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SAEED KHANAGHA Dynamic Capabilities for Managing Emerging Technologies Organizational and Managerial Antecedents of Effective Adoption of Cloud Computing

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ERIM PhD SeriesResearch in Management

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l)DYNAMIC CAPABILITIES FOR MANAGING EMERGING TECHNOLOGIES

ORGANIZATIONAL AND MANAGERIAL ANTECEDENTS OF EFFECTIVE ADOPTION OFCLOUD COMPUTING

The advancement of information and communication technologies has brought a digitalage, where massive computing power, high speed and ubiquitous access to internet andmore recently Cloud Computing Technology are expected to transform a wide range oforganizations, industries, and societies. The complexities and uncertainties associated withsuch a transformation process generate numerous puzzling questions for practitioners andacademic researchers. How can organizations overcome rigidities in their resources androutines and adapt in line with the requirements of such technological change? What arethe distinct characteristics of the established firms that are more successful in maintainingtheir competiveness during and after the transformation process?

This dissertation combines multiple data sources concerning organizational adoption ofCloud Computing. It includes data from a 4-year intensive filed study, multiple comparativecase studies, and a survey among Dutch companies, to provide a basis for better under -standing of the micro-foundations of organizational capabilities for managing emergingtechnologies. Drawing on the literature on dynamic capabilities, this dissertation providesa more complete picture of the drivers of effective response to a technological changethrough investigation of the interplay between structures, routines, and managerial cogni -tion.

The Erasmus Research Institute of Management (ERIM) is the Research School (Onder -zoek school) in the field of management of the Erasmus University Rotterdam. The foundingparticipants of ERIM are the Rotterdam School of Management (RSM), and the ErasmusSchool of Econo mics (ESE). ERIM was founded in 1999 and is officially accre dited by theRoyal Netherlands Academy of Arts and Sciences (KNAW). The research under taken byERIM is focused on the management of the firm in its environment, its intra- and interfirmrelations, and its busi ness processes in their interdependent connections.

The objective of ERIM is to carry out first rate research in manage ment, and to offer anad vanced doctoral pro gramme in Research in Management. Within ERIM, over threehundred senior researchers and PhD candidates are active in the different research pro -grammes. From a variety of acade mic backgrounds and expertises, the ERIM commu nity isunited in striving for excellence and working at the fore front of creating new businessknowledge.

Erasmus Research Institute of Management - Rotterdam School of Management (RSM)Erasmus School of Economics (ESE)Erasmus University Rotterdam (EUR)P.O. Box 1738, 3000 DR Rotterdam, The Netherlands

Tel. +31 10 408 11 82Fax +31 10 408 96 40E-mail [email protected] www.erim.eur.nl

SAEED KHANAGHA

Dynamic Capabilitiesfor Managing EmergingTechnologiesOrganizational and Managerial Antecedentsof Effective Adoption of Cloud Computing

B&T14428 omslag Khanagha

If you have any questions concerningthe ceremony feel free to contact eitherof my ‘paranimfen’:

HESAM FASAI +31 6 10 080 [email protected]

ANDREAS ALEXIOU +31 6 57 319 [email protected]

Dynamic Capabilitiesfor Managing EmergingTechnologiesOrganizational and Managerial Antecedentsof Effective Adoption of Cloud Computing

by

Saeed Khanagha

Thursday, 8 January 2015at 13:30 hrsSenaatszaalErasmus Universiteit RotterdamBurgemeester Oudlaan 503062 PA Rotterdam

After the defense a reception will be held in Lounge Room Cum Laude.

I would be delighted to see you!

SAEED KHANAGHA+31 6 48 690 [email protected]

You are most kindly invited to attendthe public defense of the dissertation

Invitation

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B&T14428 uitnodiging Khanagha

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Emergence of cloudcomputing - Anindustry-wideinitiative byGoogle, IBM, &universities

Initial screeningof thetechnology byTelco

Data collection

2009 2011 2012

Technology rise -significant increasein the number ofscientificpublications andpatents

3rd structural change,continuation withexperimentation throughnewly developed routines

1st structural change, newresource allocationapproach

2nd structural change, newincentive structures,development ofexperimental routines

2013

4th structural change,returning to initialstructure after havingexperimental routinesestablished

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2008-Q4 2010: Dispersed organizational activities Q4 2010 – Q1 2011: Initiation of cloud program

Q1 2011 - Q4 2011: Program separation andexpansion

Q2 2012 and onwards: Program dissolution andcontinuation of delegated tasks

Q4 2011-Q2 2012: Program shrinkage and delegationof tasks to the business

The evolution of Telco’s structure for adoption of Cloud: Telco startedwith using existing structures for exploration through small anddispersed research teams throughout the organization (1).Dissatisfaction of management with the progress triggered differentforms of parallel organizations ranging from business unit dependentprojects (2), to extensive (3) or limited (4) independent programstructures. Despite satisfactory progress with experimentation activities,management decided to dissolve the program in order to ensurealignment of activities with the overall direction of the organization.

