Performance Metric Selection Methodology for Multi-Organizational Service Network Integration

Abstract

Service supply chains often involve multiple organizations networked to co-develop product-service solutions for customers. Better integration among firms in these networks is critical to improved business performance. However, effective integration across network partners is difficult to operationalize. Previous research has suggested that focusing on a critical set of processes identified as key to network integration, or ‘touch points’ between organizations can enable greater alignment between partners. This article builds on this approach and provides a set of measures that assesses the degree to which integration ‘enablers’ are in place for any complex product-service network. These integration ‘enablers’ are largely relational in nature, involving collaborative and qualitative aspects of network integration, rather than only involving cost and quantitative metrics. We suggest that these relational metrics follow a hierarchy, connecting business, strategic and operational goals for a multi-organizational network.

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