The multiplicity of organizing visions

Industrial Marketing Management 66 (2017) 196–204

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Industrial Marketing Management journal homepage: www.elsevier.com/locate/indmarman

The multiplicity of organizing visions a,⁎

a

MARK b

Susan Standing , Craig Standing , Peter E.D. Love , Denise Gengatharen a b

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Centre for Innovative Practice, School of Business and Law, Edith Cowan University, Joondalup, Western Australia, Australia School of Civil and Mechanical Engineering, Curtin University, Bentley, Western Australia, Australia

A B S T R A C T Research has shown that information systems adoption decisions are often influenced by organizing visions. Organizing visions provide a legitimation for technology related decision-making and involve a range of influences and perceptions from consultants, industry bodies, policy makers and other firms. This paper is concerned with identifying the mechanisms that underlie the structure of an organizing vision. A range of case studies and a morphogenetic approach, underpinned by critical realist philosophy, are used to demonstrate how organizations respond to organizing visions and how different response communities emerge. We identify and explain the characteristics of the shaper, resistor, coerced, follower and ambivalent communities, their relationship with an organizing vision and the importance of pre-existing conditions.

1. Introduction The adoption of information and communication technologies (ICT) in organizations is a key research theme in information systems. It is important because information systems are often major investments that have the potential to transform an organization's productivity and be a source of competitive advantage (Drnevich & Croson, 2013; Mithas, Tafti, & Mitchell, 2013). Research over a number of years has identified the importance of a group of related concepts that includes fashion waves, fads, and organizing visions in driving and facilitating the adoption of technologies (Wang & Ramiller, 2009). These concepts are associated with social cognition, community discourse and the legitimation of technology adoption decisions (Wang & Ramiller, 2009). The theoretical perspective taken in the study is one that draws upon the theory of organizational visions (Swanson & Ramiller, 1997, 2004). According to Swanson and Ramiller (2004, p.556), an organizing vision “is a construction in discourse that emerges from a heterogeneous collective consisting of such parties as technology vendors, consultants, industry pundits, prospective adopters, business and trade journalists, and academics.” These actors all have a role in forming the community discourse around a technology innovation. The organizational discourse consists of relationships between social and technical structures and information systems development. The discourse forms an ordering process that reflects and shapes organizational strategy, process change and technology adoption (Doolin, 2003; McLeod & Doolin, 2012). An organizing vision therefore, is a sense making process that an organization engages with, not only to enable adoption decisions on a specific technology, but to determine the role ⁎

and organizational contribution of the technology (Berente, Hansen, Pike, & Bateman, 2011). The technology that is the focus of this study is electronic marketplaces. An electronic marketplace is described as a networked information system that serves as an enabling infrastructure for buyers and sellers to exchange information, transact, and perform other activities related to the transaction (Chien, Chen, & Hsu, 2012; Standing, Standing, & Love, 2010). An electronic marketplace has the ability to impact upon different areas within the organization such as an individual business unit, the supply chain and customer relationship management and facilitate intra organizational communication and knowledge sharing. In the case of business-to-business (B2B) transactions an e-marketplace is also an inter-organizational system. Electronic marketplaces frequently use online auctions mechanisms. Electronic marketplaces were chosen for this study as the type of information system because of their intra and inter-organizational significance and because of the surrounding discourse related to the benefits and issues in their adoption. There is a wealth of research in relation to technology adoption models generally (Venkatesh & Bala, 2008; Venkatesh, Thong, Chan, Hu, & Brown, 2011). A limitation of these technology adoption theories is that they apply at the individual level and do not fully consider the “group think” that is such a force in organizing vision theory. Organizing vision theory is still developing and significant gaps exist in its conceptual coherence (De Vaujany, Carton, Mitev, & Romeyer, 2014). For example, organizing visions have substantially been viewed as a positive phenomenon influencing technology adoption decisions but they can also influence decisions to reject a technology (Kaganer,

Corresponding author. E-mail addresses: [email protected] (S. Standing), [email protected] (C. Standing), [email protected] (P.E.D. Love), [email protected] (D. Gengatharen).

http://dx.doi.org/10.1016/j.indmarman.2017.08.006 Received 3 December 2016; Received in revised form 14 August 2017; Accepted 17 August 2017 Available online 19 August 2017 0019-8501/ © 2017 Elsevier Inc. All rights reserved.


