This article was downloaded by: [Istanbul Universitesi Kutuphane ve Dok] On: 20 December 2014, At: 16:39 Publisher: Taylor & Francis Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK International Journal of Production Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/tprs20 Collaboration networks and collaboration tools: a match for SMEs? a b a a Roula Michaelides , Susan C. Morton , Zenon Michaelides , Andy C. Lyons & Weisheng Liu a a Management School, University of Liverpool , Liverpool , UK b Wolfson School of Mechanical and Manufacturing Engineering, Loughborough University , Loughborough , UK Published online: 29 Aug 2012. To cite this article: Roula Michaelides , Susan C. Morton , Zenon Michaelides , Andy C. Lyons & Weisheng Liu (2013) Collaboration networks and collaboration tools: a match for SMEs?, International Journal of Production Research, 51:7, 2034-2048, DOI: 10.1080/00207543.2012.701778 To link to this article: http://dx.doi.org/10.1080/00207543.2012.701778 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http:// www.tandfonline.com/page/terms-and-conditions International Journal of Production Research, 2013 Vol. 51, No. 7, 2034–2048, http://dx.doi.org/10.1080/00207543.2012.701778 Collaboration networks and collaboration tools: a match for SMEs? Roula Michaelidesa, Susan C. Mortonb*, Zenon Michaelidesa, Andy C. Lyonsa and Weisheng Liua a Management School, University of Liverpool, Liverpool, UK; bWolfson School of Mechanical and Manufacturing Engineering, Loughborough University, Loughborough, UK Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 (Received 29 April 2012; final version received 4 June 2012) Global patterns of industrial production have resulted in relocation of industrial operations groups in an effort to create new markets for mass and customised mass production. The collaborative effort between these dispersed teams increases the likelihood of combining ideas and knowledge in novel ways. Internet technologies enable these virtual collaboration networks to seamlessly engage in discussions that demonstrate a richness of perspectives when it comes to problem-solving and innovative idea-exchange. Indeed, knowledge creation and harnessing collective knowledge are salient features of collaborative networks (CNs) and this is witnessed by a new interest in these entities. However, small and medium enterprises (SMEs) display a difficulty in partnering and collaborating in global networks, especially since their technological infrastructure may be lacking. Given the widespread adoption of collaborative technologies in social contexts, this research seeks to examine how such informal interactions are facilitated in SMEs through Web 2.0 tools. Specifically, this paper seeks to contribute to existing literature by examining how Web 2.0 affects the collaborative effort in two SME CNs; this study demonstrated that the collaboration effort is amplified when Web 2.0 tools are available. Other parameters such as trust in other members’ ability; perception of usefulness; and enhancement of collective knowledge are seen as supporting the CN mutuality. In addition, it brings together the three diverse research areas of collaborative networks, internet collaborative tools and psychological barriers and enablers. Keywords: collaboration networks; collaborative technologies; knowledge flow; Web 2.0 1. Introduction Collaborative networks (CNs) present a modern scientific discipline of organisations and individuals that, even though they are geographically dispersed and have different strategic cultures and environments, come together and interact through online tools in a network to achieve common goals (Picard and Rabelo 2010). These goals could be problem solving, product development and innovation (Picard and Rabelo 2010). In contemporary industry knowledge has become the force behind organisational change, with people as the instruments accessing the wealth of available knowledge. The objective of this research is to comparatively analyse the functioning of two diverse collaborative networks (CNs) by examining how collaborative interaction is facilitated through Web 2.0 collaborative technologies. Even though CNs are becoming more widely studied by researchers methods to evaluate how collaborative tools impact on collaborators’ participation are lacking. This is due mainly to the fact that the concept of Web 2.0 tools is usually seen in a social networking context, whilst it is still poorly defined in the organisational innovation area. So, even though there is evidence of wide-use of these collaborative artefacts, particularly in larger firms, there are limited discussions about knowledge flow and the use of collaborative tools and networks in SMEs. Narula (2004) attributes this difficulty of SME partnering in collaborative networks, particularly with global collaborators, to the inability of SMEs to access external resources and to having fewer technological assets that they can exchange than do larger firms. This research seeks to address this gap and contribute to the discussions both from a technological and a user participation perspective. This study contributes to the knowledge of CNs from both perspectives by analysing the impact of collaborative Web 2.0 tools on collaborators’ participation in small and medium enterprises (SMEs). *Corresponding author. Email: s.c.morton@lboro.ac.uk ß 2013 Taylor & Francis 2 International Journal of Production Research 2035 Thus, the main contribution of this paper is to provide a focus on collaboration artefacts/outcomes, knowledge flow and collective knowledge in SMEs through comparative analysis undertaken to confirm the common factors perceived prevalent from previous studies on electronic collaboration networks (eCNs), which due to space constraints we refer to Michaelides et al. (2012) for proofs and more details. The current paper analyses the new opportunities and addresses the impact of Web 2.0 technologies in terms of functioning of eCNs thus extending the scope and dimensionality of collaborators’ participation. Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 2. Literature review 2.1 Collaboration networks Collaborative networks (CNs) are considered as an alliance of mostly autonomous geographically distributed organisations and people that, although dissimilar in skills, culture and in how they operate, come together to achieve a common goal and are facilitated in their collaboration by computer networks (Camarinha-Matos and Afsarmanesh 2008). What differentiates a CN from other networks is the intentional property of collaboration to achieve an outcome that would have not been possible otherwise, or that would have been at a much higher cost if the collaborative network had not been used. However, collaboration technologies necessary to support the increasingly complex nature of cross-organisational innovation have been convoluted. Distributed network environments, networked manufacturing co-ordination and enterprise integration architectures all need highly sophisticated skills (Cheung et al. 2008). In addition to these challenges, other issues such as the governance and coordination of the CN, the assignment of responsibilities and control and monitoring of collaborative efforts are amplified in CNs. If unresolved, these difficulties can adversely affect costs, time management and cause detrimental effects to network participation and organisational learning (Noori and Lee 2004). In an effort to overcome such issues, theorists and practitioners have proposed various software infrastructures (cf. Hill 2002, Zhang and Zhou 2004, Yujun et al. 2005). Most of those proposed, such as: video conferencing; immersive virtual reality; and online application sharing, support the co-operation and communication effort between collaborating companies, with the ultimate goal of making individual participation in CNs easy. This is particularly relevant in SMEs where existing research suggests they can supplement their in-house capabilities by seamlessly integrating with suppliers, customers, competitors and research organisations (Nieto and Santamarı́a 2007, Tsai 2009). 2.2 Web 2.0 contemporary collaborative technologies Collaboration across organisational, cultural, time and geographical boundaries requires training, experience and organisational support, necessitating the skilful use of synchronous and asynchronous Web 2.0 technologies and communication channels (Pauleen and Yoong 2001), and the creation and maintenance of trust between all collaborators (Ragatz et al. 1997). Even amongst competitors collaborative links have been seen as beneficial in accessing specialised information or leveraging competitors’ network reach (Nieto and Santamaria 2007, Hackney et al. 2008). As technology becomes more complex in the global economy and relevant knowledge becomes more dispersed, collaboration between companies is seen as key to success. In consequence, the need to connect more rapidly and more effectively with others through CNs, for extending in-house capabilities and problem solving, is pivotal, particularly in SMEs. It follows, therefore, that connecting and actively participating is key in any collaborating effort. Social interactions have been identified by Adamides and Karacapilidis (2006) as the most essential element of the innovation and collaboration process; the objective of this work is to demonstrate that Web 2.0 technologies provide a collaborative infrastructure that encourages engagement of diverse specialist groups as well as enhancing collective knowledge. It is the participation collaborative element that this research focuses upon and frames the research questions below. Not surprisingly, therefore, Internet technologies that facilitate high degrees of user interaction, as observed in popular Web 2.0 applications such as Facebook, Twitter, Wikipedia, LinkedIn, YouTube, Flickr and Del.icio.us, have received scholarly as well as business attention. In particular, the interactive and informal nature of Web 2.0 applications and the resulting willingness of the user to become a co-developer in new product development and knowledge creation have marked a change in roles traditionally held by developers and users (Prahalad and Ramaswamy 2000). In an attempt to harness the tacit knowledge and specialist skills of users in CNs many large companies have adopted such collaborative Internet technologies making them mainstream. Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 2036 R. Michaelides et al. The Forrester Group (2008) forecast that the Web 2.0 market will continue to grow strongly: to reach $4.6 billion by 2013. The prevalence of Web 2.0 is further supported by the Time (2010) report where the highest ranked websites in 2010 are underpinned by Web 2.0. O’Reilly (2006) defines Web 2.0 as ‘the business revolution in the computer industry caused by the move to the Internet as platform, used to build applications that harness network effects to get better the more people use them’. In essence O’Reilly (2006) initiated a discussion on the next generation Internet based on an open ‘architecture of participation’. More recently O’Reilly and Battelle (2009) refined their position by stating that one of the fundamental ideas underlying Web 2.0 is the ability to enable applications to ‘harness collective knowledge’. In other words, Web 2.0 can enable a large networked group of people to create collective work whose value far exceeds that provided by any one of the individual participants (O’Reilly and Battelle 2009). Subsequently, the boundaries between information providers and receivers have become blurred and knowledge becomes ‘decentralised, accessible and co-constructed among a broad range of users’ (Greenhow et al. 2009). Bughin et al. (2009) propose that Web 2.0 attractiveness is due to the rising popularity of user-driven social networks and highlight collaboration as the main benefit of these tools. Other business benefits of Web 2.0 include: lightweight user interfaces; open source availability of code, thus lowering costs; rich information/product-sharing through tagging; easy sharing and exchange of views that leads to better quality of social interaction; provision of a new form of dialogue between users; help to collect information, to pick up trends, and to interact with customers and the public; and enable the exploitation of user-generated content (Flavian and Guinaliu 2005, Abrams 2006, O’Reilly 2006, Petersen 2008, Bughin et al. 2009) This paper looks at how such collaborative interactions in the professional environments are facilitated through Web 2.0 technologies in SMEs. Although previous studies have shown strong relationships between availability of Web 2.0 technologies and user engagement (O’Reilly 2006, Bughin and Manyika 2007, Harrison and Barthel 2009, Michaelides et al. 2012), this relationship is difficult to measure. Also, a common criticism of research on collaborative networks is the lack of extended empirical analysis in professional environments. The literature review highlights that the tendency towards adopting Web 2.0 technologies in business environments for collaborative innovation practices has been mainly a result of large user adoption observed in social networks. Their flattened structures, empowered roles of users, collaborative networks and user participation, plus access to contextualised information exhibit what is increasingly required by modern organisations (Schneckenberg 2009). This leads to the following research questions: Q1 Q2 Q3 What factors influence collaborators’ participation in electronic CNs (eCNs)? Does the availability of Web 2.0 lead to increased collaborators’ participation in eCNs? Does collaborators’ participation positively affect knowledge flow and eCN collective knowledge? We address these questions by analysing two cases of eCNs, focusing on collaborators’ participation, knowledge flow and collective knowledge. 