New
Business & Information Systems Engineering (2026) AI Processed Human Approved
Managing Performance in Collaborative Networks:A Method for Defining Key Performance Indicators for Collaborative Business Models
This study develops a structured method to systematically guide organizations in defining Key Performance Indicators (KPIs) for collaborative business models. Following a design science research methodology, the proposed method was iteratively designed, demonstrated across diverse business scenarios, and evaluated through expert feedback.
Problem
Traditional performance management tools often adopt a firm-centric view and fail to address the interdependencies, value co-creation, and multi-actor alignment inherent in collaborative business networks. Consequently, organizations struggle to identify, select, and operationalize relevant KPIs at both individual actor and network-wide levels.
Outcome
- Introduced a three-step method covering KPI specification, multi-criteria KPI selection, and attribute operationalization.
- Differentiated KPI scopes into network, subnet, and actor levels to balance network alignment with individual flexibility.
- Demonstrated practical utility through business scenarios including car navigation services, urban indoor farming, and sustainable households.
- Differentiated KPI scopes into network, subnet, and actor levels to balance network alignment with individual flexibility.
- Demonstrated practical utility through business scenarios including car navigation services, urban indoor farming, and sustainable households.
What it means for you
- CIO / IT Executive: On Monday morning, initiate a pilot project to apply the three-step KPI definition method to one specific collaborative network your organization participates in, focusing on identifying and documenting initial network-level KPIs using your existing data infrastructure.
- IT Manager: On Monday morning, schedule a working session with a key business stakeholder from a collaborative project to begin the 'KPI specification' step of the research method, focusing on articulating the desired outcomes for that specific collaboration.
- Business Strategist: On Monday morning, review the research's findings on differentiating KPI scopes and draft a preliminary list of potential network, subnet, and actor-level KPIs for a newly forming collaborative initiative.
- Researcher: On Monday morning, begin designing a case study to apply and further refine the proposed KPI definition method within a new collaborative business scenario, focusing on the 'multi-criteria KPI selection' and 'attribute operationalization' steps.
- Policymaker: On Monday morning, identify a specific public-private collaborative initiative and begin exploring how the research's approach to KPI definition could be adapted to measure its network-wide alignment and individual actor contributions effectively.
Transcript
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I'm Anna Ivy Summers.
Expert: And I'm Alex Ian Sutherland. Great to be here, Anna.
Host: Today, we're diving into a crucial challenge facing modern organizations: managing business performance when you operate in collaborative networks. We'll be exploring a recent study titled "Managing Performance in Collaborative Networks: A Method for Defining Key Performance Indicators for Collaborative Business Models." Alex, to start us off, what did this study set out to achieve?
Expert: At its core, the study introduces a structured, practical method to help organizations systematically define, prioritize, and operationalize Key Performance Indicators—or KPIs—specifically tailored for collaborative business models.
Host: That sounds essential today, given how many companies operate in partnerships, platforms, and digital ecosystems. But why don't traditional performance management tools work in these settings?
Expert: That is the big problem the study addresses. Classic tools like the Balanced Scorecard were designed with a firm-centric view—meaning they focus on a single organization's internal goals. But modern business models increasingly rely on networks of diverse actors—such as technology providers, automotive manufacturers, and advertisers—who must work together to co-create value. Traditional tools simply fall short when it comes to managing multi-actor alignment, shared interdependencies, and mutual value capture across organizational boundaries.
Host: So how did the researchers go about designing a method that actually works for complex networks?
Expert: They followed a Design Science Research methodology, meaning the method was iteratively built, tested, and refined across three distinct design cycles. They engaged over twenty industry experts across sectors like software, consulting, and manufacturing through semi-structured interviews, focus groups, and interactive workshops to ensure the final artifact was both practical and rigorous.
Host: That sounds like a very thorough approach. What are the key components of the method they developed?
Expert: The study presents a three-step process. Step one is 'Specify KPIs', where network partners map out potential indicators directly from their collaborative business model design. Crucially, the study categorizes KPIs into three distinct scopes: network-level KPIs shared across all actors, subnet-level KPIs shared between specific partners, and actor-level KPIs kept for internal organizational management.
Host: That distinction between network, subnet, and actor levels makes total sense—it balances transparency across the network with an individual company's privacy and operational flexibility. What happens in step two?
Expert: Step two is 'Select KPIs'. Because networks can easily get overwhelmed by too many metrics, this step applies multi-criteria decision analysis techniques—such as pairwise comparisons and weighted sum modeling. Actors evaluate potential KPIs against prioritized criteria like relevance, measurability, and cost to filter out noise and select a manageable, high-value set of indicators.
Host: And how do they handle the final operational phase?
Expert: Step three is 'Operationalize KPIs'. Here, partners fill out standardized specification templates defining metrics, target values, data sources, measurement frequencies, and responsible roles. They also construct causal maps to visualize cause-and-effect relationships between leading indicators—like data processing speeds—and lagging business outcomes—like service revenue growth.
