Chapter 3

The research objective and research approach

3.1 Introduction 105

3.2 The research objective 106

3.3 The research question 108

3.3.1 Use of the process-based approach 109

3.3.2 Categorization of research questions 111

3.3.3 The main research questions 115

3.3.4 The fundamental research question 116

3.4 Research approach 117

3.5 An overview of the Grounded Theory method 125

3.5.1 The „Glaserian‟ and „Straussian‟ approaches to the Grounded 131

Theory

3.5.2 The use of Grounded Theory approach in Information 133

Systems research

3.5.3 The data used 134

3.6 Summary 136

3.1 Introduction

Chapter 1 presented the research problem as:

“To develop a framework of needed networking capabilities and their inter-

relationships that enable successful virtual organizing in e-business”.

Chapter two further outlined, through a literature review, a complex network of

inter-related aspects supporting the need for networking capabilities with virtual
organizing. The research objective in this chapter directs the emphasis on the
research methodology that will be introduced to gain insight on the identification
and successful implementation of networking capabilities with web-based
organizations consisting of virtual networks of value chain businesses. A
statement of the research objective concludes the first section of the chapter. The
last section of this chapter considers the overall research approach and the
research methodology. The development of further, more specific elaborating
and detailed questions on the research problem is addressed towards the end of
the chapter.

The structure of the chapter can be summarized as follows. Section two of this
chapter describes the research objective and gives an overview of the positive
stance reflected in the problem statement as well as the research objective. The
research questions are developed in Section 3, and Section four presents the
research approach to be implemented, which includes an overview of research
approaches, general considerations with regard to research approaches in the
information systems field, considerations that relate to the qualitative research
approach and the role of the researcher in the qualitative research approach.
Section five describes the Grounded Theory method and the data that were
used. Section six concludes the chapter.

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3.2 The research objective

With the research problem identified in Chapter One and the literature overview
completed the research objective will be defined. The purpose of defining the
research objective is to specify the intended outcome of the research study. The
starting point with the formulation of the research objective is the research
problem, formulated in Chapter One as:

“To develop a framework of needed networking capabilities and their inter-

relationships that enable successful virtual organizing in e-business”.

The literature overview in Chapter Two indicates that web-based organizations

that implement virtual networks of independent firms need to understand,
develop and excel at a complex network of interrelated networking capabilities
that enable virtual organizing. It is important to consider that networking
capabilities relate to all the members of the virtual value chain as well as the
customers in e- business. How these networking capabilities relate to each other
and to the actors in the virtual value chain active in e-business is not clear from
the literature review. The research objective has therefore been formulated as
follows:

“To develop better understanding of the capacity of networking capabilities to not

only enable, but to enhance, effective and efficient virtual organizing in a virtual
network of organizations”.

Since networking capabilities enable successful virtual organizing the objective is

to develop a clear understanding of what constitutes networking capabilities and
aspects pertaining to their interrelationships. The identified objective could lead to
a greater understanding of the research problem in its bigger context and through
this enhanced understanding contribute towards answering or resolving the
research problem. In addition, the framework should provide some guidance to
business and entrepreneurs on how to approach the implementation of

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networking capabilities while considering the various interrelationships that exist
between the networking capabilities that potentially enhance effective and
efficient virtual organizing. The framework and underlying theory should indicate
how the entrepreneur that implements a virtual network with virtual organizing
leverages networking capabilities to realize the business objectives of the web-
based business.

The study will be conducted using an appreciative approach to the research that
should reflect in the objectives of the research project. The research approach
has an impact on the way the results of the literature overview are approached as
well as on the line of questioning used when conducting interviews. Appreciative
inquiry is considered to be an affirmative form of inquiry with regard to the
objectives of the research in contrast to the problem-oriented view that is inherent
in most information systems research (Avital, 2003). Avital highlights the main
differences in the approach to research between appreciative enquiry and deficit
thinking that is illustrated in Table 3.1.

Table 3.1 Features of appreciative inquiry in contrast to deficit thinking

(Source: Avital, 2003)

Appreciative Inquiry Deficit Thinking

Method Archetype Generative inquiry Problem solving

Drive Boundary spanning Gap closing

Focus What is best What is wrong

Tactical Objective Enable success Prevent failure, fix problems

Actors Whole systems Varied, usually isolated entities

Guiding Paradigm Voluntaristic Mainly deterministic

When the appreciative approach to research is introduced to the research project

it should be well reflected in the research objectives. The appreciative approach
to research enables researchers to explicitly and intentionally put all possible

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caveats aside and intentionally focus their attention on seeking and building upon
what represents strengths, capacities, possibilities and goodwill (Avital, 2003).

The formulation of the research problem and the corresponding research

objective along with the literature overview in Chapter Two allow the selection of
a research approach and methodology.

The next section considers the research question as well as the development of
supporting questions.

3.3 The research question

Strauss and Corbin (1998) define a research question as:

“The specific query to be addressed by this research that sets the parameters of
the project and suggests the methods to be used for data gathering and
analysis”.

This definition highlights the importance of developing research questions at the

initial stages of research. They indicate that research questions dictate the choice
of a method to be employed by the researcher. Research questions used with the
grounded theory tend to be oriented towards action and process (Strauss and
Corbin, 1990) that enable the development of theory or a framework.

The following two sub-sections describe the development of low level basic
research questions using a processed-based approach as discussed by Roode
(1993). The final sub-section develops the fundamental research question.

3.3.1 Use of the process-based approach

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Any study tries to answer one or more of the following basic questions with
respect to the problem situation being investigated: What? Why? How does?
How should?. Research questions typically inquire about the ontological,
phenomenological, epistemological and normative nature of the problem or issue
at hand (Roode, 1993: p. 71-72). Roode describes a framework for helping the
researcher to pose different questions in order to explore different aspects of the
problem or situation at hand. Figure 3.1 illustrates this framework.

How does?

A Research problem or situation C

at hand
What is? Why is?

How should?

Figure 3.1 Framework for generating low level basic research questions
(Source: Roode, 1993)

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The framework, as illustrated in Figure 3.1, can be explained as follows (op.cit.):

 From the „What is?‟ perspective: „With this question the fundamental nature of
essence of the research problem is first explored. The question intends exposing
the structure of the problem or the meaning of the underlying concepts or ideas.
The purpose is to inquire radically and critically about the problem domain and its
accompanying paradigm(s) in order to be able to describe the problem precisely
and unambiguously‟. This approach to question formulation is underpinned by a
fundamental assumption that such universally accepted descriptions for the
concepts, ideas and problems do exist.

 From the „how does?‟ perspective: „In answering this question the phenomenon
or problem is directly observed and described as it manifests itself in reality. In
cases where abstract concepts or ideas are explored, these concepts would
obviously not apply‟.

 From the „Why is?‟ perspective: „The purpose of this question is to explain the
real-life behaviour or characteristics of the phenomenon or problem. In doing so,
the focus is on determining relationships between aspects of and/or variables
within the problem domain. There is a fundamental assumption underlying this
question namely that these relationships can be used to generalize about the
problem domain and causal consequences‟.

 From the „How should?‟ perspective: „This question focuses on the conclusions,
implications and normative aspects of the research results. It is an evaluation of
the results or new insights obtained during the research. In some cases it might
lead to prescriptive conclusions regarding the problem domain- in other cases it
might enhance the understanding of the problem domain or redefine it‟.

Roode (private communication, 2006) further describes a framework to

systematically develop research questions from the low level basic research
questions generated by following the process-based approach. The bottom-up
process is initiated with the formulation of low-level basic questions. These are
then consolidated into clusters of related questions. The clusters of consolidated
„exploratory questions‟ are then refined and „meta questions‟ are formulated to

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describe the different clusters. Meta questions represent a higher and more
abstract level from the initial exploratory questions developed. The eventual
research questions are then formulated as meta-meta questions from the meta
questions describing the clusters of consolidated low-level basic questions.

The application of the process-based approach and the subsequent bottom-up

process are discussed below.

3.3.2 Categorization of research questions

The first step in the categorization of research questions is the development of

exploratory questions using the process-based approach. They form the basis for
the development of the meta and eventual research questions by the researcher.
The development of these low-level basic questions builds on the literature
overview presented in Chapter 2. The exploratory questions generated by using
the process-based approach are listed in Table 3.2.

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Table 3.2 Exploratory questions formulated using the process-based
approach

„What is?‟ perspective „How does?‟ perspective

What is the enabling role of networking capabilities? How does the framework of networking capabilities impact
on the virtual network?
What is the role of networking capabilities in the virtual
network? How does the framework of networking capabilities impact
on the role of the entrepreneur in the virtual network?
What is the relation between virtual organizing and
networking capabilities? How does the framework of networking capabilities
enhance activities of virtual organizing?
What situations highlights the need for networking
capabilities? How does the virtual network implement networking
capabilities?
What is the inter-relationship between the various
networking capabilities? How do networking capabilities fit into the activities
performed by the entrepreneur?
In what way can networking capabilities not only enable but
enhance effective and efficient virtual organizing? What considerations guide the implementation of
networking capabilities?

„Why is?‟ perspective „How should?‟ perspective

Why does a virtual network needs to implement networking How should the entrepreneur implement the framework of
capabilities? networking capabilities?

Why do networking capabilities tend to enhance virtual How should the entrepreneur develop networking
organizing activities? capabilities of partners in the virtual network?

Why does the entrepreneur need networking capabilities in How should the virtual network of partners approach the
the virtual network? issue of networking capabilities?

Why do networking capabilities promote improved virtual How should the implementation of networking capabilities
organizing? Why do networking capabilities promote to enhance effective and efficient virtual organizing be
improved virtual organizing? secured?

The exploratory questions are specifically helpful in the process of data collection
and data analysis as well as with the coding activities in the Grounded Theory
method.

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Based on the exploratory questions formulated as a first step in the development
of the fundamental research question the meta questions can now be
constructed and are outlined in Table 3.3.

Table 3.3 Constructing meta questions from the exploratory questions

Exploratory questions Meta questions

What is the enabling role of networking What needs do entrepreneurs experience that highlight the
capabilities? need for networking capabilities that enables virtual
organizing?
What is the role of networking capabilities in the
virtual network? What needs, actions and situations pertaining to virtual
organizing trigger the need for networking capabilities?
What is the relation between virtual organizing and
networking capabilities? Under what circumstances are these needs for networking
capabilities with virtual organizing highlighted?
Which situations highlight the need for networking
capabilities? For what purpose do entrepreneurs need to implement
networking capabilities with virtual organizing?
What is the inter-relationship between the various
networking capabilities?

In what way can networking capabilities not only

enable but also enhance effective and efficient
virtual organizing?

How does the framework of networking capabilities How are networking capabilities implemented in the virtual
impact on the virtual network? network of organizations?

How does the framework of networking capabilities Which considerations guide the implementation of networking
impact on the role of the entrepreneur in the virtual capabilities?
network?
What is the rationale for each networking capability and its
How does the framework of networking capabilities contribution to virtual organizing?
enhance activities of virtual organizing?
Where do networking capabilities fit into the virtual networks‟
How do the virtual networks implement networking coordination activities?
capabilities?

How do networking capabilities fit into the activities

performed by the entrepreneur?

What considerations guide the implementation of

networking capabilities?

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Table 3.3 Constructing meta questions from the exploratory questions

Exploratory questions Meta questions

Why do virtual networks needs to implement What are the opportunities entrepreneurs envisage when they
networking capabilities? implement networking capabilities in virtual networks of
organizations?
Why does networking capabilities tend to enhance
virtual organizing activities? How do these phenomenon manifest in practice?

Why do the entrepreneur need networking What could be causing this phenomenon?
capabilities in the virtual network?

Why do networking capabilities promote improved

virtual organizing?

How should the entrepreneur implement the How can the intended framework assist entrepreneurs in
framework of networking capabilities? approaching the issues of networking capabilities as an
organizational consequence of using?
How should the entrepreneur develop networking
capabilities of partners in the virtual network? How should the entrepreneur approach the virtual network in
developing networking capabilities of its participating partners?
How should the virtual network of partners
approach the issue of networking capabilities?

How should the implementation of networking

capabilities to enhance effective and efficient virtual
organizing be secured?

The above set of meta questions are now used to develop the main research
questions.

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3.3.3 The main research questions

The development of the four main research questions is outlined in Table 3.4
below and is based on an interpretation of the meta questions.