3. Research design This research seeks to extend the work on evaluating the impact of collaborative tools in enhancing collaboration in CNs. Towards this end a survey tool that has been developed and tested in previous work (Michaelides et al. 2012) is seen as a valid evaluation tool for use in the current study; the survey development process is briefly introduced in Section 6.2. This tool is now further validated in the current study, employing different empirical data sets in a new case study with an SME focus. The research motivation, therefore, is to extend the scope of the evaluation of impact of Web 2.0 tools into the SME environment. The detailed evaluation tool development process can be reviewed in Michaelides et al. (2012) and the methodological process of the survey development will not be repeated nor discussed further here. The research design followed in this paper initially involved a systematic review of studies in the context of collaborative networks, Web 2.0 and collaborators’ participation and key characteristics of eCNs proposed by theory emerge. Research questions are then formulated following the theory review and hypotheses development initiated. A connection to empirical cases is then sought to qualitatively confirm the theory findings; through interviews, workshops and observations in real life settings. The eCN characteristics emerging from study of both Case Study 1 (CS1) and Case Study 2 (CS2) are compared to theory and the research hypotheses derived earlier from theory International Journal of Production Research 2037 Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 are re-affirmed. The impact of Web 2.0 tools in facilitating user participation, which in turn affects collaboration success, is investigated with the use of the evaluation survey tool described earlier (Michaelides et al. 2012). 4. Hypotheses development In order to evaluate the success of CNs, Parung and Bititci (2008) propose the following metrics: input to the collaboration seen as the contribution of each participant; mechanism of the collaboration; and output of the collaboration. Expanding upon the previous literature discussion and in agreement with Parung and Bititci (2008), we propose that collaborators’ contribution is the key feature of eCNs, seamlessly enabling diverse user groups to synthesise different perspectives and cross-disciplinary ideas. This interaction between collaborators is complex and describes not only how often a collaborator engages with the eCN, but the level at which that engagement takes place; the nature of that engagement; and its contribution. Collaborators’ participation is key to success and sustainability of an eCN in a similar way that user adoption is essential when a new system is implemented in large engineering, production, manufacturing and services environments. If workers do not accept, adopt and actively use a new system then the implementation will fail. Similarly an electronic collaboration network implementation will fail if organisation staff do not accept, use and actively participate. The technology acceptance model (TAM) together with IS success models are well established in the IS literature (Rogers 1983, Davis et al. 1989, DeLeon and McLean 1992), and propose adoption constructs such as: perceived usefulness; system complexity; and network compatibility, all of which have been extensively used and tested in literature. In this study the operationalisation of variables adopts the theoretical constructs found in the IS literature. The dependent variable here is the collaborators’ participation, measured by the frequency of engagement and the contribution made. The following sections look at how these Information System (IS) theory constructs are interpreted to eCN variables and influenced hypotheses formulation. 4.1 Perceived usefulness of CN membership Previous studies have established that people will adopt and use a system if they find it useful (Rogers 1983, Davis et al. 1989, DeLeon and McLean 1992). In the context of eCNs, perceived usefulness refers to the benefits collaborators see as resulting from participation in online network activities; these can span from access to governmental/industry/sector information and policies to furthering partnerships in professional specialist networks. SMEs will encourage their workers to join and actively participate in specialist eCNs only if the benefits seen, such as collective expertise and information exchanged, is relevant to their applied field of knowledge (Sharrat and Usoro 2003, Wasko and Faraj 2005, Ma and Agarwal 2007). We therefore propose the following: H1: Perceived usefulness of eCN membership positively impacts on collaborators’ participation 4.2 System complexity Another established construct from the IS success models is ‘ease of use’, proposed here as ‘system complexity’. This construct expresses difficulty of network use, barriers and enablers to use and limitations and factors affecting collaborators participation. For the eCNs environment this construct is construed as the complexity of the communication platform itself. As all communications between collaborators occur virtually, a convoluted eCN deployment would impact upon collaborators’ ease of interaction and participation in network activities (cited in Yates and Orlikowski 1992, Fulk 1993, Ma and Agarwal 2007). We therefore put forward the following proposition: H2: Perceived complexity of the network negatively impacts on collaborators’ participation 4.3 Network compatibility It is well documented that conflicts within eCNs can be a result of different organisational values, priorities and different perceptions of what the collaborative outcomes are (Macedo et al. 2010). Consequently, having an eCN that has a governance structure displaying synergies in principles, priorities, needs and practices and processes across the collaborators is important. From an organisational perspective, this is particularly relevant to SMEs as 2038 R. Michaelides et al. the need to connect with others, due to limited resources, is amplified in an attempt to have access to a varied expertise base. Therefore this study hypothesises: H3: Perceived compatibility of the network positively impacts on collaborators’ participation Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 4.4 Collaboration outcomes/artefacts While previous studies suggest that collaborating in a network with different partners improves product innovation (e.g. Belderbos et al. 