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•••

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Phase 1:Screening and

speculation

Phase 2:Embedded

experimentation

Strategic intent:

-Incrementalevolution

-Directedtransformation

Structural form:Fully integrated

Structuralform: Semi-Integrated

Targetedoutcomes:-Evolution of thenetwork productstowards Cloud

Strategic intent:

-Incrementalevolution

Key roles:- Seniormanagers- A Businessunitmanager

Key roles:

- Technologyanalysts

- Researchers

Targetedoutcomes: -Evolution of thenetwork productstowards Cloud- Enablingpublic/privatecloud for businesscustomers

Phase 3:Independentorganization

Phase 4: Smallindependentorganization

Phase 5:Dissolution ofindependentorganization

Structural form:Fully separated

Structuralform: Partlyseparated

Structural form:Fully integrated

Strategic intent:

-Radicalsubstitution

Strategic intent:

-Incrementalevolution

-Directedtransformation

Key roles:- Senior managers- Business unitmanagers- Cloud programmanager

Key roles:- Business unitmanagers- Productmanagers- Cloud projectmanagers

Targetedoutcomes:- Development ofCloud-basedofferings for newmarkets- Enablingpublic/privatecloud for businesscustomers- Evolution of thenetwork products.

Targetedoutcomes: -Development ofCloud-basedofferings for newmarkets- Enablingpublic/privatecloud forbusinesscustomers- Evolution of thenetworkproducts.

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Value co-creation and exploratory innovation: Themediating roles of managerial attention and initiatives (Under second round of review at Long Range Planning)

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- - - - - - - - - - - -

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n=12

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Customerco-creation

Exploratoryinnovation

Managementinnovation

Managerialattention

-0.06 (-1.14)

0.34 (4.52) ***

0.18 (2.32)*

0.73 (12.42) ***

0.19 (3.44) ***

Size

0.01 (0.24)

Results of Structural Equations Analysis

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Sensing and seizing emerging technologicalopportunities: The moderating role formal coordination mechanisms (Submitted to Research Policy)

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The moderating roles of centralizationand formalization on the relationshipbetween managerial attention andsensing and seizing capabilities. In allof the variables, Mean 5STDV isconsidered Medium range and Highand Low indicate the higher and thelower values respectively. The verticalaxes depict predicted values in logisticregression model.

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Prof.dr. G. van der Pijl & Prof.dr. H. Commandeur & Prof.dr. M. Keil,EPS-2012-263-S&E, /34928

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Yang, S.Y., Information aggregation efficiency of prediction market, Promotor: Prof.dr.ir. H.W.G.M.van Heck, EPS-2014-323-LIS,

/32344

/23422

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ERIM PhD SeriesResearch in Management

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l)DYNAMIC CAPABILITIES FOR MANAGING EMERGING TECHNOLOGIES

ORGANIZATIONAL AND MANAGERIAL ANTECEDENTS OF EFFECTIVE ADOPTION OFCLOUD COMPUTING

The advancement of information and communication technologies has brought a digitalage, where massive computing power, high speed and ubiquitous access to internet andmore recently Cloud Computing Technology are expected to transform a wide range oforganizations, industries, and societies. The complexities and uncertainties associated withsuch a transformation process generate numerous puzzling questions for practitioners andacademic researchers. How can organizations overcome rigidities in their resources androutines and adapt in line with the requirements of such technological change? What arethe distinct characteristics of the established firms that are more successful in maintainingtheir competiveness during and after the transformation process?

This dissertation combines multiple data sources concerning organizational adoption ofCloud Computing. It includes data from a 4-year intensive filed study, multiple comparativecase studies, and a survey among Dutch companies, to provide a basis for better under -standing of the micro-foundations of organizational capabilities for managing emergingtechnologies. Drawing on the literature on dynamic capabilities, this dissertation providesa more complete picture of the drivers of effective response to a technological changethrough investigation of the interplay between structures, routines, and managerial cogni -tion.

The Erasmus Research Institute of Management (ERIM) is the Research School (Onder -zoek school) in the field of management of the Erasmus University Rotterdam. The foundingparticipants of ERIM are the Rotterdam School of Management (RSM), and the ErasmusSchool of Econo mics (ESE). ERIM was founded in 1999 and is officially accre dited by theRoyal Netherlands Academy of Arts and Sciences (KNAW). The research under taken byERIM is focused on the management of the firm in its environment, its intra- and interfirmrelations, and its busi ness processes in their interdependent connections.

The objective of ERIM is to carry out first rate research in manage ment, and to offer anad vanced doctoral pro gramme in Research in Management. Within ERIM, over threehundred senior researchers and PhD candidates are active in the different research pro -grammes. From a variety of acade mic backgrounds and expertises, the ERIM commu nity isunited in striving for excellence and working at the fore front of creating new businessknowledge.

Erasmus Research Institute of Management - Rotterdam School of Management (RSM)Erasmus School of Economics (ESE)Erasmus University Rotterdam (EUR)P.O. Box 1738, 3000 DR Rotterdam, The Netherlands

Tel. +31 10 408 11 82Fax +31 10 408 96 40E-mail [email protected] www.erim.eur.nl

SAEED KHANAGHA

Dynamic Capabilitiesfor Managing EmergingTechnologiesOrganizational and Managerial Antecedentsof Effective Adoption of Cloud Computing

B&T14428 omslag Khanagha

If you have any questions concerningthe ceremony feel free to contact eitherof my ‘paranimfen’:

HESAM FASAI +31 6 10 080 [email protected]

ANDREAS ALEXIOU +31 6 57 319 [email protected]

Dynamic Capabilitiesfor Managing EmergingTechnologiesOrganizational and Managerial Antecedentsof Effective Adoption of Cloud Computing

by

Saeed Khanagha

Thursday, 8 January 2015at 13:30 hrsSenaatszaalErasmus Universiteit RotterdamBurgemeester Oudlaan 503062 PA Rotterdam

After the defense a reception will be held in Lounge Room Cum Laude.

I would be delighted to see you!

SAEED KHANAGHA+31 6 48 690 [email protected]

You are most kindly invited to attendthe public defense of the dissertation

Invitation

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B&T14428 uitnodiging Khanagha