S. Standing et al.

Swanson & Ramiller, 1997). In particular, the use of a technology within an organization is informed by the views and past experiences of organizational decision makers, industry sector norms, consultants' opinions, technology vendors and trade and business journalists (Pollock & Williams, 2009). A community discourse also embodies an informing discourse driven by the diffusion of a technology (Gill & Bhattacherhee, 2009). Social networks associated with a technology allow organizations to assess new practices (Cheng, 2010). Recent developments in organizing vision research have investigated how a community can influence the organizing vision and the discourse that takes place to enable learning (Wang & Ramiller, 2009). The discourse is segmented into three evolutionary dimensions beginning with knowledge about a technology, followed by reasons for its use and a final dominant discourse around the strategies and capabilities involving the technology. The sequential evolution and ordering of a discourse suggests that analytical and experiential knowledge of the technology is added to the community discourse, transmitted through community networks and across organizational boundaries. Although, this presents a basis for understanding the development of a discourse it does not explain why some organizations adopt the technology whilst others do not. However, links between the community discourse and organizational discourse highlight the existence of relationships between organizational structures and social process (Fairclough, 2005) and the need to consider both activities and structures. Consultants' activities play a part in the development of organizing visions and they often act as change agents for technology innovation (Swanson, 2010; Wang, Potter, Naim, & Beevor, 2011). A consultant's contribution to the innovation process can occur across five broad areas of organizational activity: business strategy; technology assessment; business process improvement; systems integration; and business support services. Their prominent role in technology diffusion can sometimes be problematic for organizations since they may “contribute more to mindless, than to mindful innovation with IT” (Swanson, 2010, p. 25). The reason proposed is that when consultants promote standardized IT solutions across the sector normative pressure for adoption increases. An example of this is the widespread adoption of SAP for enterprise resource planning (ERP) solutions (Pollock & Williams, 2009). A consequence of standardized or modular solutions is that firms are unable to differentiate themselves from others: as Swanson (2010) concludes, consultants may be best employed by firms looking to catchup with IT innovations rather than by those aiming to be sector leaders. The implication is that consultants are likely to suggest what will be well received by a client, or what has been accepted by others. This constrains the consultant from suggesting more radical solutions or alternatives and reinforces their role in creating institutional isomorphism.

Pawlowski, & Wiley-Paton, 2010). The role of organizing visions in circumscribing use of a technology has not been fully explored nor has its influence on the scope and extent of adoption been fully investigated. This paper aims to examine how organizing visions are interpreted by organizations. Firstly, the paper examines organizing vision theory. It then presents the details of the case study design and findings using a critical realist perspective and a morphogenetic approach (Archer, 1995). A conceptual framework is presented that relates organizing visions with organizational approaches to e-marketplace use and finally the implications of the study are discussed. 2. Theoretical perspectives Various models have examined the adoption of technology. Theory of reasoned action (TRA) takes into account an individual's positive or negative feelings towards using an action and considers the influence of subjective norm in the sense of considering what other people who have influence on the individual think about the behaviour or action (Fishbein & Ajzen, 1975). Davis (1989) applied the theory to using technology and found both factors to be significant. Technology Adoption Model (TAM) does not include attitude but centres on perceived usefulness and perceived ease of use, with a later version of TAM (TAM2) including subjective norm (Venkatesh & Davis, 2000). TAM applies at the individual level in relation to technology adoption. The Theory of Planned Behaviour (TPB) (Ajzen, 1991) has three core constructs: Attitude Towards Behaviour, Subjective Norm and Perceived Behavioural Control. The latter factor examines the perceived ease or difficulty of performing the behaviour. TPB has been applied to technology adoption (Harrison, Mykytyn, & Riemen-schneider, 1997) but is again focused on the individual in organizations. The core constructs on Innovation Diffusion Theory (IDT) have been applied to technology adoption (Moore & Benbasat, 1996) and took into account relative advantage, ease of use, image, visibility, compatibility, results and voluntariness of use. Although innovation diffusion has value it does not explain how individual organizations are influenced to adopt a technology. Organization vision theory is different to other technology adoption models because it considers the discourse surrounding a technology in the marketplace and the role this has on the organizational decision to adopt it. It de-emphasises rational analysis of the technology at the individual level and highlights the importance of following a dominant perception in the marketplace and the influence this exerts on organizations. This research approach it could be argued better explains adoption as it relies on the power of social cognition and its relationship with inter-organizational diffusion of an innovative technology (Oliveira & Martins, 2011). Organizing visions have substantially been viewed as phenomena that work to create a rationale for the adoption of a technology where a “diverse inter organizational community creates and employs an organising vision of an IS innovation, that is central to its early, as well as later, diffusion” (Swanson & Ramiller, 1997, p. 458). Organizing vision theory and research on management fashion associates IT innovation and technology adoption with a community discourse (Wang & Ramiller, 2009). Research on organizational fashion proposes that fashion occurs in a wave from innovation to institutionalization and is influenced by community learning (Abrahamson & Fairchild, 1999; Baskerville & Myers, 2009; Gill & Bhattacherhee, 2009). A diverse range of actors contribute to the community discourse surrounding a technology and their influence on technology diffusion and organizational change has not been fully explored (de Vaujany, Carton, Dominguez-Péry, & Vaast, 2013). Swanson (2010), for example, proposes that IT consultants increase the rate of technology adoption and act as supportive change agents. Organizing vision theory recognises that community discourse occurs through interactions with media, community members and in the ways IT is used to bring about organizational change (Swanson, 2010;

3. Methodology The following explains why a critical realist approach is taken and how this links with the selection of the multi-case study method. There is growing support for the case study method in studies that take a critical realist view (Easton, 2010; Wynn & Williams, 2012) since it enables the interrelationship of phenomena and context to be examined. Critical realism provides an ontological basis to examine experiences, events, the structures and the causal mechanisms that underlie them (Bhaskar, 1978; Leca & Naccache, 2006; Mingers, 2004; Pawson & Tilley, 2011) and explains economic rationale (Runde, 1998). The concepts of organizational change (morphogenesis) or reproduction (morphostasis) developed by Archer (1995) recognise that social structures, agents and context are interrelated and have to be considered simultaneously. The morphogenetic/morphostasis approach is used to identify change/reproduction in organizational structures through the interrelationships between agents, social and cultural structures in B2B and e-marketplace structures. Reproduction in this context means little or no change. 197