2004, Nieto and Santamarı́a 2007) and absorptive capability, there has been no study on the impact of Web 2.0 technologies on eCNs in SMEs. This relates to collaboration outcomes in terms of increased knowledge flow and efficiency gains due to access to collective knowledge. Collective knowledge is evident in online networks as participants demonstrate a ‘diversified knowledge-base’ with a variety of professional expertise, which means that the absorptive capacity of an online network may surpass that of the sum of the individuals involved (Cohen and Levinthal 1990). This is of great importance to SMEs due to their size limitations and the increased need for ‘multiple technological competences’ in product development (Narula 2004). It is of little or no surprise to see that collaboration and networking has moved from simply being a peripheral wish in these companies to becoming an emergent strategy in many SMEs. For SMEs, connecting and accessing external skills/expertise pools reduces risks and enhances collective learning. Thus, it is hypothesised that: H4: Collaborators’ participation positively impacts on collaboration outcomes, in terms of knowledge flow, and efficiency gains due to collective knowledge 4.5 Web 2.0 tools Enabling new, easy and informal ways for members to locate and network with other useful members in an eCN is key to communication and collaboration success (Adebanjo and Michaelides 2010). Web 2.0 tools are modern communication tools that offer ease of navigation, structured interfaces, website reliability (Zhang 2010) and, more importantly, enable applications to harness collective user intelligence (O’Reilly and Battelle 2009). Amongst many authors, in his extensive analysis Vossen (2011) argues that Web 2.0 is not simply a ‘buzzword’ but demonstrates four core development dimensions that have resulted in a new Internet: enhanced net infrastructure, advances in programming, rich interactive functionality, large data collections, and user participation as well as socialisation. As Vossen (2011) argues this fourth dimension of Web 2.0, socialisation, ‘is the idea of taking software or even usergenerated content and sharing or jointly using it with others’. Thus Web 2.0 enables users to be pro-active, to freely exchange ideas, and to collect information in a contextual and intelligent manner. In this way collaborative innovation is driven by these new modern Internet technologies (Baldwin and von Hippel 2009). Therefore, we propose that: H5: Web 2.0 tools H5.1: Availability of Web 2.0 tools positively impacts on collaborators’ participation H5.2: Availability of Web 2.0 tools negatively impacts on complexity of the e-network Figure 1 provides an overview showing the linkages between: the collaboration outcomes/artefacts; the characteristics of collaboration networks; the constructs; and the hypotheses generated. 5. eCN case studies The importance of suitable case choice was highlighted by Done et al. (2010), in terms of selecting appropriate research settings that would provide the best opportunities to learn and extend theory. With this in mind, the two cases selected in this study both exhibit eCNs with wide collaborative reach amongst SMEs. 5.1 CS1 – European knowledge transfer eCN CS1 is a European wide eCN and innovation marketplace that brings together SMEs and public research organisations (PROs) from 11 European regions, to facilitate and extend collaboration between members. CS1 is 2039 International Journal of Production Research Collaboration nets characteristics Collaboration outcomes/ artefacts H1 + H4 + Collaborators participation − Perceived usefulness H2 Complexity + + H3 Collective knowledge Compatibility − H5.2 H5.1 Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 Knowledge flow Web 2.0 availability Figure 1. Research hypotheses. Public Research Organisations (PROs) Software technologies, enterprise software, content management systems, home networking, data mining, data centres Hardware technologies, nanotech and microelectronics, sensors, storage, imagery, instrumentation, new materials SME sectors Healthcare and medical technologies, nanotech, services, diagnostics, therapies etc. Green and white biotech, agro-food, environmental and energy technologies, industrial applications, … Agrofoods Healthcare Converging techniques Tourism/ media/comms Energy European technology transfer collaborative network−engineering competitive innovation Figure 2. CS1 European technology transfer collaborative network. funded by the EU and, as such, integrates with innovation relay centres (IRCs); European networks providing transnational technology services to SMEs. An overview of the collaborative network is shown in Figure 2. One of the differentiating features of CS1 is the provision of dense collaborative linkages not only between PROs and industry, but also incorporating linkages to venture capitalists as well. It has been well established that collaboration with research organisations enables a company to access scientific knowledge previously unexplored (Tsai 2009). This is a topical case study. In Europe, industry faces the challenge not only of remaining competitive in traditional sectors but of becoming leaders in new market environments. With the new European Growth agenda, coined EU2020, particular emphasis is placed on the way research findings and innovation are transferred to relevant European industrial sectors to encourage growth (EU Commission 2010). Europe as a whole is lagging behind Japan and the USA in innovation and in research and development (R&D). With a specific focus on business, R&D in the EU is 66% lower than the US and 122% lower than Japan, as a share of GDP; venture capital investments are 64% lower than the US; and the share of population completing tertiary education is 69% lower Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 2040 R. Michaelides et al. than the US and 76% lower than Japan (EU Commission 2010). This gap can be largely explained by the superior US performance in early-stage venture capital availability, high levels of connectedness between companies, share of population with tertiary education and number of US patents (ProInno Europe 2006). Research activities within Europe are mainly centred on Universities and large non-European firms. What this means for SMEs is that the cutting edge research and support universities offer industrial firms, in the guises of offering advice, research contacts or even ideas that can help firms to identify and incorporate valuable external knowledge into their innovation processes, tends only to be accessed by large companies (Mowery et al. 2001). On average, only 13% of small firms collaborate with European R&D and innovation infrastructures (Innovation/SMEs 2001). Europe’s competitive advantage is decreasing