products, etc. Business continuity management incl. Interaction with customers - voice of the Business continuity management including the development of customized business customer as lead principle to launch provision as business continuity/emergency continuity plans transportation and warehousing service handbooks in physical and digital form Enhanced levels of safety and security Organizational flexibility according to Use of ITIL processes to continuously innovate measures incl. development of risk customer requests and requirements organizational resources and processes management mechanisms Controlling of service provision Development of central requirements, process Supplementary services Controlling of service provision mechanisms (e.g. development of documentation handbooks, etc. to guarantee mechanisms (e.g. ICT systems, indicators that are critical to success and consistent service quality and service performance indicators) failure of service provision) performance Change, renewal and innovation of service, processes, business models and Trust mechanisms, e.g. ISO certification,

technologies according to market contractual penalties, etc. dynamics Service quality, development of KPI's Failure avoidance and high reliability of Robustness as a service incl. the development of Development of service provision critical to success and failure of service service: stability, safety and security, a robust organization wherein safety, security, goals quality provision availability, performance reliability and stability is key

Annexes

Robustness as a service incl. stable costs, prizes, business partners, etc.; Resilience Robustness as a service incl. maintenance as a service incl. continuous re- of stability, safety- and security and Technical and human redundancies engineering of service provision availability of systems (ICT) mechanisms Avoidance of robustness and resilience Development of control and monitoring decreasing measures (e.g. travelers kit for mechanisms: bonus-malus system frequent business travelers) Enabling of audits and other trust and Enabling of audits and other trust and Enabling of audits and other trust and interaction increasing mechanisms interaction increasing mechanisms interaction increasing mechanisms Voice of the customer: development of Interaction with customers - voice of the Service diversification, e.g. segmentation of customized service offers (e.g. business customer as lead principle to launch customers, segmentation of field of continuity plans) transportation and warehousing service transportation (General Parcel, Sea, Air …) Use of technology to increase interaction, e.g. Use of technology to increase interaction, Call for business, EDI; development of a Use of technology to increase interaction, e.g. EDI - % of service clients are customer relationship platform for increase e.g. Call for business, EDI integrated into the service provision interaction with service clients and service processes by EDI interfaces stakeholders; interruption of communication channels Well educated, trained and innovative Well educated, trained and innovative Early service development and venture Development of interaction employees - empowerment of employees employees - empowerment of employees investments, e.g. investment into question mechanisms: interaction as a that flexible react to customer requests that flexible react to customer requests marks service Integration of human competencies into Education and training of innovative and skilled Integration of human competencies into service provision processes: human - employees; maintenance of a college for service provision processes: human as especially collaborative employees that education and training; long term contracts for the fundamental resource in successful emphasis on teamwork - as the employees to make use and gain their expertise service provision fundamental resource in successful service and wisdom; mentoring system for new provision employees Strategic planning and vision Collaboration within formal and informal development, e.g. technology leader networks and alliances; integration of external strategy, ICT investments, relocation of the knowledge (e.g. business consults) headquarter Collaboration within external research project

incl. universities and research centers

Annexes

Integration of human competencies into service provision processes: human as the fundamental resource in successful service provision Connectedness to business partners and Connectedness to service environment, e.g. Connectedness to service environment, e.g. service stakeholders, e.g. carriers, blue vertical and horizontal networks vertical and horizontal networks light organizations Human redundancy as a service (e.g. ICT investment, e.g. increase the digital Venture investments deputy, responsibility allocation) maturity Technology redundancy as a service (e.g. Human redundancy as a service (e.g. Human redundancy as a service (e.g. training increase availability of ICT and thus teamwork, allocation of responsibilities, and education of employees, definition of digital communication (TMS, WMS, Implementation of infrastructure pro-active education of appreciates) deputies, responsibility allocation) EDI)) as a service Technology redundancy as a service (e.g. Infrastructure as a service (e.g. back-up Technology redundancy as a service (e.g. increase availability of ICT and thus digital branches in case of a breakdown (NY <-> increase availability of ICT and thus digital communication (TMS, WMS, EDI)) - Miami), redundant data centers at communication (TMS, WMS, EDI)) redundancy as facilitator for easier decision different geographical locations) making Infrastructure as a service, e.g. equipment Infrastructure as a service, e.g. two with at least two data streams, fuel geographically dislocated data centers generators, helicopter docking station, etc.

Annexes

Table : Work system framework resource-element “processes and activities”

Perspectives on Work System A c t i v i t i e s Framework resource: processes & activities Swissgold XX Cargo Expert Germany Camion Austria Use of results of internal audits to Use of results of internal audits to improve Use of results of internal audits to improve improve business processes and ICT business processes and ICT services business processes and ICT services services Use of results of partner audits to Flexibility and openness to new Use of results out of audits performed by increase their service quality and service requirements - especially from the customers and institutions to improve business performance - roll-out of SXX and Swiss customers and ICT processes and services standards Development (top-down) of process Use of results out of audits performed by Teamwork: everyone have to bring in its documentation documents, e.g. business customers and institutions to improve knowledge and expertise continuity plans, service level agreements; business and ICT processes and services proposal of improvements (bottom-up) Development (top-down) of process Development of improvement documentation documents, e.g. business Use of results out of audits performed by Stakeholder participation to improve and processes continuity plans, service level customers and institutions to improve increase business processes and services agreements; proposal of improvements business and ICT processes and services (bottom-up) Improvisation processes (e.g. private smart Stakeholder participation to improve and Use of ITIL as tool to concept - build - run (re-) phones in case of an organizational increase business processes and services engineer processes and services accidents) Change, renewal and innovation as a duty and policy - especially of the ICT