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services offered to participants. E-marketplaces operating in Australia were selected as potential participants for since they are operating under the same cultural and economic conditions. E-marketplace providers were included in the study for their knowledge of the e-marketplace technology and buyer and supplier reasons for adoption as this links to the role of organizing visions. The organizations selected were contacted regarding participation and all agreed to take part. The case organizations represent organizations (in terms of budget and employees) with experience of procuring goods or services via B2B e-marketplaces, international e-marketplace providers, and organizations that conduct both e-marketplace procurement and e-marketplace provision. Organizations with large procurement budgets are more likely to use an e-marketplace (Hackney, Jones, & Lösch, 2007) and emarketplace providers can provide insights into their organization and participant organizations. Representatives from the organization were selected based on a high level of managerial experience and knowledge of the procurement process and stakeholder requirements. The informants held positions within the organization with job titles such as Director Australasia, Regional Vice President, Procurement Manager, Chief Procurement Officer, General Manager E-Business Solutions, Associate Director Procurement Systems and Supply Chain Manager. Six informants were interviewed from each organization to provide multiple perspectives. Diversity in the case organizations was represented by the type of organization (government and private). Data was gathered via semi-structured interviews with participants from each organization (Yin, 2009). The use of semi-structured interviews allowed the informants to put forward their views on a range of matters connected with e-marketplace adoption and use. Informants had the opportunity to discuss any factors that they identified as impacting upon the success or failure of using an e-marketplace from an organizational and personal perspective. The discussion focused on how e-marketplace implementation had or had not occurred, what difficulties or successes were encountered and attitudes towards e-marketplace trading in general. The methods used to evaluate e-marketplace participation, whether formal or informal, were also discussed. The questions provided considerable scope for the informant to expand answers and to provide additional information, raise concerns or highlight issues. Interviews were recorded and lasted between 45 and 60 min. Informants were sent the interview transcript to review and were contacted a few days later for additional comments or feedback. The final seven participant organizations consisted of three from the resources sector, one e-marketplace provider specializing in mining and related industries, one e-marketplace provider with reverse auction specialization and two Australian state government e-marketplaces (Tables 1 and 2). To understand the circumstances in which organizations do, or do not, adopt e-marketplace use the interview discussions focused on the informants' perceptions of e-marketplace technology and use, organizational value of e-marketplace participation and experiences of e-marketplaces.

Context provides a means to identify the structures, agents and causal mechanisms that have shaped a situation and a means to distinguish pre-existing conditions from present activities (Archer, 1995). The inseparable linkages between agents and structures represents an analytical dualism where the emergent properties (causal mechanisms) of structures and agents interact with each other to produce non-predictable, although explicable, changes over time (Archer, 1995). An understanding of organizational context offers a means to highlight interactions that produce differences in the use of a technology (Danermark, Ekstrӧm, Jakobsen, & Karlsson, 2002; Sayer, 2010; Zhu, Kraemer, & Xu, 2006). The influence of social structures, cultural structures and agents in the use of a technology requires an examination of the material aspects (functionality) of the technology and the conditions necessary to produce a specific outcome (Mutch, 2010; Orlikowski, 2009). The ubiquitous nature of technology produces a tight interweaving of the social and material. However, identifying the material properties of the technology helps uncover the relational powers between organizational structures, agents and the technology, and their impact on organizational change (Bygstad & Munkvold, 2011; Mutch, 2010). Archer (1995, p. 161) suggests that work should be done to discover how structural influences are transmitted to particular agents, in determinant positions, and the strategic combinations that result in morphogenesis rather than morphostasis. In line with this, the paper investigates B2B e-marketplace participation and the specific conditions that influence e-marketplace use and its organizational value by identifying causal mechanisms, their powers and liabilities. Hence, a critical realist approach that takes into account the real and perceived is an appropriate methodology for this study that deals with organizing visions. It enables the causal mechanisms within a given context to be identified to explain why events happen. To provide sufficient evidence for the research seven cases were investigated. The investigation of seven cases provides opportunities to uncover differences in the internal interpretation of external events (Yin, 2009). Yin (2009) suggests that 6–10 cases are suitable for exploring differences in context. E-marketplace providers are selected for the case studies because they are the ones adopting and using the emarketplaces and hence they can be investigated in relation to the influence of organizing visions. 3.1. Data collection Case data illustrates complex interactions between people, processes, organizations and context. Taking a small number of cases enables each case to be examined in terms of history and context, and take into account specific experiences of the situation, the processes, activities, and episodes of events (Sayer, 2010). The explanatory nature of the study allows adherence to six stages of case study research proposed by Danermark, Ekstrӧm, Jakobsen and Karlsson (2002 pp. 109–110): 1) a description of the situation and relevant theories; 2) analysis of the phenomena to identify the components to be studied; 3) redescription of data from hypothetical concepts; 4) retroductive analysis to uncover fundamental mechanisms; 5) comparison between theories and data and finally; 6) contextualization of the identified mechanisms. The process is not necessarily sequential but continual description, resolution, redescription, retroduction, comparisons and contextualization occurs in order to verify and explain causal significance relative to a general situation (Runde, 1998). The research moved between description and abstract analysis to reconstruction of the basic enabling conditions at different organizational levels and included external, internal, and organizational sub-groups (Blundel, 2007). E-marketplaces were initially identified through the database of emarketservices.com which maintains a list of international e-marketplaces that are trading successfully in the business-to-business (B2B) or business-to-government (B2G) area (these e-marketplaces are referred to as being B2B throughout this paper). The e-marketplaces represented in this database cover diverse industries and variation in the types of