Table 3.4 Constructing the main research questions from the meta questions

Meta questions Basic research question Rationale for question

Which needs do entrepreneurs What are the needed networking The question has relevance because an
experience that highlights the capabilities that enable virtual understanding of the reasons why web-based
need for networking capabilities organizing in a virtual network of organizations succeed at virtual organizing
that enables virtual organizing? companies? due to the implementation of networking
capabilities.
Which needs, actions and
situations pertaining to virtual
organizing trigger the need for
networking capabilities?

Under what circumstances are

these needs for networking
capabilities with virtual organizing
highlighted?

For what purpose do

entrepreneurs need to implement
networking capabilities with virtual
organizing?

How is networking capabilities How does the web-based The purpose of this question is to get a
implemented in the virtual organization approach the issue of perspective of the inter- relationship between
network of organizations? obtaining and enabling networking and the specific role of networking capabilities
capabilities in the virtual network? in the virtual network of organizations
What considerations guide the
implementation of networking
capabilities?

What is the rationale for each

networking capability and its
contribution to virtual organizing?
Where do networking capabilities
fit into the virtual networks
coordination activities?

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Table 3.4 Constructing the main research questions from the meta questions

Meta questions Basic research question Rationale for question

What are the opportunities Why is the concept of networking The question aims to establish the reasons
entrepreneurs envisage when capabilities so important in virtual why entrepreneurs find the concept of
they implement networking networks of organizations? networking capabilities so important since it
capabilities in virtual networks of enables virtual organizing in the virtual
organizations? network of organizations.

How do these phenomenon

manifest in practice?

What could be causing this

phenomenon?

How can the intended framework How should web-based This question explores the findings of the
assist entrepreneurs in organizations approach the issue research
approaching the issues of of obtaining and managing
networking capabilities as an networking capabilities in virtual
organizational consequence of networks of organizations?
using?

How should the entrepreneur

approach the virtual network in
developing networking
capabilities of its participating
partners?

The final sub-section describes the fundamental research question derived

inductively from the four main research questions, in support of the research
problem and research objective.

3.3.4 The fundamental research question

The main purpose for using the Grounded Theory method is to develop theory or
a theoretical framework. To do this, a fundamental research question is required

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that will give flexibility and freedom to explore a phenomenon in depth. The aim
of this study was to answer the fundamental research question, namely:

“How can the development of a framework of network capabilities contribute to a

better understanding of the critical role of network capabilities that not only
enable but can enhance virtual organizing in a virtual network”.

The fundamental research question, inferred from the four main research
questions, finally presents the focus and thrust of the research.

The next section considers aspects pertaining to the research approach that was
followed by the researcher.

3.4 Research approach

The critically important question that needs to be answered in this section is

which research approach is considered appropriate for investigating networking
capabilities that enables virtual organizing. The first part of the discussion
highlights the potential applications of both quantitative and qualitative research
approaches. The second part of the discussion highlights some considerations
pertaining to generally accepted research approaches in the information systems
discipline. The third part of the discussion focuses on important aspects relevant
to the chosen research approach. The final part considers the role of the
researcher in the adopted research approach.

A The choice of an appropriate research approach

Klein and Myers (1999) indicate that quantitative methods have been used in
interpretive research as qualitative methods have been used in positivist
research. Rich and Ginsburg (1999) highlight the similarities that do exist where
both methods of inquiry „share an investigative approach that poses a question,
collects and analyzes data and presents results‟ while „scientific rigor and the

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integrity of a theoretical framework is critical to both‟. Hoepfl (1997) differentiates
quantitative research that „uses experimental methods and quantitative measures
to test hypothetical generalizations‟ from qualitative research that „uses a
naturalistic approach that seeks to understand phenomena in context – specific
settings‟.

Quantitative research is mostly conducted in the positivist tradition (Bryman,

1999). De Vos (1998, p. 15) indicates that quantitative research methods deals
with data that are essentially numerical; and the methods used with this research
approach include laboratory experiments, mathematical modelling as well as
econometrics. A quantitative research approach is therefore considered to be
appropriate when there are strong theoretical underpinnings (Bryman, 1999).
Quantitative researchers seek causal determination, prediction, and
generalization of findings whereas the qualitative researcher seeks illumination,
understanding and the extrapolation to similar situations (Hoepfl, 1997).
Cronbach (1975) indicates that statistical research is not able to take full account
of the many interaction effects that take place in social settings that importantly
impacts on the decision of an adequate research approach to the stated research
problem. This is in contrast to qualitative research that accepts the complex and
dynamic quality of the social world.

It is also important to consider that the aim with this research project is to develop
theory or at least a theoretical framework rather than to test theory. In contrast,
Debreceny et al. (2002) explain the strength of the qualitative research approach
as its capacity to explore human subject motivation and actions within a research
study frame of reference, thereby exposing the richness of the data. In other
words, qualitative research supports the researcher to progress in the
development of theory while, as explained earlier, quantitative research in
contrast enables the researcher to confirm or reject pre-existing theories. It can
be argued that quantitative measures cannot adequately describe or interpret the
existence or the applicability of networking capabilities that enable virtual
organizing. The research problem clearly supports the discovery of new
information that necessitates the implementation of the qualitative approach to

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research. We therefore do not consider the quantitative research method to be
appropriate to the specific needs of the research to be conducted.

B Generally accepted research approaches in the information systems field

Debreceny et al. (2002) indicate that the principal research paradigm used in the
information systems discipline is positivist. They also highlight that while the use
of interpretive research is on the increase, its use is limited to relatively few
studies. Avison and Myers (1995) indicate that there is a general shift in research
to focus on managerial and organizational issues impacting on information
systems. Walsham (1993: p. 4) confirms the applicability and the need to take
into account organizational-related issues and their impact on the information
systems field. Walsham (1995) also recognizes the importance of social issues
considering their relation to computer-based information systems and the
applicability of „interpretive‟ investigations such as in-depth case studies.
Debreceny et al. (2002) importantly states that as an alternative to a positivist
approach, the use of qualitative interpretive research is considered to be
appropriate in the field of Electronic Commerce. It is important to note that
qualitative research is not equivalent to interpretive research. Qualitative
research can be positivist, interpretive or critical.

The next sub-section considers important aspects pertaining to the qualitative

approach to research.

C Considerations related to the qualitative research approach

There are several considerations with respect to the qualitative approach to

research methodology. Strauss and Corbin (1990, p.17) define qualitative
research as “any kind of research that produces findings not arrived at by means
of statistical procedures or other means of quantification”. They claim that
qualitative methods are applicable to research that attempts to understand any
phenomenon about which little is yet known. The qualitative research approach
can also be used to gain new perspectives on things about which more is already
known and to gain more in-depth information that may be difficult to convey

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quantitatively. The ability of qualitative data to more fully describe the
phenomenon as indicated in the research problem lends itself to the discovery of
new information by means of interpretive and qualitative research.

The application and use of the qualitative research approach opens itself to new
areas of research that are not always possible with quantitative research. Fouche
and De Vos (1998: p. 72) consider the qualitative research approach to be
applicable where specific situations exist that necessitates its implementation.
These considerations are listed in Table 3.5.

Table 3.5 Motivations pertaining to the implementation of the qualitative

research approach (Source: Fouche and De Vos, 1998: 72)

Important considerations that necessitates the implementing of the qualitative research approach

Research that cannot be done experimentally based on practical and / or ethical considerations

Research on variables that have not yet been identified.

Research on aspects of policy and practice pertaining to why and where it is not effective.

Research pertaining to unknown societies; also innovative systems.

Research that considers informal and unstructured linkages and processes pertaining to organizations.

Research that considers real, as opposed to specific and stated organizational goals.

Various terms such as “experimental type research” are used that refer to the
characteristics of qualitative research. Since qualitative research methodologies
in research projects have grown in acceptance in recent years its characteristics
and features will be discussed next. Alexander (2002) refers to Busby and Payne
(1998) in naming the following characteristics of qualitative research (Table 3.6.).

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Table 3.6 Characteristics of qualitative research
(Source: Busby and Payne, 1998)

Characteristics of qualitative research

 Holistic  Recognizes diversity

 Phenomena arise through a multiplicity of origins  Based on fieldwork

 Situated  Requires adaptability and high levels of cognitive

effort, understanding and self-confidence on the
 Grounded, typically starting with data and
part of the researcher
developing theory by induction
 Complex and time consuming
 Depends on good planning

Based on the input of several writers Hoepfl (1997) describes the features of the
qualitative research approach as follows:

 Qualitative research uses the natural the natural setting as the source of data.
The researcher attempts to observe, describe and interpret settings as they
are, maintaining what Patton calls an “emphatic neutrality”.

 The researcher acts as the “human instrument” of data collection.

 Qualitative researchers predominantly use inductive data analysis.

 Qualitative research reports are descriptive, incorporating expressive

language and the “presence of voice in the text”

 Qualitative research has an interpretive character, aimed at discovering the

meaning events have for the individuals who experience them, and the
interpretations of those meanings by the researcher. (Note: Hoepfl is not
correct here: as noted before, “qualitative” is not a synonym for “interpretive”,
and qualitative research can be positive, interpretive or critical.)

 Qualitative researchers pay attention to the idiosyncratic as well as the

pervasive, seeking the uniqueness of each case.

 Qualitative research has an emergent (as opposed to predetermined) design,

and researchers focus on this emerging process as well as the outcomes or

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 product of the research.

 Qualitative research is judged using special criteria for trustworthiness.

Although some researchers dispute this, the essential character of the Grounded
Theory method is interpretive. Hughes and Jones (2003) provide the following
guidance about the implementation of the Grounded Theory method to research
projects:

 In the methodological context, the intended Grounded Theory method may differ
from the method used because of the dynamics and context in the domain.
 Grounded Theory is consistent with interpretive case-based field studies dealing
with social and organizational contexts.
 The researcher‟s personal constructs and skills help structure data and it is the
researcher‟s hermeneutic perspective that maintains the interpretive style rather
than the Grounded Theory method.
 Grounded Theory can be very time consuming, particularly in the transcribing,
coding and comparing associated with the data analysis. To fully understand
Grounded Theory, training in Grounded Theory followed by practical use of the
methods in social science is suggested.
 Grounded Theory provides a useful template for researchers and can serve as a
comfort factor for the stressful and uncertain nature of conducting qualitative
research.
 Grounded Theory can generate local empirical theory which although not always
generalizable will be generally useful.
 Grounded Theory can help provide confidence in original and rich research
findings and theory because of its close tie to the data and the rigour of the
method.
 Grounded Theory is rationalized as an external process, but in practice the
method can be an internal process, that enables and facilitates creativity and
innovation for the researcher.

The final sub-section considers the role of the researcher in the qualitative
research approach.

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D The role of the researcher in the qualitative research approach

In following a qualitative (interpretive) research strategy, the researcher views

reality as subjective, and acknowledges the “intimate relationship between the
researcher and what is studied” (Denzin and Lincoln, 1994: p. 2). The researcher
interacts with the subject matter (including participants), and subjectively makes
interpretations of data that are collected or received. This implies that the
researcher‟s personal experiences and background contribute unavoidably to the
understanding of the phenomenon being studied, and this demands a sensitivity
on the part of the researcher to be conscious of the possibility that bias could
distort his/her interpretations.

Strauss and Corbin (1990: p. 42) refer to the importance of the “theoretical
sensitivity” of the researcher in stating: “Theoretical sensitivity refers to the
personal quality of the researcher. It indicates an awareness of the subtleties of
meaning of data, …[It] refers to the attribute of having insight, the ability to give
meaning to data, the capacity to understand, and capability to separate the
pertinent from that which isn‟t”.

Strauss and Corbin (1990) indicate that the researcher obtain theoretical
sensitivity from a number of sources, that include professional literature,
professional experiences, and personal experiences.

It is important to acknowledge that bias is a reality that is present in all research

conducted. Rich and Ginsburg (1999) stress that „the influence of the researcher,
the research question and the method employed can never be completely
neutralized‟. Although it is possible for researchers that implement the qualitative
approach to research to minimize the potential for bias that is inherent in their
methods, they will not be able to completely eliminate a tendency to be biased.
However, acknowledging that subjectivity can never completely be eliminated, it
is the reflective, questioning process pertaining to qualitative investigation that
influences the effect that bias may have on data collection, analysis, and drawing
conclusions. These actions pertain to active observations, evaluation and
counterbalances to be implemented in the process (Rich and Ginsburg, 1999).