department; no stopping of innovative thinking/innovation actions Scalable technology (e.g. servers) Maintenance of continuous improvement

workshops/working cycles

Annexes

Human as the most important resource: Customer interaction processes by use of key have behavior, reliability and judgement: Make use of a global community (e.g. use account managers and traditional marketing a human can intervene and manage of dedicated internet sites and blogs) channels - build of a customer relationship immediately if something happens platform Empowerment of branches: freedom to organize individually imposed central Learning processes: % learning by doing, % requirements and service level Sophisticated employees (freaks) from collaboration, % from education and agreements (to respect culture and training national regulations) Learning from accidents and maintenance of Learning from accidents and improvements (e.g. infrastructure); adaption of maintenance of improvements (e.g. Education and training of "next service level agreement and business continuity Development of knowledge infrastructure); update of the business generation": appreciates management handbook - performance of (sharing/gaining) and learning continuity management handbook processes catastrophe tests Capturing of employees skills and Capturing of employees skills and competences competences with in a skill matrix to gain Active spread of knowledge, expertise and with in a skill matrix to gain advantage as well advantage as well as to develop tailored responsibilities as to develop tailored education and training education and training plans plans Networking (incl. partnerships with Learning from accidents and maintenance Networking (incl. partnerships with all business business stakeholders and blue light of improvements stakeholders) organizations) Maintenance of a department for research, Networking development and innovation Maintenance of college for education and

training Changes (in processes, services) is daily Changes (in processes, services) is daily Changes (in processes, services) is daily business: innovation by top-down and bottom- business business up approaches Maintenance of fall-out Decision making processes up to a certain limit; management/business redundancy: a Voice of the customer principle as the Development of management and (technical) redundancy as facilitator of decision branch can take over the business from ultimate credo empowerment processes making another, deviated branch immediately Flat hierarchies, leadership culture, moderation, Target: empowerment of employees and Centralized management and decision - mentoring and mediation of employees; branches, decision making processes up managing director as the driving forces; establishment of trust relationships among to a certain limit ICT department with some liberties managers and employees

Annexes

Open and direct negotiation/discussion Climate of open failure reporting Managers as role models with managing director Service excellence as business objective Strategic risk management accompanied Strategy and vision development: voice of with business continuity the customer principle, technology leader Contractual penalties management/planning in particular field of business Supplementary services for major Supplementary services for major customers customers (e.g. individual safety and Climate of open failure reporting (e.g. individual processes) security processes) Use of incentives, e.g. digital assets as Climate of open failure reporting tablet PC's, smart phones Operational risk management, included Risk management as essential part of Safety and security processes related to within the transport management system project work ISO standard and warehouse system (checkpoints) Application and continuous Safety and security (but also availability improvement of business continuity Risk management as daily business and performance) as higher objective plans Service controlling and process New software updates, features, releases Interruption processes of EDI channels if threats monitoring of business processes (truck and technology first have to be tested; are detected (e.g. LOKI virus) routes, truck load, margin …) afterwards they can get implemented Development of safety & security Development of service reliability / processes Immediate definition of recovery KPI's implementation of service reliability measures Higher risk approach than "ordinary" transport logistics and supply chain service providers Safety and security department: strategic and operational management by use of strategic and operational managers Continuous assessment of risks

(strategically & operational) Monitoring processes with the aim to observe Monitoring processes with the aim to Monitoring processes with the aim to emergent technologies (e.g. autonomous Development of technology observe emergent technologies (e.g. D observe emergent technologies (e.g. driving, driverless trucks, D printing, improvement processes printing, autonomous driving, physical physical internet, industry ./digital augmented reality, industry ./digital internet, …) transformation technologies …) transformation, factory of the future)

Annexes

ICT and infrastructural redundancy - ICT redundancy - triple redundancy of triple redundancy of critical software: critical software: transport management ICT and infrastructural redundancy transport management system & system & warehouse management warehouse management Use of standards (e.g. firewalls, spam filters, etc.) but also individuals: instructions, service level agreements Use of dedicated communication and Use of dedicated communication and ICT as enable of business … thus ICT follows collaboration tools collaboration tools business! Use of standardized and emergent Use of standardized communication Use of standardized communication communication technologies (that incl. technologies (e.g. telephone) technologies (e.g. telephone) webinar techniques, messenger services) Use of dedicated ICT that support Use of dedicated ICT that support business Use of dedicated ICT that support business business processes and services processes and services (transport processes and services (transport management (transport management system & management system & warehouse system & warehouse management system) Development of process support warehouse management system) management system) Use of Exchange Data Interface tools Use of Exchange Data Interface technology Use of Exchange Data Interface technology technology Use of monitoring and controlling Use of monitoring and controlling systems Use of monitoring and controlling systems systems Use of emergent technologies/immediate Nice to have: ICT archiving system implementation (e.g. ERP Multi-Database Module) ITIL process to concept-build-run ICT systems Nice to have: intrapreneurship award

