Affect Value Creation Research Articles

How the Use of Big Data Analytics Affects Value Creation in Supply Chain Management

Despite numerous testimonials of first movers, the underlying mechanisms of organizations’ big data analytics (BDA) usage deserves close investigation. Our study addresses two essential research questions: (1) How does organizational BDA usage affect value creation? and (2) What are key antecedents of organizational-level BDA usage? We draw on dynamic capabilities theory to conceptualize BDA use as a unique information processing capability that brings competitive advantage to organizations. Furthermore, we employ the technology–organization–environment (TOE) framework to identify and theorize paths via which factors influence the actual usage of BDA. Survey data collected from 161 U.S.-based companies show that: organizational-level BDA usage affects organizational value creation; the degree to which BDA usage influences such creation is moderated by environmental dynamism; technological factors directly influence organizational BDA usage; and organizational and environmental factors indirectly influence organizational BDA usage through top management support. Collectively, these findings provide a theory-based understanding of the impacts and antecedents of organizational BDA usage, while also providing guidance regarding what managers should expect from usage of this rapidly emerging technology.

Understanding the role of the broker in business non-profit collaboration

Purpose – This paper aims to investigate the contribution of brokers to business non-profit collaborations, in the context of employee volunteering. It investigates the roles brokers play and ways they contribute to value creation within social alliances. Design/methodology/approach – This research focusses on a case study of a UK employee volunteering broker programme run by a local volunteer centre. A combined qualitative methodology involved document analysis and interviews, with brokers and business, community and government partners involved in employee volunteering collaborations. Findings – Brokers play three key roles in business non-profit collaboration as connectors, facilitators/co-designers and learning catalysts. These roles help stimulate manifestations of associational value, transferred resource value, interaction value and synergistic value. Research limitations/implications – Results indicate brokers play an important part in nurturing conditions underpinning innovation and value co-creation, key characteristics of transformational forms of business non-profit collaboration. This study was based on a single case study. Future research could explore broker contributions within a variety of business non-profit settings. Practical implications – For managers implementing business non-profit collaborations, this paper provides a framework depicting key broker roles and ways brokers enable collaborative value that may be useful when assessing whether to use the services of a broker. Originality/value – This paper enriches the understanding of business non-profit collaboration and the role of individual actors in affecting value creation, an under-researched area in the social alliance literature. It provides a framework for assessing broker contributions in business non-profit collaborations.

Value Co-Creation in Management Consulting: A Theoretical Framework in Professional Service Context

Management consulting is increasingly recognized as an important contributor to modern economies. Considered as one type of professional services, management consulting is characterized by high levels of client interaction, service customization and flexible knowledge-intensive processes. Successful management consulting practices thus require inputs (e.g. knowledge, skills, experience and judgments) from consultants and clients as well as effective interactions between them. Accordingly, in this paper, built upon the value co-creation theory in the broad context of professional services, we investigate the roles of professionals, clients and their interactions in creating value not only for themselves but also for each other. We base this confirmatory and exploratory research on two qualitative multi-case studies involving in-depth semi-structured interviews with both professionals and clients in various professional service settings. Our results confirm the multi-dimensional and subjective nature of values and suggest a strong dependency of professionals’ non-monetary value-for-firm on clients’ value-in-use. Results also suggest that effective professional–client interaction positively affects value creation for both parties. Finally, professional- and client-related antecedents that enhance the interactions are discussed. The resulting theoretical framework and research propositions advance our conceptual understanding of professional service management, and suggest important managerial implications for both professionals and clients. Given that management consulting is a type of professional service, the findings can also contribute to answering the question

Value Creation in Cross-Sector Collaborations: The Roles of Experience and Alignment

This research uses a survey (N = 362) to analyze types of benefits sought by partners in cross-sector collaborations (between businesses and NPOs) in Spain and to test and build upon theories that indicate prior collaboration experience and partner alignment will positively affect value creation through the collaboration. Using exploratory factor analysis to operationalize a broad range of potential benefits into more specific concepts, the results of this study identify distinct factors that characterize the types of benefits sought by non-profit organizations and businesses engaged in cross-sector collaborations. Findings show that prior experience and alignment positively affect each factor for value creation. Prior experience is also found to influence the type of benefits sought from cross-sector collaborations and to positively affect alignment in terms of mission and strategy. Unexpectedly, the study also finds that prior experience moderates the effect of alignment on value creation.