which indicates that knowledge and technology transfer is currently not working in an optimum fashion. The Advisory Unit of the European Investment Fund (EIF 2007) cites lack of critical mass and fragmentation as key reasons for the breakdown of knowledge transfer from PROs to SMEs in Europe. Adding to the problem is the widespread limited financial capacity and lack of resources of SMEs constraining their innovation and collaboration activities. This is evident from a study conducted for the European Association of Biotechnology (EuropaBio/ Critical I 2006) which concluded that, even though Europe and the US have the same number of biotechnology companies, ‘the US industry employs twice as many people, spends almost 3 times as much on R&D, raises 3 or 4 times as much venture capital and has access to 4 times as much debt finance’. SMEs perceive the current technology and knowledge transfer procedures as too cumbersome, too bureaucratic or driven by academia. Even when SMEs find possible partners, they tend to have a poor understanding of practical issues involved with collaborative partnerships from other countries and regions. This is in line with the research findings on ‘absorptive capacity’ introduced by Cohen and Levinthal (1989, 1990), where a firm’s ability to apply university research for its own commercial gain is a function of its investment in R&D. Lim (2000) takes this argument further by stating that a firm’s absorptive capacity is primarily a function of its connectedness which is a critical element required in order to create a successful collaborative project. CS1 is thus an eCN set up to develop European SME partnerships and increase access to venture capital via online collaboration and company matching. Another aim of this eCN is to enable access to continuously updated market intelligence, research and analysis, business and technical information. Sustained competitiveness in the global economy depends on technological innovations such as a firm’s ability to apply new technologies, develop new products, access new markets effectively and incorporate best practice in enterprise management (Jones-Evans et al. 1999). Existing European initiatives focus on partnering via traditional matchmaking processes in a passive way (i.e. face-to-face meetings at events). Interested parties make contacts through these events but there is essentially no efficient and simple way of finding partners that are tailored to the interested parties’ needs. With the introduction of the online platform virtual linkages as well as physical face-to-face connections are enabled. Thus viewing attendee companies’ profiles before these events enables targeted connections to occur. 5.2 CS2 – UK engineering knowledge transfer eCN CS2 is one of a number of specialist-related networks in the UK and aims to benefit a large section of UK industry by harnessing the academic strengths of leading universities and industrial and technology transfer expertise, and to address the needs of companies active in the design and manufacture of complex products in its specific field. It has a strong manufacturing focus, which is of interest here; Barnett et al. (2009) have stated that this specific sector faces several challenges in terms of knowledge, experience and ‘skills’ management. These challenges include an ageing workforce, highly mobile and dispersed workers and compressed development times across all engineering industries. Registration to CS2 is free, albeit in exchange for basic information such as professional affiliation, county and country, personal/professional interests and personal profile visibility preference. Membership resides at around 2500 people, with the majority using it to gain access to information published by the CN host. 6. Methodology and research development 6.1 Case studies As the objective of this current research was to understand the complex impact that Web 2.0 tools have on collaborators’ participation, a qualitative research method was utilised. The research methodology employed is case International Journal of Production Research 2041 Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 study based utilising two case studies; in line with Yin (2009), observations having more than one case study amplifies the analytic benefits of empirical research. Hartley (2004) also highlights the advantage of multi-case study research in identifying contrasts and similarities between different cases. The suitability of case study research in areas of online networks has been extensively used and well noted (Gongla and Rizzuto 2001, Adebanjo and Michaelides 2010, Michaelides et al. 2012). The case study approach enables the researcher to work within real-life case settings thus facilitating in-depth understanding of user behaviour and identification of factors affecting online participation within actual organisational settings. Consequently, relevant theory building occurs following these detailed observations (Benbasat et al. 1987). Case study research is also particularly suitable for developing new theory and ideas and can be used for theory testing and refinement (Voss et al. 2002). For Done et al. (2010) it is particularly important that case selection provides the best opportunities to learn and extend theory. To address this, both cases chosen demonstrated similar collaborative challenges: . . . . . geographic disparity; poor communication structures; information mismatch from disparate databases and legacy systems; poor visibility of information hindering work co-ordination; and complex user relationships. The cases were selected as they presented ready access to data but, more importantly, due to their nature and scope. CS1 is a leading EU wide eCN with European outreach to SMEs, PROs and venture capitalists. CS2 is one of the largest engineering networks of SMEs in the UK. Specific case evidence was sought on the characteristics of each eCN to validate the theory findings used in the hypotheses development; evidence such as user behaviour (frequency and extent of engagement), eCN usefulness, ease of access and use, compatibility and availability of Web 2.0 tools were specifically targeted. Interviews were conducted with the network managers (NMs) and members during European networking events held in the UK, Belgium and Greece. Visit observations of both networks activities were used to supplement the data collection effort. Finally, follow-up validation workshops were run with the NMs, involving a small number of users. The resultant information from the empirical case work undertaken here was used to validate our assumption that the theoretical IS emergent constructs collaborators’ participation; perceived usefulness; complexity; compatibility; Web 2.0 availability and collaboration outcomes are indeed aligned with eCN characteristics. The specific inter-relationships between these constructs and collaborators’ participation were investigated with the use of a survey, which is detailed in the next section. 