Annexes

Table : Work system framework resource-element “participants”

Perspectives on Work System A c t i v i t i e s Framework resource: participants Swissgold XX Cargo Expert Germany Camion Austria Collaborative employees as key: flexible to Human as the most important resource: new/sudden changes, mindful (dealing Human redundancy: development of a deputy capturing of human skills and with pressure), pro-active (innovative, system and skill matrix to allocate human competences, development of a skill think outside the box), trustful (open, resources and to educate and train employees matrix honest) Major emphasis on teamwork and Long term contracts and low fluctuation rate to Human redundancy: development of a collaboration to supply the organization gain from employees' skills, competences, deputy system with ICT services and digital business expertise, knowledge and wisdom processes Human resource management: Employee recruitment as key to build up of coordination of employees a heterogeneous team: emphasis on Training and education of human resources, e.g. Pro-active employees and employee employees that fit into the organization maintenance of an internal college to increase empowerment (at least in times of (behavioral aspects) and are "freaks" - employees' skills and competences; decrease of organizational certainty) employee that are sophisticated within a the status of "grey eminences" specific topic and also perform experiments and tests at home Emphasis on future employees: pro-active Innovative thinking and employees that Pro-active and innovative employees: support, education and training of are aware about emerging future trends development of an intrapreneurship award apprentices Department "Safety & Security" dealing Managing director as the driving force! Management by service level agreements and with issues related to organizational Managing director additionally is the only central requirements: penalties if target values compliance; assignment of fundamental shareholder and thus has enormous power (according to service excellence (quality & access rights and decision authority performance)) get not achieved ICT as driving force to keep structure Leading principle: voice of the customer - Managers as mediators and supervisors between within organizations innovation projects economic action base on customers’ needs employees: conduction of specific competence, Management of change, renewal and digitalize change management and its satisfaction (quality and knowledge and expertise to achieve a higher and innovation processes performance) goal; managers as role model Strategic management: development of a Innovative (strategic & operational) managers, Strategic management that is open to vision incl. ICT (e.g. become technology e.g. by change of technology (trucks), change, renewal and innovation leader within particular field of business) identification of new markets and business and other fields of business - mission models, etc.

Annexes

statement that says: performance, performance, performance!

Operational management that follow Innovative thinking operational instructions (e.g. service level Flat hierarchies that enable open and direct management that are aware about the agreements, checkpoints in TMS & WMS communication and tight collaboration importance of ICT software) Strategic departments incl. department

"Research, Development & Innovation" Collaborative performance of audits Collaborative performance of audits Collaborative performance of audits requested requested by customers (and requested by customers (and institutions): by customers (and institutions): audits as institutions): audits as essential part for audits as essential part for organizational essential part for organizational improvement organizational improvement and improvement and innovation and innovation innovation Maintenance of formal and informal Maintenance of formal and informal networks Maintenance of formal and informal networks: physical and digital to be with customers, suppliers and other business networks connected with the "world" (internet blogs, partners/stakeholders (e.g. carriers) etc.) Voice of the customer: economic action base on Voice of the customer: economic action Voice of the customer: economic action customers’ needs and its satisfaction - use of base on customers’ needs and its base on customers’ needs and its account managers and traditional marketing Cooperation with external, direct satisfaction satisfaction managers but also development of a digital stakeholders customer relationship platform Tight (ICT) supplier collaboration, e.g. Tight (ICT) supplier collaboration - formal Collaboration with external knowledge bearers: performance of weekly telephone and informal contacts; observation of business consults but also universities and conferences - formal and informal horizontal competitors (e.g. SXX) research centers contacts Audit of business partners and roll-out of/force to implement organizational standards within business partners organization - development towards the focal node in the service network: keep service quality and service performance upright

Annexes

Collaborative performance of audits requested Collaborative performance of audits Collaborative performance of audits institutions: audits as essential part for requested institutions: audits as essential requested institutions: audits as essential organizational improvement and innovation part for organizational improvement and part for organizational improvement and (maintenance of ISO certification as innovation innovation medium for service clients) Observation of actions of rd parties, e.g. Collaboration in strategic alliances within the Provision of formal and informal contacts construction companies that could field of transport logistics and supply chain to blue light organizations interrupt infrastructure (e.g. internet cable) management Observation of the political and macro- Observation of the political and macro- Observation of the political, macro-economic economic environment (e.g. International economic environment (e.g. Germany's and societal environment and trends (e.g. take Cooperation with external, non- Monetary Fund and its initiative of de- change from nuclear energy to renewable advantage out of the accession of former Easter direct stakeholders cashing: The Macroeconomics of De- energy) block states to the European Union, Brexit) Cashing) Observation of the business sector and - due to changings - development of new business models (e.g. from a transport Tight collaboration with customs, local business Development of contingency insurances service providers specialized in textile and society logistics towards a TSP additionally specialized in transportation of chemicals) Observation of (additional) technology Observation of (additional) technology providers (e.g. providing satellite providers (e.g. UMTS services) technologies)

Annexes

Table : Work system framework resource-element “information”

A c t i v i t i e s Perspectives on work system framework resource: information Swissgold XX Cargo Expert Germany Camion Austria