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A qualitative, interpretive research approach will be implemented in this research
study. The qualitative research method that was selected was the Grounded
Theory method.

The next section considers aspects of the Grounded Theory.

Table 3.7 Capabilities acquired in executing GTM

Capabilities needed Description

Analytical skills The ability to create order from very unordered sets of
data.

Inductive reasoning The ability to reason „backwards‟- e.g., to create categories

given a set of concepts.

Persistence The ability to read, read again and read yet again.

The researcher acquired these skills by stumblingly executing the steps of the
GTM. All along, however, the researcher had to be open to learn from his
experiences. Beginner researchers should therefore not expect to use the GTM
with efficiency from the start. Rather, they should expect a slow but rewarding
learning experience.

3.5 An overview of the Grounded Theory method

Since the Grounded Theory method is not widely used in the field of information
systems details about the relevant principles and practices of the method are
provided in this section. The Grounded Theory was first described by Glaser and
Strauss in 1967 as a qualitative research method for the study of complex social
behaviour from a sociological point of view. Grounded Theory has since been
actively applied in various different disciplinary contexts (Strauss and Corbin,
1990). Grounded Theory is a primarily inductive investigative process in which
the researcher attempts to formulate a theory or a theoretical framework about a

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phenomenon. The method consists of systematically gathering and analyzing
relevant data (Glaser, 1992). Due to the exploratory nature of this research and
the intention to identify networking capabilities that enable virtual organizing, the
Grounded Theory-based study of data interpretation was selected, and was
blended with the case study design which will be discussed in Section 3.5.3.

It might be helpful at this stage to first consider the various understandings

pertaining to the term „theory‟ and what is meant with „theory development‟ in the
Grounded Theory method of research. Strauss and Corbin (1994, p. 274)
mention the following aspects relating to the development and understanding of
the term „theory‟: “… plausible relationships proposed among concepts and sets
of concepts…Researchers are interested in patterns of action and interaction
between and among various types of social units (i.e. actors)…They are also
much concerned with discovering process – not necessarily in the sense of
stages or phases, but in reciprocal changes in patterns of action / interaction and
in relationship with changes of conditions either internal or external to the
process itself ”.

According to Hughes and Jones (2003), Strauss and Corbin note two important
features of the theory generated by the Grounded Theory method. “Firstly that
they are traceable to the data and secondly that they are „fluid‟, that is to say the
emphasis is on process and the temporal nature of the theory. So then „theory‟ is
used in the method to refer to local empirical models surrounding the
phenomenon under study, it is not substantive. The theory is made apparent
through the production of an „account‟ and/or associated relationship diagrams of
categories” (Hughes and Jones, 2003).

In contrast, Strauss and Corbin claim the theory generated by the Grounded
Theory method to be substantive, and this position will be maintained further in
the study.

The effective application of the Grounded Theory method should produce a

grounded theory, that is, a result grounded in and discovered from the data.

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Strauss and Corbin (1990) conclude that the resulting theory should have fit and
relevance, must work and be readily modifiable.

Researchers that implement the Grounded Theory approach start with a set of
experiences they wish to explore. The basis of the Grounded Theory is that the
researcher attempts to develop a theory inductively from various sources of data.
The theory is generated (or grounded) in a process that consists of continual
sampling and analysis of the data (Strauss and Corbin, 1990). Carvalho et al.
(2002) refer to the dynamic relationship between the data collection and data
analysis as an important characteristic pertaining to the Grounded Theory
approach.

Carvalho et al. (2002) maintain that the Grounded Theory is shaped by two
fundamental analytical commitments, namely, the method of constant
comparison and theoretical sampling. They indicate that the method of constant
comparison specifies that the researcher continually examines and compares
elements such as data instances, emerging categories and theoretical
propositions for the duration of the research project. Theoretical sampling relates
to the sampling of new and relevant data as the process of analysis proceeds.
This means that the researcher does not need to wait until all the data is
collected for the process of analysis to commence. The data analysis starts the
moment sufficient material is available to work on and drives the sampling of any
additional data for the duration of the process. New data is selected for its
potential to enhance the process of generating new theory by extending or
deepening the researcher‟s evolving understanding of the phenomena being
studied.

The methods most preferred for gathering data with the qualitative research
approach include the use of observations, questionnaires and interviews. Strauss
and Corbin (1990) indicate the investigation of archival materials as adequate in
qualitative studies where data sources can be documents, newspapers or books.
Strauss and Corbin (1990) maintain that a „cache of archival material‟ is
equivalent to a collection of interviews and field notes. They indicate that when

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archival material is used, the Grounded Theory procedures that include the
sample and the interplay of coding and sampling follow the same techniques
used with interviews and observational data. The documentary data should not
be located from just a single place since any qualitative study that includes the
Grounded Theory method values triangulation (i.e. the gather of the data from
more than one source of evidence).

The process of analysis in the Grounded Theory begins with „coding‟ the relevant
data. Seaman (1999) relates coding in the context of the Grounded Theory
analysis as the process by which labels (or codes) are generated that describe
the concepts and other relevant features pertaining to certain passages of data.
The researcher continuously searches the data for any similarities as well as
diversities and in the process collects a number of different indicators that may
point to multiple qualitative aspects of a potentially significant concept. The
researcher designates labels to the acquired passages of the text that are
deemed to be relevant to an idea of interest in the study. The labelled passages
of the text are searched for patterns and then grouped together. Each individual
group (or category) is examined in search of meanings, themes and explanations
of the phenomena.

The process of coding is very time consuming and requires the researcher
initially to review sections of data repeatedly. Finally, the researcher assigns
labels to pieces of the text, but the process is repeated once more in order to
check for consistency in the codes used and to ensure that no relevant
information has been overlooked. The pieces of the text that received a label vary
in size and the same piece of text may be coded with different labels. Seaman
(1999) indicates that the researcher may include a set of pre-formed codes at the
start of the process which could have been developed from the goals of the
study, the research questions at hand and pre-established variables of interest.
Carvalho et al. (2002) indicate that codes may also be „post-formed‟ where the
study objectives are very open and unfocused. They also indicate that the
researcher can always add new codes or delete, modify, merge or sub-divide
existing codes as the research progresses.

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The resulting set of codes often has a structure that contains codes and sub-
codes. It is quite possible for the researcher to identify some possibilities for sub-
divisions that exist when re-reading the passages under specific headings.

The data analysis process in the Grounded Theory approach can be described
and summarized as follows:

 The first stage of the analysis process consists of open coding that involves
identifying categories and properties in the data. Open coding include the
breaking down, examining, comparing, conceptualizing and categorizing of the
data as explained above. The data is examined in order to fracture it and to
generate codes. The open coding process will be dealt with in Chapters Four and
Five.

 The axial coding process allows for the concepts that emerged during the open
coding process to be reassembled with propositions about their relationships. In
this stage the fractured data is reassembled by utilizing a coding paradigm that
involves conditions, context, action or interactional strategies and consequences.
The emerging propositions from a theoretical framework that serve as a guide to
further data collection and analysis. The axial coding process will be dealt with in
Chapters Four and Five.

 The selective coding process facilitates the identification of a core category with
explanatory value that furthermore provides the main theme of the study. The
identification of the core category initiates the process of selective coding that
can also be described as the process of delimiting coding in order to arrive at
only those concepts that relate to the core category. In other words, during the
selective coding process the „core category‟ (central phenomenon that needs to
be theorized about) is identified. The different identified categories are then
linked to the core category during the selective coding process. The selective
coding process will be dealt with in Chapter Five.

The next important concept of the Grounded Theory method is the „paradigm
model‟. The paradigm model allows sub-categories to be linked to a category in
a set of relationships representing causal conditions, phenomenon, context,

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intervening conditions, action / interaction strategies and consequences. Strauss
and Corbin (1990) indicate that the paradigm model enables the researcher to
think systematically about the data at hand.

Causal conditions refer to the incidents or events that lead to the occurrence of
the phenomenon. Context refers to specific properties of the phenomenon as well
as to a series of particular conditions that affect the action or interaction
strategies. Intervening conditions may have an influence by facilitating or
constraining the action or interaction strategies in a particular context. Action or
interaction strategies refer to the ways in which the phenomenon is managed,
handled, carried out and responded to, in a certain context and under specific
conditions.

Other strategies used by researchers in Grounded Theory include writing memos

(Glaser, 1992). This is performed during the process of coding and the
researcher gets to record his/her observations as the analysis proceeds. The
goal of writing memos during the process of coding is to ensure that any
„preliminary hypothesis‟ formulated by the researcher is not lost. It also supports
the emergence of additional questions during the process and the re-examination
of the data. The researcher may in addition seek new data to elucidate aspects of
the emerging theory (this relates to theoretical sampling). Theoretical saturation
occurs when new categories can no longer be found in the process of coding.
When theoretical saturation is reached any additional attempts at data collection
proves to be unproductive. At this stage the researcher defines all categories that
have reached saturation, and begins to search for any relationships between the
categories. The researcher then attempts to integrate the categories by
establishing relationships between them. As a possible final result or potential
outcome of the whole process the researcher attempts to formulate propositions
that insightfully describes the phenomenon under study.

Strauss and Corbin (1990) suggest a list of seven criteria that can be used as
guidelines when evaluating the research process in studies using the grounded
theory. It is important to note that specific areas of investigation may require the

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specific listed procedures to be adapted in order to fit the specific circumstances
of the research (Carvalho et al., 2002). The specific set of questions to be
formulated when examining a Grounded Theory study is summarized in Table
3.8.

Table 3.8. Set of criteria to evaluate the empirical grounding of the study
(Source: Strauss and Corbin, 1990)

Criteria for evaluation purposes

Criterion 1 Are the concepts generated?

Criterion 2 Are the concepts systematically related?

Criterion 3 Are there many conceptual linkages and are the categories well developed? Do they have conceptual
density?

Criterion 4 Is much variation built into the theory?

Criterion 5 Are the broader conditions that affect the phenomenon under study built into its explanation?

Criterion 6 Has process been taken into account?

Criterion 7 Do the theoretical findings seem significant and to what extent?

The disadvantage that is linked to the use of constant comparison relates to the
fact that the analysis process is not easy for the beginner researcher. It is
furthermore considered to be a very subjective process and relies a great deal on
the researcher‟s personal abilities. Seaman (1999) points out how the literature
still lacks specific guidance that relates to the intellectual process of finding
patterns in the data. Other benefits to be attained from implementing qualitative
inductive methods such as the Grounded Theory relates to the situation where it
leads the researcher to explore the complexity of the problem that have the
potential to produce richer and more informative outcome or results.

The next sub-section considers the two main approaches to the Grounded
Theory method.

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3.5.1 The ‘Glaserian’ and ‘Straussian’ approaches to Grounded Theory

The natural evolution of the Grounded Theory in practice led to a disagreement

between Glaser and Strauss about the way in which the Grounded Theory
approach should be conducted. The Glaser (1992) approach allows for the
central concept to emerge from the coding process and thereby reflects on the
key problem as perceived by the actors being studied. In this approach to the
Grounded Theory an area for study is selected. This approach then allows issues
to emerge in the course of the research process.

The Strauss and Corbin approach to the Grounded Theory allows the researcher
to elect in advance a focus of observation, interviews and archival gathering on a
particular issue. Coding is then oriented around this specific issue. A central
concept (or „code‟) is then identified to represent the interplay of subjects as well
as the researcher‟s perceptions of the nature and dimensions of phenomena
being studied. This approach to the Grounded Theory is therefore more specific.
It promotes the identification of a phenomenon or issue to be studied. An
important consideration with regard to the approach of Strauss and Corbin is that
it follows a more structured set of analytical steps. This is very helpful when the
researcher is inexperienced. It furthermore allows the inexperienced researcher
to focus on a specific phenomenon or issue, guiding the efforts constructively to a
conclusion.

