Beatriz Andres

Patricia Macedo
email: patricia.macedo@estsetubal.ips.pt

Luis M Camarinha-Matos

Raul Poler
email: rpoler@cigip.upv.es

Achieving Coherence between Strategies and Value Systems in Collaborative Networks

Keywords: value systems alignment, strategies alignment, collaborative networks, consortium, emergent core value

Collaborative networks that emerge as consortia to deal with new market opportunities consist of different autonomous entities. Each one holds a set values and defines its own strategies in order to deal with its defined objectives. The enterprises heterogeneity leads sometimes to contradictory objectives, and misalignment of value systems and strategies. Enterprises willing to participate in a collaborative network, as thus willing to avoid these misalignments, have to achieve coherence between the strategies they activate and the values they hold. To facilitate achieving such coherence, this paper contributes with an approach to identify the strategies that should be activated in order to be coherent with the values held by each enterprise. It specifically considers the scenario in which consortia are temporarily formed and values and strategies are set out in the short term. A potential application is exemplified through a numerical example.

Introduction

Collaborative networks have been widely studied over the last years due to their decisive contribution to small and medium enterprises (SMEs) performance in a context of market turbulence. According to [START_REF] Camarinha-Matos | Ecolead and CNO Base Concepts[END_REF], collaborative networks are composed of autonomous and heterogeneous entities which collaborate in order to better achieve common or compatible goals that would be never achieved by isolate entities. In spite of the benefits derived from collaboration [START_REF] Poler | Intelligent Nonhierarchical Manufacturing Networks[END_REF], SMEs can face a number of challenges when participating in collaborative networks, such as sharing goals, aligning strategies, achieving suitable levels of trust, reaching agreements in practices, and aligning values [START_REF] Bititci | Managing synergy in collaborative enterprises[END_REF] [4] [START_REF] Andres | Computing the Strategies Alignment in Collaborative Networks[END_REF].

This paper particularly focuses on the value systems alignment and the strategies alignment issues. The main aim is to provide an approach to deal with the coherence between the strategies activated or operationalised by collaborative partners and the value systems held by the enterprises belonging to the network. The value system is more permanent in time while the strategies have a specific duration throughout the collaborative consortium. In other words, a strategy is activated at a defined time period and finishes after having been performed, when the objective has been achieved.

In order to address the paper's purpose, the concepts and models to deal with the strategies alignment and the value systems alignment are presented (section 2). After that, the research motivation is formulated in section 3. The research approach, in section 4 develops the solution proposal to cope with the raised research motivation. In order to provide an intuitive insight on the developed approach, a numerical example is presented in section 5. Finally, conclusions and future research lines are presented in section 6.

Background

This section provides a brief overview of the concepts of strategies alignment and value systems alignment. The adopted modelling approaches are given in both cases.

The alignment concept is considered as the compatibility of the value system or the strategies defined by one enterprise with regards to the value systems or strategies belonging to other networked enterprises. Misalignments appear when incompatibilities and negative influences arise among network partners.

Strategies Alignment

The business objectives are statements that establish what is to be achieved within the enterprise, but without specifying how to achieve them. Hence, enterprises define strategies as a set of actions to be performed in order to achieve the defined objectives. The strategies of members in a collaborative network are considered to be aligned when each activated strategy not only promotes the achievement of the objectives defined by the enterprise that raises such strategy but also boosts the accomplishment of the objectives defined by the rest of the networked partners [START_REF] Andres | Computing the Strategies Alignment in Collaborative Networks[END_REF].

In order to model the process of strategies alignment, a set of five objects have been defined: (i) the network (nn n n n ∈ N), (ii) the set of enterprises forming the network (ei i i i ∈ E, eni=(ei,,nn) | ei ∈ E ∧ nn ∈ N), (iii) the objectives defined by each enterprise (oix

x x x= = = =(ox,ei) | ox ∈ O ∧ ei ∈ E), (
iv) the key performance indicators (KPIs) to measure the level of objectives' achievement (kpik k k k ∈ KPI, kpiixk=(kpik,ox,ei) | kpik ∈ KPI ∧ ox ∈ O ∧ ei ∈ E), and (v) the strategies adopted by each enterprise in order to reach the objectives (ss ∈ S, sis=(ss, ei) | ss ∈ S ∧ ei ∈ E). A strategy can be active (sis s s s 1 ), when it is carried out or non-active (sis s s s 0 ) when it is not put into practice. Collaborative networks success is influenced, inter alia, by the alignment of strategies. Modelling the network allows to identify the set of strategies that if activated achieve the maximum optimum of the enterprises' KPIs and the global network KPI (considering the global KPI as the sum of all the enterprises' KPIs). Accordingly, when there is alignment, the set of activated strategies are characterised by promoting positive influences onto all the objectives defined by the networked enterprises, enhancing the establishment of collaboration.

Value Systems Alignment

A Value System defines the set of values and priorities that guide the behaviour of an organisation; as such, it determines or at least constrains the decision-making processes of that organisation. Therefore, the identification and characterisation of the Value Systems of a network and its members is fundamental when attempting to improve collaboration. The Value Systems are aligned when the core values of one member are compatible with the core values of another, and therefore, the potential for emergence of conflicts is lower.

The set of characteristics that each enterprise (ei i i i ∈ E) (or network (nn ∈ N)) considers as the most important for itself and that motivate or regulate its behaviour are called core-values (cvi i i i ∈ CV). According to the conceptual model proposed in [START_REF] Macedo | Models and tools for value systems analysis in collaborative environments[END_REF] the set of core-values, of an entity (enti i i i ∈ (E∪N)) and respective preferences (priority wi i i i ∈ (fair,high,very high)) are represented by the core-evaluation perspective (cepx = (dvx,wvx) | dvx = < cv1, cv2,.. cvn> ∧ wvx = < w1, w2,.. wn >), which is part of the core value system.

Aiming to provide methods to systematically analyse core value systems in collaborative environments, an analysis framework based on qualitative causal maps and graphs, was proposed in [START_REF] Macedo | A qualitative approach to assess the alignment of Value Systems in collaborative enterprises networks[END_REF]. This framework defines two types of elementary maps:

(i) Core-values influence map (CVIM), which is a cognitive fuzzy map where each directional edge (icvij = (cvi,cvj,p,s)) represents the influence between core-values. The positive or negative influence is specified by the signal (s) of the edge and its intensity (p) is defined by a qualitative label (low, moderate, high);

(ii) Organisation's core-values maps and CN's core-values maps (CVM) are unidirectional graphs, where each edge (ewij=(enti,cvj,wij)) has a qualitative label that represents the core-value priority (wi) to a specific organisational entity (enti).

Starting with these elementary maps, it is possible to aggregate them in order to build maps that evidence the impact of one core value system into another, facilitating the value systems alignment, and thus allowing an easy identification of the synergies and potential conflicts among network members [START_REF] Macedo | A qualitative approach to assess the alignment of Value Systems in collaborative enterprises networks[END_REF].