3.2. Data analysis Informant interviews were the primary source of data used for analysis. Supplementary data such as organizational web sites and reports, and media publications which form part of the organizational discourse were also considered. Data for analysis was imported into a software package specially designed to aid in the coding and comparison of qualitative data. Conceptual abstraction from case data and literature produced themes for the coding. The themes were developed and analysed to identify organizational structures, agents, mechanisms and outcomes. Initially, broad rules for data inclusion in a conceptual theme were formulated but these were refined as data analysis continued. Data from the interview transcripts and any supplementary data were coded to a relevant theme, or themes if appropriate. Ideas or concepts not 198


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Table 1 E-marketplace providers. Organization

Type of Emarketplace

Trading functions

Region of operations

Goods traded

Types of users

A

Private

Reverse auction

Australia, UK

Variety of goods and services (e.g. Equipment, machines, office furniture, stationary)

Variety of buyers and sellers

Consortium

Global

Oil, gas, core mining processes and construction

Mining, metals and processing companies and their suppliers.

State government (Australia)

Online order, RFQ, proposals, bids, catalogues Online order, RFQ, tender, catalogues, bids

Australia

Government agencies and their suppliers

State government (Australia)

Online order, RFQ, tender, catalogues, bids

Australia

Variety of goods and services required by government agencies. (e.g. School equipment and supplies, hospital equipment) Variety of goods and services required by government agencies. (e.g. School equipment and supplies, hospital equipment)

Founded 2000 Employees 122 B Founded 2001 Employees 300 C > 5000 employees D > 8000 employees

Government agencies and their suppliers

the e-marketplace (Emarketservices, 2014). Each e-marketplace vendor provides an e-marketplace platform that integrates participants' information systems on a web based system. Participants use their existing technology and communication infrastructure to access the e-marketplace. The functionality offered by the e-marketplace varies by provider and a range of standardized options are usually available for participant selection. The two vendors' (A and B) perspectives on how organizing visions impact on e-marketplace decision processes are summarised in Table 3. The key features of a critical realist approach are used to explain the situation before considering e-marketplaces (pre-existing structures), the events and actions that took place (production), the forces that led to little or no change and what resulted (reproduction), and when significant changes took place what influenced that and what resulted (transformation). Organizational culture was seen as a factor that influenced a firm's willingness to change. Those organizations with a more open and innovative culture were more likely to experiment and take a risk on emarketplaces. An organization's satisfaction with existing business-tobusiness relationships and their views on e-marketplaces in relation to whether they are seen as a positive or negative influence impacted decisions. Vendor (A) would usually assess whether the interested organization was risk averse or was prepared to experiment and took this into account in their recommendations on how to use the e-marketplace. Vendor B mentioned that dominant market positions of large buyers created coercive pressure for suppliers to participate. If firms were risk averse, had a negative view of e-marketplaces or couldn't see a reason to change their procurement methods then they would only use e-marketplaces for minor goods and services. Those that embraced e-marketplaces changed their views and beliefs and changed the nature of relationships in the supply chain. These firms recognised the informative role of the vendor.

captured in the initial coding were assigned to additional themes with descriptive conceptual titles. Contextual case data from each case was analysed to support or reject the relevance of themes and identify the structures and mechanisms involved in causing events. The refinement of the rules for inclusion in a theme as data analysis continued produced some changes in coding through the development of new themes, subthemes and cross coding. Continual iteration between abstraction and concretization of the data strengthened the links between data, themes, outcomes and theories (Sayer, 2010). 4. Findings Case organizations with contextual similarities were grouped to represent three organizational types: independent e-marketplace vendor; Australian state government as an e-marketplace provider and e-marketplace participant; and e-marketplace buyer from the mining and resources sector. 4.1. E-marketplace vendor The two e-marketplace vendor organizations have headquarters in Australia and operate international e-marketplaces. Organization A was founded in the UK in 2000 by two experienced procurement and buying managers. The Asia Pacific branch is based in Sydney, New South Wales and has been operating in Australia since 2000. Organization A provides an online tender and quotation system and reverse auction services for fixed monthly fees or a fixed fee per auction. Access to a wide variety of goods and services are available from participant organizations. Organization B has been operating since 2001. It was formed from a joint agreement by 20 leading mining and mineral organizations to develop an electronic trading system between them and their suppliers. The e-marketplace vendor operates independently of the founding members but primarily serves industries involved in mining and related areas. The e-marketplace operates globally and has offices throughout the world. Services are provided to registered users on a fee basis and include catalogues, directories, and requests for quotes, proposals and bids. There are over 60,000 suppliers and 1500 buyers trading more than USD $20 billion worth of goods and services through

