Value creation logics and resource management: a review

Abstract

PurposeThe purpose of this paper is to locate different value creation logic contingencies within the resource management framework. While Sirmon et al. discuss how external environmental contingencies, such as environmental munificence, impact resource management, this paper aims to discuss a second key contingency; that is how the firm's choice of value creation logics impacts its resource management choices. This paper seeks to argue that management of the firm's resources and capabilities is contingent on the value creation logic employed by the firm.Design/methodology/approachThis paper reviews three value creation logics: value shop, value network, and value chain and then integrates them within the resource management framework.FindingsA review of extant literature indicates that value shop firms, value network firms, and value chain firms enact very different environments and thus require very different resources and capabilities to support their value creation approaches. It is argued that Sirmon et al.'s resource management framework should reflect these differences.Research limitations/implicationsThis paper points to new directions for research in value creation logic theory and provides a basis for future empirical work.Practical implicationsThis paper argues that a mismatch between a firm's value creation logic and its resource management practices will have an adverse impact on the firm's performance.Originality/valueThis study is one of the first to integrate Stabell and Fjeldstad's value creation logic theory with Sirmon et al.'s resource management framework.