The Effect of Selective Openness on Value Creation in User Innovation Communities

Open innovation research and practice recognize the important role of external complementors in value creation. At the same time, firms need to retain exclusive control over some essential components to capture value from their product and/or service system. This paper contributes to the literature by analyzing some of the trade‐offs between openness to external value creation and closedness for internal value capture. It focuses on selective openness as a key variable and investigates how it affects value creation by external complementors, specifically the members of user innovation communities. Openness, it is hypothesized, matters to community members: The more open a product design is, the higher their sense of involvement in the innovation project, and the larger the effort they devote to it. Unlike prior literature, different forms and loci of openness are distinguished, specifically the transparency, accessibility, and replicability of different components of the product being developed.Hypotheses are tested based on survey data (n = 309) from 20 online communities in the consumer electronics and information technology hardware industries. Multilevel regression analysis is used to account for clustering, and thus nonindependent data, at the community level. We find that openness indeed increases community members’ involvement in the innovation project and their contributions to it. Interestingly, however, some forms and loci of openness strongly affect community perceptions and behavior, while others have limited or no impact. This finding suggests that, at least in relation to user communities, the trade‐off that firms face between external value creation and internal value capture is softer than hitherto understood. Contingency factors that may be able to explain these patterns are advanced. For example, users are expected to value the form of openness that they have the capabilities and incentives to exploit.The findings in this paper extend the literature on selective openness in innovation. They emphasize the need to study the demand for different forms of openness at the subsystem level and align supply‐side strategies to it. In managerial practice, a careful assessment of the demand for openness enables firms to successfully use selective openness and to effectively appropriate value from selectively open systems.

Levers of Management in University–Industry Collaborations: How project management affects value creation at different life-cycle stages of a collaboration

This paper reports a longitudinal multi-case research project encompassing 38 semi-structured interviews conducted in 2011 and 2012 with four students, 12 researchers and 22 companies relating to a total of 25 university–industry collaborations. The interviews covered the collaboration type, the initiation of the collaboration and details concerning the planning of the collaboration. In addition, the interviews focused on the relationships between the people involved in the collaboration and the effects of project management. We distinguish between project management success and project success, and identify potential good practice. The paper concludes that, whereas project management success was not found to be causally related to project success, there seems to be a clearer link between project management success and ensuring effective use of resources in both companies and universities. There is also evidence that it is problematic when corporate managers think they can run research projects like lean ...

Value Creation in Cross-Sector Collaborations: The Roles of Experience and Alignment

This research uses a survey (N = 360) to analyze types of benefits sought by partners in cross-sector collaborations in Spain and to test and build upon theories that indicate prior collaboration experience and partner alignment will positively affect value creation through the collaboration. Using exploratory factor analysis to operationalize a broad range of potential benefits into more specific concepts, the results of this study identify distinct factors that characterize the types of benefits sought by businesses and civil society organizations engaged in cross-sector collaborations. Findings show that prior experience and alignment positively affect each factor for value creation. Prior experience is also found to influence the type of benefits sought from cross-sector collaborations and to positively affect alignment in terms of mission and strategy. Unexpectedly, the study also finds that prior experience moderates the effect of alignment on value creation.

The Impact of Rule of Law on Market Value Creation for Local Alliance Partners in BRIC Countries

Market value creation for the local partner in an international strategic alliance (ISA) that takes place in a developed market economy is well documented; however, value creation for the local partner of an alliance in an emerging market (EM) has received less attention. We contend that rule of law is a key driver of value creation for the local partner because weak rule of law in an EM may suppress the foreign partner's willingness to share its valuable knowledge assets, which are a critical source of value for the EM partner. While rule of law directly affects value creation from the ISA for the EM partner, we argue that alliance type (R&D vs. non-R&D) and local partner type (state owned vs. non-state owned) are important moderators of this relationship. We find support for our arguments in an analysis of 902 ISAs in the BRIC (Brazil, Russia, India and China) countries over 1991–2005.