Internal and external audits Internal and external audits Internal and external audits Voice of the customer principle managed Active research & development (own initiatives External information as customer by the managing director; driving force in as well as joint collaboration with universities requests and complaints implementation of the service interaction and research centers) approach Formal and information connectedness to Formal and information connectedness to Formal and information connectedness to the the business ecosystem (business the business ecosystem (business partners, business ecosystem (business partners, partners, stakeholders, etc.) stakeholders, etc.) stakeholders, alliances, etc.) Open and direct communication and Open and direct communication (among Open and direct communication (among Development of information teamwork (among employees and employees and managers) employees and managers) exploration mechanisms managers) Management of customer complaints by Development of a customer relationship

the managing director/board of managers platform Monthly workshops with operational Hiring of sophisticated employees (freaks Long term contracts for employees managers and operational risk managers within particular field of business) Pro-active exploration and observation of Pro-active exploration and observation of trends within particular field of business -

trends within particular field of business innovation as a duty and employees responsibility Flexibility as key to react to new information, e.g. customer requests and Education and training of employees within the Use of digital communication tools requirements, managing director's internal collage requests, etc. Development of information Open and direct communication (among Open and direct communication (among Open and direct communication (among exploitation mechanisms employees and managers) employees and managers) employees and managers) Use of collaboration tools Use of collaboration tools Use of collaboration tools Use of emergent digital communication tools (e.g. to additionally conduct Training and education of apprentices Mediation and mentoring of employees webinars, trainings, etc.)

Annexes

Use of emergent digital communication tools Distribution of e-learning tutorials (e.g. to additionally conduct webinars, trainings, etc.) Employee training, e.g. new employees ISO certification have to go through all operational units Learning by doing Marketing channels Active research & development (own initiatives Digitalization of change management Implementation of an archiving system as well as joint collaboration with universities process (about ICT hardware and software) and research centers) Open failure reporting to immediately Open failure reporting to immediately Open failure reporting to immediately detect the detect the errors, mistakes and accidents detect the errors, mistakes and accidents errors, mistakes and accidents within the within the systems within the systems systems Expectation attitude and pressure to Empowerment of employees succeed from the managing director Guarantee of ICT availability Guarantee of ICT availability Guarantee of ICT availability Use of information sharing technologies, incl. Use of information sharing technologies Use of information sharing technologies digitals and processes (ITIL) Development of documents to reread Use of digital incentives: even the truck Development of documents to reread (e.g. Development of artefacts for (e.g. business continuity plans, service drivers and the caretakers are equipped business continuity plans, service level information management level agreements) with digitals (smart phones, tablet PC's) agreements and contractual penalties) Organizational "credo": maintenance of Use of external information, e.g. reports highest possible ICT stability, safety- and as The Macroeconomics of De-Cashing” Organizational vision: service excellence security and availability of systems and by the International Monetary Fund services Use of control & -monitoring systems Use of control & monitoring systems Use of control & monitoring systems Use of Electronic Data Interfaces (EDI) - Use of Electronic Data Interfaces (EDI) and Use of Electronic Data Interfaces (EDI) e.g. % of service clients are already immediate interruption if not safe and secure exchange information by use of EDI Use of experienced events as source for Use of experienced events as source for Use of experienced events as source for information and innovation; keep the information and innovation; performance of information and innovation information flow upright e.g. by use of catastrophe tests private smart phones and tablets

Annexes

Development of trustful relationships among Development towards the focal node Risk management within projects employees, managers, customers and other within the business ecosystem/network business partners/stakeholders Keep information redundant (e.g. triple- Keep information redundant (e.g. triple- Keep information redundant, e.g. within two redundancy of TMS & WMS application) redundancy of TMS & WMS application) geographically dislocated data centers

Annexes

Table : Work system framework resource-element “technology”

A c t i v i t i e s Perspectives on work system framework resource: technology Swissgold XX Cargo Expert Germany Camion Austria

ICT driven control and monitoring of ICT driven control and monitoring of ICT driven control and monitoring of business business (e.g. key performance indicators business (e.g. key performance indicators (e.g. key performance indicators incl. routes, incl. routes, shipments, etc.) and incl. routes, shipments, etc.) and shipments, etc.) and technology (e.g. key technology (e.g. key performance technology (e.g. key performance performance indicators incl. server performance, indicators incl. server performance, indicators incl. server performance, (critical) software, etc.) (critical) software, etc.) (critical) software, etc.) Planning of recovery target values (e.g. Development of service level agreements to meantime to recovery after a deviation, keep consistent service quality and performance breakdown, etc.) captured in service level - penalties, if targets not get achieved agreements Redundancy measures (e.g. two data Development of control & Redundancy measures (e.g. redundant ICT centers, redundant ICT hardware and Redundancy measures (e.g. two data centers, monitoring mechanisms hardware and triple-redundancy of TMS triple-redundancy of TMS and WMS redundant ICT hardware and software, etc.) and WMS software, etc.) software, etc.) ICT as an essential part in business Application of ITIL processed - tracking of

continuity planning incidents, problems and changes Control and orchestration of (ICT) Control and orchestration of (ICT) ICT as an essential part in business continuity suppliers suppliers planning Digitalization of risk management processes incl. issue tracking of business Restriction of usage of private medias and

processes and ICT services by use of visit of internet homepages specialized software Organizational "credo" towards Increase ICT availability Increase ICT availability technological availability (h*d/week) Categorization of ICT software into A, B Categorization of ICT software into A, B Categorization of ICT software into A, B and C Continuous provision of and C whereas A captures the most and C whereas A captures the most whereas A captures the most critical/important technology services – increase of critical/important software applications critical/important software applications software applications the availability of technology Organizational approach: safety & security, Increase ICT availability reliability and stability Execution of two catastrophe tests per year