Research Motivation

When a new specific business opportunity appears, a new temporary collaborative consortium, i.e. a virtual organisation (VO), is formed [START_REF] Camarinha-Matos | Ecolead and CNO Base Concepts[END_REF]. A set of heterogeneous enterprises take part in the consortium, each of them with different expectations and different value systems, which are sometimes incompatible. Accordingly, the strategies activated by one enterprise could be contradictory to achieve the objectives of other enterprises. The perception of outcomes is also likely to be different for each of the collaborative partners belonging to a new consortium. These different perceptions are related to the values of each enterprise [START_REF] Findlay-Brooks | Cross-Sector Partnership as an Approach to Inclusive Development[END_REF]. Besides this, each consortium has a specific duration, ending once the business opportunity has been fulfilled. In this context, for each specific enterprise, the core values held could change when a new collaborative consortium is created. In the light of this, two scenarios can be considered:

(i) New values may appear, induced by the newly created consortium. Once the consortium is created, new values can be adopted by the entities forming it, to specifically carry out a collaborative opportunity. To exemplify this case, let us consider two SMEs (SME1, SME2). The core values held by SME1 are knowledge and reputation, while the core values held by SME2 are standardisation and social awareness. Both SMEs take part in a new collaborative consortium, i.e. a consortium created to participate in a joint research project. In this concrete example a new core value might emerge in both enterprises, that is innovation. Probably, the new values, such as the innovation in this example, will remain even after the dismantling of the consortium, namely if the outcomes of that initiative were considered positive to both SMEs.

(ii) The priority of core values change, increasing or decreasing their importance according to the context of the collaborative consortium. Unlike the previous case, this scenario considers that not always new values emerge when a consortium is created. However, the priority of some core values held by the enterprises can be temporarily modified within the context of the consortium. Considering the example stated before, let us assume that the priorities are initially defined as follows: SME1 knowledge (fair) and reputation (very high) and SME2 standardisation (high) and social awareness (high). However, once a consortium is created, the priorities of these core values might change according to the consortium's nature. In our example, the consortium is created to participate in a joint research project and therefore the priorities might temporarily change for this context as follows: SME1 knowledge (very high) and reputation (very high), and SME2 standardisation (fair) and social awareness (high). The priorities change during the consortium life cycle, and when it finishes, the priorities likely return to the qualitative values initially defined.

Just like the core values temporarily change, appearing new ones or changing their priorities, the objectives also change in each new consortium and consequently, the strategies raised to achieve these objectives.

During the consortium formation, the VO planner evaluates the candidate organisational entities in terms of their value systems in order to select the partners presenting the lowest risk of conflicts, and the highest level of synergies. However, partners' selection based only on the value systems alignment criteria does not assure the sustainability of the collaboration, since there is no guarantee that strategies activated by each member are coherent with the values defined by the rest of members forming the network.

In order to achieve coherence between the activated strategies and the value systems of each collaborative enterprise, the motivation for this work is to identify proper strategies to be activated in order to achieve positive influences between these strategies and the values defined in each consortium.

Figure 1 schematically represents the approach followed in order to deal with the raised research motivation. The attainment of coherence between the activated strategies and the value systems of the enterprises forming the collaborative consortium is pursued through the Objectives definition. In other words, the objectives establish the link between strategies and value systems. Firstly, the objectives are defined based on the values held in the enterprise. For instance, taking into account the aforementioned example, the emerged value (innovation) in both enterprises (SME1 and SME2) leads to define the following objective: Increase the innovation by15%. Secondly, the objectives are achieved through the strategies definition, e.g. Participate in a PF7 research project. Thus, this approach allows linking both concepts: strategies and value systems. Since the strategies are directly related with the objectives and those are based on the core values, the alignment of strategies will allow to get coherence between strategies defined and the value systems held. That is a situation in which the strategies fit the core values held by the enterprises belonging to the collaborative consortium. The lack of coherence between the adopted strategies and core values may lead to partnership failure [START_REF] Greenwood | Organizational design types, tracks and the dynamics of strategic change[END_REF] [START_REF] Gray | The process of partnership construction: Anticipating obstacles and enhancing the likelihood of successful partnerships for sustainable development[END_REF]. Mechanisms to promote coherence between the activated strategies and the value system of each enterprise of the collaborative consortium are needed. In order to deal with this relevant problem, this paper is based on a theoretical body of knowledge regarding Collaborative Networks, Industrial Management, and System Dynamics. Collaborative Networks discipline contributes with the theoretical base concepts about virtual organisations, consortium formation [START_REF] Camarinha-Matos | Elements of a base VE infrastructure[END_REF], value system analysis in collaborative contexts [START_REF] Macedo | A qualitative approach to assess the alignment of Value Systems in collaborative enterprises networks[END_REF] and strategies alignment in collaborative networks [START_REF] Andres | Computing the Strategies Alignment in Collaborative Networks[END_REF], while Industrial Management contributes with the main concepts about Performance Indicators Management. The Systems Dynamic body of knowledge contributes with optimisation methods applied to identify the set of strategies that are coherent with the Value Systems. Furthermore, the approach is grounded in the Constructive Research method (Figure 2) [START_REF] Kasanen | The Constructive Approach in Management Accounting Research[END_REF] based on building models and methods to provide a solution domain in the defined problem, in order to create knowledge on how the problem can be solved. Finally, the practical relevance will be shown through an application example.

Fig. 2. Constructive Research method

In the current phase of this research, the main aim is to provide models and methods to achieve coherence between the activated strategies and the value systems held by the enterprises of the collaborative network, in order to promote sustainable collaboration. This purpose is carried out through the approach provided in Figure 1, in which the objectives are defined in relation to the core values. This definition of objectives allows linking the core values with the strategies. Having connected both concepts, identifying the aligned strategies that are associated with these objectives will achieve the main purpose of guaranteeing coherence between strategies and value systems.

Solution Proposal

When a new consortium appears, participating enterprises deal with two possible situations, as stated before: (i) the "appearance" of new values, or (ii) the change of priorities of the core values. Considering these two situations, whenever a new collaborative consortium is created, an Emergent Value System appears within the enterprises that are prone to take part. The concept of "emergent" in this work means that new values are adopted or values priority change when the new collaborative consortium is formed.

The conceptual model of the Emergent Value System is represented through a UML class diagram, in which the relations between elements are depicted (Figure 3). For better understanding of the relations among the modelled elements in the UML diagram a brief explanation follows.

The Emergent Value System is characterised by the Emergent Evaluation Perspective that gives to each value of the emergent system different priorities (Value Priority). The Emergent Evaluation Perspective has a set of Emergent Core Values. The approach provided by [START_REF] Macedo | Models and tools for value systems analysis in collaborative environments[END_REF] identifies the Core Value and the Core Evaluation Perspective in order to build the enterprises' Value System. Based on this work, the approach here provided adds the New Value concept, corresponding to the new values appearing when a new collaborative consortium is created in order to respond to a new market opportunity. Therefore the Emergent Core Values consist of the New Values and Core Values with changed priorities.

