Understanding the renewal of value creation activities in an environment of technological turbulences

Abstract

Purpose- In order to survive, enterprises need to adapt their existing capacities and capabilities to changes in the environment, organize to meet the demands of their stakeholders, and develop sustainable competitive strategies. Because of this necessity, enterprises are trying to make innovations in their value creation constructs. The main purpose of this study is to try to understand the renewal of value creation activities, which has a significant impact on business performance, in an environment of technological turbulences that lead to threats or opportunities for enterprises. Methodology-This study examines value creation activities within the framework of the concepts of collective commitment between employees and organizational performance in the organization, through a model developed based on the findings in the relevant literature. The study was carried out in Turkey, which is trying to update its existing products and services according to the demands of its customers by using advanced technologies instead of improving technology. The data for the study were collected from the organizations that are involved in research and development activities and benefit from government incentives for this by using a questionnaire created originally. Findings- According to the analysis, regardless of the lines of business, both collective commitment positively affects the renewal of value creation activities of the enterprise and the renewal of value creation activities positively affects the performance of enterprises. Although technological turbulences in the market strengthen the relationship between collective commitment and renewal of value creation activities in labor-intensive lines of business, this effect was not observed in technology-intensive lines of business. Conclusion- As a result, it is understood that the perception of environmental factors such as technological turbulences as threats or opportunities and the renewal of value creation activities in enterprises are closely related. The findings of this research conducted in Turkey, which is influenced by both eastern and western cultures, will be important both for businesses operating in Turkey and in similar countries trying to get out of the developing country position. Keywords: Value creation activities, collective commitment, technology-intensive business lines, labor-intensive business lines, emerging countries JEL Codes: L20, L21, L25