4.2. Australian state government - e-marketplace provider and participant The uptake of e-marketplace use in Australia lags behind that of North America and Europe in the private sector, but the two state governments represented in the study have been involved in e-

Table 2 E-marketplace trading organizations. Organization

Type of organization

Industry

Trading operations

Goods traded through e-marketplace

E

Private company

Aluminium products

Global operations

Private company

Mineral exploration, extraction and refining Gas and oil exploration and extraction

Global operations

Goods and services (e.g. Gas, machines, truck tyres, office equipment) Goods and services (e.g. Energy supplies, office equipment, mine site machinery) Commodities

7000 employees F 4300 employees G

Private company

Global operations

3000 employees

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Table 3 Vendor perceptions of organizing visions (Organizations A and B). Pre-existing Structures

Production (approach)

Reproduction (forces for little or no change - morphostasis)

Transformation (Morphogenesis)

Organizational culture

Vendor's conciliatory approach to organizing vision of client Vendor capability to build B2B trading network Coercive power of buyer

“Why change” attitude?

Adopted e-marketplace

Fixed negative e-marketplace beliefs Procurement methods unchanged

Change in organizational relationships Vendor legitimation

B2B supplier relationships E-marketplace beliefs

Australian, gas and oil exploration and production company that has been operating since 1954. It is a world leader in the production of liquefied natural gas and natural gas production, liquefied petroleum gas, condensate and oil. Various project partnerships with global producers such as Shell, BHP Billiton and Chevron have been formed worldwide. In 2000 Organization E and Organization F joined other large organizations from the mining sector as founding members of a consortia e-marketplace to serve the resources sector. This was initiated as part of the organizations' e-commerce strategies. Trade through the e-marketplace, within procurement activities, is a regular occurrence for both organizations. Organization G is not a member of the consortia and uses an e-marketplace irregularly. The senior supply chain managers and procurement managers in Organizations E and F could clearly define what e-marketplace use involved and articulate its role within organizational procurement practice. Organization G had a vaguer e-marketplace definition and did not envisage regular, e-marketplace participation in their procurement activities. The differing e-marketplace definitions indicate levels of maturity in e-marketplace use and variations in the community discourse that exist in an industry sector. The culture of the buyer organization was important in creating the conditions to take a risk and use e-marketplaces (Table 5). An open attitude to e-marketplaces was also important. When procurement was seen as a strategic function in the organization the Organizations (E,F,G) were more likely to adopt e-marketplaces. As the buyers had a dominant market position that created a power asymmetry that put pressure on suppliers to participate. Buyers stressed the cost efficiencies of e-marketplaces and many suppliers changed their approach but some organizations were not prepared to change even under pressure.

marketplace development for over 10 years. Pre-2011 State Department C, in State C, was responsible for five areas of state governance: treasury; revenue; procurement; shared services; building management and works. It split into two agencies mid-2011 with the Department of Finance (DF) controlling government procurement for State C. The DF's vision takes a whole of government approach to providing shared services and centralizing procurement activities. The possible gains in efficiency, probity and risk management through the use of electronic channels has influenced the vision of a single entry point for all related state government/community e-sourcing and supply interaction. Organization D, in State D, is responsible for government services, technology and administration. The state's e-marketplace was implemented in 2002 through the Department of Public Works and Services but now falls within the remit of State Organization D. To fulfil the state government's e-commerce and procurement policies organization D has been working towards the centralization of procurement and the development of the government portal, however the direction of future policies is currently uncertain. The government procurement portal provides access to state contracts, electronic tendering, some human resource management services and training opportunities. Guidelines and frameworks developed for government procurement and for suppliers are easily accessible. A wide variety of goods and services are traded through the e-marketplace to meet the needs of state agency buyers. The two state governments had an agenda to act as leaders of change and in the development of on-line procurement knowledge in the business sector (Table 4). Even so because the government could mandate the adoption of e-marketplace procurement some thought they had coercive power. This meant that supplier firms had a choice, either refuse to be involved or give it a go and learn from the experience.

4.4. Types of responses to organizing visions

4.3. Mining and resources e-marketplace buyer organizations

The findings highlight the presence of different types of responses to organizing visions (Table 6). These types are not simply adopters and non-adopters but illustrate five alternative group reactions to e-marketplace use.

Large organizations operating in the mining and resources sector in Australia took part in the study. Organization E is one of the largest producers of aluminium in the world. Its alumina production in Australia accounts for 11% of world demand and employs over 7000 people. The Australian branch of the organization has been using emarketplaces in B2B transactions for over 12 years. Organization F is a leader in the exploration, extraction and processing of mineral resources with operations spanning the globe. It maintains a strong presence in Australia and North America and has significant businesses in South America, Asia, Europe and southern Africa. The organization's major products are aluminium, copper, diamonds, gold, coal, uranium, industrial minerals and iron ore. It has also been involved in B2B emarketplace trading since 2000. Organization G is a Western

4.4.1. Shaper community The shaper community represents technology adopters able to instigate organizational change at a macro level. It is prepared to take risks and demonstrates an experimental, or trial and error, approach to adopting new technology and accepts change in business practices. Early adopters of a technology in an industry sector, for example Organizations E and F, belong in this group. The shaper community influences the organizing vision for the technology at an early stage of