This new approach introduces the definition of Objectives based on the Emergent Core Values. The formulation of Strategies and KPIs are considered in order to deal with the defined Objectives [START_REF] Andres | Computing the Strategies Alignment in Collaborative Networks[END_REF]. Furthermore, a new contribution is provided in this work, the Objective Priority in which the objectives are defined with a certain priority as well as the core values (Value Priority). As such, a new Set of Prioritised Objectives is defined. Nevertheless, it must be taken into account that the Value Priority is not to be necessarily the same as the Objective Priority, although in some occasions they may coincide. Once the Objectives are defined based on the Emergent Core Values, the Strategies are formulated and the KPIs are designed in order to measure how the Strategies influence the accomplishment of each defined Objective. As the Emergent Core Values are linked with the Objectives, and these in turn are linked with the Strategies, it can be considered that the Emergent Core Values and the Strategies are also linked. Therefore, the identification of the aligned strategies will allow achieving the desired coherence between the Strategies activated and the Emergent Core Values. The set of strategies that are suitable to be activated will positively influence the Emergent Core Values within the networked partners belonging to the new consortium.

The set of aligned strategies are identified through the model provided by [START_REF] Andres | Computing the Strategies Alignment in Collaborative Networks[END_REF], in which the strategies are considered aligned if and only if there is a positive increase on the KPIs defined in each networked enterprise. Thus, the optimum performance at both enterprises and network level is obtained.

Application Example

The main purpose of this example is to show how to identify the strategies that are aligned in order to be activated. These strategies will be characterised as being coherent with the values defined by the enterprises.

In order to model the strategies alignment process, AnyLogic simulation software is used [13]. This simulation software is founded on the dynamic systems methodology providing an optimisation tool that allows to identify the strategies that have positive influences in the objectives defined, both in the same enterprise an in the other networked enterprises. The optimiser maximises the network performance through identifying which strategies activate (sis 1 ) in each enterprise in order to achieve the scenario in which the activated strategies are aligned.

The output of the proposed model is the strategy units (sis) to be activated in order to achieve the maximum increase on the performance (KPIs) [START_REF] Andres | Computing the Strategies Alignment in Collaborative Networks[END_REF]. Strategy units (sis) are considered as the number of units of strategy to be activated in ei (Table 1). Thus, the optimisation tool in Anylogic software identifies the number of strategy units that should be activated in order to obtain the set of aligned strategies within the network partners. Furthermore, the activated aligned strategies will be characterised by being coherent with the value systems of the enterprises forming the collaborative consortium.

According to the aforementioned, a numerical example is developed hereafter. The example considers modelling two enterprises (e1, e2) that take part in a new collaborative consortium. Each enterprise initially holds one core value (e1 = cv1 and e2 = cv2) with its specific degree of priority (e1 = w1 and e2 = w2). When these enterprises take part in the new consortium, new values appear and the priorities of the initial core values change (Table 2). Uniqueness (very high) Innovation (high), Uniqueness (fair)

In the developed example the two aforementioned scenarios are considered: (i) New values may appear. In the new collaboration consortium the new core value of e e e e1 1 1 1 is knowledge with a very high priority, and in e e e e2 2 2 2 the innovation core value appears with a high priority.

(ii) The priority of core values change. In the new collaboration consortium the core values initially defined temporarily change the priority. In e1 the standardisation core value has a high initial priority, but when the consortium is build the initial priority changes to fair. In e2 the uniqueness core value has a very high initial priority and once the new consortium appears the priority momentarily changes to fair. The changes of priority are due to the context of the consortium temporarily changes.

The impact analysis (once the new consortium arises), in terms of core values, of the e1 and the e2, shows that:

• Innovation (e2) positively influences Knowledge (e1)

• Innovation (e2) negatively influences Standardisation (e1)

• Uniqueness (e2) negatively influences Standardisation (e1) The variables of the new consortium are, then, mathematically characterised and exemplified in Table 3:

• Core Values: core values held by each enterprise (e1 = cv1, cv2 and e2 = cv3, cv4) with its priorities (e1 = w1, w2 and e2 = w3, w4) • Objectives: for each core value (cvi) an objective is defined (e1 = o11, o12 and e2 = o21, o22). The objectives definition is based on the core values. • Strategies: the strategies are set out to achieve the defined objectives (e1 = s11, s12 and e2 = s21, s22) • KPIs: the objectives are measured through the KPIs (e1 = kpi111, kpi 121 and e2 = kpi 211, kpi 221). • KPIs increase: ( kpiixk) shows how one objective (oix) is influenced by the activation of a particular strategy (sis) ( kpiixk is ) • KPIs priority: the priority of the KPI is directly related to the priority to achieve the objectives in each enterprise (priority_kpiixk) • Expense Ratio: each strategy (sis) has an associated cost that is defined through the expenseRatio_sis (measured in monetary unitsm.u.). • Budget: each enterprise has its own budget to activate the strategies (e1 = b1, e2 = b2). The set of core values, objectives, strategies and KPIs are defined in Table 3. The data regarding the KPIs increase, KPIs priority, expense ratio and budget is exemplified in Table 4. Table 4 summarises the data to be introduced in Anylogic simulation software in order to build and solve the numerical example. The optimisation experiment is compiled and the results are depicted in Figure 4. The optimisation tool maximises the KPIs increase ( kpiixk) through modifying the parameters represented by the strategies sis (in this example: e1: s11, s12 and e2: s21, s22). On the right side of Figure 4 it is depicted the graph that shows the iterations compiled in the model in order to find the parameters that maximise the solution. Each dot in the graph corresponds to a single simulation run.

The results derived from the example using the optimisation tool (Figure 4), show the strategy units the enterprises have to activate. Thus:

• e1 activates 16 units of strategy s12, considering that the expense ratio of one unit of s12 is 5 m.u., the monetary units invested s12_mu are 80 m.u. (s12_mu = 16*5) out of the budged of e1 to (b1 = 100), and • e2 activates 15 units of strategy s21, considering that the expense ratio of one unit of s21 is 10 m.u., the monetary units invested s21_mu are 150 m.u. (s21_mu = 15*10), e2 spends the total budged (b1 = 150). • Furthermore, it is seen that in order to achieve the maximum performance, strategies s s s s11 11 11 11 (e e e e1 The results obtained from the example seem to be logical. However, in a consortium consisting of more entities the solution is not as trivial; being, the developed model, useful to handle higher amounts of data. Nevertheless, gathering these data is seen as a drawback to implement the model. Taking into account that a collaborative network is characterised by uncertainty and incomplete information, the provided model should deeply contemplate these restrictions and consider the possibility of providing a more realistic approach in terms information collection and also deal with the dynamism characterising the network. Despite these limitations, the approach developed implies an original scientific contribution in terms of collaborative strategic planning, partners' selection, and assessing and enhancing the enterprises readiness for collaboration.

Conclusions

This paper provides an approach, based on dynamic systems, to tackle the possible incoherencies among the activated strategies and the values held in each enterprise, guaranteeing the strategies alignment. This paper is contextualised on the creation of new collaborative consortia to deal with new market opportunities. The novel concept of emergent core value is considered consisting on: (i) new values and (ii) values that temporarily change the priority when a new consortium is formed. The proposed approach deals with the coherence between the strategies and the emergent value system. The approach is applied through defining objectives based on the core values that belong to the emergent value system and setting up the strategies that allow reaching these objectives. With the provided method, the aligned strategies that are to be activated are identified, enabling the coherence between these strategies and the emergent value system. An example is developed showing the solution approach applicability.