Annexes

Investment into new technology - technology as Business models underlined with digital Use of technological availability as facilitator of new business models (e.g. road business processes (incl. control and competitive advantage and sales argument transport) and markets (e.g. accession of the monitoring mechanisms) former Eastern bloc states) Use of technology to increase Use of technology to increase collaboration Use of technology to increase collaboration collaboration (internally & externally) (internally & externally) and sharing of (internally & externally) and sharing of Technology as a driver and sharing of documents documents documents (Strategic and operational) planning of ICT investments (strategy workshops), e.g. Emergency kit for frequent business Certification of safety and security measures: strategy/vision , technology leader in travelers ISO certification particular field of business, scalability of ICT, amortization of ICT Use of technology to increase collaboration Use of technology to increase (internally & externally, e.g. % of service Use of technology to increase collaboration, collaboration, knowledge sharing, etc. clients are connected by EDI knowledge sharing, etc. (internally & externally) (internally & externally) communication) Nice to have: technology-archiving system Integration of customers by use of EDI interfaces Conservative thinking: no unnecessary (to document purchase, damages, - but also immediate interruption if systems are changes to the ICT systems deviations, etc.) not safe and secure (e.g. LOKI virus) Active exploration of emergent trends within particular field of business: major Use of emergent communication technologies Digitalization of change management Pro-active technology exploration emphasis on pro-active employees that that enable enhanced levels of communication processes & exploitation also perform experiments and tests at and learning (e.g. wiki etc.) home Use of emergent communication technologies that enable enhanced levels Pro-active exploration of emergent trends within

of communication and learning (e.g. particular field of business wiki, webinars, conference calls, etc.) Acquisition of best practices (internally) Pro-active exploration of emergent trends

within particular field of business Human before ICT: ICT is a supportive Human as trigger to launch tool to launch business processes and Human before ICT: innovativeness, Human before ICT: ICT follows business. ICT technology services - human have behavior, empathy, etc. enables business. reliability and judgement

Annexes

Long term contracts for employees and low Empowerment of employees to make use Teamwork as key to solve challenges employee fluctuation to keep knowledge, of their skills and competences expertise and wisdom within the organization Coordination of employees - access rights of the strategic department "Safety & Continuous education and training of Continuous training and education of Security" to operational employees employees and apprentices employees, also within its own college working in branches globally Pro-active employees: ICT innovation as a Audit of business partners and ICT duty we like to fulfil; execution of suppliers experiments and test (also at home) Liberty of the ICT department Challenge: politically driven challenges, e.g. change from nuclear energy to renewable energy, internet expansion, etc.

Annexes

Table : Dynamic capability microfoundation element “sensing”

Perspectives on dynamic C a p a b i l i t i e s capability microfoundation: sensing Swissgold XX Cargo Expert Germany Camion Austria Development and make use of leadership Pro-active employees - employees that are Maintenance of a department for research & culture and empowerment of employees also performing experiments and tests at development incl. pro-active employees that - assignment of responsibilities to home: innovation as a duty think innovative managers and employees Collaborating employees (teamwork and Development of a deputy system and Innovation supported by internal processes, e.g. continuous working cycles) and spread of allocation of responsibilities ITIL knowledge, expertise and responsibilities Development of an employee skill matrix for Digitalization of change management Experimentation with emergent further use: training and education, allocation of processes technologies resources, etc. Development of an employee skill matrix Flexibility of employees that pro-actively Provision of flat hierarchies although CA is a for further use: training and education, react to customer requests and global company: increase of collaboration and Processes to direct internal R&D allocation of resources, etc. requirements participation Internal connectedness, e.g. direct access and select new technologies Education and training of employees - of strategic management to operational Learning by doing especially appreciates employees (risk mgmt) Human as the driving force: human have behavior, reliability and judgement - Improvisation, e.g. by the use of smart Deputy system and allocation of responsibilities operational employees as the bearers of phones knowledge and expertise Education and training of employees - Strategy towards the technology leadership maintenance of a college for education and

in particular field of business training of skills and competences of managers and employees Mediation and mentoring of employees to

spread and share knowledge and expertise Customer integration: managing director Processes to tap supplier and Interaction with the business ecosystem belong to the voice of the customer Collaboration in strategic alliances complementor innovation as a whole, incl. blue light organizations principle: analysis of requests, requirements and complaints