Table 4 Government perceptions of organizing visions (Organizations C and D). Pre-existing Structures


Reproduction (forces for little or no change - morphostasis)


Government structure Social welfare agenda E-marketplace trading beliefs

Coercive power of government Political cynicism Educational role

E-marketplace beliefs remain unchanged Procurement methods unchanged

E-marketplace legitimation Capabilities expanded Standard procurement methods

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Table 5 Buyer perceptions of organizing visions (Organizations E, F and G). Pre-existing Structures


Reproduction (forces for little or no change morphostasis)


Organizational culture

Relational power asymmetry

E-marketplace beliefs remain unchanged

Strategic procurement role

Cost efficiency benefits of e-marketplace trading promoted

Procurement methods unchanged

Improved e-commerce capabilities and evaluation abilities Modified e-marketplace beliefs

E-marketplace trading beliefs

Uninterrupted B2B relationships

Change in organizational relationships Industry-wide legitimation of e-marketplaces

an operationalization discourse and emphasises ways in which the technology can be adopted. The “why” discourse generated by a shaper community is supportive of the technology and sustains interest in the technology.

the community discourse, contributes to the development of the discourse and legitimation of the technology and associated business practice. Organizations E and F, as members of the shaper community, were instrumental in promoting e-marketplace use as an efficiency tool and a way to deliver cost benefits for high volume transactions. This discourse is still prevalent (e.g. Ariba, 2014) and influential for organizational adoption of a technology.

4.4.2. Resistor community The resistor community perceives that the technology associated with an organizing vision has weaknesses or disadvantages and these are used as rational for non-adoption (e.g. Organization E), particularly if the organization has a culture with emergent properties of cynicism towards outside entities and aversion to loss of control. This community is concerned about the problems associated with technology adoption and is sceptical about its benefits. The potential benefits of a technology will be forgone in order to concentrate on areas that retain organizational control and are perceived as higher priority. The difficulties faced by Organizations A, E and G in convincing suppliers of e-marketplace benefits and the necessity to offer specialised training also suggests that the resistor community can be a laggard in technology adoption, or have limited technology experience. The vendors for example found that many organizations were circumspect about e-marketplace use and a pre-existing community discourse was informed by negative perceptions of e-marketplace use:

“We reckon we saved 8 million bucks, and we definitely put pressure on the marketplace but we didn't get the absolute best we could have got. They said they could have gone lower so maybe if we had just gone straight out to tender without the online bidding they would have put in a lower offer. Who knows? It was definitely good savings. Was it better? The fact that they said they could have gone lower is a bit scary isn't it?” Organization E The shaper community is quick to interpret an organizing vision for a technology and adapt it to fit their organizational context. They will also extend and push the boundaries of how the technology is used. Organizations E and F moved beyond using the e-marketplace only for high volume trades to develop strategically driven e-marketplace use and comprehensive metrics for the provision of goods and services. The shaper community interprets and articulates the organizing vision for a technology and reinforces discourses on “what” the technology is, the strategies and capabilities of “how” to use it, and the “why” rationales associated with its use (Wang & Ramiller, 2009). The “how” discourse is

“I use perception very carefully there, because the perception is usually not born from experience it's born from what they've read or heard from somebody else which is blunt instrument, damages supplier relationship,

Table 6 Community group, context, discourse mechanism and outcomes. E-marketplace context

Community group

Discourse mechanism

Discourse outcome

Procurement function valued as a strategic enabler in achieving organizational goals

Shaper community

Promotes use of e-marketplace to suppliers and potential suppliers

Increased awareness of e-marketplace trading in supplier base and across industry sector Wide scale process change for buyer and supplier Increased knowledge of e-marketplace functions, procedures and benefits/ disadvantages E-marketplace trading as advantageous for large volume transactions Legitimation of e-marketplace trading Adoption of e-marketplace by suppliers and agencies Increased knowledge of e-marketplace functions, procedures and benefits/ disadvantages. Adoption of e-marketplace by suppliers and agencies. Awareness of e-marketplace functions, procedures and benefits/disadvantages Dismissal of advantages from emarketplace trading. Search for alternative solutions Negativity towards to e-marketplace participation and external controlling agency.

A portfolio approach is taken towards e-marketplace participation E-marketplace platform is provided to connect disparate buyer and supplier systems and consortia type emarketplace exists

Efficiency in supply chain through integration of emarketplace technology Evaluation of “best fit” of procurement techniques

Powerful economic market entities implement emarketplace procurement and form consortia

Follower community

Powerful economic market entities implement emarketplace procurement E-marketplace vendor offers services to connect buyers and suppliers E-marketplace vendor offers services to connect buyers and suppliers

Coerced community Ambivalent community Resistor community

E-marketplace implementation decision and selection criteria controlled by an external agency (buyer or supplier)

Promotion of transaction cost savings from emarketplace trading Sustaining discourse – “why” Legitimation processes promote use of e-marketplace internally and externally as an equitable and transparent method for B2B trading

Coercion mechanism forces use of e-marketplace through economic or political pressure. E-marketplace trading is not a focus of attention and limits pre-disposition to adopt technology Cynicism towards external or political agencies “We can do it better” attitude Coercion mechanism violates psychological contract between buyer/supplier Perceptions of the e-marketplace as a “price hammer” for buyers' cost reduction

