A Model for Digitally-Enabled Process Innovation: the Case of the U.S. Minority Business Network

This paper presents a model for investigating digitally-enabled process innovations and their impact on business network performance. The key features of the model are its focus on innovation across business networks and the assumption that benefits of investments in IT are most likely to occur when mediated by innovations in related business process capabilities. The paper presents the model and its underlying rationale. In addition, it details how the model is being applied to a longitudinal examination of a digitally-enabled transformation within NMSDC a business network for minorityowned suppliers in the U.S. Minority business enterprises (MBEs) face challenges and misconceptions regarding their size, owner ambition and sophistication, and business potential. These significant economic and social challenges continue to limit opportunities for MBE growth. The NMSDC, through its affiliated regional councils, exists to promote and coordinate MBEs supplying corporate members. Previously, these matchmaking opportunities were coordinated in non-standard fashion by the regional councils with little transparency. The ongoing investigation is situated within Open Systems, Inc. and its development of a standardized IT platform (called the National Affiliate Portal – or NAP) sponsored by the NMSDC and implemented in the 39 regional councils across the US. The paper shows how the proposed model is applied to answer the following research questions in the context of NMSDC: a) How are process capabilities of regional councils impacted by information technology (IT) use? b) How do process capabilities impact business network performance in terms of matchmaking opportunities?