Annexes

Integration of external knowledge, e.g. Execution of benchmarks (e.g. with business Control and monitoring of business business consult from the Logistics partners) incl. excursion from and to business partners Research Austria partners Collaboration with competitors, e.g. Networking within formal and informal, mouth-to-mouth propaganda: asking Integration of external knowledge, e.g. business vertical and horizontal networks - physical their experience with other business and ICT consults AND digital networks: blogs partners Maintenance of trustful relationships to business Audits incl. independent audits of Audits partners as well as execution of contractual business partners penalties Supplier audits as well as its control and Supplier audits as well as its control and Networking within formal and informal, vertical monitoring monitoring and horizontal networks Audits Green-field engineering Make use of leadership culture and empowerment of employees - assignment Digital networks, e.g. internet blogs - that Continuous update of ISO certification of responsibilities to managers and enables to connect with the "whole world" employees Skimming and scanning of relevant Employee recruitment: emphasis on Collaboration with universities and research journals, newspapers, magazines, etc. sophisticated employees (freaks) centers within international projects Participation at trade fairs related to Make use of employee knowledge, expertise and Processes to tap developments in transport logistics, supply chain wisdom: skill matrix and long term contracts for exogenous science and management and ICT employees technology Interaction with the business ecosystem/network, incl. suppliers and Implementation of an intrapreneurship award blue light organizations Make use of employee knowledge, expertise and wisdom: skill matrix, Excursion to friendly companies; maintenance of maintenance of contacts also if business relationships employees are retired or left the organization Processes to identify target Active customer integration: voice of the Application of the voice of the customer market segments, changing customer principle as guiding approach: Active customer integration by use of key principle, management of customer customer needs, and customer controlled and monitored by the managing accounts and conventional marketing channels complaints by the board of managers innovation director

Annexes

Observation of the business and the Managing director as the driving force of Implementation of a customer relationship natural environment, e.g. hurricane the VOC principle platform Sandy Active business modeling, e.g. by use of someone else disadvantage: use of the Development of new business models, e.g. Make use of organizational history: Mailänder warehouses as storage for valuable goods by expansion of previous fields of business Bote, emergent business models within the so that customers can avoid negative (from textile to chemicals) ties, ies and ies of last century bank interests Active working on geographical Observation of political changes, e.g. the Active business modeling by observation inequalities, e.g. resettlement of the accession of Austria to the European Union and of political driven changes, e.g. removal headquarter to a more urban area (Town of the former Eastern bloc states, as well as gain cash out of daily life Reutlingen) advantages out of these political changes Opening of new fields of business, e.g. provision Active observation of political changes, e.g. of additional services for service clients (reverse Opening of new fields of business, e.g. Germany's change from nuclear energy logistics, setting up of TV's, washing machines, refilling of ATM's towards renewable energy, internet … maintenance of customer services for service coverage (G/G data streams) clients within the region of Vorarlberg and beyond Venture capital and business acumen: investment into emergent technologies and business models

Annexes

Table : Dynamic capability microfoundation element “seizing”

Perspectives on dynamic C a p a b i l i t i e s capability microfoundation: seizing Swissgold XX Cargo Expert Germany Camion Austria Business acumen and venture capital to launch Business acumen to launch promising Business acumen to launch promising new technology, business models and markets, business models, e.g. warehousing of business models and new market e.g. from rail to road, early cash (within the banking crisis) and segments, e.g. changing focus from textile sophistication/implementation of General Parcel emergent business models related to the to chemicals Services, market vision incl. the build-up of a de-cashing of daily life global network (at the former silk road) Use of key account managers and traditional Increased customer interaction by use of High focus on the voice of the customer marketing channels to gather customers' Delineating the customer Voice of the Customer principle: principle: managing director as driving requests, requirements and complaints - but solution and the business model management of complaints by the board force - everything is subordinated to the also, implementation of a digital customer of managers customers’ requests and requirements relationship management platform Individualized business models and High involvement of the customer into "Conception - building - running" of processes (increase of the standard service processes, e.g. % EDI service new/innovative customer processes (basing on business model and processes) interaction the customers' requests and requirements Development of supplementary business Development of supplementary business models models to the core business, e.g. refilling to the core business, e.g. running of operational of ATM's departments for customers Change as daily business (e.g. service Change as daily business (e.g. service Change as daily business (e.g. service processes, processes, ICT software, etc.) processes, ICT software, etc.) ICT software, etc.) Empowerment of employees but Managing director as driving force with Empowerment of employees but restriction of restriction of their decision authority up ultimate power: nevertheless, open and their decision authority up to a specific limit - to a specific limit - then, the decision direct communication (discussion) among then, the decision making is allocated to the next making is allocated to the next authority managers (to launch decision making) - authority level Selecting decision-making level voice of the customer as guiding principle processes Individual, target-oriented management of Use and continuous (re-) engineering of employees: employees have specific task Use and continuous (re-) engineering of service service level agreements, business but need to be open for collaboration and level agreements, business process fomentations, continuity plans/handbooks, etc. teamwork - active enhancement of their business continuity plans/handbooks, etc. skills