Future research lines are led to apply the proposed solution in a real collaborative network consortium. Furthermore, an improved approach could be reached through considering a new variable to compute the degree of coherence between the activated strategies and the value systems; in order to have a more accurate solution approach. As the adopted approach focuses on collaborative consortia with a limited length, future work could extend the approach to long term associations; in order to define how the strategies activated in a determined periods of time affect the values held by the enterprises in the long term context.

Fig 1 .

 1 Fig 1. Coherence between the Value Systems and the activated Strategies

Fig 3 .

 3 Fig 3. UML class diagram of the conceptual model of Emergent Value System.

Fig 4 .

 4 Fig 4. Optimisation Results

Table 1 .

 1 Definition of strategy units (Andrés and Poler, 2014). Number of units of strategy s is to be activated in enterprise e i expenseRatio_s is Cost of one unit of strategy s is activated in enterprise e i s is _mu Total monetary units invested in strategy s is activated in enterprise e i s is _mu = s is x expenseRatio_s is

	Variable	Definition
	s is

Table 2 .

 2 Core Values

	Enterprises (e e e ei i i i)	Initially defined Core values set (cv cv cv cvi i i i) with value priorities (w w w wi i i i)	New Consortium Core values set (cv cv cv cvi i i i) with value priorities (w w w wi i i i)
	e e e e1 1 1 1	Standardisation (high)	Standardisation (fair), Knowledge (very high)
	e e e e2 2 2 2

Table 3 .

 3 Objectives, Strategies and KPIs defined in order to achieve the values defined in each networked enterprise

	Enterprise Objectives	Strategies	Key Performance Indicators
			s s s s11 11 11 11: Application, arrangement and enhancement of
		o o o o11 11 11 11: Increase Standardisation by 5%	standards established in all the enterprise production processes. Implement Processes Standardisation through processes definition, identification, documentation,	kpi kpi kpi kpi1 1 1 11 1 1 11 1 1 1: Standardisation_level =	Standardisation t Standardisation (t-1)
	e e e e1 1 1 1		formalisation and audit.
		o o o o12 12 12 12: Increase by 25%
		the exchange of Knowledge among	s s s s12 12 12 12: Implement a platform to share tacit knowledge and support discussion forums	kpi kpi kpi kpi1 1 1 12 2 2 21 1 1 1: Knowledge_Increase =	Knowledge exchange t Knowledge exchange (t-1)
		the partners
		o o o o21 21 21 21: Increase Innovation by 15%	s s s s21 21 21 21: Participate in research European Projects in H2020	kpi kpi kpi kpi2 2 2 21 1 1 11 1 1 1: Degree_Innovation =	Innovation t Innovation (t-1)
			s s s s22 22 22 22: Implement the Engineering to Order Strategy (ETO) for
	e e e e2 2 2 2	o2 2 2 22: Increase the Uniqueness by 20%	products that require engineering and every customer order results in a unique set of material elements, procedures and processes. Unique product that offers original design and	kpi kpi kpi kpi22 22 22 221 1 1 1: Degree _Uniqueness =	Uniqueness t Uniqueness (t-1)
			therefore its manufacturing process also has unique features
			and options including customisation

Table 4 .

 4 Numerical Example: Data

	Strategies	Enterprise 1 (e e e e1 1 1 1)	Budget (b b b b1 1 1 1) = 100	Enterprise 2 (e e e e2 2 2 2)	Budget (b b b b2 2 2 2) = 150
	(expenseRatio_s is )	kpi kpi kpi kpi1 1 1 11 1 1 11 1 1 1 (p p p priority_ riority_ riority_ riority_kpi kpi kpi kpi111 111 111 111 = 0,3) kpi kpi kpi kpi1 1 1 121 21 21 21 (p p p priority_ riority_ riority_ riority_kpi kpi kpi kpi121 121 121 121 = 0,7) kpi kpi kpi kpi21 21 21 211 1 1 1(p p p priority_ riority_ riority_ riority_kpi kpi kpi kpi211 211 211 211 = 0,6)	kpi kpi kpi kpi22 22 22 221 1 1 1(p p p priority_ riority_ riority_ riority_ kpi kpi kpi kpi221 221 221 221 = 0,4)
	s s s s11 11 11 11 1 1 1 1 (5 m.u.)	∇kpi 111 11 = 1	∇kpi 121 11 = 0	∇kpi 211 11 = -0,3		∇kpi 221 11 = -1

= 0,6 ∇kpi 221

Acknowledgments. This work was funded in part by the European Commission through the GloNet project (FP7 programme) and the Programa Val i+d para investigadores en formación (ACIF). The authors also thank the contributions from their partners in this project.


Samaneh Bagheri
email: s.bagheri@tue.nl

Rob Kusters
email: r.j.kusters@tue.nl

Jos Trienekens
email: j.j.m.trienekens@tue.nl

Business-IT Alignment in PSS Value Networks: A Capability-based Framework

Keywords: Product-service system, value network, business-IT alignment, business capabilities, IT capabilities, capability-based framework

Advanced information technology (IT) is regarded as a foundation for the operation of product-service system (PSS) value networks. This requires alignment between IT and PSS business strategy. Business-IT alignment (BIA) in a value network can raise the ability of partners to collaborate effectively and improve network performance. However, the theory of traditional firm-level BIA is not tailored to the specific situations of PSS value networks. In this paper we investigate the applicability of BIA concepts and definitions at a PSS value network level. Alignment in firm-level literature looked at fit between business and IT capabilities. To substantiate this at a PSS value network level, we identified and classified generic value network business capabilities on the one hand and IT capabilities on the other hand. By exploring and discussing the interrelations between the two types of capability, a conceptual framework for understanding BIA in a PSS value network is derived.

Introduction

In the era of servitization, offering a product-service system (PSS) becomes a prominent business strategy in the pursuit of value co-creation with customers and other partners in a PSS value network, for any firm that struggles to differentiate itself from competitors. The service content must not be seen as 'only' a support service, or stand-alone after-sales offering, but as an integrated part of the total offering [START_REF] Windahl | Developing integrated solutions: the importance of relationships within the network[END_REF]. Such integrated solutions imply a shift in focus from product functionality to the actual outcomes of products and services for customers' operations and processes [START_REF] Windahl | Developing integrated solutions: the importance of relationships within the network[END_REF]. In line with current literature on PSS, this study refers the PSS as an ongoing relational process, in which a provider aims to jointly solve the customer problem by reciprocal interaction and long-term collaboration with customers and other value network partners to deliver a bundle of goods and services to fulfill customer demands. We use terms PSS and an integrated solution interchangeably.