The analytical method Strauss and Corbin subscribe to is regarded by Glaser to

force rather than to allow for the emergence of theory from the data. This is in
line with their approach to Grounded Theory that is more prescriptive in
specifying the steps to be taken by a researcher in coding and analysing the
identified phenomena. In his approach to the Grounded Theory, Glaser (1992)
relies primarily upon the constant comparison of different incidents, perceptions,
relationships and issues with the objective to identify any inconsistencies,
contradictions, gaps in data and emerging consensus on key concepts and
relationships. Glaser (1992) explicitly states that „in Grounded Theory we do not

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know, until it emerges‟. The use of an action paradigm model as proposed by
Strauss and Corbin makes it possible to include empirical data at an early stage
of the research. Glaser points out that using the paradigm model in the Grounded
Theory forces pre-categorization on the data. Another advantage of the
implementation of the action paradigm model is that identifying general action
categories helps the researcher to systematize data and to see what is in it. It is
of interest to note that Glaser and Strauss (1967) in earlier works also
acknowledged this need for an individual perspective held by the researcher
when entering the empirical field and analysing the data (Axelsson and Goldkuhl,
2004).

Researchers seem to experience practical problems in using the paradigm model

in the coding process related to the discovery of potential relationships between
codes and categories (Urquhart, 2001). The action paradigm model is viewed to
be a strict linear model that inherently lends itself to complexities and practical
problems in its use.

Some researchers seem to be very critical of aspects of the Grounded Theory

approach to research. Bryant (2002), for instance, suggests that the Grounded
Theory approach has an unclear ontological position. Such a viewpoint could be
conceded as correct if all pre-conceptions are left out from the analysis (Axelsson
and Goldkuhl, 2004) whereas Strauss and Corbin (1990, 1998) agree that
pragmatic ontological assumptions should be allowed in the Grounded Theory
method.

The next sub-section briefly reviews the use of the Grounded Theory approach in
Information Systems research.

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3.5.2 The use of Grounded Theory approach in Information Systems
research

Hughes (2004) refers to Myers and Avison (1997) and Urquhart (2001) in stating
that the use of Grounded Theory in the interpretivist tradition is growing in
popularity in IS research literature. He highlights the ability of the method to
support the development of context-based, process-oriented descriptions and
explanations of the phenomenon under study. It is also important to note that the
Grounded Theory is sometimes used in interpretivist studies in a contingent way.
Researchers leverage the procedures and processes associated with the method
when they focus on rigour and traceability in substantive theory development.
Hughes (2004) refers to Baskerville and Pries-Heje (1999) in explaining how the
Grounded Theory is considered to support rigour in the theory development part
of action research.

Hughes (2004) questions whether there is some „correct‟ way of applying the
method whereas Strauss and Corbin (1994) are concerned about method
diffusion. Hughes and Howcroft (2000) argue against the rigid application of the
Grounded Theory in practice. Urquhart (2001) indicates that some of the seminal
advice offered on the Grounded Theory is even contradictory, not least of all the
disagreement between the two original co-authors on its use (Hughes, 2004).
Urquhart (2001) summarizes the difficulties experienced with the use of the
Grounded Theory as follows: “Grounded theory is by definition a rigorous
approach – it demands time, it demands a chain of analysis and the relating
findings to other theories. As it is an inductive, emergent method that is located
mainly in post-positivism, this means that researchers need to carefully consider
their own philoshophical position”. The three recognized and most used
philosophical perspectives to qualitative research in Information Systems include
the positivist, interpretive and critical perspectives (Avison and Myers, 1995).
Hughes (2004) concludes that in Information Systems research the Grounded
Theory as a research method is predominantly used in interpretive studies.

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Following the above review of the Grounded Theory approach, the focus shifts to
this research study, and in particular, to the data that were used.

3.5.3 The data used

An approach that is often followed in conjunction with the Grounded Theory

method, is to use a case study to investigate the particular phenomenon under
study in order to collect the necessary data for analysis. Yin (1989) identifies the
case study approach as follows: “A case study is an empirical inquiry that
investigates a contemporary phenomenon within its real life context, when the
boundaries between phenomenon and context are not clearly evident, and in
which multiple sources of evidence are used”. Taylor and McWilliam (2003)
indicate that case studies are a worthwhile research approach from both an
academic and industrial/commercial perspective because they allow explanations
of particular phenomena derived from empirical research which may be valuable
in other settings and organizations as interpretations of phenomena. Yin (1994)
suggests that the case study „benefits from the prior development of theoretical
propositions to guide data collection and analysis‟ and this supports the Strauss
and Corbin approach to the Grounded Theory that allows for the development of
a preliminary framework.

Orlikowski and Baroudi (1991) refer to Darke et al. (1998) in explaining that case
study research represents the most widely used qualitative research method in
the field of Information Systems research. They emphasize that multiple case
studies allow cross case analysis and comparison, and the investigation of a
particular phenomenon in diverse settings. The case study research techniques
used in qualitative research include a variety of sources, such as interviews,
discussions, observation, document collection, and literature reviews (Yin, 1989).
Walsham (1995) maintains that interviews represent the primary data source with
respect to interpretive case studies.

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In this research a variety of case studies were used in conjunction with the
Grounded Theory method. First, in order to develop a preliminary framework, a
literature case was used, described in A below. Second, in order to refine the
preliminary framework, six field studies were conducted, described in B below.
Finally, the concluding framework was validated against a specific case study,
and this is discussed in Chapter 7, Section 7.6.

A Literature case used in the development of the preliminary framework

A literature case was used to develop the preliminary framework in Chapter Four.
This means that technical literature, i.e., reports of research studies, publications
and theoretical or philosophical journal papers characteristic of professional and
disciplinary writing were used as the data source. The rationale behind this was
simply that obtaining a similar rich set of data would have involved a wide range
of data collection from a variety of sources both nationally and internationally. In
terms of time and cost this was not within the scope of the research. It is
submitted, however, that the data obtained from the literature provided an ideal
starting point for the development of the preliminary framework, and that data
otherwise collected, at source, would not easily have matched the richness of the
data that were available through the literature consulted.

The 21 publications and papers included in the literature case are listed in
Chapter Four. They were theoretically sampled from the bibliography used in the
study – in other words, they were selected on the basis of the contribution they
were deemed to make to the objective of this study – not on a random sampling
basis.

B Field studies used to refine the preliminary framework

The preliminary framework was refined into a concluding framework. This is

described in Chapter Five. In this context, refinement means improving on and
expanding the preliminary framework along the dimensions of specificity,
precision and density. A second objective is to achieve theoretical saturation of
the framework.

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In order to achieve this refinement, further data were collected in six separate
field studies done at six South African web-based organizations. The
organizations differ in terms of their e-product delivery, which are, respectively,
marketing and strategic services; electronic products; and electronic products
and information services. Interviews were conducted with the directors at each of
the organizations. The interviews were transcribed and the resulting textual data
used for analysis as was previously done with the textual data from the literature
case.

3.6 Summary

The goal of this research project is to develop a framework of networking

capabilities (and their inter-relationships) that enable virtual organizing in virtual
networks of organizations. Chapter Three considered aspects pertaining to the
research design to be implemented in the research study towards these
objectives.

Chapter Three also considered the different research approaches and concluded
that an interpretive, qualitative research approach would be appropriate. The
specific qualitative research method that would be employed in the study is the
Grounded Theory method.

An overview of the Grounded Theory method and related aspects were given in
the following sections in Chapter Three. The main advantage of the Grounded
Theory, as a qualitative research method, is that it uses a systemic set of
procedures to develop an inductively derived theory, grounded in data, about the
phenomenon.

The development of the framework consists of two steps. In Chapter Four, a

preliminary framework will be developed through the literature case study and the
concluding framework will be developed in Chapter Five using data obtained from
six field studies.

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The research process followed in this study is illustrated in Figure 3.2.

Do literature study

Research problem formulated in

Formulate research problem
Chapter 1

Research methodology selected

Select research methodology Formulate research objective
in Chapter 3

Formulate research questions

Coding processes applied to

Develop preliminary framework Assemble literature case
literature case in Chapter 4

Apply coding processes to literature case

Coding processes applied to

Develop concluding framework storyline Conduct case study interviews
case study in Chapter 5

Apply coding processes to case study

Interpretation of Grounded
Interpret developed Grounded Theory
Theory in Chapter 6

Evaluation of research in Chapter

Conclude study
7

Figure 3.2. The overall research approach

The next chapter deals with the development of a preliminary framework based
on the literature case.

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Chapter 4

Developing the preliminary framework

4.1 Background 139

4.2 Preamble to the development of a preliminary framework 141

4.3 Articles used in the literature case 142

4.4 Hierarchical processes of coding of the literature case data 148

4.4.1 Open coding of the literature case data 148

4.4.2 Axial coding of the literature case data 155

4.4.3 Selective coding of the literature case data 158

4.5 Implied contribution of the preliminary framework 176

4.6 Summary 178

4.1 Background

The analytical procedures of Grounded Theory as defined by Strauss and Corbin

(1990) were implemented in the study. This chapter explains how the Grounded
Theory methodology was applied to generate a preliminary framework of
networking capabilities used with virtual organizing in the global e-marketplace. A
literature case was used in the research as the principle unit of data in the
development of a preliminary framework. The grounded analysis of the literature
case data enabled categories with properties and dimensions to be developed in
the study. The implementation of the hierarchical coding process of the
Grounded Theory methodology in the literature case is explained in this chapter.
The resultant preliminary framework with its storyline or theoretical schema
describes and indicates inter-relationships that exist between networking
capabilities used in virtual organizing.

The literature review (Chapter 2) showed that the concept of networking

capabilities is not clearly understood while relationships between networking
capabilities, if any, have not yet been established. The development of the
preliminary framework is intended to provide an integrated and systemic view of
networking capabilities used with virtual organizing in the virtual value network of
partners. The research project, with the implementation of the Grounded Theory
methodology, aims to establish a concluding framework (Chapter Five)
considered to be a theoretical framework that indicates reality rather than one‟s
own perspective on the phenomena as well as to create more insight on the
phenomenon (Morse and Richards, 2002) of the study.

The research procedure implemented in the development of the preliminary

framework is outlined in Figure 4.1.

139
 Assemble literature case

Open coding of literature case

Axial coding of literature case

Selective coding of literature case

Figure 4.1 Development of the preliminary framework

There is no existing framework, to our knowledge, that provides insight or a

central focus on networking capabilities used in virtual organizing. The difficulties
experienced by entrepreneurs and their partners in virtual value networks can
often be traced back to a lack of networking capabilities. The integration of
processes in the virtual supply network of partners (Mirijamdotter and Somerville
(2003, 2004) further highlights the need for a better understanding of networking
capabilities used with virtual organizing. Sections 4.2 and 4.3 describe the
literature case used in the development of the preliminary framework. Each step
in the hierarchical process of coding is discussed under separate sub-sections.
The importance of the resultant preliminary framework is discussed in section 4.5
and the chapter then concludes with a summary.

140
4.2 Preamble to the development of a preliminary framework

The data used in the development of the preliminary framework was a literature
case, which will be discussed in more detail in the next section. Pandit (1996)
and Le Roux (2001) also used a literature case for the development of a
preliminary framework. Pandit refers to Strauss and Corbin (1990) to validate this
approach to develop the preliminary framework:

The literature can be used as secondary sources of data. Research

publications often include quoted materials from interviews and field notes
and these quotations can be used as secondary sources of data for your
own purposes. The publications may also include descriptive materials
concerning events, actions, settings, and actors’ perspectives, that can be
used as data using the methods described. (p. 52)

Given the particular nature of the present research study, it was thought
appropriate to use a literature case as a first data set. First, in Chapter Two, an
extensive and penetrating overview was given of contemporary literature
pertaining to the focus of the research study. This enabled the researcher to
develop a good understanding of current ideas and research results about the
object of the study. Second, it would have been quite difficult to equal or improve
on this broad base of data by conducting interviews with entrepreneurs from
select web-based organizations. Such organizations are typically geographically
dispersed, and time and money implications would have been beyond the budget
of the researcher.

Using a literature case to develop the preliminary framework does not mean that
no empirical data was used in the study. As explained before, the development of
the preliminary framework is followed by its refinement into a concluding
framework (in Chapter Five), where the data used came from three empirical
case studies.

141
4.3 Articles used in the literature case

Data sources including documents, newspapers or books also referred to as a

„cache of archival material‟ are considered to be equivalent to a collection of
interviews and field notes (Strauss and Corbin, 1998). The initial case (unit of
study) in the research consists of technical literature on the subject of the use of
networking capabilities with virtual organizing in virtual value networks of
partners. A grounded analysis of the first case, referred to as the literature case
for purposes of further discussions, enables the development of the preliminary
framework of networking capabilities.

