To adopt or not to adopt? Experiencing the effect of quick connect capabilities on network performance

Abstract

Two new developments confront the Dutch insurance industry. First, there is the introduction of quick connect technologies which enable firms to efficiently integrate business processes across organisational boundaries. Second, there is a move towards more modular product architectures. These new technologies create uncertainty, especially regarding the possible benefits for the participating firms. Using the Business Network Lab, a management game, we let managers experience and discover the possible gains of quick connect technologies. Simultaneously we conducted experiments to investigate the relationship between information transparency, which is a benefit of quick connect technologies, and network performance. Our results indicate that a higher level of information transparency leads to a higher network performance. The managerial implication of this research is that it suggests that firms that adopt quick connect technologies are better of.

Keywords:

• Action learning
• Simulation game
• Insurance industry
• Modular product architecture

Acknowledgements

The authors wish to thank Ido de Lepper and Aldert Lamore for developing the Business Network Lab and Dominique Campman for his support.