Increased emphasis on integrated solutions among scholars and practitioners highlights the role of IT as the essential technological foundation for operation of the PSS value networks. IT makes joint activities, integration and communication among partners possible; therefor it needs to be aligned with a business strategy. Business-IT alignment (BIA), in a context of PSS value networks, enhances the ability of all actors to collaborate more effectively. In this paper we take the position that the status of BIA at a strategic level can be determined on the basis of alignment between business and IT capabilities. In the case of PSS, that requires firms to go beyond their organizational boundaries and to utilize the resources and capabilities of all PSS value network partners to co-create value, implies looking at business capabilities and IT capabilities that are specific for the PSS and studying the fit required between them. Both business and IT capabilities are identified through a literature review. This is followed by a classification of the findings. As a result, seven Business capabilities and six IT capabilities (ITCs) have been identified. Subsequently we developed hypotheses to examine the possible relationship between ITCs and business capabilities and to propose the research framework.

Summarizing, this study aims to answer the following research questions:

1. What are the key business and IT capabilities in a PSS value network? 2. What are the possible relationships between such business and IT capabilities? Our study contributes to the emerging literature on BIA research in a context of PSS value network in twofold. Firstly, we identify and classify the key PSS business and IT capabilities. Secondly, we operationalize the notion of BIA in this context by investigating the link between IT and business capabilities in a conceptual framework.

The outline of the paper is as follows. Section 2 gives some definitions of BIA and an overview of current works. Then the research approach is described. The research results regarding business and IT capabilities are given in section 4. In section 5 the research framework is proposed. Finally, conclusions and future work are presented.

Current Works

After the seminal work on alignment between business and IT strategy by Henderson & Venkatraman [START_REF] Henderson | Strategic alignment: Leveraging information technology for transforming organizations[END_REF], a vast body of literature on this topic has emerged over the past three decades. BIA discusses the best possible use of IT resources to meet enterprise objectives [START_REF] Derksen | Impact of IT Outsourcing on Business & IT Alignment[END_REF]. It refers the extent to which the IT strategy supports, and is supported by, the business strategy [START_REF] Luftman | Transforming the enterprise: The alignment of business and information technology strategies[END_REF]. So far, the focus in literature has been on the notion of BIA with an internal perspective on a single firm, fall short with respect to the dynamic collaborative business network environments [START_REF] Hiekkanen | Aligning Alignment with Strategic Context: A Literature Review[END_REF][START_REF] Tapia | Towards a business-IT alignment maturity model for collaborative networked organizations[END_REF]. The question is: how can this notion are extended to PSS value networks? Santana Tapia et al. [START_REF] Tapia | Towards a business-IT alignment maturity model for collaborative networked organizations[END_REF] developed a maturity model to assess BIA in collaborative networks. They proposed four domains need to be addressed by collaborative networks in BIA process. Derzsi and Gordijn [START_REF] Derzsi | A Framework for Business/IT Alignment in Networked Value Constellations[END_REF] studied the issue of inter-firm alignment in networks and tried to operationalize the value-based alignment process. The research of Pijpers et al. [START_REF] Pijpers | Using conceptual models to explore business-ICT alignment in networked value constellations[END_REF], based on multiple views on interactions between firms in a network addressed a process of creating inter-organizational BIA which is concerned with the coherence between the actors. Grefen and Lüftenegger [START_REF] Grefen | BASE/X Business Agility through Cross-Organizational Service Engineering[END_REF]developed the framework in a PSS business network that can be seen as a service-oriented operationalization of BIA model. It consists of three pyramids; business, applications, and IT platforms. Each business layer (i.e. business strategy, business model, service composition, business service) is supported by corresponding layers in the applications pyramid, then, mapped to the IT infrastructure pyramid.

The variety of BIA approaches and definitions indicates that there is no consensus on a comprehensive definition of the concept of BIA in the context of a PSS. In fact, BIA is a multidimensional concept encompassing strategic, structural, operational, and social dimensions [START_REF] Hiekkanen | Aligning Alignment with Strategic Context: A Literature Review[END_REF][START_REF] Chan | IT alignment: what have we learned?[END_REF]. In this study we will focus on the strategic dimension. We define strategic business-IT alignment in a context of a PSS value network as the degree to which the IT strategy enables the PSS business strategy. But even with this focus we see that research on strategic BIA typically focuses on notions such as a fit between IT planning and business strategic planning [START_REF] Luftman | Transforming the enterprise: The alignment of business and information technology strategies[END_REF][START_REF] Chan | IT alignment: what have we learned?[END_REF][START_REF] Byrd | The leveraging influence of strategic alignment on IT investment: an empirical examination[END_REF]. These concepts are highly abstract, and become even more complex at a network level due to issues such that relationships, a delivery of an integrated offering, information representation, user customized interfaces, dynamically adjusted to assist different actors, and services provision supported on cloud computing [START_REF] Martinez | Challenges in transforming manufacturing organisations into product-service providers[END_REF][START_REF] Camarinha-Matos | Collaborative Business Scenarios in a Service-Enhanced Products Ecosystem[END_REF]. To elaborate the notion of BIA, an operationalization is required. Addressing BIA using a capability lens can be an appropriate approach, due to the fact that creating strategic value as the ultimate goal of BIA lies in the usage and alignment of business and IT capabilities. A discussion on capabilities is rooted in a resource-based view (RBV) a well-known theory within the strategic management literature. Under RBV the term capability is defined as special resources that are unique and valuable, encompassing a firm's capacity to coordinate and deploy resources to affect a desired end [START_REF] Tarafdar | Understanding the influence of information systems competencies on process innovation: A resource-based view[END_REF][START_REF] Ulaga | Hybrid offerings: how manufacturing firms combine goods and services successfully[END_REF]. Within IT research, the notion of IT capability is also grounded in RBV theory. ITCs are those capabilities necessary to ensure that organizations can exploit changing technology to achieve business value through IT over time [START_REF] Feeny | Core IS capabilities for exploiting information technology[END_REF]. IT capability is a firm's ability to mobilize and deploy IT-based resources in combination with other resources and capabilities [START_REF] Bharadwaj | A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation[END_REF]. It is not a specific set of sophisticated technological functionality but rather than the organizational capabilities to leverage technology to differentiate firms from competitors [START_REF] Henderson | Strategic alignment: Leveraging information technology for transforming organizations[END_REF]. In previous works BIA has already been studied from a capability point of view. Peppard and Ward [START_REF] Peppard | Beyond strategic information systems: towards an IS capability[END_REF] addressed ITCs in a BIA model and argued how well ITCs in relation to different aspects of the BIA model can improve a firm performance. McLaren et al. [START_REF] Mclaren | A Multilevel Model for Measuring Fit Between a Firm's Competitive Strategies and Information Systems Capabilities[END_REF] developed a multilevel strategic fit measurement model to measure alignment between a firm's competitive strategies and its IT capabilities. Similar work in a PSS context has not been found. We feel that in a case of an integrated solution, which is inherently based on resources and capabilities of autonomous and geographically distributed network partners, increases the need of alignment between IT and business capabilities to facilitate the interaction and collaboration among partners in fulfilling common business values. Here, alignment represents the extent to which the ITCs meet the requirements of key business capabilities and enable them to achieve desired goal of PSS value networks. The 'key' refers to the fact that we will focus only on those capabilities that enable the PSS as a whole and are in particular required to function in a value network. Similarly, our investigation of key IT capabilities focusses at those that are specific for a PSS environment. In response to the gap in literature, this study aims to define the key business and IT capabilities and to identify potential relationships between such capabilities resulting in the conceptual framework.