The preliminary framework is expected to create more insights into the enabling
role of networking capabilities in order to enhance effective and efficient virtual
organizing in virtual networks of organizations. Chapter Five uses six empirical
field studies in order to test, refine and extend the preliminary framework. Pandit
(1996) refers to such empirical cases introduced only after the completion of the
literature case. He indicates that these empirical cases have a dual purpose:

 To fill theoretical categories in order to extend the emerging framework

 To replicate previous cases in order to test the emerging framework.

The use of the empirical cases in this study was for the first of these purposes.

The publications and papers included in the literature case of the study are:

Benjamin, R. & Wigand, R. 1995. Electronic markets and virtual value chains
on the information superhighway. Sloan Management Review, 36 (2), pp. 62.

Bhatt, G.D. and Emdad, A.F. 2001. An analysis of the virtual value chain in
electronic commerce. Logistics Information Management, 14 (1), pp. 78 – 84.

Boudreau, M.C., Loch, K.D., Robey, D. and Straud, D. 1998. Going Global:
Using information technology to advance the competitiveness of the virtual
transnational organization. The Academy of Management Executive, 12 (4), pp.
120 – 128.

142
Caldeira, M. and Ward, J. 2002. Understanding the successful adoption and
use of IS/IT in SME’s: an explanation from Portuguese manufacturing industries.
Journal of Information Systems, 12, pp. 121 – 152.

Christiaanse, E. and Kumar, K. 2000. ICT-enabled coordination of dynamic

supply webs. International Journal of Physical Distribution & Logistics
Management, 30 (3 / 4), pp. 268 – 285.

Fitzpatrick, W.M. and Burke, D.R. 2001. Virtual venturing and entry barriers:
Redefining the strategic landscape. SAM Advanced Management Journal, 6 (4),
pp. 22 - 30.

Franke, U. 1999. Virtual web as a new entrepreneurial approach to network

organizations. Entrepreneurship and Regional Development, 11 (3), pp. 203 -
230.

Garcίa-Dastugue, S. and Lambert, D. 2003. Internet-enabled coordination in

the supply chain. Industrial Marketing Management, 32, pp. 251 – 263.

Jarvenpaa, S., Tractinsky, N. and Vitale, M. 2000. Consumer trust in an

Internet store. Information Technology and Management, 1 (1-2), pp. 45 – 71.

Kasper-Fuehrer, E. and Ashkanasy, N. 2001. Communicating trustworthiness

and building trust in interorganizational virtual organizations. Journal of
Management, 27, pp. 235 – 254.

Kotha, S. 1998. Competing on the Internet: The Case of Amazon.com.

European Management Journal, 16 (2), pp. 212 – 222.

Lorenzoni, G. and Baden-Fuller, C. 1995. Creating a strategic center to

manage a web of partners. California Management Review, 37 (3), pp. 146.

McAdam, R and McCormack, D. 2001. Integrating business for global

alignment and supply chain management. Process Management Journal, 7 (2),
pp. 113 – 130.

143
Papazoglou, M.P., Ribbers, P. and Salgatidou, A. 2000. Integrated value
chains and their applications from a business and technology standpoint.
Decision Support Systems, 29 (1), pp. 323 – 342.

Pihkala, T., Varamaki, E. and Vesalainen, J. 1999. Virtual organization and the
sme’s: a review and model development. Entrepreneurship & Regional
Development, October-December 1999, 11 (4), pp. 335 – 349.

Serve, M. and Yen, D. 2002. B2B - Enhanced supply chain process: toward
building virtual enterprises. Business Process Management Journal, 8(3),
pp. 245 - 253.

Tetteh, E. and Burn, J. 2001. Global strategies for SMe-business: applying the
small framework. Logistics Information Management, 14 (1 / 2), pp. 171 - 180.

Van Hoek, R. 2001. E-supply chains: virtually non-existing. Supply Chain

Management: An International Journal, 6 (1), pp. 21 - 28.

Voss, H. 1996. Virtual organizations: The future is now. Strategy &

Leadership, 24 (4), pp. 12 – 17.

Watson, R., Akselson, S. and Pitt, L. 1998. Attractors: Building mountains in

the flat landscape of the World Wide Web. California Management Review,
40 (2), pp. 36 – 56.

Weigand, H. and Van den Heuvel, W. 2002. Cross-organizational workflow

integration using contracts. Decision Support Systems, 33 (3), pp. 247 – 265.

The decision to include an article in the literature case was based on its potential
to deliver data on virtual organizing in the value network of partners. This may be
illustrated by means of an example. Jarvenpaa and Tanriverdi (2002) in the
article „Leading virtual knowledge networks‟ mention various important concepts
of virtual organizing. Their article published in Organizational Dynamics was not
included in the literature case since it does not provide any detailed discussion.
Data is the basic building blocks of GTM and articles were selected that provide
detail discussion on virtual organizing.

144
One more important consideration guided the selection of articles for the
literature case. Articles considered for inclusion needed to provide a holistic
approach to the topic of virtual organizing in virtual value networks. An article that
focused on only one aspect of virtual organizing was not considered for inclusion
in the literature case.

The motivation and reason for the inclusion of articles in the literature case is
listed in Table 4.1.

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Table 4.1 Reasons for inclusion of publications and articles

Article Motivation for inclusion of article

Benjamin, R. & Wigand, R. 1995. Electronic markets and virtual Detailed and broad discussion of virtual organizing activities in the
value chains on the information superhighway. Sloan Management virtual value chain.
Review, 36 (2), pp. 62.

Bhatt, G.D. and Emdad, A.F. 2001. An analysis of the virtual Number of different technical concepts of virtual organizing
value chain in electronic commerce. Logistics Information discussed.
Management, 14 (1), pp. 78 – 84.

Boudreau, M.C., Loch, K.D., Robey, D. and Straud, D. 1998. Technical discussion of concepts of virtual organizations in some
Going Global: Using information technology to advance the detail.
competitiveness of the virtual transnational organization. The
Academy of Management Executive, 12 (4), pp. 120 – 128.

Caldeira, M. and Ward, J. 2002. Understanding the successful Number of concepts of virtual organizing in supply network
adoption and use of IS/IT in SME’s: an explanation from discussed.
Portuguese manufacturing industries. Journal of Information
Systems, 12, pp. 121 – 152.

Christiaanse, E. and Kumar, K. 2000. ICT-enabled coordination Number of concepts of virtual cooperation in supply network
of dynamic supply webs. International Journal of Physical discussed.
Distribution & Logistics Management, 30 (3 / 4), pp. 268 – 285.

Fitzpatrick, W.M. and Burke, D.R. 2001. Virtual venturing and Strategic and overall look at virtual value networks.
entry barriers: Redefining the strategic landscape. SAM Advanced
Management Journal, 6 (4), pp. 22 - 30.

Franke, U. 1999. Virtual web as a new entrepreneurial approach Extensive discussion of virtual organizing in the virtual value
to network organizations. Entrepreneurship and Regional network.
Development, 11 (3), pp. 203 - 230.

Garcίa-Dastugue, S. and Lambert, D. 2003. Internet-enabled Overall discussion of concepts of virtual coordination in virtual
coordination in the supply chain. Industrial Marketing supply network.
Management, 32, pp. 251 – 263.

Jarvenpaa, S., Tractinsky, N. and Vitale, M. 2000. Consumer Discussion on virtual trust and impact on virtual organizing in the
trust in an Internet store. Information Technology and virtual value network.
Management, 1 (1-2), pp. 45 – 71.

Kasper-Fuehrer, E. and Ashkanasy, N. 2001. Communicating Provides thorough discussion on impact of trust formation on virtual
trustworthiness and building trust in interorganizational virtual organizing in virtual value network.
organizations. Journal of Management, 27, pp. 235 – 254.

Kotha, S. 1998. Competing on the Internet: The Case of Case study of Amazon with broad approach to virtual organizing in
Amazon.com. European Management Journal, 16 (2), pp. 212 – virtual value network.
222.

Lorenzoni, G. and Baden-Fuller, C. 1995. Creating a strategic Broad discussion of impact on virtual organizing in virtual supply
center to manage a web of partners. California Management network.
Review, 37 (3), pp. 146.

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Table 4.1 Reasons for inclusion of publications and articles (continued)

McAdam, R and McCormack, D. 2001. Integrating business for Wide-ranging and technical discussion of virtual cooperation in
global alignment and supply chain management. Process virtual supply network.
Management Journal, 7 (2), pp. 113 – 130.

McAdam, R and McCormack, D. 2001. Integrating business for Inclusive discussion on concepts of virtual organizing in virtual
global alignment and supply chain management. Process supply networks of partners.
Management Journal, 7 (2), pp. 113 – 130.

Papazoglou, M.P., Ribbers, P. and Salgatidou, A. 2000. Widespread discussion on virtual coordination concepts in virtual
Integrated value chains and their applications from a business and value networks.
technology standpoint. Decision Support Systems, 29 (1), pp. 323
– 342.

Pihkala, T., Varamaki, E. and Vesalainen, J. 1999. Virtual Discussion of concepts of virtual organizing and networking
organization and the sme’s: a review and model development. capabilities.
Entrepreneurship & Regional Development, October-December
1999, 11 (4), pp. 335 – 349.

Serve, M. and Yen, D. 2002. B2B - Enhanced supply chain Broad look at various concepts of supply chain and virtual
process: toward building virtual enterprises. Business Process organizing.
Management Journal, 8(3), pp. 245 - 253.

Tetteh, E. and Burn, J. 2001. Global strategies for SMe- Different concepts of virtual organizing discussed in some detail.
business: applying the small framework. Logistics Information
Management, 14 (1 / 2), pp. 171 - 180.

Van Hoek, R. 2001. E-supply chains: virtually non-existing. Different wide-ranging aspects of virtual supply network discussed.
Supply Chain Management: An International Journal, 6 (1), pp. 21 -
28.

Voss, H. 1996. Virtual organizations: The future is now. Discussion of virtual value network and implications for virtual
Strategy & Leadership, 24 (4), pp. 12 – 17. organizing

Watson, R., Akselson, S. and Pitt, L. 1998. Attractors: Building Concepts of virtual value network with impact on virtual organizing
mountains in the flat landscape of the World Wide Web. discussed.
California Management Review, 40 (2), pp. 36 – 56.

Weigand, H. and Van den Heuvel, W. 2002. Cross- Practical case studies with discussion of impact on virtual
organizational workflow integration using contracts. Decision organizing
Support Systems, 33 (3), pp. 247 – 265.

These publications and papers formed the qualitative database used in the
analysis process in order to arrive at a preliminary framework. The steps in the
hierarchical coding processes of the Grounded Theory method are discussed in
the next section.

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4.4 Hierarchical processes of coding of the literature case data

The process of analysis in Grounded Theory is initiated with „coding‟ the data.
Data analysis of the literature case can be explained as generating concepts
through the process of coding that results in the development of categories.
Strauss and Corbin (1998, p. 57) consider this to be the „central process by which
theories are built from data‟.

The hierarchical steps in the coding of data are open coding, axial coding and
selective coding (see Chapter Three). These codes are generated and validated
using the constant comparison method (Sarker et al., 2001).

Open coding is concerned with labelling and categorizing of concepts in the data.
Open coding involves the application of the „constant comparison method‟ of
asking questions and making comparisons. The data first needs to be broken
down by asking simple questions such as what, where and how. Data are then
compared and similar incidents are grouped together and given the same
conceptual label. Axial coding is the process where data is put back together in
new ways by making connections between a category and sub-categories. Axial
coding involves the process of developing main categories as well as sub-
categories. Selective coding involves integrating the categories developed in
order to form the preliminary framework (Pandit, 1996).

The application of the three coding processes to arrive at the resultant

preliminary framework is discussed in the next sub-sections.

4.4.1 Open coding of the literature case data

The purpose of analytic tools is to increase sensitivity, to help the user recognize
„bias‟ and to overcome „analytic blocks‟ (Strauss & Corbin, 1998, p. 87). They
indicate the „use of questioning‟, „analysis of a word, phrase or sentence‟ and
„further analysis through comparisons‟ as analytical procedures for identifying

148
and developing categories. The main research question with the supporting
research questions (Chapter Three) stimulate the generation of ideas as well as
the ways the researcher looks at the data (Strauss & Corbin, 1998) in the
process of discovering categories.

