Professional Documents
Culture Documents
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and compete a lot. Organizations are considered virtual networks for collaboration on a global
successful if they have a notable share in the level. In such case studies, a variety of data
market and have high demand for their products resources such as interviews, archival data, and
or services [35]. observations may be used [40].
OCAI is used in this research since it is a The main source of data for this case study
validated tool used by over 10,000 companies was semi-structured interviews and white papers
worldwide [37]. Moreover, consultants can use and presentations supplied by the company. Most
OCAI making constructive changes through new of the interview questions were open- ended
teams, leaders, and working methods [38]. questions and focused on the leadership and
culture of networks and the role of IT in
2.3. Research conceptual framework facilitating virtual networks' performance. A
As shown in Figure 1, the research is directed total of 11 face-to-face interviews were
through the conceptual framework to find out conducted with the key leaders of the Cemex
which type of organizational culture can be global virtual networks in autumn 2016. These
suitable for each of the IT governance outcomes networks represent different organizational
in different networks. The organizational culture culture orientations. All interviews were
types in the networks are identified using the recorded and transcribed. After conducting 11
OCAI model [35] and the IT governance interviews, there was no more new information
performance is distinguished using four IT revealed and the data collection ended (See
governance outcomes introduced by Weill and Table 1 in Appendix I).
Ross [11]. In addition to the interviews, Cemex provided
internal documents regarding the company’s
strategic plans, the global virtual networks' aims
and structure, IT platform performance, different
decision makers and organizational culture
changes. To boost the validity and reliability of
this research, triangulation was done between
interviews, and Cemex internal documents [41].
A qualitative approach is used in this
research, since a qualitative study is more likely
to obtain unexpected information than the
quantitative approach, which is more structured
and detailed from the beginning [41]. First, all
interviews were recorded, transcribed, coded,
and then themes emerged from the interview data
Figure 1. Research conceptual framework. analysis of the interviews [42]. The
categorization of the initial codes was mainly
Networks have different types of organizational based on the concepts of virtual networks [32],
culture and this research is seeking to find the IT governance performance [11; 2] and
link between the networks' organizational culture organizational culture dimensions [35].
and IT governance performance.
4. Case description: Cemex
3. Research methodology
background
This research was conducted as a case study
to explore dynamics of the studied phenomenon. Cemex is a global leader in the ready-mix
Yin [39] recommends case study when concrete industry and one of the largest building
investigating "how" or "why" research questions materials manufacturers in the world. Cemex has
and when the phenomenon is new. The case approximately 44,000 employees worldwide.
study is a suitable method to respond to our They produce, distribute, and sell cement, ready-
research question, "How organizational cultures mix concrete, aggregates, and related building
influence IT governance performance in different materials in more than 50 countries. In order to
virtual networks in a large organization?" Our maintain its position as a leader in the market
phenomenon, global virtual networks, as an and compete with its competitors, Cemex strives
organizational design is new and has not to strengthen internal commitment and
received extensive attention. innovation. Cemex created global initiatives in
The case study was performed in Cemex, 2009 and then in 2014 Cemex introduced a set of
which is a large global building material 11 functional global networks emerging from
company. Cemex has recently established global those global initiatives (Figure 2).
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The functional global networks cooperate as
virtual teams and are endorsed by the Cemex
executive committee (CEO). There may be some
members of the global networks who are part of
the executive committee too. Figure 3 represents
the structure of the Cemex functional global
networks and how they work.
Figure 2. Cemex 11 functional global networks
emerged from the global initiatives
Figure 3. Functional global networks structure (adapted from Cemex technology office presentation)
Each one of the 11 functional global networks According to the leader of Cemex global
has its specific focus and leadership (see networks, the networks have different
Figure 3). The networks may have diverse priorities and each of them has its own
membership policies and the number of organizational culture. The themes included
members in each network also varies. bellow describe how different IT governance
According to the Cemex managers, the priorities in Cemex's networks align with
organizational culture among these networks different organizational cultures. These themes
may also vary. For this research the key are in line with the conceptual framework of
leaders of CEMEX functional global networks this research. Quotes from interviewees 1-11
were interviewed. The following sections (Int. 1-11) are used to illustrate relevant
present the thematic analyses of the data on themes. The organizational culture types were
how the organizational culture in these distinguished from the thematic analysis of the
networks influences IT governance interviews using the OCAI model and the IT
performance outcomes. governance outcomes were distinguished
through the four IT governance outcomes
5. Analysis and discussion introduced by Weill and Ross (2004). The
authors transcribed, coded and extracted
The findings from this case study provided themes according to the research conceptual
evidence that each of the functional global framework.
networks at Cemex can be considered as a
small organization collaborating to achieve the
general organization strategic objectives.