Effects of Acquisition CSR Characteristics on Shareholder Value

This study draws on the Resource Based View (RBV) and the synergy creation hypothesis to examine how Corporate Social Responsibility (CSR) characteristics of acquisitions affect value creation for acquiring firms' shareholders. Using two data resources (TRI & KLD), this study reveals that using a cream-skimming strategy (acquiring a firm with relatively higher CSR capability) can create value for acquirers', shareholders and that this impact becomes more significant when the capability distance between acquirers and target firms is smaller, which supports the complementary asset and synergy hypothesis. We also find that two types of firm's CSR capability (technical vs. organizational) differ in their effect of shareholder value: acquiring a firm with the relatively higher technical CSR capability within the industry is found to create the acquirer’s value, which is not the case when acquiring a firm with the relatively higher organizational CSR capability within the industry. This may be due to the fact that technical capabilities are easier to transfer and assimilate than organizational capabilities.

Value creation and value capture with frictions

AbstractWe use a formal value‐based model to study how frictions—incomplete linkages in the industry value chain that keep some parties from meeting and transacting—affect value creation and value capture. Frictions arise from search and switching costs and moderate the intensity of industry rivalry and the efficiency of the market. We find that firms with a competitive advantage prefer industries with less, but not zero, frictions. We show that rivalry interacts nontrivially with other competitive forces to affect industry attractiveness. Firm heterogeneity emerges naturally when we introduce resource development. Heterogeneity falls with frictions, but the sustainability of competitive advantage increases. Overall, we show that introducing frictions makes value‐based models very effective at integrating analyses at the industry, firm, and resource levels. Copyright © 2011 John Wiley & Sons, Ltd.

Value Creation and Value Capture with Frictions

We use a formal value-based model to study how frictions in the product market affect value creation and value capture. We define frictions as incomplete linkages in the industry value chain that keep some parties from meeting and transacting. Frictions, which arise from search and switching costs, vary across markets and over time as, for example, products commoditize and competition becomes more global. Importantly, frictions moderate the intensity of industry rivalry, as well as the efficiency of the market. We find that firms with a competitive advantage prefer industries with lower levels of frictions than their disadvantaged rivals. We show that the impact of rivalry on industry attractiveness cannot be analyzed independently of other competitive forces such as barriers to entry and buyer bargaining power. We introduce resource development in our model to study the emergence and sustainability of competitive advantage. Firm heterogeneity emerges naturally in our model. We show that the extent of firm heterogeneity falls with the level of frictions, but sustainability increases. Overall, we show that introducing frictions makes value-based models of strategy even more effective at integrating analyses at the industry, firm and resource levels.

Governance of Value Creation in Supply Chain Relationships

This article is an empirical attempt to examine the relationship between types of governance and value creation in supply chain relationships. It does this by examining the incentive systems associated with various forms of governance and their effects on information sharing and on logistical performance. The article presents structural equation modelling (SEM) analysis of survey data from 181 supply chain relationships in the seafood industry. Contrary to common assumptions, the study findings suggest that relational governance affect value creation more than does market and hierarchical governance. The present study makes an empirical contribution by investigating the antecedents of logistical performance by applying SEM techniques.

THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON INVESTMENT RECOMMENDATIONS.

Using a large sample of publicly traded US firms over 16 years, we investigate the impact of corporate socially responsible (CSR) strategies on security analysts’ recommendations. Socially responsible firms receive more favorable recommendations in recent years relative to earlier ones, documenting a changing perception of the value of such strategies by the analysts. Moreover, we find that firms with higher visibility receive more favorable recommendations for their CSR strategies and that analysts with more experience, broader CSR awareness or those with more resources at their disposal, are more likely to perceive the value of CSR strategies more favorably. Our results document how CSR strategies can affect value creation in public equity markets through analyst recommendations.