The main objective of qualitative research to develop theory requires the main
research question to be framed in a „manner that will provide the flexibility and
freedom to explore the phenomenon in depth‟ (Strauss and Corbin, 1998, p. 40).
The implementation of research questions, both main and supportive, in
grounded theory methodology tends to be action or process oriented and
ensures that the researcher maintains focus (Strauss and Corbin, 1998).

One hundred and sixteen concepts were discovered to be grouped into

categories. Strauss and Corbin (1998) define the term categories as “Concepts
that stand for phenomena”. The process of grouping the concepts at a higher,
more abstract, level is defined as „categorizing‟ in the Grounded Theory
methodology.

Nine categories were discovered through the process of open coding. No sub-
categories were identified. Initial identification of categories, derived from
concepts, stimulated new concepts to be discovered from the data with resultant
identification of new or changed categories. As part of the open coding process,
categories are further specified in terms of their properties, as discussed later in
this section. The process of open coding is illustrated in Figure 4.2

149
 Read literature case data

Label concepts

Group concepts into categories

Develop categories in terms of properties

and dimensions

Consider sub-categories

Figure 4.2 Open coding of literature case data

Analysis worksheets have been used in the research project to summarize and
facilitate findings of the process of open coding indicated in Figure 4.2. Exhibit
4.1 is a sample illustrating how the analysis worksheets were used and how it
worked in practice. Both the literature case study as well as the relevant nine
coding analysis worksheets are included in Annexure 1.

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Exhibit 4.1 Example of an analysis worksheet extracted from Annexure 1

Category Web-based trust formation

Concepts contained in the category

E-partner interest enhancement Innovative e-product development

Web-driven culture formation E-partner profile development

E-partner relationship building E-partner commitment

E-partner value chain collaboration E-partner experience enhancement

Shared virtual business strategy/vision E-partner loyalty

E-partners risk attitude E-partner trust communication

Properties Dimensions

E-commerce value chain relationship Individual Partnership

E-partner business commitment Separate Entity

E-partner Information sharing Inaccurate Accurate

Web-based information exchange Irregular Free-flow

Web-based communication Forced Spontaneous

Sources

Fitzpatrick, W. 2001 ; Franke, U. 1999 ; Jarvenpaa et al., 2000 ; Kotha, S. 1998;

Lorenzoni & Baden-Fuller, C. 1995 ; Pikhala et al., 1999 ; Voss, H. 1996 ;

Watson et al., 1998 ; Kasper-Fuehrer, E. & Ashkanasy, N., 2001.

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Open coding of the literature case data resulted in the discovery of nine
categories:

1. Web-based trust formation

2. Web-driven customer focus

3. Web-driven value chain integration

4. Web-driven partner communication

5. Web-driven partner learning

6. Supply chain shared e-commerce vision

7. E-commerce information management

8. Web-driven supply chain co-operation

9. E-commerce oriented product delivery

The developed categories were specified in terms of their properties and

dimensions (Strauss and Corbin, 1998, p. 116). Properties indicate specific
characteristics or attributes of a category whereas dimensions represent the
location of a property along a continuum or range (Strauss and Corbin, 1998, p.
117). The worksheets for each of the nine identified categories indicating relevant
properties and dimensions are listed in Annexure 1.

The nine categories developed using open coding will form the basic building
blocks of the resulting preliminary framework. The nine categories identified
through open coding and their relevant concepts are described in Table 4.2.

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Table 4.2 The identified categories with relevant concepts

Web-based trust formation Web-driven customer focus Web-driven supply chain integration

E-partner interest enhancement E-commerce customer loyalty development Web-driven synchronized activities
Web-driven culture formation Web-based customer partnership formation Web-driven systems integrity
E-partner relationship building E-customer value delivery Service delivery capacity maximization
E-partner value chain collaboration E-commerce product solution delivery Web-driven value chain product delivery
Shared virtual business strategy / vision Web-driven e-partner community Information driven inventory turnover
E-partners risk attitude development enhancement
Innovative e-product development Web-based customer-to-customer Competence/resource utilization
E-partner profile development interaction Value chain integrated product delivery
E-partner commitment Web-based customer information support systems
E-partner experience enhancement Web-driven customized needs delivery Real-time value chain process information
E-partner loyalty E-partner personalized customer interaction exchange
E-partner trust communication Customer value change responsiveness Value chain information broker capabilities
E-product service orientation Value-chain partners minimization
Real-time performance measurement
Real-time process system integration
Supply chain flexibility

Web-driven partner communication Web-driven partner learning Supply chain shared e-commerce
vision

Web-driven consumer interest intelligence E-partner quality expertise enhancement E-partner strategic fit
Web-driven partner relationship building Web-driven efficiencies enhancement E-market scale efficiencies
Web-based effective product information E-partner value chain network formation E-customer innovative value delivery
exchange Web-driven value chain process re- E-customer loyalty creation
Web-based brand enhancement engineering E-customer focused shared understanding
Web-based authoritative product selection E-commerce customer value proposition E-commerce value delivery change agents
support E-partner learning culture development Web-driven concept market delivery
E-partner specialized information transfer Flexible value chain capabilities E-partner complementary specialization
Web-based customer support E-commerce product innovation E-value delivery differentiation
Web-driven customer need / relations E-commerce customer value shifts E-commerce innovation leadership
Value chain logistics effectiveness identification E-partner innovative product leadership
E-partner strategic information exchange E-partner skills development E-product value shift response
Value-chain information exchange E-partner market orientation E-market development/penetration
E-partner value chain efficiency E-market share enhancement
E-partner value adding capability

153
Table 4.2 The identified categories with relevant concepts (continued)

E-commerce information management Web-driven supply chain co-operation E-commerce oriented product delivery

E-partner information/intelligence system E-partner protocol to cooperation E-market „one-stop‟ shopping

System information enhancement E-partner information leverage E-solution product delivery
Web-driven business objectives alignment E-partner specialization interdependence E-product feature enhancement
E-commerce global customer segmentation Web-based real-time customer interaction E-partner product design focus
E-partner product information leverage E-partner relationship structuring E-value delivery focus
Web-based rich/unique information Supply chain capability efficiency Global customer segment business
E-commerce oriented value proposition E-partner relationship coordination management
determinants E-partner unique product enhancement Customized product delivery
E-partner quality information search Inter-organizational system development E-partner flexible response
capabilities E-partner customer solutions New technology enabled product offerings
E-commerce brand differentiation Product offering quality specification Product related innovation capabilities
E-commerce product intelligence E-partner enabled economies of scale Web-technologies implementation
E-commerce product offering value Product delivery capabilities development
proposition E-product service delivery time
New product to e-commerce market timing E-market development
E-customer value shift needs
E-customer buying pattern intelligence
E-partner real-time information sharing
E-partner organizational memory
enhancement

Axial coding procedurally follows after the open coding process has been
completed (See Figure 4.1). Axial coding in the Grounded Theory methodology
enables identified categories to be linked at the level of properties and
dimensions. The next sub-section explains how inter-relationships between the
nine identified categories were established through the implementation of the
paradigm model of Grounded Theory.

4.4.2 Axial coding of the literature case data

Axial coding is the next step after the completion of the open coding process of
the Grounded Theory methodology. Using open coding a set of nine categories
was discovered. Using axial coding the nine identified categories were ordered
and arranged in terms of their relationships with each other. The process of axial
coding is illustrated in Figure 4.3.

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 Categorize concepts

Develop depth of categories

Relate structure to process

Relate category to sub-category

Figure 4.3 Data analysis during axial coding

Axial coding can be described as a set of procedures that allows data to be put
back together in new ways after the process of open coding has been completed.
This is accomplished by making connections between categories.

The networking capabilities included in the framework are defined in Table 4.3.

155
Table 4.3 Definitions of networking capabilities

Web-based trust formation Ability to identify, define and develop strategies to address existing
doubts and fears of potential users in the e-marketplace in order to
turn potentials into partners.

E-commerce information Capability pertaining to information acquisition and information

management utilization that relates to customers and competitors to enhance
marketing strategy decisions.

E-commerce oriented Capability that enables the e-business to develop, add value and
product delivery differentiate its offerings as well as commercialize this product
offerings in the virtual value network of partners.

Web-driven supply chain co- Collective capability that enables dependencies pertaining to skills,
operation expertise and competencies to be leveraged in the virtual supply chain
of partners.

Web-driven value chain Collective capability to identify, develop and implement business
integration processes for producing and delivering products and services in
electronic markets.

Supply chain shared e- Collective capability to identify, define and develop customer value to
commerce vision be delivered in electronic markets.

Web-driven customer focus Capability of the firm to identify, define and develop strategies to
address market-related needs of users in electronic markets.

Web-driven partner Capability to establish linkages of interactivity that enable and promote
communication the sharing of information in the virtual value network of partners.

Web-driven partner learning The capability to acquire, disseminate and use information obtained
through inter-relationships with partners in electronic markets that
impact customer value delivery.

An underlying assumption of the Grounded Theory methodology is that each

category has links with other categories established during the open coding
process: the final element of axial coding, according to Strauss and Corbin (1998,
p. 126) entails the process of „looking for cues in the data that denote how major
categories might relate to each other‟.

The next step in the process of axial coding therefore is to search for and
establish relationships between the categories identified in open coding of the

156
literature case data. The links that were identified from the literature case data
are indicated in Table 4.4.

Table 4.4. The inter-relationships between categories

Web-driven Web-driven Supply Web-based E-commerce Web-driven Web-driven Web- E-

value chain customer chain partner information supply partner driven commerce
To
integration focus shared e- trust management chain communication partner oriented
commerce formation cooperation learning product
vision delivery
From

Web-driven Enables
value chain and
integration supports

Web-driven Serves and

customer supports
focus

Supply chain Enables

shared e-
commerce
vision

Web-based Enables
partner trust
formation

E-commerce Enables
information
management

Web-driven Supports and

supply chain delivers
cooperation

Web-driven Determine
partner and specify
communication

Web-driven Serves and

partner supports
learning

E-commerce Support
oriented and results
product in
delivery

The links between categories, listed in Table 4.4, may also indicate subordinate-
relationships between identified categories. A subordinate category is referred to
as a sub-category in the Grounded Theory method. A sub-category implicates
the existence of similar meaning to be established with a different category
identified in the process of open coding. Axial coding of the literature case data

157
indicates that no sub-categories could be established from the literature case
data.

The research study deviated from the procedure for the use of the Grounded
Theory methodology (Strauss and Corbin, 1990) in reporting the findings of the
analysis of literature case data. The introduction of the paradigm model of axial
coding is only discussed in the next section since its use [in axial coding] enabled
relationships between categories to be discovered that happened concurrently
with the identification of the core category of selective coding. All relevant
concepts that relate to the paradigm model and core category are explained and
dealt with in sub-section 4.5.3.

The next section discusses the use of selective coding in order to develop the
preliminary framework with storyline of the study.

4.4.3 Selective coding of the literature case data

Selective coding in the Grounded Theory methodology involves integrating the

nine categories developed in open coding to form the preliminary framework. The
preliminary framework integrates the categories around the core category in the
study (which will be discussed later on in the sub-section). Integrating the nine
categories is made possible with the paradigm model that functions as a process
model linking the action/interactional sequences. Selective coding of the literature
case data enables the preliminary framework with storyline to be developed that
indicates and explains inter-relationships between the categories of open coding.

The process of selective coding is illustrated in Figure 4.4.

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 Identify core category

Further integration of categories

Refine theoretical schema

Figure 4.4 The process of selective coding

In the selective coding process the paradigm model (discussed below) was used
to consider the conditions for the use of networking capabilities in virtual
organizing, the context in which networking capabilities need to be used with
virtual organizing in virtual value networks of partners; the action/interaction
strategies that indicate the inter-relationships between networking capabilities
implemented and the consequences of the strategies that relate to desired
outcomes of the implementation of various identified networking capabilities
(Strauss & Corbin, 1998, p.130).

