Table I

LMSN configuration definition

DimensionVariablesDescription
Network structureCentralizationDegree of authority or power a firm exercises over other firms in the network. Extends to inventory aggregation context where stocks are pooled at centralized locations
 Vertical integrationExtent to which a firm owns the various stages of the LMSN
 Horizontal integrationDegree of multiplicity of each LMSN stage or function
 Geographic dispersionExtent to which productive units in the LMSN are dispersed geographically
Network flowFlow integrationRefers to internal and external integration:
(a) Internal integration focuses on activities within a firm, and the degree to which a firm structures its own organizational strategies into collaborative, synchronized processes
(b) External integration corresponds the degree to which a firm works with its partners to structure interorganizational strategies into collaborative, synchronized processes
 Flow coordinationPatterns of decision making and communication among a set of actors who perform tasks to achieve goals. Concerned with coordination mechanisms to match flows of order/information with consumer requirements
Relationship governanceInterdependenceDegree to which firms influence each other and the nature of their relationships
 Governance mechanismDetermines how a firm governs its exchanges: hierarchy, market, or relational contract governance
 Strength of networked governance structureGovernance in exchanges is embedded within a networked structure comprising a wider collection of relational links among other members. Measures the extent of these links
Service architectureService uniquenessProportion of unique to standard service modules. Unique modules are exclusive to the firm and difficult to copy in the short term
 Service modularityDegree of reusable process steps that can be “mixed and matched” to enable flexibility and customization for different consumers/situations in service implementation

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