Research Approach

To support the elaboration of BIA in a PSS value network from a capability perspective we need to identify and define business and IT capabilities that are relevant in such a context. In the first step of the study a structured literature search has been executed to identify these key capabilities. Several search strategies were used. First a generic search was used to identify a number of well-known and well referenced authors of papers on BIA, business capability, and IT capabilities. Based on these, a number of keywords including a number of synonyms were identified and used in the search. Finally, relevant papers were used in a backward (i.e. looking at papers cited) and forward (i.e. looking at papers citing the paper) snowball process. The search processes resulted in collecting 10 and 12 relevant papers on PSS business and IT capabilities respectively. Since the results are mixed and there is no consensus on specific sets of key capabilities, we executed a structured classification process to obtain well-founded sets of key business and of key IT capabilities. For this the Metaplan approach was selected. The Metaplan method is a card sorting technique based on a group discussion [START_REF] Schnelle | The Metaplan-Method: Communication tools for planning & learning groups[END_REF]. The researchers of this paper felt they had sufficient knowledge to carry out the classification, especially since the group discussion aspect of the approach tends to cancel out individual bias. Each classification was carried out in an iterative process whereby classes were identified in one iteration and then refined in two following meetings. Finally the resulting groups of capabilities received group-named and definitions, closely following information from the literature used. The process leads to the construction of seven PSS value network business capabilities (table 1) and six ITCs (table 2) which are described in the following section. Based on these two sets of capabilities, again in a group discussion, in three iterations a number of research hypotheses were formulated that can be used to investigate the extent to which IT capabilities enable PSS value network business capabilities. The results are shown in a research framework (fig. 1). The hypotheses which are theoretically supported by literature show relationships between IT and business capabilities. Further validation of them will be done in the future empirical works.

Research Result Regarding Business and IT Capabilities

Business Capabilities

In the following the key business capabilities of PSS value networks that resulted from the literature search and the classification process are presented. Customer understanding capability: The ability of a value network to understand customer requirements to offer high-value customized solutions that address individual customer's operational process and business needs [START_REF] Gebauer | Characterizing service networks for moving from products to solutions[END_REF][START_REF] Karpen | Linking Service-Dominant Logic and Strategic Business Practice A Conceptual Model of a Service-Dominant Orientation[END_REF][START_REF] Ritala | Key capabilities in knowledgeintensive service business[END_REF]. It assists to get customers' ideas and identifying customers' value to enhance the PSS offerings. Partnership capability: The ability of a value network to develop collaboration and partnership among actors including customers in order to access complementary capabilities [START_REF] Tarafdar | Understanding the influence of information systems competencies on process innovation: A resource-based view[END_REF][START_REF] Karpen | Linking Service-Dominant Logic and Strategic Business Practice A Conceptual Model of a Service-Dominant Orientation[END_REF][START_REF] Aarikka-Stenroos | Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process[END_REF][START_REF] Raddats | Creating multi-vendor solutions: the resources and capabilities required[END_REF]. In value networks a focus of value creation moves from the internal firm processes to interaction processes among partners. Active dialogue and social interaction instead of one-way communication, are therefore prominent and of critical importance in value co-creation [START_REF] Aarikka-Stenroos | Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process[END_REF][START_REF] Raddats | Creating multi-vendor solutions: the resources and capabilities required[END_REF]. Trust-based interaction capability: The ability of a value network to have a nonopportunistic behavior and establish long-lasting relationship among actors [START_REF] Gebauer | Characterizing service networks for moving from products to solutions[END_REF][START_REF] Karpen | Linking Service-Dominant Logic and Strategic Business Practice A Conceptual Model of a Service-Dominant Orientation[END_REF][START_REF] Raddats | Creating multi-vendor solutions: the resources and capabilities required[END_REF]. Offering PSS is actually an ongoing interaction that is built on mutual trust and commitment. Trust is one of the factors that differentiates collaborative relationships from transaction and includes both economical (i.e. risk-based trust) and social (i.e. goodwill trust) perspective of trust [START_REF] Bunduchi | Business relationships in internet-based electronic markets: the role of goodwill trust and transaction costs[END_REF]. Engagement capability: The ability of a value network to involve all partners to contribute in integrated solutions [START_REF] Karpen | Linking Service-Dominant Logic and Strategic Business Practice A Conceptual Model of a Service-Dominant Orientation[END_REF][START_REF] Vasantha | A manufacturing framework for capability-based product-service systems[END_REF][START_REF] Baines | State-of-the-art in product-service systems[END_REF]. In this context, firms inextricably depend on other parties to provide a PSS due to specialization, knowledge intensiveness and technological complexity of such integrated solutions [START_REF] Aarikka-Stenroos | Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process[END_REF]. The ability to engage partners in the value co-creation lead to deliver a PSS that can differentiate network from competitors.

PSS design and delivery capability:

The ability of a value network to design and deliver combinations of products and services to individual customers by using the capabilities of all partners [START_REF] Ulaga | Hybrid offerings: how manufacturing firms combine goods and services successfully[END_REF][START_REF] Gebauer | Characterizing service networks for moving from products to solutions[END_REF][START_REF] Ritala | Key capabilities in knowledgeintensive service business[END_REF]. In this sense, the service elements of a PSS range from traditional product-related services to services supporting customer operational processes [START_REF] Gebauer | Characterizing service networks for moving from products to solutions[END_REF]. Process management capability: The ability of a value network to coordinate and integrate collaborative processes within a network, to maintain efficiency of PSS design and delivery [START_REF] Ulaga | Hybrid offerings: how manufacturing firms combine goods and services successfully[END_REF][START_REF] Karpen | Linking Service-Dominant Logic and Strategic Business Practice A Conceptual Model of a Service-Dominant Orientation[END_REF][START_REF] Ritala | Key capabilities in knowledgeintensive service business[END_REF][START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF].

Knowledge management (KM) capability:

The ability of a value network to capture, transfer, share, and utilize knowledge resources across the network to deliver integrated solutions [START_REF] Ritala | Key capabilities in knowledgeintensive service business[END_REF][START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF]. In line with the well-defined framework of [START_REF] Gold | Knowledge management: an organizational capabilities perspective[END_REF] we consider the KM capability as a multidimensional construct encompassing infrastructure (technical, cultural, structural) and process (acquisition, conversion, application and protection) capabilities. KM capability implies the focus on symmetric knowledge sharing among actors and learning from each other. Firms share their own expertise and knowledge resources for the enhancement of their cocreation partners' skills [START_REF] Karpen | Linking Service-Dominant Logic and Strategic Business Practice A Conceptual Model of a Service-Dominant Orientation[END_REF].

