The Impact of Boundary Conditions on the Relationship Between Value Creation and Appropriation

Abstract

Value creation and value appropriation are two crucial issues in strategy, marketing, and supply chain management. Although value creation and value appropriation are two sides of the same coin, most prior studies focus on one or the other. Some empirical works examine value creation and value appropriation simultaneously, but the results remain mixed. This investigation contributes to the current literature by answering the following questions: Does more value creation lead to more value appropriation? Why can a supplier appropriate more value than others in a buyer-supplier relationship? The empirical results from 150 publicly listed firms that play the role of suppliers indicated that suppliers can benefit from their value creation. Partnership, the spillover effect of collaboration, and suppliers’ bargaining power can strengthen the positive relationship between value creation and value appropriation. Our findings and conclusions can have significant implications for research on value creation and value appropriation.