This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Maarten Arentsen

University of Twente

Interaction along the value chain

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

University campus

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Intro• Background:

• Political science/economics

• Research focus:

• Change and innovation in energy supply

• (Supply chain management)

• Position:

• Associate professor energy innovation

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. Who is the crucial stakeholder of Rotax and why?

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Stakeholder description

Actor A Actor B Actor C Actor D

Position & task

Interests, needs (= stakes)

Sources of power

Dependency

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Dependency between actors

• Pooled interdependency

• Actors take resources from a common pool

• Sequential interdependency

• Second actor is dependenton the first

• Reciprocal interdependency

• Mutual dependency betweentwo actors

A B C

reservoir

Pooled

A B C

Sequential

A B C

Reciprocal

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. What is a supply chain?

• Remember that supply chains are all about collaboration. They are all about the communication and information flows between partners that together make up the supply chain

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. What is collaboration?

• It is a manifestation of coordination

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. What is coordination?

• The organization of the different elements of a complex body or activity so as to enable them to work together effectively (Oxford Dictionaries)

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. Examples of coordinated organization?

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Basic coordination mechanisms

Coordinating mechanism

Unit of decision making

Mechanism of allocation

Dominant economic goal

Market Individual Price setting Individual profitability and continuity

Network Group Agreement Collective profitability and continuity

Hierarchy Public authority Directive National public interest

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Pure and mixed coordination mechanisms

Added allocation mechanism

Dominant allocating mechanismPrice Agreement Public

authority

Price Full free market Coordinated liberalization

Controlled liberalization

Agreement Free coordinated market

Full coordination Controlled coordination

Public authority Free controlled market Coordinated control Full hierarchy

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

How to organise coordination?

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Elinor Ostrom

• Education

• Ph.D., UCLA, 1965Professional Experience

• Fellow, American Academy of Arts and Sciences, 1991-present

• President, American Political Science Association, 1996-97

• Member, Committee on National Urban Policy, National Academy of Sciences/National Research Council, 1985-88

• President, Midwest Political Science Association, 1984-85

• President, Public Choice Society, 1982-84

• Vice president, American Political Science Association, 1975-76

Arthur F. Bentley Professor of Political Science

Indiana University

Professor of Public and Environmental Affairs,

Co-director Workshop Political Theory

and Policy Analysis

Co-Director, Center for the Studies of Institutions,

Populations and Environmental Change

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Starting point: tragedy of the commons

“Each man is locked into a system that compels him to increase his herd without limit – in a world that is limited.

Ruin is the destination towards which all men rush, each pursuing his own interest in a society that believes in the freedom of the commons”

(Hardin, 1968, p. 1244)

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Common Pool Resource

Accessibility

Excludable Non-

excludable

Use

Rival Private good Common Pool

Resource

Non-rival Club goods Collective

(public) good

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. Typical Common Pool Resources

• Irrigation systems,

• fishery grounds,

• Forestry

• Water basins

• River basins

• Recreation areas, landscapes, urban areas

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Bioresources as four dimensional economic good

Accessibility

Excludable Non-excludable

Use

Rival Private good

Farmer

Common Pool

Resource

Land, landschape,

environment

Non-rival Club goods

Common garden

Collective (public)

good

National park

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. Seven rule types

• Boundary rule: who participates

• Position rule: establish positions

• Authority rule: actions assigned to positions and participants

• Scope rule: potential outcomes that can be delimited

• Aggregation rule: level of control exercised in a position

• Information rule: information processing and how its influences knowledge-contingencies

• Payoff rule: division of costs and benefits of outcomes

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Rules affecting elements of an action situation

Participants

Positions

Actions

Assigned to

Assigned to

Informationabout

Controlover

Net costs and benefitsAssigned to

Linked to Potential Outcomes

Scoperules

Boundaryrules

Positionrules

Choicerules

Informationrules

Aggregationrules

Payoff rules

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

Example of action situation and their defining rules

Markets(Structures inducing

competition)

Networks (Structures

inducing co-operation)

Hierarchy (Structures

inducing authorization)

Position rules Property rights Membership Addressee

Boundary rules Contracts Voluntarism Legalism

Scope rules Private interest Common interest Public interest

Authority rules Exchange Communication Submission

Aggregation rules Prices Agreement Directive

Information rules Demand and supply Cooperation Legal restriction

Pay-off rules Efficiency Legitimacy Effectiveness

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. Question

• Which stakeholder is Rotax currently missing and how would you arrange the relationship with this missing stakeholder with the help of the zeven rule types?

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement N 656760

1. Seven rule types

• Boundary rule: who participates

• Position rule: establish positions

• Authority rule: actions assigned to positions and participants

• Scope rule: potential outcomes that can be delimited

• Aggregation rule: level of control exercised in a position

• Information rule: information processing and how its influences knowledge-contingencies

• Payoff rule: division of costs and benefits of outcomes

Which stakeholder is Rotax currently missing and how would you arrange the relationship with this missing stakeholder with the help of the zeven rule types?