Strauss and Corbin (1998, p.142) explain the paradigm model to be „just one
device that analysts can use to think about relationships‟ between categories
developed in the open coding process. The paradigm model is considered to
provide a useful perspective on the literature case data to uncover and explain
relationships that exist between categories and sub-categories (Strauss and
Corbin, 1998, p. 128). Strauss and Corbin (1998, p.128) consider the paradigm
model to be „another analytical stance that helps to systematically gather and
order data in such a way that structure and process are integrated‟ which are
closely related to the process of selective coding that Pandit (1996) describes as
„the integration of the categories that have been developed to form the initial
theoretical framework‟ of the study.

159
Central to the paradigm model is the core category which needs to be explained
in relation to causal conditions, context, intervening conditions, action/interaction
strategies and consequences. The basic features of the paradigm model are
illustrated in Figure 4.5.

Causal conditions Core category Context

Consequences Action / Interaction strategies Intervening conditions

Figure 4.5 Basic features of the paradigm model

The components that form part of the paradigm model are illustrated in Figure 4.6
and listed in Table 4.5.

Context

Causal conditions Core category

Action/inter-action Intervening
strategies conditions

Consequences/
outcomes

Figure 4.6 Simplified paradigm model (Adapted from Le Roux, 2001)

160
Table 4.5 The components of a paradigm model

Component Description

Core Category The term indicates an extraordinary or remarkable thing. A core category
indicates a problem, issue, an event, or a happening that is defined as being
significant to respondents (Strauss and Corbin, 1996).

Causal Condition The events that lead to the development of the core category (Pandit, 1996)

Context Refers to the particular set of conditions and intervening conditions, the broader
set of conditions, in which the phenomenon is couched (Pandit, 1996).

Intervening Conditions These conditions act to either facilitate or constrain the action/interaction
strategies taken within a specific context. Intervening conditions can be thought
of as the broad structural context pertaining to the phenomenon. May have
influence by facilitating or constraining the action/ interaction strategies, in a
particular context (Strauss and Corbin, 1996, p. 132-133).

Action/ interaction The actions and responses that occur as the result of the phenomenon (Pandit,

strategies 1996). Action / interaction strategies are strategic or routine responses made by
individuals or groups to issues, problems, happenings or events that arise under
those conditions and are represented by the questions by whom and how
(Strauss and Corbin, 1996, p.128).

Consequences Refers to outcomes, both intended and unintended, of actions and responses
(Pandit, 1996). Are represented by questions as to what happens as a result of
those actions/interactions or the failure of persons or groups to respond to
situations by actions/interactions, which constitutes an important finding in and of
itself (Strauss and Corbin, 1996, p. 128).

During the process of identification and verification of relations between the

emerging categories of open coding „Web-based trust formation’ was identified
as the core category of the paradigm model. „Web-based trust formation‟ was
found to be the category which best enables and facilitates the creation of orderly
systematic relationships (Strauss and Corbin, 1990, p. 124) to be established
according to the paradigm model.

The components of the paradigm model stimulated the process to link categories
identified in the data, classifying them as causal conditions, context, intervening
conditions, action-interaction strategies or consequences. The paradigm model
thus enabled the nine networking capabilities, identified in the open coding
process, to be systematically aligned in a structure around the core category.

161
The next step in the process of selective coding allowed for the other categories
to be related to the core category. The process demands that each category be
evaluated individually in relation to the core category, namely, „Web-based trust
formation‟. For purposes of discussion, to illustrate the process, we consider
„Web-driven supply chain co-operation‟. Questions were used to determine where
each category fits in the paradigm model. This is illustrated in Figure 4.7.

Causal conditions Core category Context

'Web-driven supply chain cooperation'

Consequences Action / Interaction strategies Intervening conditions

Figure 4.7 Linking a category to components of the paradigm model

The category named „Web-driven supply chain co-operation‟ may be linked to

any of the components of the paradigm model. The question that had to be
answered, was where the specific category fits best in the paradigm model. That
is: “Is it an intervening or a causal condition? Is the category action oriented or
does it apply to the context? Asking additional questions were helpful to establish
whether a category was caused by another of the identified networking
capabilities. This line of questioning enabled the researcher to conclude that
„Web-driven supply chain co-operation‟ should be considered a causal condition
in relation to the core category of the paradigm model. Similarly, an additional
two categories were identified as causal conditions to the core category, namely
„Web-driven value chain integration‟ and „Supply chain shared e-commerce
vision‟.

162
With the core category identified as „Web-based trust formation‟, a new line of
questioning had to be implemented to determine which categories could be
linked to action/interaction strategy used in virtual organizing. The process led to
the category „E-commerce information management‟ to be selected as the
action/interaction strategy of the paradigm model.

The next step in the process was to determine which of the categories might
intervene or mediate the action / inter-action strategy identified as „E-commerce
information management’. The processes „Web-driven customer focus‟, „Web-
driven partner learning‟ and „Web-driven partner communication‟ were identified
as the intervening conditions in the paradigm model.

The process then concluded with the introduction of a line of questioning aimed
at determining which categories identified in the open coding process related to
consequences. The conclusion was drawn that the networking capability „E-
commerce oriented product delivery‟ best fits the component of consequences.

The development of the paradigm model was an iterative process where the
relationship of each category and its fit in the paradigm model were verified
through recurring systematic analysis. Construct validity as well as relationships
validity of the paradigm model was established in the process of generating and
testing propositions.

The identified relationships between categories of the paradigm model are

presented in Table 4.6.

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Table 4.6 The identified relationships between various categories

Categories

Causal conditions Web-driven value chain integration

Supply chain shared e-commerce vision

Web-driven supply chain co-operation

Context Virtual organizing in e-business suggests high

levels of trust between partners and customers.

Core category Web-based partner trust formation

Action/ interaction strategies E-commerce information management

Intervening conditions Web-driven customer focus

Web-driven partner communication

Web-driven partner learning

Consequence /outcome E-commerce oriented product delivery

The grounded analysis of the technical literature on the subject area thus led to
the paradigm model, illustrated in Figure 4.8.

164
 Context

Causal conditions
Virtual organising in e-commerce
suggests high levels of trust
between partners
Web-driven supply chain co-
operation

Phenomenon

Web-driven value chain integration

Web-based trust formation

Supply chain shared e-commerce

vision

Intervening Conditions

Web-driven customer focus

Web-driven partner communication

Web-driven partner learning

Action / Interaction strategy

E-commerce information
management

Consequence / Outcome

E-commerce oriented product

delivery

Figure 4.8 The resulting paradigm model of the central phenomenon

165
The third element of Grounded Theory is propositions that describe relationships
between the components of the paradigm model. Propositions „indicate
generalised relationships between a category and its concepts and between
discrete categories (Pandit, 1996). Pandit (1996) refers to Whetten (1989) and
differentiates between propositions that „involve conceptual relationships‟ and
hypotheses that „require measured relationships‟. Strauss and Corbin (1998,
p.135) describe „hypotheses‟ as „hunches about how concepts relate‟.
Hypotheses about related concepts, i.e., about concepts that are linked, explain
the what, why, where and how of a particular phenomenon (Strauss and Corbin,
1998, p. 135.). The development of propositions is an iterative process aimed at
validating relationships among categories that were integrated in the paradigm
model.

The nine propositions that have been generated, refined and validated through
continuous comparison of the literature case data are listed in Table 4.7. These
propositions may also be referred to as the „generalized relationships‟ of the
paradigm model (Pandit, 1996) in the development of the preliminary framework
with storyline.

166
Table 4.7 Propositions generated from the literature case data

Propositions Explicitly supported by: Implicitly supported by:

Successful e-commerce oriented product Jarvenpaa et al., 2000; Tetteh & Burn, 2001;

delivery supports more effective web-based Jarvenpaa et al., 2000;

trust formation Franke, 1999;

Web-driven supply chain cooperation used in Voss, 1996; Voss, 1996;

virtual organizing supports effective web-based Lorenzoni & Baden-Fuller, Weigand & vd Heuwel, 2002;
trust formation 1995; Kasper-Fuehrer & Ashkanasy,
Franke, 1999; 2001;

Successful web-driven value chain integration Kasper-Fuehrer & Ashkanasy, Weigand & vd Heuwel, 2002;

with virtual organizing supports effective web- 2001;

based trust formation Lorenzoni & Baden-Fuller,

1995;

Franke, 1999;

Supply chain shared e-commerce vision Voss, 1996; Kasper-Fuehrer & Ashkanasy,

supports web-based trust formation in virtual Watson et al., 1998; 2001;

organizing Kasper-Fuehrer & Ashkanasy, Franke, 1999;

2001; Pihkala et al., 1999;

Lorenzoni & Baden-Fuller,

1995;

Web-based trust formation enhances effective Kasper-Fuehrer & Ashkanasy, Lorenzoni & Baden-Fuller,

e-commerce information management in virtual 2001; 1995;

organizing
Jarvenpaa et al., 2000;

The achievement of web-driven customer focus Serve et al., 2002; Tetteh & Burn, 2001;

supports effective e-commerce information Van Hoek, 2001; Garcia-Dastugue & Lambert,
management Watson et al., 1998; 2003;

Kotha, 1998; Benjamin & Wigand, 1995;

McAdam & McCormack, 2001; Boudreau et al., 1998;

167
 Table 4.7 Propositions generated from the literature case data (continued)

Propositions Explicitly supported by: Implicitly supported by:

Successful web-driven partner communication Voss, 1996; Serve et al., 2002;

supports effective e-commerce information Watson et al., 1998; Tetteh & Burn, 2001;
management in virtual organizing Garcia-Dastugue & Lambert, Kotha, 1998;
2003; McAdam & McCormack, 2001;
Lorenzoni & Baden-Fuller,
1995;

Successful web-driven partner learning Serve et al., 2002; Tetteh & Burn, 2001;

supports effective e-commerce information Van Hoek, 2001; McAdam & McCormack, 2001;
management in virtual organizing Caldeira & Ward, 2002; Fitzpatrick & Burke, 2001

Bhatt & Emdad, 2001;

Effective e-commerce information management Serve et al., 2002; Van Hoek, 2001;

supports e-commerce oriented product delivery Tetteh & Burn, 2001; McAdam & McCormack, 2001;

Watson et al., 1998;

Benjamin & Wigand, 1995;

Bhatt & Emdad, 2001;

These propositions were generated using the literature case data and link
concepts and categories including the core category of the paradigm model. The
propositions indicate how the categories developed in open coding are related to
the key phenomenon „Web-based trust formation‟.

One of the propositions that was developed from the literature case data
indicates that successful e-commerce oriented product delivery supports more
effective „Web-based trust formation‟. This shows that „E-commerce oriented
product delivery‟, which was previously (see Table 4.6) established as an
outcome or consequence, also features as a causal condition for „Web-based
trust formation‟.

The set of propositions that describes relationships between categories guides

how categories relate to components of the paradigm model. How categories

168
relate to each other as well as to components of the paradigm needs to be
interpreted in terms of the set of propositions (see Table 4.7) of the paradigm
model in the research study. The relationships between components of the
paradigm model therefore impact on the interpretation of relationships between
categories guided by and inductively derived from the propositions of the
paradigm model.

The paradigm model and set of propositions developed enables „Web-based trust
formation‟ that was established as the core category to be interpreted as follows:

The formation of trust between the various partners in the virtual network is
required to secure success in virtual organizing. The conditions of ‘Web-driven
supply chain co-operation’, ‘Web-driven value chain integration’ and ‘Supply
chain shared e-commerce vision’ are pre-requisites to ‘Web-based trust
formation’. The steps that will promote effective ‘E-commerce information
management’ are influenced and conditioned by factors such as:

 ‘Web-based customer focus’

 ‘Web-driven partner communication’

 ‘Web-driven partner learning’

Due to the above intervening conditions, separately or together, steps introduced

to enhance effective ‘E-commerce information management’ will only be
successful where high levels of ‘Web-based trust formation’ exist. As a
consequence, ‘E-commerce oriented product delivery’ may not be achieved
satisfactorily.