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5.1. Theme 1: Culture of collaboration well the importance of the effective use of IT
desired for integration for asset utilization. Before these networks
In 2014, when the functional global existed, there was no high integration between
networks at Cemex emerged, there was an different Cemex worldwide units (Int. 3).
emphasis on the networks' integration by the Cemex's global networks leaders expressed
Cemex CEO and the networks' leaders. The IT that when it comes to the integration of the
governance in each of these networks was networks, the most important IT governance
different and it was very important for Cemex outcomes are asset utilization and cost
to extract the best practices. Most of the effective use of IT. Cemex leaders also believe
members of each network belong to a matrix that the culture of collaboration helps them
organizational structure and that is why most in promoting such integration (Int. 1, 5,
integration between these networks became so 6). For example, "some local tax issues were
important. "All networks are leaded to the solved by using the best practices revealed
direction of having one single company and through collaboration with Cemex networks in
not different branches worldwide" (Int. 1). The another part of the world" (Int. 4). The leaders
"processes and IT" network leader states that desired to increase teamwork, network
"we use IT in our business process operations members participation and free
and in the recognition and evolution of communication. These characteristics, desired
different practices " (Int. 1). According to by the networks' managers, align with the clan
Cemex global managers, the first priority of culture characteristics introduced by Cameron
the networks is to share the best IT governance and Quinn [35]. To promote this culture,
practices, use the assets they have and respond Cemex has recently adapted an IT platform
to business needs at the lowest cost. Cemex IT (called SHIFT) through which all networks
governance outcomes are prioritized as members can follow different projects, share
follows: "1) IT value before the volume; 2) ideas, report and compare results, and
Asset management; 3) Aiming for efficiency; 4) communicate best practices gained in projects
Talent management" (Int. 1). However it is not in different parts of the world. However the
an easy job to create integration among all uptake of this IT platform is still a challenge
these networks operating worldwide (Int. 2). depending on networks' organizational
Each of these networks has a specific cultures.
leadership style and IT governance. For Figure 4 illustrates the characteristic
instance they may use different IT systems for explained by interviewees matching the
similar projects. "Systems, Applications and characteristics of clan culture in relation to
Products in data processing (SAP) is used as integration through IT governance asset
our main transactional system; but it is not the utilization and cost saving. The IT platform
only one system, we have five different systems used by the networks for collaboration is also
worldwide and we are trying to reduce them to connected to clan culture by a dashed arrow
three" (Int. 1). This example illustrates very since it is a tool supporting the clan culture.
Figure 4. The organizational culture characteristics found to lead to clan culture desired for IT
governance outcomes of effective use of IT for asset utilization and cost effective use of IT
As shown in Figure 4, the clan culture with functions, finding the best practices and ways
the focus on collaboration improves to cut costs. IT managers get informed about
integration. "The collaboration culture different processes and make better decision in
provides an environment for discussing new IT process changes and evaluations" (Int. 4).
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5.2. Theme 2: Culture of innovation approach" (Int. 1, 4, 6). The center of
desired for business growth: center of excellence is promoting this organizational
excellence and network mobilizers are culture. At the center of excellence "we are
the key drivers working to anticipate what the networks need
Innovation is a very important issue in and make solutions before they are needed"
Cemex networks leading them to come up with (Int. 2). "The scope of the networks range from
new solutions. Collecting new ideas from the very simple to very complex subjects. The
networks and providing creative solutions have networks members have four hours of meetings
a high priority especially in the "Processes and every month discussing how different global
IT" network. In January 2016, "Cemex Center networks work, they try to find commonalities,
of Excellence" was formed, which is linked innovative ideas and new solutions " (Int. 2).
with the "Processes and IT" network. "IT is not Who is a network mobilizer?
