On the Relationship of Value Creation and Value Capture

Abstract

Scholars of the resource-based theory (RBT) have recently emphasised the need to integrate the concepts of value creation and value capture in the RBT, ultimately to obtain a better understanding of the resource/capabilities-performance link. This paper contributes to this debate by analysing the influence of firms' value creation and value capture capabilities on their competitive advantage and by studying the relationship of value creation and value capture. Through analysing survey data of 108 firms operating in the German Greentech industry, hypotheses were tested using partial least squares structural equation modeling. Most notably, find support was found for the hypothesis that firms' value capture capabilities moderate the influence of value creation on competitive advantage negatively, suggesting a substitutive relationship of value creation and value capture resource allocations. The authors' findings show that management can rather obtain competitive advantage by putting primary attention to either value creation or value capture instead of trying to maximise both at the same time.