The storyline of the research project formulates and describes the link between
the categories and the central category as follows:

The enabling role of networking capabilities with virtual organizing highlights the
importance of the formation of high levels of ‘Web-based trust formation’
between partners in the virtual network (partners include e-commerce customers

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and virtual network value chain partners). Steps to support the formation of ‘Web-
based trust formation’ include some of the other networking capabilities such as
‘Web-driven supply chain co-operation’, ‘Web-driven value chain integration’ and
‘Supply chain shared e-commerce vision’. These very important networking
capabilities serve as conditions that enable and enhance the achievement of the
networking capability of ‘Web-based trust formation’. The networking capability of
‘E-commerce information management’ is not only enabled but enhanced where
the networking capability of ‘Web-based trust formation’ is achieved and
implemented effectively. The intervening conditions for the networking capability
of ‘E-commerce information management’ consist of the networking capabilities
‘Web-driven customer focus’, ‘Web-driven partner communication’ and ‘Web-
driven partner learning’ that support the networking capability of ‘E-commerce
information management’ to be effective and efficient. Consequently, the
outcome of effective and efficient ‘E-commerce information management’ should
enable and enhance the networking capability of ‘E-commerce oriented product
delivery’ to be achieved. The implementation of networking capabilities in the
virtual network not only enables virtual organizing but enhances its success in the
e-marketplace.

The central explanatory concept of the research defined as „Web-based trust

formation‟ enabled the categories to be organized around the central
phenomenon in the preliminary framework. The narrative explanation of the
paradigm model, consisting of nine categories, formed the basis for developing
the preliminary framework around the phenomenon of networking capabilities
that enable virtual organizing in virtual value networks.
„E-commerce oriented product delivery‟ emerged and was identified as the
outcome of „Web-based trust formation‟ as the central category with „Virtual
information management‟ considered to be the action/interaction strategy to
reach the objective or outcome of „E-commerce oriented product delivery‟. The
storyline indicates the relationships between the various categories that enable
insight into the role of networking capabilities used with virtual organizing. Such
insight should result in the effective application of networking capabilities that not

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only enable but enhance effective and efficient virtual organizing in a virtual value
network of organizations. The propositions formulated which indicate
relationships between categories of the paradigm model highlight the central
importance of the phenomenon that enables effective and efficient virtual
organizing.

The narrative explanation of the paradigm model implicates a structure or pattern

in the use of networking capabilities with virtual organizing. The conditions
associated with the use of networking capabilities in virtual organizing concern
and relates to the propositions (see Table 4.7) of the paradigm model. Conditions
refer to and describe „general properties‟ [with dimensions] associated with the
use of networking capabilities that causes subsequent related networking
capabilities to be introduced in virtual organizing.

Conditions or consequences associated with the use of networking capabilities in

virtual organizing are presented in Table 4.8. The new category and two sub-
categories discovered in open coding of the empirical case data are included in
Table 4.8.

Table 4.8 Conditions associated with successful use of networking capabilities

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 Category Property Dimensions

Web-driven value chain integration Web coordination Innovative

Web-driven customer focus Customer needs Specified

Supply chain shared e-commerce vision Consumer value creation Focused

Web-based partner trust formation Valued relationships Established

E-commerce information management Consumer needs Predicted

Web-driven supply chain cooperation Partner reaction Real time

Web-driven partner communication Lead time Minimized

Web-driven partner learning Innovation Continuous

E-commerce oriented product delivery Value creation Innovative

The grounded analysis of the literature case study led to the generation of the
preliminary framework of networking capabilities used in virtual organizing
illustrated in Figure 4.9.

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 Context

E-commerce oriented product Virtual organizing in e-commerce suggests

delivery high levels of trust between virtual value
network partners

Web-driven supply chain co-

operation
Causal conditions

Web-driven value chain Web-based trust formation

integration

Supply chain shared e-

commerce vision

Web-driven customer focus

Intervening Conditions
Web-driven partner
communication

Web-driven partner learning

E-commerce information
management

E-commerce oriented product

delivery

Figure 4.9 The preliminary framework

Figure 4.9 illustrates the preliminary framework that results from the integration of
the categories identified in the open coding process. The preliminary framework
indicates the relationship between „E-commerce oriented product delivery‟ as the
outcome or consequence of „Web-based trust formation‟ (the central
phenomenon of the study) as well as „E-commerce information management‟ (the
action/interaction strategy). Effective use of „Web-based trust formation‟ skills
enable and support the successful and effective use of „E-commerce oriented
product delivery‟ skills in virtual organizing. Effective use of „E-commerce
oriented product delivery‟ networking capabilities in turn enhances web-based

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trust formation amongst partners thereby acting as a causal condition for „Web-
based trust formation‟ in the virtual value network of partners.

The preliminary framework of components with the propositions which indicate

relationships between the categories enabled an emerging theory to be
developed inductively from the data. The emerging theory developed in selective
coding enables a better understanding of the impact of networking capabilities
used in virtual organizing in a virtual value network of partners.

The story line of the paradigm model which explains the core category will now
be developed further into a narrative description of the central category and
phenomenon, i.e., „Web-based trust formation‟ and the relations with the other
networking capabilities used with virtual organizing in the virtual value network of
partners.

Networking capabilities, with ‘Web-based trust formation’ of critical importance,

are important to entrepreneurs in the global e-marketplace. An objective with the
framework of networking capabilities is to develop a coordinated virtual network
strategy for relational capabilities between virtual value chain partners. This
should support the entrepreneur or network broker to control the entire web-
based virtual network of organizations as well as the development of relational
capabilities of all relevant members. The process, as from the initialization of the
web-based organization, should be viewed as a flowing evolution with no
particular goal although it is more importantly dependent on the commitment of
the members of the virtual network as well as the needs of all relevant members
to the value chain to be achieved. Relational or networking capabilities not only
enable but should speed up processes and support better utilization of individual
value chain member’s resources and competencies. This all is made possible
because of the entrepreneur’s belief that the web-based organization that
implements a virtual network of value chain partners, using virtual organizing, can
better achieve its business vision.

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Highly specialized and transferable resources are valuable for a virtual network,
but cannot be put into full use without the capability of networking. Networking
capabilities include abilities such as:

 Web-driven supply chain co-operation

 Web-driven value chain integration
 E-commerce oriented product delivery
 Web-based trust formation
 Supply chain shared e-commerce vision
 E-commerce information management
 Web-driven customer focus
 Web-driven partner communication
 Web-driven partner learning

The likelihood of success at virtual organizing can be increased if virtual networks

of organizations implement the abovementioned networking capabilities. The
term ‘networking capabilities’ suggest that certain abilities, although present in
any organization, are being highlighted as being very important in a virtual
network setting and their implementation is achieved differently in a virtual
network setting. Networking capabilities are therefore considered to be of the
utmost importance to entrepreneurs implementing virtual organizing in the virtual
network of value chain members.

‘Web-based trust formation’ can only be developed to its full potential when ‘web-
driven supply chain co-operation’ is efficient, ‘Web-driven value chain integration’
is effective and ‘Supply chain shared e-commerce vision’ is communicated in the
virtual network of organizations. ‘Web-based trust formation’ is of the utmost
importance to entrepreneurs to enable and secure effective virtual organizing in
the virtual network. ‘Web-based trust formation’ also influences the relationships
of the virtual organization with its customers in e-commerce. The outcome of
‘web-based trust formation’ is to enable the attainment of effective ‘E-commerce
information management’ pertaining to not only the virtual network but also its e-

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commerce customers. Effective ‘E-commerce information management’ is
conditioned by networking capabilities such as ‘Web-driven customer focus’ that
is in place, effective ‘Web-driven partner communication’ and ‘Web-driven partner
learning’. Effective and efficient ‘E-commerce information management’ impacts
on the virtual network of value chain partners as well as on the e-commerce
customers. In other words, due to the intervening conditions, separately or
together, ‘E-commerce information management’ will be more effective. The term
‘partner’ relates to the organizations in the virtual network as well as customers in
e-commerce. The consequence of effective ‘E-commerce information
management’ is successful ‘E-commerce oriented product delivery’. The
relationship between ‘E-commerce information management’ skills and ‘E-
commerce oriented product delivery’ skills is enhanced through the effective use
of ‘Web-based trust formulation’ capabilities with virtual organizing in the virtual
value network of partners. ‘E-commerce oriented product delivery’ should in turn
enhance ‘Web-driven trust formation’.

4.5 Implied contribution of the preliminary framework

The preliminary framework indicates the use and role of networking capabilities
within virtual networks to be interlinked. The preliminary framework provides a
unique and more holistic perspective on the implementation of networking
capabilities in virtual organizing. The preliminary framework indicates how a
holistic approach to the implementation and use of networking capabilities could
enable more efficient and effective virtual organizing in the virtual value network.
A holistic approach to the phenomenon of the study provides strategic value in
support of the entrepreneur in his efforts to build and strengthen inter-
relationships in the virtual value network of partners.

The various relationships that were established between networking capabilities

in the preliminary framework necessitate the implementation of a process
approach to their use in virtual organizing. A holistic view on the use of

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networking capabilities is highlighted when steps are needed to secure effective
„E-commerce information management‟. If effective „Web-driven customer focus‟
is seen as the only networking capability that supports this objective, then the
required use of networking skills pertaining to „E-commerce information
management‟ may not be effective and the relevant virtual organizing activities
may even be considered a failure. A more comprehensive approach would
require that the mindset about „Web-driven partner communication‟ must also
receive attention or it could be that there are no effective „Web-driven partner
learning‟ capabilities in place. All members of the virtual value network need to
implement and use relevant networking capabilities in virtual organizing to secure
maximum impact for web-based business.

The preliminary framework indicates inter-relationships that exist between the

identified networking capabilities although their arrangements must not be
considered as final in its application. In other words, the interpretation of the
preliminary framework must not be considered as concrete and to be the final
argument. This can be illustrated by means of an example. Based on the
underlying specifics of the particular segment in which a virtual value network of
partners participate in electronic markets, a different networking capability may
need to be considered as an intervening condition for „E-commerce information
management‟ such as „Web-driven value chain integration‟. If then, for example,
„Web-driven value chain integration‟ is the intervening condition for „E-commerce
information management‟ then „E-commerce value chain integration’ may need to
be refocused as a causal condition for „E-commerce information management‟
and not, for instance, „’Web-based trust formation‟. In this example, „Web-driven
customer focus‟ may need to be refocused with „Web-driven value chain
integration‟ and „Supply chain shared e-commerce vision‟ as causal conditions for
„Web-based trust formation‟ in the virtual network.

Effective „E-commerce information management‟ secures and supports positive

implementation of „E-commerce oriented product delivery‟ in e-commerce. „E-
commerce information management‟ is influenced by „Web-driven customer
focus‟, „Web-driven partner communication‟ and „Web-driven partner learning‟ as

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important networking capabilities that impact on its successful use by partners of
the virtual network in virtual organizing activities. Effective use of the
abovementioned networking capabilities by the entrepreneurs means that time-
consuming, expensive and difficult evaluation processes in order to improve „E-
commerce oriented product delivery‟ are not required. If an evaluation of the
networking capability, „E-commerce oriented product delivery‟, is still required,
the process and steps to enhance its results must not lose sight of any of these
factors.

The preliminary framework indicates the process for implementation of

networking capabilities in virtual organizing to be interlinked in a cycle of events.
Effective use of „E-commerce oriented product delivery‟ (i.e., is delivering value to
the customer) impact on and enables more effective „Web-based trust formation‟
thereby supporting effective virtual organizing. This in turn increases the
importance of „Web-based trust formation‟ to secure the desired outcome of
effective „E-commerce oriented product delivery‟. „E-commerce oriented product
delivery‟ is vital in support and growth of „Web-based trust formation‟ that could
lead to market leadership in e-commerce for the virtual network of organizations
in a given segment of the global e-marketplace.

4.6 Summary

The Grounded Theory methodology guided the development of the preliminary

framework. The preliminary framework explains and gives insight into the central
phenomenon and the evolving use of networking capabilities with virtual
organizing in a virtual value network. The paradigm model used in the study
helped to explain the relationships between categories. The preliminary
framework developed in this chapter indicates the relationships between
categories identified in the open coding process from the literature case data.
The preliminary framework is supported with a set of propositions where the

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phenomena of the study are explained as statements of the relationships
between the categories.

Strauss and Corbin (1998) indicate that findings of the study need to be verified
throughout the research project. The preliminary framework as the outcome of
the grounded analysis of the literature case enables the next step to be initiated
in the research project. The next step involves the further development of the
preliminary framework that enables more insight on relationships between and
the use of networking capabilities in virtual organizing. The aim of Chapter Five is
to develop a concluding framework with the objective to reach theoretical
saturation of the study. Chapter Five employs six field studies in pursuit of its aim
to arrive at the concluding framework.

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