Value creation in supply chain relationships: a critique of governance value analysis

PurposeThe purpose of this paper is to present a critique of the use of governance value analysis (GVA) for assessment of value creation in supply chains.Design/methodology/approachThe study presents a conceptual analysis of the assumptions, factors, and range of GVA as it applies to assessment of value creation in supply chains.FindingsGVA lacks comprehensiveness in assessing value creation in supply chains in that it ignores: certain important factors that affect value creation in supply‐chain relationships; governance issues beyond transaction‐specific investments; and cooperative value‐creating activities among supply‐chain members.Research limitations/implicationsThe critique calls into question the applicability of GVA in governing value creation, especially in the context of dynamic contemporary conceptions of supply‐chain relationships. It is not recommendable to analytically treat cooperation in supply‐chain relationships as transactional exchange.Originality/valueThis is an original and timely critique of the presumption that GVA is an appropriate model for assessment of value creation in supply chains.

E-Business Adoption, Use, and Value Creation: An Austrian Hotel Study

The paper presents an approach which shows how contextual conditions, like infrastructural, organizational as well as environmental factors, determine e-Business adoption and use, what in turn, positively affects value creation processes in hotel businesses. The research is grounded in Innovation Diffusion Theory and is empirically based on surveys undertaken in the Austrian hotel sector. By referring to Zhu and Kraemer’s (2005) e-Business impact model data is analysed by linear structural equation models and logistic regression. Results show that e-Business adoption and related use intensity decisions in the hotel sector are affected by the availability of a modern ICT system, firm size as well as management’s conviction that core business processes are supported by information technologies and, that tourists and cooperation partners expect latest information technologies. It was further found that online platforms are the most important e-Business application for value creation in the 3-star hotel segment. By contrast, in the 4/5-star hotel segment a property management system, a website with booking functionality and e-mail marketing are crucial e-Business applications for value creation

Purchasing strategies and value creation in industrial turnkey projects

This paper evaluates how turnkey project deliveries create value for their customers and how the purchasing strategy of the buyer affects value creation. Literature focusing on the distinguishing characteristics of turnkey projects and the different strategies available for purchasing them is reviewed. The concept of customer value is opened up and divided into value elements, benefits and sacrifices, which jointly determine the extent of value realized for the customer. Value elements discussed in existing literature are categorized and contrasted to empirical findings of a case study conducted in the Finnish marine industry. According to our findings, several short-term and long-term value elements are emphasized in the delivery of complex and bespoke turnkey projects for industrial customers. Further, the selection of the purchasing strategy affects the creation of value for the buyer. More specifically, competitive tendering-based strategies emphasize short-term value creation while purchasing strategies relying on a close interorganizational relationship between the buyer and the seller emphasize long-term value creation. Our findings illustrate that if the project marketing process of the seller and the purchasing strategy of the buyer are well aligned, value creation can be further facilitated.

Family influence on value creation: a resource-based analysis of the value creation process in family firms

Does family influence affect value creation within the firm? To answer this question this theoretical paper shows how family influence via power, experience, and culture leads to distinct resources, which then become input factors of the value creation process. Different types of values – human, ethical, intellectual, social, and financial values – are discussed as both, input and output factors of the value creation process. It will be shown that the value creation process itself involves all five types of values on three different levels of analysis: the individual, the group (family), and the organisation (firm). As the generation of further financial value on the long-run cannot be achieved without the employment of human, ethical, intellectual, and social values, managers and owners who are in charge of the well-being of a company have to concentrate not only on the financial value creation process, but also on the development of the rather soft values.

The value creation index:

There is increasing recognition of the importance of intangible assets. There is also a pressing need for a set of widely accepted metrics by which corporate leaders and the investment community can account for the non‐financial factors that affect value creation in the modern enterprise. Intangibles have always been a driver of corporate performance, and institutional investors take intangibles into account in their analysis and earnings estimates. Managers, by the same token, are increasingly adopting non‐traditional methodologies of measurement. The authors report on the work of Cap Gemini Ernst & Young researchers who have developed a rigorous, comprehensive model, the value creation index. The index combines the impact of key value drivers (e.g. innovation, quality, customer relations, management capabilities, alliances, technology, brand value, employee relations, and environmental and community issues) to form a single measure of non‐financial performance.