A Resource Complementarity View (RCV) of Value Creation in the Context of Connected Smart Devices

Abstract

Intense debate regarding how connected smart devices might create or destroy value is ongoing. Some view connected smart devices as beneficial to consumers, while others argue such devices and related automation may maximize business value, but result in labor substitution and negative long-term economic impacts. This debate extends to the research literature where some scholars take a pessimistic view while others are more optimistic. We seek to address such tensions by working toward a rigorous understanding and description of connected smart devices and the potential effects on consumer value and business value. We develop a foundational, theoretically-based taxonomy of smart connected devices as a basis for understanding where value creation potential lies. We then propose a model to explain how complementarities between humans and smart devices, in terms of the assignment of physical tasks, resource capabilities, information flows, and allocation of decision rights, may affect consumer, business, and societal value.