Table1. Key business capabilities of a PSS value network

Business Capability

IT Capabilities

In the following the key IT capabilities resulting from the literature search and the classification process are discussed. IT architecture capability: The ability of a value network to create a coherent blueprint of technology, data, application, and their relationships, that meet PSS business requirements [START_REF] Byrd | The leveraging influence of strategic alignment on IT investment: an empirical examination[END_REF][START_REF] Feeny | Core IS capabilities for exploiting information technology[END_REF][START_REF] Fink | How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF]. Recently the service-oriented architecture (SOA) has become a prominent IT paradigm. SOA is an IT architectural style in which discrete bundles of software functionality are componentized and delivered to other systems as "services," enabling different applications to use common parts [START_REF] Papazoglou | Service-oriented computing: a research roadmap[END_REF].

IT development capability:

The ability of a value network to recognize technology trends and developments within the IT sector and to make appropriate recommendations for adopting emerging technologies, or altering or adapting current ones to leverage technology to achieve desired ends [START_REF] Feeny | Core IS capabilities for exploiting information technology[END_REF][START_REF] Peppard | Beyond strategic information systems: towards an IS capability[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF]. Flexible IT infrastructure capability: The ability of a value network's IT infrastructure to develop, diffuse, and support various system components quickly to cope with constantly changing business requirement [START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF][START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Rai | Leveraging IT capabilities and competitive process capabilities for the management of interorganizational relationship portfolios[END_REF]. It depends on the degree to which the IT infrastructure is connective, compatible, modular, and can handle multiple business applications [START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF]. IT integration capability: The ability of a value network to interlink different applications distributed in a network, in order to communicate with each other and timely and idiosyncratic exchange data. It involves both application integration and data consistency [START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF][START_REF] Bharadwaj | IT capabilities: theoretical perspectives and empirical operationalization[END_REF][START_REF] Rai | Firm performance impacts of digitally enabled supply chain integration capabilities[END_REF].An inter-organizational information system (IOIS) is a combination of technologies, people and processes that a value network uses to manage information across a network. Part of IOIS would be a shared system among partners and part of it would be an individual organizational system that needs to link. In this sense, the ability to link and maintain this linkage and keep logical and ontological data interchange among divers applications is called IT integration. IT management capability: The ability of a value network to manage IT functions such as IT planning, investment and monitoring, coordination, control, IT project management, and negotiations with vendors [START_REF] Fink | How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF][START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Bharadwaj | IT capabilities: theoretical perspectives and empirical operationalization[END_REF]. A PSS value network with greater IT management capability is expected to achieve more efficient and costeffective IT operations to deliver business value. IT Personnel capability: The ability of the IT staff in the value network. It encompasses technical (hardware and software system), behavioral (interpersonal) and managerial skills of IT personnel [START_REF] Bharadwaj | A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation[END_REF][START_REF] Fink | How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF][START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Ross | Creating a strategic IT architecture competency: Learning in stages[END_REF]. These ranges of skills and knowledge are essential for IT personnel to be able to design, develop and deploy reliable IT solutions in order to meet both technical and business requirements of PSS and also to be able to communicate well with partners in a value network.

Besides the aforementioned ITCs, IT-business integration and partnership are also mentioned in the current literature as ITCs [START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF][START_REF] Ross | Creating a strategic IT architecture competency: Learning in stages[END_REF][START_REF] Lu | Understanding the Link Between Information Technology Capability and Organizational Agility[END_REF]. The former refers to the management ability to envision how IT supports business strategy while the latter refers to relationship, communication and coordination between IT and business for active engagement in related issues. We omit these capabilities in our discussion because both business and IT communities are responsible to share their experiences and knowledge, to understand each other, to integrate their functionalities, and to facilitate dialogue and interaction to work together. These capabilities are more relevant to the social and perhaps cultural dimensions of BIA, while we in this paper focus on its strategic dimension.

Table2. Key IT capabilities of a PSS value network

Framework Development

In this section a framework for capability based BIA in a PSS value network context is developed. First, the internal relationships between IT capabilities are discussed. Since these relationships are supported well in literature, this part of the framework can be used as a basis for the further discussion. Then, a number of hypotheses are developed to show the relationship between IT and business capabilities as potential areas of capability alignment. The research framework is presented in figure1.

IT management and IT personnel capabilities can serve as the supportive capabilities which feed into the other IT capabilities to leverage them and enhance their performance. Previous studies show that firms with competent IT management and IT personnel skills are better at transforming IT resource into business value than their competitors [START_REF] Fink | How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches[END_REF][START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Bharadwaj | IT capabilities: theoretical perspectives and empirical operationalization[END_REF].

Relationship a) IT management and IT personnel capabilities enable other IT capabilities.

As technology develops, the IT architecture is changed. IT architecture is a blueprint to place a new enabling IT technology in a context of value network. Evolution of internet-based technology like cloud-computing that enables convenient on-demand network access to a shared pool of computing resources requires a new architectural style for realizing cloud-computing in a PSS value network environment. Here cloud-based architectures need to be designed for network access [START_REF] Camarinha-Matos | Collaborative networks in support of service-enhanced products. Adaptation and Value Creating Collaborative Networks[END_REF][START_REF] Camarinha-Matos | Collaborative Business Services Provision[END_REF].

Relationship b) IT development capability enables IT architecture capability.

A flexible IT infrastructure is supported by network-wide architecture. SOA as a new architectural approach aims at increasing the flexibility of the IT infrastructure [START_REF] Papazoglou | Service-oriented computing: a research roadmap[END_REF][START_REF] Joachim | What are important governance and management mechanisms to achieve IT flexibility in service-oriented architectures (SOA)?: An empirical exploration[END_REF]. It facilitates the realization of the modularity and connectivity by applying services as loose coupling of software functionalities. Also SOA promises to simplify the application integration by providing universal connectivity to existing systems and a consistent view of the data in terms of both semantic and syntactic integration [START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF]. Instead of point-to-point individual applications connections, SOA contributes to the many-to-many integration [START_REF] Papazoglou | Service-oriented computing: a research roadmap[END_REF][START_REF] Yoon | Investigating the antecedents and benefits of SOA implementation: a multi-case study approach[END_REF] .

Relationships c,d) IT architecture capability enables flexible IT infrastructure and IT integration capability.

A flexible IT infrastructure able to support the design, rapid development, reconfiguration, and implementation of heterogeneity of applications [START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Byrd | An exploratory examination of the relationship between flexible IT infrastructure and competitive advantage[END_REF][START_REF] Ray | Information technology and the performance of the customer service process: A resource-based analysis[END_REF].Within a service-oriented environment, the integration and implementation of service-based applications rely on the flexible IT infrastructure. These services are reusable components that represent repeatable business activities and should be accessible through a shared IT infrastructure that enables intra-and inter organizational value networks [START_REF] Bardhan | An interdisciplinary perspective on IT services management and service science[END_REF][START_REF] Löhe | SOA adoption in business networks: do service-oriented architectures really advance inter-organizational integration[END_REF].

Relationship e) Flexible IT infrastructure capability enables IT integration capability.

According to fig. 1, by following the proposed relationships between the IT capabilities, this points to the IT integration capability as a final resulting IT capability. In the following section we will discuss possible relationships between this IT capability and the previously identified business capabilities.