a provider to Cemex anymore, but is a part of To promote such an innovative culture, Cemex
Cemex business. The network used to be a goes even one step further and uses expert
client for IT but now IT (Processes and IT) innovation managers called "network
belongs to the network" (Int. 2, 7). IT is now a mobilizers". A network mobilizer is a person
driver for the whole business by playing two usually with both IT and business
important roles: 1) IT needs to be cautious administration background. "The mobilizers’
about its impact on every aspect of the general role is to push communication among
processes, 2) IT needs to know how to react the networks, generate questions for networks'
and make improvements in each aspect. This is leaders, find the topics that networks' members
where innovation becomes such significant are afraid of exposing and bring these topics
issue. Now the top managers of Cemex assign into discussions" (Int. 2). Cemex mobilizers
strategic projects to the "Processes and IT" were previously called "innovators", since their
network. In order to accomplish such strategic job is mostly focusing on improving
projects, they need the expertise and ideas innovation in the networks. The networks’
from all other networks too. When IT provides members trust the mobilizer and transfer their
strategic solutions for business, then IT is ideas through the mobilizer. The mobilizers'
effective in business growth [11]. Cemex activities supporting the adhocracy culture are:
network leaders and the innovation manager 1) Coordinating conversations among
stress that when strategic solutions are networks; 2) Expose questions and pursuit for
requested from IT by the business, then an answers; 3) Transfer different network
organizational culture with a focus on managers’ issues to the right people who may
innovation and open communication is desired help, "mobilizers are the hub" (Int. 2).
(Int. 1, 2, 4). This type of culture is specifically 4) Making notes from every conversation and
visible in the "Processes and IT" network referring to them in relevant situations.
which is now linked with the center of 5) Review the Key Progress Indicators (KPI)
excellence too. The characteristics noted by the and align the IT solutions with them.
networks' leaders describing this desired Furthermore, network mobilizers follow the
culture match with the characteristics of the KPI assessment results of leaders of different
adhocracy organizational culture type global networks and ask for their ideas. For
introduced by Cameron and Quinn [35]. When instance a Dubai manager's ideas turned out to
seeking for strategic solutions from IT, the be beneficial in another project in Switzerland.
network leaders encourage an organizational Figure 5 signifies characteristics of adhocracy
culture in which "people can expose organizational culture explained by network
themselves easily, managers have dialogue leaders supporting the effective use of IT for
with everyone and have a bidirectional business growth.
Figure 5. The organizational culture characteristics found to lead to an adhocracy culture desired for
effective use of IT for business growth
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As shown in Figure 5, when there is a focus leaders the desired organizational culture in
on the strategic role of IT, the desired those networks is more directed to monitoring
characteristics explained by Cemex networks and control. All the processes involved with
leaders match with the adhocracy culture. health and safety are standardized and there are
Cemex center of excellence and network many policies for them. The standard KPIs are
mobilizers that is connected by dashed arrows defined and communicated formally to all
to the adhocracy culture facilitate such an network members and controlled regularly.
organizational culture. The vice-presidents of the networks report
As an example, the network mobilizer noted monthly to the networks' presidents and the
the pricing strategy issue. The center of networks' presidents report to the executive
excellence faced a request to create a structural committee every two or three months. At the
model for product pricing. In this case the executive committee, the first topic that is
center of excellence analyzed all the business reviewed is health and safety and they search
capabilities of Cemex around the world and for embedded problems. "IT governance has a
"they were capable to do this job since they significant role here by creating solutions to
were part of it" (Int. 4). They used a strategic gain a lot of visibility in all processes and also
IT solution to create a model calculating the provide tracking procedures" (Int. 7, 10).
right price for products. This model was then When all the steps of the processes involving
applied for all Cemex transaction systems. health and safety are visible to all networks, it
This model covered all the aggregated will be easier to control and monitor them.
operations and networks policies worldwide. This also prevents extra costs that can occur
because of unclear processes and an
5.3. Theme 3: Culture of competition unstandardized monitoring system (Int. 6, 9).
and control desired for business As an organizational culture activity, Cemex
flexibility and customer satisfaction provides many training programs and has
different teams to review the outcomes. These
This theme represents how different organizational culture characteristics match
networks at Cemex are responsible for with the characteristic of the hierarchy culture
providing real time responses to customer focusing on control.
needs and also cutting costs. IT governance The other issue mentioned by the Cemex CEO
needs to support the business in this case by is customer centricity. "IT needs to be very
providing business flexibility and cost saving. agile to customer needs" (Int. 5, 11).