6.2 Survey development As identified in Section 3, the motivation for this research is to further advance the previously developed survey evaluation tool by testing it in a new empirical setting with an SME focus (Michaelides et al. 2012). The qualitative process followed to develop the survey instrument, detailed in the study of Michaelides et al. (2012), consists of two stages: survey content validity confirmation and testing for construct validity. Interviews with differing user groups of the two eCNs were used to confirm survey validity. As the views and issues relating to collaborators’ participation in both case studies converged, the survey content was deemed valid. Moreover, these issues aligned well with the constructs adopted from IS theory. Construct validity was sought to ensure that the survey parameters used in the evaluation tool were well defined, clear and comprehensive. To ascertain this, the advanced user group members of the NMs were asked to give their own understanding of the constructs by defining them in their own words. These results closely aligned with the intended definitions of the proposed constructs, thus supporting their validation. Once the validity of the survey was qualitatively established the survey was implemented across all members of CS1, which was selected as the research setting for use of the survey instrument due to its large SME member base and its European reach. The research hypotheses described in Section 3 were tested by analysing data collected from the CS1 members through (i) the web-based survey and (ii) survey data collection during a face-to-face event. Online surveys demonstrate strong advantages over paper-based questionnaires such as lower costs, faster responses, and reaching a sample that is not geographically restricted (Tan and Teo 2000). However, several scholars have highlighted the low response rates of online surveys (Cook et al. 2000, Sheehan 2001). To avoid low response rates, the online survey data were complemented by a paper-based survey that was distributed and collected during one of the largest networking events that took place in the North of England. 2042 R. Michaelides et al. 7. Findings Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 7.1 Interviews Based on the interviews with the NMs, issues were identified that formed the basis of the survey. Further information gathered from attendees of networking events, user interviews, on-field investigation of network facilities and informal validation workshops resulted in a comparative summary of the two CNs, shown in Table 1. Both eCNs required initial user registration and membership was audited by the relevant NM, ensuring that member information was valid and content reliable. This, in turn, enhanced trust within the network as well as the security and confidentiality of information shared. However, the membership approval process between the two case studies varied in rigour. CS1 registration required detailed company financial information, which was due to the opportunity it generated for finance matching with venture capitalists. CS2 adopted a more open model where basic information was required for registration. Even though this simple registration process encouraged a large number of users to register, the lack of detailed profiling information meant that participation and trust was reduced. Real-time conversations and synchronous idea generation were enabled in both cases through web-conferencing software such as AccessGrid and Interwise. Access to information, such as the technology reports published by the UK Technology Strategy Board (TSB), was facilitated in CS2, providing organisational connectivity, information aggregation and access to updated sector specific news. Varying Web 2.0 functionalities were included in both eCNs, primarily facilitating: content contribution; discussion structuring; specialist expert groupings through expertise, skills and experience profiles; sharing of documents; whiteboards for brainstorming; shared calendar of events; embedded email; and chat tools. More advanced Web 2.0, such as dynamic web linking, content syndication, managing communications message-centre across members’ unique communities and inviting colleagues to knowledge communities and team rooms were also included in both networks. An interesting functionality, incorporated in CS1 to facilitate increased company connectivity, is a smart social network facility, known as ‘radar’, enabling connections by automatically sifting through large data sets to instantly and visually match companies and people with shared interests. CS1 encourages users to indicate their subjects of interest, expertise and the type of collaboration sought thus creating a large dataset of companies and the potential for information matching. Furthermore, the state of a product developed was captured in the company profile as being in ‘concept stage’, ‘prototype developed’, ‘tested product’, and ‘ready to go to market’, thus providing an easy indication of product ‘readiness’ for investment by venture capitalists. Another unique feature of the eCN was to offer Table 1. Comparative analysis of the two case studies. Case Lead organisation Primary Focus CN Sectors Network reach Membership Web 2.0 functionality Membership approval process Collaboration events Collaboration activities and information direction CS1 EU funding Matching SMEs with public research organisations to solve specific technology/scientific issues and match funding with venture capitalists SMEs: engineering/IT/biotech PRO/Universities Venture capitalists Patent and KT professionals EU 1600 Extensive Yes – members had to provide extensive company data to be able to join Virtual as well as face-to-face Mostly inside-out; user centred content CS2 UK public funding Access to knowledge repositories relating to manufacturing and engineering Engineering Specialist engineering network – technology transfer initiative 2500 Large but not extensive No – open network to all who wanted to register Virtual Mostly outside-in; most content disseminated from network managers and organisers 2043 International Journal of Production Research Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 networking face-to-face events to complement virtual matching and connectedness. This resulted in strengthened collaborative bonds in line with the findings of Stuckey and Smith (2004) and Koh et al. (2007). 