Business-process management in high-turbulence environments: the case of the offshore service vessel industry

Abstract

This article focuses on business-process management in turbulent business environments, more specifically, the management of offshore service vessel (OSV) companies in environments of high volatility and complexity. Such logistics service providers must deal with various heterogeneous elements, and may face extreme situations with uncertain outcomes. This can have implications for the business processes and the business model implemented within the firm. The study reported here employed an explorative qualitative approach with in-depth case studies of firms in the OSV industry in the North Sea and the High Arctic. The results indicate that, in order to tackle the logistics challenges of turbulent environments, a firm may have to introduce entrepreneurial business models with strong links to external actors. To meet the needs of various stakeholders, three business processes are crucial for handling increased turbulence: (1) resource re-configuration adding basic resources as well as dynamic capabilities; (2) knowledge base and capacity, increasing cooperative relations with other firms and (3) added stakeholder- and knowledge-providing business processes. Results from in-depth studies in two different environmental contexts within offshore petroleum operations underscore the importance of adapting business-process management to task-environment complexity and uncertainty.