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high disposition towards technology adoption in conjunction with many network boundary pressure points results in a bandwagon effect (Abrahamson & Rosenkopf, 1997). Interview data from Organization E, F, B and the state governments C and D indicates that suppliers adopted the technology because buyers led the way. Although this organizing vision is likely to result in operational benefits such as transaction cost savings the technology is unlikely to deliver a competitive impact. Normative and mimetic pressures form institutionalized routines which act as liabilities in in the change process (Zucker, 1987). These pressures could also constrain activation of mechanisms related to the production of originality and innovation. However, the acceptance of the organizing vision by the follower group strengthens the learning and operationalization discourse as the technology is adopted and used.

ignores quality.” Organization A Activation of coercion mechanisms can lead to resentment and damaged relationships. Some suppliers to the mining organizations flatly refused to use the e-marketplace and were lost as a result. The sentiments that echoed resentment and negativity towards the buyer organization can be understood from a psychological contract perspective. Beliefs of reciprocal obligations exist in an employee/employer relationship and a violation of these beliefs generates feelings of anger and betrayal (Morrison & Robinson, 1997). Resistance is formed towards system implementation where employees blame the employer and organization for failing to meet perceived obligations or promises (Klaus & Blanton, 2010). The acceptance of a resistor organizing vision contributes to a range of negative adoption discourses: A rejection discourse undermines the idea of e-marketplace trading and is the result of a “there's something better” attitude and cynicism. The substitution discourse accepts that there could be more effective methods or technology available to accomplish goals but promotes an alternative to the technology offered. Finally a hostile discourse will condemn the technology and the agent trying to introduce change. Overall, the desire to experiment with technology and develop organizational capabilities is lowered by cultural cynicism and coercion mechanisms.

4.4.5. Ambivalent community This group is unsure of the benefits of e-marketplace participation but might be willing to use the technology (as happened at Organization G). The ambivalent community has not formed either a positive or negative organizing vision for the technology. If the technology is used, negative perceptions or problematic implications are used to justify avoidance of a long-term resource commitment to emarketplace participation. As a result the e-marketplace technology can be incorporated sporadically at a functional level or as a “one-off” trial rather than as part of a business process orientation model (Škrinjar & Trkman, 2013; Standing, Standing, Love, & Gengatharen, 2013). This organizing vision is reinforced by e-marketplace vendors in their attempt to bring clients on-board. Organizations adopting this as an organizing vision and vendors promoting the vision strengthen discourse around learning what the technology is.

4.4.3. Coerced community A coerced community represents the group where interactions with the technology occur because a more powerful entity mandates its use. The coerced community may have negative perceptions of the technology but economic or relational reliance on the mandating party overcomes these concerns (as in Organization E and G and to some extent state Organizations C and D). The psychological contract perspective is a useful theory for explaining the justification of coercion if an employee justifies the situation as fair or equitable (Eckerd, Hill, Boyer, Donohue, & Ward, 2013; Klaus & Blanton, 2010). The power of the coercion mechanism can be weakened by the activation of mechanisms such as open communication and training that strengthen perceptions of equity. Regardless of the extent of coercion involved in the adoption decision this community accepts e-marketplace use as an organizing vision and strengthens the operationalization discourse on how to use the technology.

5. Discussion In this paper we have explored the issues and challenges of e-marketplace adoption and the influence of organizing visions. From our case studies we identified emergent properties of pre-existing structures that produced variation in e-marketplace use outcomes that prevent isomorphic organizational change. The retroductive analysis of the case data enabled us to identify organizing visions as an explanatory theory for the events we observed. This led to the identification of community groupings based upon personal and organizational experiences of emarketplace use, interaction with the community discourse and appropriation of an organizing vision. The paper contributes to organizing vision theory in three related areas. In this section we reflect on the implications for organizing vision theory and the self-reinforcing aspects of mechanisms. Organizing vision theory posits that various actors contribute to an evolving community discourse around a technology (Swanson & Ramiller, 1997). Firstly, we found that across organizations there is a multiplicity of views around e-marketplace technology and its operationalization. The predominant view within an organization results from interpretation and interaction with the community discourse. Hence, interpretations of the community discourse and appropriation of an organizing vision are heavily influenced by contextual conditions. This develops our understanding of organizing vision theory by recognising that multiple discourses occur and are used for the legitimation of technology adoption decisions. Prior research on organizing vision theory has largely been concerned with theorising direct connections between technology adoption and a prevailing community discourse (Wang, 2009). However, a complex community discourse consists of a multitude of ideas and influences that can be appropriated by organizational stakeholders (Barrett, Heracleous, & Walsham, 2013). The recognition of multiple community discourses related to organizing visions affords explanations of diverse outcomes and possibilities for morphogenesis and morphostasis. The second related contribution to organizing vision theory is in

