Value net – a new business model for the food industry?

Abstract

PurposeThe study aims to discuss the new value creation logic of value nets and analyze the characteristics of value nets in the context of the food industry. Previous research has shown that along with the growing importance of networking, the value creation logic is also changing from traditional chains to dynamic networks. The objective of this study is to define the characteristics of value nets and to analyze the suitability of the value net as a value creation and business model in the food industry.Design/methodology/approachThe study utilizes a case research as a method and analyzes a value net from the Finnish food industry. The empirical data comprises 29 individual semi‐structured interviews conducted with the personnel of four case companies.FindingsThe findings of the study suggest that the value net as a business model and value creation model is also suitable for food sector companies. The value net has several characteristics that were found to be significant and useful for food companies. Moreover, food companies can obtain remarkable benefits by utilizing value nets.Practical implicationsThe results of the study carry implications for managers and practitioners in terms of shedding light on the value net as a value creation model and business model in the food industry. Managers need to be aware of the developments in value creation logic and recognize that value can no longer be added in a sequential chain, but the perspective should move towards networks in which value is co‐created by the network actors.Originality/valueThus far, studies on value nets have concentrated mainly on the ICT sector and there is a limited amount of research on the food industry. The food sector, therefore, offers a new empirical context in which to conduct research on value nets. Food companies are focusing more and more on value creation and networking, and the research of value nets is therefore highly relevant to the business development of the food industry.