ROLE ALLOCATION AND GOVERNANCE OF INTERORGANIZATIONAL NETWORKS IN MACHINE-TO-MACHINE-COMMUNICATION

ROLE ALLOCATION AND GOVERNANCE OF INTERORGANIZATIONAL NETWORKS IN MACHINE-TO-MACHINE-COMMUNICATION

Machine-to-machine communication (M2M) is a fundamental enabler for a variety of products and services. Companies involved in the implementation and operation of M2M solutions are confronted with novel economic challenges with regard to the formation and management of interorganizational networks. Using case study research and associating theories of interorganizational networks with the (mostly technology-oriented) literature on M2M, we analyse how the distribution of resources and capabilities of firms determine M2M network characteristics and role allocation. We distinguish two characteristic roles (broker and supplier) and two network types (hierarchy and heterarchy). An actor`s role is found to be determined by its coordination capabilities, its system integration capabilities and core technology ownership. The network type is influnced by the exclusivity of customer access, the customers` assembly costs and the relative size of the firm. The descriptive results of this case study research are a basis for studying the fit of a firm`s resources and capabilities with its M2M strategy.