Host: It's impressive how complete that lifecycle is. Did the study demonstrate this method in real-world business contexts?
Expert: Yes, the utility of the method was demonstrated across several realistic scenarios, including a smart mobility car navigation service, sustainable urban indoor farming, and energy management for sustainable households. These applications showed how orchestrators and partner organizations can negotiate metrics, resolve goal conflicts, and align on shared targets.
Host: Alex, looking at the bigger picture, why does this study matter so much for business leaders and practitioners today?
Expert: Because while many business leaders agree on collaborative strategies, projects frequently fail during execution due to alignment gaps. This study bridges the gap between high-level collaborative business model design and actual performance execution. It provides a repeatable, transparent roadmap for orchestrators and partner firms to build trust, establish mutual accountability, and drive sustained value co-creation.
Host: It really transforms performance management from an internal exercise into a strategic driver for network success.
Expert: Absolutely, Anna. When you co-create value across a network, you have to co-create how you measure success.
Host: Thank you, Alex, for sharing these insights with us today. And thank you to our listeners for joining us on A.I.S. Insights — powered by Living Knowledge. Until next time, stay curious and keep innovating.
Expert: And I'm Alex Ian Sutherland. Great to be here, Anna.
Host: Today, we're diving into a crucial challenge facing modern organizations: managing business performance when you operate in collaborative networks. We'll be exploring a recent study titled "Managing Performance in Collaborative Networks: A Method for Defining Key Performance Indicators for Collaborative Business Models." Alex, to start us off, what did this study set out to achieve?
Expert: At its core, the study introduces a structured, practical method to help organizations systematically define, prioritize, and operationalize Key Performance Indicators—or KPIs—specifically tailored for collaborative business models.
Host: That sounds essential today, given how many companies operate in partnerships, platforms, and digital ecosystems. But why don't traditional performance management tools work in these settings?
Expert: That is the big problem the study addresses. Classic tools like the Balanced Scorecard were designed with a firm-centric view—meaning they focus on a single organization's internal goals. But modern business models increasingly rely on networks of diverse actors—such as technology providers, automotive manufacturers, and advertisers—who must work together to co-create value. Traditional tools simply fall short when it comes to managing multi-actor alignment, shared interdependencies, and mutual value capture across organizational boundaries.
Host: So how did the researchers go about designing a method that actually works for complex networks?
Expert: They followed a Design Science Research methodology, meaning the method was iteratively built, tested, and refined across three distinct design cycles. They engaged over twenty industry experts across sectors like software, consulting, and manufacturing through semi-structured interviews, focus groups, and interactive workshops to ensure the final artifact was both practical and rigorous.
Host: That sounds like a very thorough approach. What are the key components of the method they developed?
Expert: The study presents a three-step process. Step one is 'Specify KPIs', where network partners map out potential indicators directly from their collaborative business model design. Crucially, the study categorizes KPIs into three distinct scopes: network-level KPIs shared across all actors, subnet-level KPIs shared between specific partners, and actor-level KPIs kept for internal organizational management.
Host: That distinction between network, subnet, and actor levels makes total sense—it balances transparency across the network with an individual company's privacy and operational flexibility. What happens in step two?
Expert: Step two is 'Select KPIs'. Because networks can easily get overwhelmed by too many metrics, this step applies multi-criteria decision analysis techniques—such as pairwise comparisons and weighted sum modeling. Actors evaluate potential KPIs against prioritized criteria like relevance, measurability, and cost to filter out noise and select a manageable, high-value set of indicators.
Host: And how do they handle the final operational phase?
Expert: Step three is 'Operationalize KPIs'. Here, partners fill out standardized specification templates defining metrics, target values, data sources, measurement frequencies, and responsible roles. They also construct causal maps to visualize cause-and-effect relationships between leading indicators—like data processing speeds—and lagging business outcomes—like service revenue growth.
Host: It's impressive how complete that lifecycle is. Did the study demonstrate this method in real-world business contexts?
Expert: Yes, the utility of the method was demonstrated across several realistic scenarios, including a smart mobility car navigation service, sustainable urban indoor farming, and energy management for sustainable households. These applications showed how orchestrators and partner organizations can negotiate metrics, resolve goal conflicts, and align on shared targets.
Host: Alex, looking at the bigger picture, why does this study matter so much for business leaders and practitioners today?
Expert: Because while many business leaders agree on collaborative strategies, projects frequently fail during execution due to alignment gaps. This study bridges the gap between high-level collaborative business model design and actual performance execution. It provides a repeatable, transparent roadmap for orchestrators and partner firms to build trust, establish mutual accountability, and drive sustained value co-creation.
Host: It really transforms performance management from an internal exercise into a strategic driver for network success.
Expert: Absolutely, Anna. When you co-create value across a network, you have to co-create how you measure success.
Host: Thank you, Alex, for sharing these insights with us today. And thank you to our listeners for joining us on A.I.S. Insights — powered by Living Knowledge. Until next time, stay curious and keep innovating.