Annexes

Standardized and customized Interruption of communication channels (EDI) if business/service processes basing of they are not secure customers’ requests and requirements Use of risk protocols, e.g. summary of prevention, response and cope actions to Standardized and customized (flexible) avoidance resp. minimizing the business/service processes basing of customers’ devasting effects of events (e.g. hurricane requests and requirements Sandy) Customer connection to the Transport Customer connection to the Transport Customer connection to the Transport Management System and the Warehouse Management System and the Warehouse Management System and the Warehouse Management System to enable Management System to enable Management System to enable digital/automatically exchange of digital/automatically exchange of digital/automatically exchange of information information information Use of key account managers and traditional Voice of the customer principle Voice of the customer principle marketing channels to gather customers' management by the strategic board of management by the strategic board of requests, requirements and complaints - but management (especially customer management also, implementation of a digital customer complaints) relationship management platform Selecting enterprise boundaries Networking and partnering at dedicated Networking and partnering at dedicated events, to manage complements and Networking and partnering at dedicated events, e.g. trade fairs, conferences, e.g. trade fairs, conferences, alliances, excursion “control” platforms events, e.g. trade fairs, conferences, etc. workgroup IT-Leiter etc. to friendly business partners etc. Make use and conduction of internal, Make use and conduction of internal and Make use and conduction of internal and external and partner audits external audits external audits Conduction of ICT supplier telephone Benchmark with horizontal transport conferences (on regular basis, mostly service providers (e.g. SXX) weekly) ISO certification as communication Conduction of ICT supplier telephone medium: maintenance of an international

conferences (on regular basis) accepted standard towards safety & security management Use of the right mix of employee management and leadership: Major emphasis on voice of the customer Use of the company history, ranging back until Building loyalty and commitment empowerment in stable times, (external perspective) and teamwork the th century (Mailänder Bote) management during uncertainty times (internal perspective) (e.g. hurricane Sandy)

Annexes

Employee in the center and as unique resource: Human have behavior, reliability and judgement: a human can intervene and manage immediately if Proof of business acumen and correct use of Managing director as visionary something happens. To maintain venture capital robustness, humans have to coordinate. Therefore humans are by far the most important factor Risk management approach incl. strategic department for safety, security and Individual management of employees, Strategic managers as role models that push compliance and operational management tailored to their needs: target oriented managers and employees (branches employ an risk manager) Innovation strategy incl. the vision to Consideration of cultural differences, External perspective: customer recognize CA as become the technology leader within national laws and regulations innovative organization particular field of business Innovation as duty (and policy) of Flat hierarchies that enable open and direct managers and employees to be always one communication; employees in the center, use of

step in front of the managing directors leadership style and mentoring instead of ideas management and control; trust mechanisms Technological incentives (e.g. digital assets Internationalization as smart phones and tablet PC's) Allocation of responsibilities to managers Long term contract for employees and employees No significant disturb since (incl. successful mastery of the bank crisis in without any employee dismissal) Innovation oriented incl. high techn. availability Local economy and politics awards Allocation of responsibilities and decision

making to operational managers and employees

Annexes

Table : Dynamic capability microfoundation element “managing threats”

C a p a b i l i t i e s Perspectives on Dynamic Capabiilty microfoundation: managing threats/transformation Swissgold XX Cargo Expert Germany Camion Austria

Empowerment strategy - assignment of Centralized management incl. power and Decentralized decision making structures/power responsibilities and decision decision competencies assigned to the - alignment with central requirements and competencies to employees - at least to a managing director: managing director as service level agreements (service excellence) incl. defined maximum (investment sum) driving force penalties if targets are not achieved Implementation of a strategic department Investment towards increased safety and Assignment of responsibilities and decision for safety-, security- and compliance incl. security are centralized - continuous and competencies to employees - at least to a defined risk management and business continuity hard negotiation with the managing maximum (investment sum) management director Implementation of operational safety-, security- and compliance managers in Central requirements how a branch have to look branches that actively perform risk like: every branch has an autonomous branch management and business continuity Maintenance of a department for quality manager, staff position, personnel development, management activities - direct access of etc. the strategic department to these Decentralization and near managers decomposability Development of technical redundancies incl. ongoing discussions: knock-out Collaborative strategic and operational criteria for new building (two data streams Safety- and security as well as risk management business continuity planning at two different parts of the building), activities are defined and captured in ISO relocation of the data center into a bunker from WWII Development of technical and business redundancies, e.g. definition of branches Formless risk management structures - activities who can take over business service of Redundancy and control as trigger for relate to overall organizational objective: service branches that are hit by disastrous increased robustness excellence events; definition of a co-headquarter; maintenance of two data centers Definition of internal don’ts: private use of Development of technical and business Redundancy and control as trigger for fire wire (USB sticks), visit of internet redundancies, e.g. maintenance of two data increased robustness homepages centers

Annexes

Maintenance of working station in Critical about new technologies: can increase the business partner facilities in case a level of risks too - early adopters of technology branch is hit by a disastrous event have to pay the prize of tuition money Aware that employees also use internet Interruption of digital communication channels and work on private things in internet if they provide risks (e.g. infected by viruses, (e.g. reading of mails, social media, etc.) etc.) Critical about new technologies - conservative thinking: new technology can increase the level of risks too - early adopters of technology have to pay the prize of tuition money Central target: sensitivity to service Central target: highest possible safety, provision - maintenance of high security and availability of systems incl. Central target: service excellence (incl. the notion standards of safety, security and stability "performance, performance and of service quality and service performance) of service quality and service performance again" performance Pressure of the managing director (incl. its Central requirements and service level high service quality approach): ongoing Central requirements and service level agreements - penalties if objective do not discussion of ICT department and agreements - penalties if objective do not get get achieved (penalties, bonus malus managing director: conflicts between achieved (penalties, bonus malus system) system) customer requests/requirements and ICT safety, stability and availability Governance General approach: extraordinary risk averse; maintenance of a strategic General approach: risk aversion (more is General approach: risk aversion department for safety-, security- and not possible, according to interviewees) compliance within the organization Continuous improvement (imitation, innovation) and business (re-) engineering incl. the development of new Continuous improvement (imitation, Voice of the customer as guiding principle: business models (e.g. warehousing of innovation, research & development) and flexibility of employees towards customer cash due to negative bank interests, business (re-) engineering - green-field business requests political driven reorientation: The development possible Macroeconomics of De-Cashing” by the International Monetary Fund)

