Sharing the benefits: How different dimensions contribute to value creation and capture

Abstract

Research on value creation and capture in business-to-business (B2B) relationships has not compared the effects or trade-offs among different benefit dimensions perceived by the buyer. Using an Adaptive Choice-Based Conjoint analysis conducted with 152 purchasing managers, we investigated the relative value created by seven dimensions, and how they affect value capture. Our findings confirm that benefit dimensions have potential to create value, as indicated in the extant literature. Additionally, the experimental method allowed to identify the non-linear nature of value creation as the attribute level of each benefit dimension changes. Four dimensions showed a convex shape, with decreasing utility levels to higher attribute levels, and one dimension showed a concave shape with increasing utility levels to higher attribute levels. We also found that benefits value potential depends on decision makers priorities, the extend by which it is operationally close, and if it can be objectively measured. Finally, we suggest that benefit dimensions may be interchangeable because they may be inter-related. The study brings strong implications for managers, as it shows that their value propositions may be more effective by positioning some benefits at intermediate, and not above market levels.