The organizational culture type found to be Customers are both internal and external
desired by the Cemex networks dealing with customers. The reason for agility in response
this issue is a mix of hierarchy and market to customer needs is that the competitors may
culture. fulfill them before Cemex. In this case the
There are four objectives communicated by the desired organizational culture characteristics
CEO: 1) Priority for health and safety, 2) One explained by the leaders match with the
global Cemex, 3) Recovering the financial "market" organizational culture type
status, 4) Customer centricity. introduced by Cameron and Quinn [35]. In the
Each of the functional global networks' needs market organizational culture the focus is on
to work through the above objectives and IT competition, profitability, and customers. The
also needs to be aligned with these objectives. general leader of Cemex global networks states
When it comes to health and safety, the that "we are a leader in the ready-mix industry
networks’ leaders state that there should be a and we want to remain a leader" (Int. 5).
considerable control of all IT processes When there is a change in the market or
involved in health and safety. Therefore the customer needs, it is crucial for Cemex as an
role of IT governance is very important in: industry leader to respond to that change as
"1) Finding all Cemex processes that directly quickly as possible. "Real-time response to
or indirectly involve health and safety issues customer needs is possible only through the IT
and 2) make standardized policies to insure the governance" (Int. 4). Figure 6 shows the
quality of health and safety in those processes hierarchy and market organizational culture
around the world" (Int. 1, 8). In some of the characteristics found to be related to IT
networks, there are more health and safety governance outcomes of business flexibility
issues involved. According to those networks' and cost effectiveness of IT.
Page 4947
Figure 6. The organizational culture characteristics found to lead to a market and hierarchy culture
desired for effective use of IT for business flexibility and cost cutting
Figure 7. Summary of finding from case study: Different organizational culture types found to be
desired for each IT governance performance outcome with related examples of outcomes
In Figure 7, each organizational culture type is each network. However one or two
linked to the relevant IT governance outcome organizational culture types are more dominant
mentioned by the networks leaders. According based on the network priorities and focus.
to Cameron and Quinn [35], the organizational
culture can be a combination of all four types 6. Conclusions, limitations and
of clan, adhocracy, market and hierarchy.
However there will be one type as the
future research
dominant one in each organization. The data
from this case study also shows that a mixture This research provided an explanatory
of all four organizational types can exist in study to answer the research question of "how
Page 4948
organizational culture influence IT governance thoroughly explored through an empirical
performance different global virtual networks study before. While there may be a
in a large organization". Managers have often combination of organizational culture
blamed organizational culture when IT characteristics existing in an organization,
governance projects fail; however this different networks may foster one type of
interdisciplinary topic has gained little culture based on their priorities and that
attention in previous academic research. This influences the outcomes of their IT
topic was approached in this research by governance.
performing a case study in a large organization As with any other research, this research
with complex functional global networks. The has some limitations. First, this case study was
networks in this organization are lead in conducted in one organization. This
diverse ways, have different priorities, and organization included several virtual working
align with different organizational culture networks with different types of organizational
types. The data were collected through 11 cultures making this case complicated. The
interviews with the network leaders, and other limitation is that Cemex has recently
archival documents from the organization established the global virtual networks and
provided sources of data triangulation. The these are still changing. Moreover, the findings
data were analyzed thematically according to are based on the opinions of the network
the conceptual framework of the research. leaders and not based on all of the network
The main conclusion of this research is that members.
organizational culture does influence the Directions for future research could be
performance outcomes of IT governance. The more detailed studies on the organizational
case study indicated that the networks need culture of global virtual networks and how it
different organizational culture types based on should be shaped in these networks.
the priorities they have for IT governance Furthermore, the findings of this study can be
outcomes. The first theme revealed that the used for future research on suggestions for
network leaders prefer clan organizational organizational culture changes in order to
culture characteristics such as teamwork, improve IT governance performance in
collaboration and member commitments, when organizations.
they prioritize the effective use of IT for asset
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Appendix I
Table 1 provides more information regarding
the interviews.
Table 1. Interviews information
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