7.2 Survey analysis This paper reports on a comprehensive survey of practitioners in CS1, aimed at obtaining information as to how they engage and interact with the eCN. The surveyed sample covers people with a wide range of positions, experiences and expertise who have substantial participation in and, importantly, interaction with the collaborative network. The survey was live online for a period of one month and conducted through a well-known free web survey engine. An introductory email including the online survey web-link was sent to all members from the network manager. The email explained the purpose and identified the timeframe of the research. Raw data were collected with demographic data at strategic points. A total of 67 responses were collected, among which 14 responses had multiple missing values. These responses were excluded from further analysis; hence 53 responses were regarded valid. All valid respondents have membership of the CS1 network. The majority of respondents have experience in using online social networks (79%). The demographic profile of respondents is displayed in Table 2. Considering the developed hypotheses in this research require an explicit description of relationships among variables, the multiple linear regression was utilised to achieve this requirement, on the basis of preliminary analyses which aimed to check the conformability to Pearson Correlation’s assumption of normality linearity and homoscedasticity, as shown in Table 3. The results of multiple linear regression are shown in Table 4, using two elements associated with collaborators participation as dependent variables and five key elements defined before as explanatory variables. Collaborators’ participation is seen as a complex parameter consisting of two elements quantifying both the frequency of Table 2. Demographic profile of respondents. Organisation type Years of using internet Career Frequency Percent 10 20 8 15 6 23 21 3 17 18 8 10 18.87 37.74 15.09 28.30 11.32 43.40 39.62 5.66 32.08 33.96 15.09 18.87 Academic Industry – SMEs Industry – Large companies Other Less than 1 year 1 to 5 years 6 to 10 years 11 to 15 years Engineer Researcher Consultant General management Table 3. Correlation matrix of the variables included. P.Use Cmplx Comp Web 2.0 Coll Knwldg Cp-t Cp-f P.Use Cmplx Comp Web 2.0 Coll Knwldg 1.000 0.117 0.319 0.277 0.234 0.183 0.201 1.000 0.159 0.248 0.178 0.236 0.029 1.000 0.312 0.116 0.214 0.238 1.000 0.112 0.458 0.138 1.000 0.201 0.346 Cp-t Cp-f 1.000 0.216 1.000 Notes: P.Use, perceived usefulness; Cmplx, complexity; Comp, compatibility; Web 2.0, availability of Web 2.0; Coll Knwldg, collective knowledge; Cp-t, collaborators participation – active contribution; Cp-f, collaborators participation – frequency correlation coefficients significant at the 0.05 level: displayed in bold. Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 2044 R. Michaelides et al. collaborators’ participation (Cp-f) as well as active participation and contribution (Cp-t). This means that time spent on each value activity is also evaluated as collaborators’ participation. The results indicate that the hypotheses are supported. That is to say, collaborators’ participation is positively associated with the perceived usefulness parameter, compatibility, availability of Web 2.0 and increasing efficiency. In contrast, the complexity parameter indicates a negative relationship with collaborators’ participation. Unsurprisingly, from Table 4 it can be seen from the findings that there is a positive association between collaborators’ participation and perceived value (0.465 and 0.521), which means that Hypothesis 1 is supported through our research. As expected, the frequency that users engage with the innovation network is negatively associated with complexity of network system ( 0.239). The time users spent on active engagement and contribution to the virtual network is also negatively associated with system complexity ( 0.613). This result revealed that complexity of network systems may ‘force’ users to spend less time actively contributing ideas (Table 4). Thus, Hypothesis 2 is also supported. Another anticipated outcome was that users will actively engage with a collaboration network if this demonstrates compatibility with existing organisational practices and current technological platforms. There is a positive association between compatibility and frequency of collaborators’ participation (0.238) and active engagement with contribution to the virtual network (0.569). These results (detailed in Table 4) show that Hypothesis 3 is supported. Another interesting finding is that innovation through knowledge flow and collective knowledge is strongly linked with collaborators’ participation. In line with conclusions from Tickle et al. (2011), our findings indicate that content generated by collaborators in eCNs are more relevant and increases users interaction and sustainability of the eCN through high returns. Member-generated content resulted in a more active, open, trusting interactive eCN and users would engage more. Table 4 also demonstrates that collaborators’ participation has positive association, 0.036 and 0.098 respectively, with the increased efficiency by using collective knowledge. Thus Hypothesis 4 is also supported. In terms of the Web 2.0 collaboration technologies and their impact on collaborators’ participation, the findings here support the positive correlation in the hypotheses. As shown in Table 4, the availability of Web 2.0 tools positively impacts the frequency of collaborators’ participation (value of 0.413), as well as the time a user spends on active engagement and content contribution (value of 0.218). In addition, the availability of Web 2.0 tools makes an e-collaboration network less complex and difficult to navigate. As there is a negative association with system complexity, Hypothesis 5 is also supported. In terms of individual Web 2.0 functionalities and their usefulness, the highest ranked was the social matching radar tool. Also, tagging was seen as particularly useful to actively organise and create own knowledge, illustrating the importance of metadata. The interactions and relationships between collaborators’ participation and its determinant eCN characteristics, together with the relation between knowledge flow, collective knowledge and collaborators’ participation are also illustrated in Table 4. Table 4. Analysis of relationship between collaborators’ participation and key elements:MLS. Collaborators participation: time and active contribution Constant Perceived value Complexity Compatibility Availability of Web 2.0 Increases efficiency by using collective knowledge R2 Adjusted R2 Notes: **P 5 0.5; ***P 5 0.01. 