The ability to quickly gather and transfer information through integrated applications allows a better response to customer requests [START_REF] Hadaya | The role of joint collaboration planning actions in a demand-driven supply chain[END_REF][START_REF] Rajaguru | Effects of inter-organizational compatibility on supply chain capabilities: Exploring the mediating role of inter-organizational information systems (IOIS) integration[END_REF]. In this respect, new types of IOIS have been developed based on social media technology called as a social customer relationship management to facilitate real-time, interactive two-way communication, and dialogue with customers to understand customer values [START_REF] Baird | From social media to social customer relationship management[END_REF]. IT integration aids a PSS value network to get a coherent picture and real time monitoring of customer requirements. The ability to couple various applications and data sources within a PSS value network enhances information flow and therefore enables interactive relationship among partners, while they are encouraged to co-create value. Web-based IOIS have been identified in prior studies as a key component to support the inter-organizational efforts and to strengthen partnerships [START_REF] Hadaya | The role of joint collaboration planning actions in a demand-driven supply chain[END_REF][START_REF] Rajaguru | Effects of inter-organizational compatibility on supply chain capabilities: Exploring the mediating role of inter-organizational information systems (IOIS) integration[END_REF][START_REF] Williamson | An evaluation of inter-organisational information systems development on business partnership relations[END_REF]. Hypothesis 2: IT integration capability supports partnership capability.

IT integration based on web technology facilitates interaction and two-way communication with partners which are necessary in building trust. Commitment and trust can be enhanced and solidified by allowing partners access to real-time data and providing information transparency which is enabled by IT integration [START_REF] Williamson | An evaluation of inter-organisational information systems development on business partnership relations[END_REF][START_REF] Robey | Theoretical Foundations of Empirical Research on Interorganizational Systems: Assessing Past Contributions and Guiding Future Directions[END_REF]. Hypothesis 3: IT integration capability supports trust-based interaction capability. Partners' engagement in collaborative activities can be realized via applications and data sources integration as means to share their resources and capabilities. It helps firms to access to complementary capabilities of their partners to discover opportunities and to respond to the market with customer-driven offerings [START_REF] Rai | Leveraging IT capabilities and competitive process capabilities for the management of interorganizational relationship portfolios[END_REF]. A geographical scattering of partners implies any involvement in the co-creation value has to occur via an IOIS that aims to improve involvement in a service provision [START_REF] Nazir | IT and Firm Agility: An Electronic Integration Perspective[END_REF]. Hypothesis 4: IT integration capability supports engagement capability.

IT integration facilitates gathering and processing more reliable information from partners which in turn enables value networks to check the availability of resources, to select the best options, and to combine products and services in more rapid and cost-effective ways to enhance and widen offerings. Design and delivery of PSS with more extensive services to meet divers customer demands could not have been possible without a well-functioning IT integration [START_REF] Rai | Leveraging IT capabilities and competitive process capabilities for the management of interorganizational relationship portfolios[END_REF][START_REF] Kowalkowski | ICT as a catalyst for service business orientation[END_REF]. Hypothesis 5: IT integration capability supports PSS design and delivery capability.

Integrated solutions rely on interconnected and interdependent activities undertaken by partners. With advanced IOIS a value network ability to integrate interfirm business processes at lower costs has become more feasible. IT integration aids a successful operation and coordination of collaborative processes and increases the effectiveness and efficiency of inter-firm processes [START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF][START_REF] Hadaya | The role of joint collaboration planning actions in a demand-driven supply chain[END_REF][START_REF] Rajaguru | Effects of inter-organizational compatibility on supply chain capabilities: Exploring the mediating role of inter-organizational information systems (IOIS) integration[END_REF]. Hypothesis 6: IT integration capability supports process management capability.

In value networks different firms involve in a co-creation value, they share not only explicit knowledge but also tacit knowledge, information is a key factor to create value and promote integrated solutions especially in complex offerings. IT integration helps a value network to timely acquire information of market spaces and customer requirements. It also enhances knowledge sharing among partners through common standards and protocols [START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF][START_REF] Hadaya | The role of joint collaboration planning actions in a demand-driven supply chain[END_REF][START_REF] Rajaguru | Effects of inter-organizational compatibility on supply chain capabilities: Exploring the mediating role of inter-organizational information systems (IOIS) integration[END_REF][START_REF] Nazir | IT and Firm Agility: An Electronic Integration Perspective[END_REF]. Hypothesis 7: IT integration capability supports knowledge management capability.

Conclusion

This study presents a further step towards elaboration of the business-IT alignment at a network level. A PSS value network with more emphasis on establishing closer relationships with partners, operational linkages, enhanced information sharing, and cooperation among partners, requires additional insights of BIA. We examine the notion of BIA in a more operationalized way in the light of a capability approach. We identify two sets of business and IT capabilities from literature on a PSS value network and subsequently redefine and classify under new labels. We define seven business and six IT capabilities. In the next step, by developing hypotheses comprising a conceptual framework we investigate the relationship between IT and business capabilities defined as the business-IT capability alignment. The proposed framework suggests that the IT integration capability is the core essential ITCs that supports business capabilities. IT integration is a solid foundation of a PSS value network; it promotes information flow, collaboration and partnership, trust-based relationship, and coordination among partners. In future work we aim to validate these hypotheses by doing case studies and survey research. The framework can aid PSS value networks to leverage their both IT and business capabilities to gain competitive advantage over time. We will investigate whether this notion of business-IT capability alignment does indeed improve the performance of a PSS value network.

Fig1. 1 :

 1 Fig1. Research framework, business-IT capabilities alignment in PSS value networksHypothesis 1: IT integration capability supports customer understanding capability. The ability to couple various applications and data sources within a PSS value

IT capability

References IT Architecture [START_REF] Byrd | The leveraging influence of strategic alignment on IT investment: an empirical examination[END_REF][START_REF] Feeny | Core IS capabilities for exploiting information technology[END_REF][START_REF] Fink | How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF]] IT Development [START_REF] Feeny | Core IS capabilities for exploiting information technology[END_REF][START_REF] Peppard | Beyond strategic information systems: towards an IS capability[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF]] Flexible IT infrastructure [START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF][START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Rai | Leveraging IT capabilities and competitive process capabilities for the management of interorganizational relationship portfolios[END_REF]] IT Integration [START_REF] Saraf | IS application capabilities and relational value in interfirm partnerships[END_REF][START_REF] Bharadwaj | IT capabilities: theoretical perspectives and empirical operationalization[END_REF][START_REF] Rai | Firm performance impacts of digitally enabled supply chain integration capabilities[END_REF]] IT management [START_REF] Fink | How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF][START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Bharadwaj | IT capabilities: theoretical perspectives and empirical operationalization[END_REF]] IT Personnel [START_REF] Bharadwaj | A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation[END_REF][START_REF] Fink | How do IT capabilities create strategic value? Toward greater integration of insights from reductionistic and holistic approaches[END_REF][START_REF] Wade | Review: The resource-based view and information systems research: Review, extension, and suggestions for future research[END_REF][START_REF] Kim | IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance[END_REF][START_REF] Ross | Creating a strategic IT architecture competency: Learning in stages[END_REF]