A measurement model for managing performance of horizontal business networks and a research case

Abstract

A significant challenge facing companies that are members of collaborative networks are measuring their market performance, even as they evaluate their contribution to the development of the network. This paper develops a model for analyzing the performance measurement of horizontal business networks. We do this by reviewing literature related to performance management in horizontal networks and systematically selecting eight functional perspectives, and 25 operational factors associated with them, to measure the performance of both companies and the network. We employ the Analytic Hierarchy Process (AHP) for deciding perspective weights and use its quantitative results to create a diagram for representing the effectiveness of performance management at the company and network level. The model is tested by applying it to companies in an Information Technology business network. We analyze the results of the individual and network performance of the companies surveyed, along with the evaluative perspectives relevant to the network.