The Strength of IT-Based (Virtual) Interfirm Ties in the Development of Complex Product Systems - Information Technology and Product Development - page 176

Although the traditional notion of trust embodies an element of face-to-face inter-
action, trust can also arise from situations where IT creates a bridge between the
collaborating companies. The nature of this online interaction between people from
different organizations can often be ubiquitous, frequently involving many commu-
nication channels. These IT-enabled bridges can be through data, voice, or/and video
media.
Although the sponsoring organization(s) have established some of these channels
for their employees, some other channels may be hosted by third-party organizations
that have no explicit ties with the focal organizations, ex ante. The partnering orga-
nizations may not directly sponsor these channels, but that does not mean they are
unaware of them. In fact, in some cases, organizations recognize that the product
development project is highly complex; thus, the company may not only endorse
the channels but also encourage employees to participate in them, even during work
hours. The key distinction here is that the focal organization does not control the
channel.
These differences between the nature and extent of virtual interconnections
between NPD teams in CoPS are likely to have several implications for participating
firms. These implications deserve further scholarly examination.

9.3 The Rise of a New Type of Embeddedness

Alenia Aeronautica, Fuji Heavy Industries Ltd., and Spirit Aerosystems Inc ... ;thistrioof
suppliers, along with 40 other global partners, is taking part in a ground-breaking develop-
ment effort. Not only are they sharing the risk and design burden for their piece of the 787,
they are also participating in a virtual development world where every aspect of the plane
and its manufacturing processes is designed, created and tested digitally before anything
physically moves into production With the 787 Dreamliner program, Boeing leveraged a

common digital environment to help a dispersed global design team more effectively col-
laborate and leverage a single 3D product definition throughout all phases of the 787's
lifecycle. ( Design News , 2007)

...

The notion that people and social units such as firms are embedded in a web of
social relationships is not new (c.f. Granovetter, 1973, 1985; Uzzi, 1997). However,
the rise of digital networking and the Internet has given way to a new kind of embed-
dedness that foremost researchers in the field of economic or sociological theory
probably did not imagine (Fowler et al., 2004; Morse, Fowler, & Lawrence, 2007).
Thus, one can imagine a world of interfirm relationships that are either arms-length
(in terms of their transactional bias), socially embedded (in terms of physical ties),
or virtually embedded (in terms of digitally established connections).
Prior research has highlighted the virtue of socially embedded ties (e.g., Uzzi,
1997; Uzzi & Spiro, 2005); however, we have much to learn about the value of vir-
tually established, embedded connections. Recently, some authors have argued that
these ties can be beneficial in many interorganizational contexts. Specifically, Morse
et al. (2007) argue that virtually enabled ties can help an entrepreneur overcome the
liability of newness typically associated with new ventures. This is because virtually