4.4.4. Follower community An organizing vision has the power to create normative pressure, or mimetic pressure in times of high uncertainty, which legitimates the technology. The organizations that accept an organizing vision once it has become established within the industry represent a follower community. The vendor discourse was not always powerful enough to persuade organizations to adopt e-marketplaces or change pre-existing beliefs. The discourse of negative perceptions was activated by the resistor community as justification for non-adoption of the e-marketplace. This organizational group typically argued they were unconvinced by the claims for efficiency gains or they were concerned about the relational risks with existing suppliers. The objections resulted from a cultural structure that engenders cynicism towards technological change and external influence, fostering a “why change” attitude: “I am not sure that it is risk that drives some of the Australian negative perceptions, I would say there is an ingrained Australian cynicism, especially from small suppliers, in relation to technological innovations and vendor sales talk.” Organization B The follower community interprets an organizing vision from the legitimating discourse. This group has formed a pre-disposition towards the technology from legitimating network influences. The existence of a 202


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change or instigate novel uses for a technology within an organization. Consultants typically interpret and work within pre-existing organizational structures to increase the likelihood of delivering acceptable change. If an organization is cautious and circumspect about a particular technology, consultants (and vendors) will usually recommend partial or non-strategic adoption. However, the more strategically important, creative and collaborative the functional area is seen within an organization the more likely it is to support a transformational discourse for a technology and succeed with implementation.

identifying the significance of the strength of pre-existing structures to influence the interpretation of the external community discourse surrounding a technology and its use. Where organizational culture supports the capabilities of procurement as strategic enablers of organizational goals, and e-marketplace use is a strategic initiative, the necessary conditions supporting predisposition towards adoption of the e-marketplace will exist. Alternatively, if an organizational view of procurement places less emphasis on the role of procurement as a strategic enabler, and e-marketplace adoption is unenforced, pre-disposition towards adoption will be weak. E-marketplace vendors are skilled in assessing the organizational conditions and working with a client's existing organizing vision. This often involves delivering standardized solutions for organizational activities (Swanson, 2010). As vendors support the clients' perspective (organizing vision) on a technology it is reinforced. For structural change to occur a new dominant discourse has to emerge which will filter out competing discourses (Fairclough, Jessop, & Sayer, 2002; Thompson & Harley, 2012). The dominant organizational discourse becomes institutionalized and reproduced in social and material practices (Doolin, 2003) and will continue until a more dominant discourse emerges to challenge and re-shape the organizing vision. Thirdly, previous research on organizing visions has largely focused on the adopter group without examining the process of adoption and the technology's subsequent use. Our research shows that the organizational responses to organizing visions are more complex than those previously identified. The findings are credible given that organizational systems are highly complex and the discourse surrounding them are localised, individually interpreted and adapted to organizational conditions. This view links with the earlier work on fashion discourse (Abrahamson & Fairchild, 1999). However, fashion waves identified in previous studies imply a chronological order in a discourse. Although any particular discourse may be dominant at any given time we argue that a complex reality consists of the simultaneous existence of multiple competing arguments within a fashion phase and organizing vision.

5.2. Further research The study used a case study approach. The key findings could be used to develop a survey that could be used to test the typology across other industry types. At a micro level the role of personal attitudes to emarketplace trading could be studied to determine how attitudes prevent or promote organizational e-marketplace adoption. Future studies could examine the issues identified from a seller (suppliers of goods and services) perspective. 6. Conclusion In recent years e-marketplaces have become a feature of the procurement landscape. Despite the growth of research in the area there is still a deficit in knowledge on the strategic adoption of e-marketplace trading. This paper illustrates that technology adoption decisions are complex phenomena because of the many interrelationships that exist between internal and external structures, agents and outcomes. The complexity is highlighted by the multiplicity of e-marketplace adoption approaches. Organizing vision theory in the IS literature is a developing explanation of technology adoption that is capable of investigating boundary spanning technology diffusion. The paper proposes that technology adoption is influenced by mechanisms related to the organizational decision making culture which is as important as the functional capability of a technology. Realizing the value of a technology is formed through the interpretations of community discourse and its application to organizational and personal goals, which may not always be founded on rational decision making criteria. The organizational implications of e-marketplace trading are contextually dependent and there are many organizations that do not participate in e-marketplace trading. However, most organizations have the necessary infrastructure to do so. The development of e-marketplace services and increasing community acceptance of electronic procurement, both organizational and personal, will contribute to the future role of e-marketplaces in organizational procurement.

5.1. Implications for industrial managers The study informs managers how organizing visions impact on decision making related to technologies, and in particular the interaction between an organizing vision, its interpretation and the dominant organizational discourse. An organization's dominant discourse is influenced by the power of pre-existing structures, such as organizational culture and responsibilities, and their impact on capability to harness opportunities afforded by a technology. Interpretation of a community discourse and the creative adaptation of technology help explain the heterogeneous outcomes that can be observed from e-marketplace adoption. The community group framework presented provides an organizational tool to understand responses to technological opportunities. Management can assess organizational decision-making to understand different perspectives and how they evolved. For example, it can help managers make sense of a rejection or limited adoption outcome even when there is widespread adoption by competitors and evidence for successful e-marketplace use. Procurement specialists can use the framework to understand their e-marketplace position. They can identify the position others take on e-marketplace participation and focus efforts on overcoming any resistance. It is important to realize that adoption of a technology is not guaranteed by the presence of a champion at a senior management level. Although this is of value, adoption only occurs through the alignment of an organizational discourse with the perceptions of a dominant community group. This implies that technology adoption studies should include contextual and environmental issues and practitioners should examine how their decision-making is influenced by organizational and environmental features. Employing consultants is unlikely to produce transformational

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