Annexes

Strategic planning of the organization and Business redundancy: e.g. definition of investments (e.g. relocation of the Maintenance of catastrophe tests (at least two branches who can take over business headquarter to the Town of Reutlingen; per year to detect vulnerabilities and potential service of branches that are hit by ICT investments to become the technology for improvement) disastrous events (Miami <--> NY) leader within particular field of business) Centralization of ICT - tights control and Centralization of ICT - tights control and Centralization of ICT - tights control and monitoring of their performance and monitoring of their performance and monitoring of their performance and quality quality quality Systematic change processes: Systematic processes incl. enhanced levels Maintenance of flat hierarchies that enable open, Digitalization of change within the of bureaucracy with special liberties to ICT trustful and direct communication and organization department collaboration among managers and employees High risk management approach Internationalization of risk-, safety- and security Individual management of employees supported by the strategic board of approach: implementation ISO and (target driven) managers organizational certification Extensive tests and stress tests before Customer orientation: key account managers, implementation of new technology, conventional marketing channels but also

hardware and software (especially TMS & development of a digital customer relationship WMS software) platform Employee motivation through digital

incentives Major emphasis on human incl. the recruitment of appropriate employees

(sophisticated within particular field of business) Anticipation of risk within the Formless risk management structures - department of safety-, security and Anticipation of risks within new and employees are encouraged/forced to think and compliance: collaborative actions among ongoing projects work about risks strategic and operational management Use of collaboration tools incl. Use of collaboration tools incl. conventional conventional (e.g., telephone drives, etc.) Use of collaboration tools incl. telephone, (e.g., telephone drives, etc.) and modern and modern technologies (e.g. cloud Knowledge Management drives, etc. technologies (e.g. cloud based technologies incl. based technologies incl. The increase of The increase of transparency) transparency) Identification of best practices and roll- Education of employees, especially Observation of emergent trends and out of these practices within other apprentices (as the future managers of the technologies (e.g. D printing, augmented branches organization)

Annexes

reality, etc.) and early implementation (e.g. from rail to truck)

Observation of emergent trends and Pro-active humans and its education within its technologies and politically driven Observation of emergent trends and own college wherein employees can increase change (e.g. D printing, industry technologies (e.g. industry ./digital skills and competences; mediation, supervision ./digital transformation but also de- transformation, physical internet, etc.) and moderation between employees instead of cashing of society, etc.) management and control; learning by doing Development of a skill matrix to capture employees skills and competences and to Development of a skill matrix to capture Recruitment of sophisticated employees develop tailored education and training targets; employees skills and competences and to that are specialists within their field of long term contract for employees to make use of develop tailored education and training business (e.g. freaks that also perform dedicated knowledge, expertise and wisdom targets experiments and tests at home) (approach: employees a specialists - managers as mediators) Pro-active human and its education as key Make use of internal process resource to maintain robustness and Make use of internal process documentation documentation reports, e.g. business resilience within the organization: sharing reports, e.g. business continuity plans, service continuity plans, service level of knowledge and expertise, allocation of level agreements, central requirements, and agreements, central requirements, and responsibilities - specialization and digitals (e.g. wiki) digitals (e.g. wiki, e-learning tutorials) teamwork Education and training of employees, e.g. Use of internal and external audit reports Use of internal and external audit reports to new employees have to go through all to improve and engineer the organization improve and engineer the organization operational departments after hiring Call of employee deputies and employee retention, e.g. leaving employee calls a deputy and is also available after leaving the organization - at least for a certain time Business acumen and venture capital, e.g. Business acumen and venture capital, e.g. Business acumen and venture capital, e.g. investment into new production methods (from investment into other fields of business: opening of new fields of business (from rail to truck), new markets (General Parcel), new Cospecialization warehousing of cash and substitution of textile to chemistry), new customers, business (Eastern part of Europe, countries banks internationalization among the former silk road)

Annexes

Increased customer integration by use of Increased consumer integration by use of key the voice of the customer principle Benchmark with business partners and the account managers and traditional marketing (audits, individualized processes, etc.) service ecosystem, e.g. Swissgold XX channels but also the development of a digital but also complaint management by the customer relationship platform board of managers Increased customer integration: application On request: individualized business, of the voice of the customer principle and On request: individualized business processes safety- and security processes for (re-) engineering of tailored business for customers customers models for these customers Innovation as a duty - continuous Networking and collaboration within improvement: cannot wait until the Continuous improvement by use of business business networks and service managing director has some ideas. practices, e.g. ITIL processes, improvement ecosystems Suggestions and proposals for re-newal workshops and change, have to come from our side! Continuous re-thinking about the purpose of particular service (e.g. Networking and collaboration within business because of environmental, political, Automatically interaction with customers networks and service ecosystems changes: The Macroeconomics of De- Cashing” International Monetary Fund)