3.412*** 0.465** 0.613*** 0.569** 0.218** 0.098** 0.420 0.014 Collaborators participation: frequency 2.447*** 0.521*** 0.239** 0.238*** 0.413*** 0.036** 0.564 0.021 International Journal of Production Research 2045 Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 8. Discussion This paper investigates the use of Web 2.0 in electronic collaborative networks. The research has synthesised IS theories to develop a set of virtual collaborators network variables that impact on collaborators’ participation. The case studies provided validity to the proposed research hypotheses. One of the key findings is that having an advanced technology platform with modern communication and collaboration tools is not, in itself, sufficient to enhance collaborators’ participation. Going beyond the technological aspect, Web 2.0 tools provide a new shift in collaborative networks in that the control, creation and development of knowledge is seen as flowing inside-out (user-generated content). This is in line with the findings of Bughin and Chui (2011) who concluded that successful networked companies show high levels of Web 2.0 adoption and usage combined with new ways in how they operate and in their structure. These companies build interaction and collaboration into workers daily activities rather than making participation an additional duty. Thus ‘employees are much more likely to share information, while its flow throughout the company is far less likely to be hierarchical; decisions are made at lower levels’ (Bughin and Chui 2011). Trust is also vital in encouraging participation within any virtual collaboration network. This confirms findings that trust in other members’ ability, expertise and integrity amplifies the level of participation within the network, thus supporting a strong sense of mutuality and encouraging future contribution (Wasko and Faraj 2005, Tickle et al. 2011). Sustaining user interaction in a way that ensures they continue to contribute creatively and engage with the network members is key to the longevity of the eCN (Koh et al. 2007, Harrison and Zappen 2005). In an SME this is more of a challenge as members may fear that their expertise is not of an appropriate level to make a relevant contribution. The results clearly indicate that members’ perceptions of usefulness and of having their expectations and needs met are important dimensions of collaborative networks. Moreover, the results further substantiate that the availability of Web 2.0 technologies enables users to easily engage in a rather informal manner for idea creation or problem solving, thus furthering social bonds that are critical in collaborative efforts. The members of CS1 viewed the eCN’s specialist groups and expert blogs as a joint space suitable to explore a common vision to a problem affecting the sector within an informal environment. The social interactions captured by this work have demonstrated that Web 2.0 technologies provide a collaborative infrastructure in SMEs that encourages engagement of diverse specialist groups, as well as enhancing collaborative outcomes such as knowledge flow and collective knowledge. Dynamic time efficiencies in CS1 were seen in work activities such as searching, processing, problem solving, company-matching with funding, decision-making and project activities. This substantiates the findings of Inkpen and Tsang (2005) that well-constructed and managed collaborative networks offer clear benefits to SMEs, by helping decode and harness flows of information such as technological change, sources of technical assistance, market requirements and strategic choices by other firms, thus strengthening their competitive advantage (Bougrain and Haudeville 2002). A useful finding from this research study is that collaborators’ participation is a composite construct. This further substantiates the multi-dimensionality of the collaborator’s participation construct proposed by Michaelides et al. (2012), which includes level of engagement and contribution. Other expected benefits of collaborative networks are validated here, such as sharing of resources; openness of information; engaging with experts of different knowledge sets and capabilities; enhancement of collective knowledge and furthering of reputation (Bititci et al. 2007, Macedo et al. 2010). The thinking behind this is that interaction knowledge is not only exchanged but collectively further developed and the network knowledge base increased (Todtling et al. 2009). 9. Conclusions and future research This paper synthesises a framework of constructs that relates collaboration network strategy, collaborators’ participation, perceived usefulness and competitive priorities, network complexity, competencies and competitive capabilities. The findings support the fact that it is not sufficient for companies to simply take into account the straightforward, tangible benefits of networks, such as increased number of users, when judging the effective deployment of networks. Organisations that enable the employment of collaborative technologies by their employees will also need to ensure compatibility between the different systems and competitive priorities. If technologies are perceived to be too complex users will not participate, neither will they engage meaningfully nor contribute to the knowledge flow required for collaborative engineering networks to be perceived as valuable assets Downloaded by [Istanbul Universitesi Kutuphane ve Dok] at 16:39 20 December 2014 2046 R. Michaelides et al. in contemporary industry. The dynamics of contemporary industrial environments have changed as companies are discovering the importance of exploiting emerging employee, customer, and supplier networks. The strength of our findings here relate to the transformational impact of Web 2.0 tools in generating new insights and knowledge areas within online collaborative networks. It should be noted that this study has several limitations that would require further research. First, for both cases the interviews were conducted using a small selection of participants. Future research would benefit from investigation of much larger groups of collaborative networkers. Also, in CS1 the paper survey was conducted during a specific networking face-to-face live event, chosen due to availability and geographical access. In addition, the results of this study were generated by active participants of the collaboration network. It would be of particular interest to investigate the network users that do not contribute content, or who become members and then do not log in to the network. Second, is the fact that only one aspect of collaboration technologies was examined and this relates to Web 2.0 tools. Another limitation comes from restricting focus to publicly funded eCNs. Both cases of eCNs studied here were funded by public grants, through EU or national initiatives, and they have been unable to sustain presence after completion of the funding period. Further profiling of eCNs with a funding sustainability aspect is planned for the future. 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