Value Creation Chain Research Articles

How Does Customer Self-Construal Moderate CRM Value Creation Chain ?

How Does Customer Self-Construal Moderate CRM Value Creation Chain ?

The Analysis of Trends and the Assessment of the Worldwide High-Tech Production Development

The purpose of the article is to analyze the trends and assess the level of the development of high-tech production in various countries worldwide, as well as to theorize the directions of scientific and technical development of the country by means of increasing the value of innovative products. The prerequisites for the timeliness of mainstreaming of the development of high-tech production for national economies, including GDP growth and improving the competitiveness of the country in global markets have been analyzed. The main aspects of the fourth technological revolution have been identified. The need for regular monitoring of the indicators reflecting the state and the level of the development of high-tech industries in the countries worldwide has been demonstrated. A correlation and regression model of the dependence of the share of high-tech industries in the GDP structure has been developed for the positioning of individual countries in the global technological space with regard to the key market leaders. The model makes it possible to predict the changes in the contribution of high-tech industries to the GDP of the country by means of varying the indicators of scientific and technical activity. A model of the value creation chain for technology-intensive products with account of the institutional means of ensuring scientific and technical development as well as its strategic management at various levels of management (international, national, and local) has been proposed.

On Sustainability of a Dairy Sector in Crisis

The European milk crisis accentuated the importance of sustainability in the dairy sector. In achieving sustainable rural development, strategies focused on value chain creation, transparency and traceability are crucial. Sustainable relationships are needed to promote these aspects through collective action. This paper uses empirical evidence from Greece to contribute to the exploration of the sustainability concept within the agricultural sector and specifically the dairy sector. Based on empirical data, we analyse the overall sustainability of the dairy sector based on the innovation capacity of the sector and the sustainability of the relationship of the key actors, such as dairy farmers and processors. Additionally, a theoretical approach addressing ‘relationship sustainability’ and the factors affecting this construct is proposed. The preliminary findings underline a deficit in innovation capability and an inadequate sustainability level of the relationships within the dairy sector. Policy implications are offered.

ІНСТРУМЕНТИ МІЖНАРОДНОГО МАРКЕТИНГУ ГЛОБАЛЬНИХ ЛАНЦЮГІВ ВАРТОСТІ

The article is devoted to the analysis of international marketing tools used in the functioning of global value chains. It is determined that the development of international marketing tools, especially in value creation chains, is an important condition for strengthening the competitiveness of domestic companies in the world market. The results of the study of existing theoretical approaches show that the use of tools of international marketing of global value chains is a system of process of planning, realization of goods or services by means of marketing activities outside of the country and taking into account environmental factors, which is oriented to the favorable interaction of the companies participating in the global chain of companies value, for profit and business expansion worldwide. The theoretical basis of the global production chain formation is analyzed; it is identified that the greatest added value is created in the production of key components or in the service sector – RD it is determined that the effectiveness of the choice of marketing tools is determined by the evaluation of the validity of the choice based on the methodology, which includes four stages. The findings indicate that the process of implementing international marketing tools in global value chains is not a blind effort to standardize all marketing elements, but rather the use of a specific approach to developing strategies and programs that combine flexibility with uniformity. It is proposed to adapt existing international marketing tools to the conditions and requirements of the countries to bypass various barriers to export their goods and penetrate new foreign markets in order to enter Ukrainian producers' chains of value or to form new ones.

Enabling complexity management through merging business process modeling with MBSE

Integral products are characterized by multiple functional use of components, resulting in more compact and lighter products. However, those benefits come along with a significant increase in development process complexity. This complexity represents a significant risk in the value-creation chain. For the efficient fulfilment of customer needs and market requirements, strategies are required to cope with the complexity of integral products. A promising approach in this context is Model Based Systems Engineering (MBSE). Through the formalized application of modeling, MBSE allows the development of a system model to support the development process. The model enables a visualization of the process complexity and thus an identification of the essential complexity drivers. This knowledge is mandatory for the coordinated initiation of countermeasures. However, MBSE is not yet fully integrated in today’s product development processes (PDP). One reason for this is an insufficient interconnection between system models and business processes. This paper presents an approach for merging MBSE with business processes. The procedure comprises the modeling of exemplary business processes in a product data management system (PDMS). These processes are linked to a MBSE modeling tool via a RESTful API. Synergetic potentials of this connection are pointed out, based on scenarios from requirements management, product configuration and risk management. Finally, a discussion takes place regarding the degree of maturity to master complexity in business processes with MBSE.

Improving the Partnership between the Participants in the Vertical Chain of the Construction Market

Abstract On the construction market the participants tend to work in the short term and are limited rational using the accumulated knowledge and experience in their practice. In addition, it is characterized by a low level of inter-company connections, i.e. the same team seldom works together more than one project, resulting in a fragmentation of responsibility. The complex relationships between the firms involved in the vertical chain of value creation in construction objectively impose the need for their improvement and more efficient management. The aim of the study is the analysis the possibilities of creating a relatively stable relationship and a joint approach of clients, contractors and subcontractors by deepening the specialization and differentiation of each intermediate product, improving the quality of the final product, optimizing the costs, creating a higher additional value at each stage of the chain and ensuring economic, social and environmental performance of construction.

Assessment of the Effciency of financial and Economic Mechanisms of State Stimulation of Innovative activity in Russia

The paper analyzes the effectiveness of budget fnancing of innovative activities in Russia. The structure of sources of fnancing of internal expenditures on research and development, branch orientation of the state support of innovative activity is considered. The estimation of the cost-effectiveness of technological innovation is given. The analysis is based mainly on the materials of Rosstat for 2013–2016. In addition, the authors cited international comparisons of innovative activity for 2012–2014. To assess the effectiveness of government measures to support innovation activity proposed “Golden rule of the economy.” It consists in determining the ratio of the main components of innovation activity (innovative goods and technologies) and the resources used, including budget fnancing. An important conclusion is made about the ineffcient mechanism of state support of innovative activity in Russia. Proposals for its improvement are formulated, including: bringing the content and structure of state programs in line with the objectives of the formation of conditions for accelerated technological modernization of the industry; introduction of the Institute of state programs of the mechanism of project fnancing and methods of the digital economy; reducing the number of targets of state programs; stimulating by an order of magnitude more technological costs carried out by industrial companies using the mechanism of public-private partnership; preferential state stimulation of process and organizational and managerial innovations in the creation of value chains; encouragement of own and commissioned research and development carried out by domestic companies; promotion of innovative activity in large industrial enterprises, etc.

PCP9 - Non-Profit Drug Research and Development at a Crossroads: The Case Study of Genethon

In wealthy nations, non-profit drug R&D has been proposed to reduce the prices of innovative medicines. We sought to analyse Genethon, a French non-profit biotherapy R&D organisation focused on rare diseases. We discuss the ethical and economic issues concerning non-profit drug R&D companies, and the possible impact that their pricing strategy may have on the innovation efforts from for-profit companies targeting the same segment of the pharmaceutical market. Published and grey literature review. There are two possible approaches to pricing drugs developed by non-profit R&D programs: pricing that maximises profits and “affordable” pricing that reflects the cost of manufacturing and distribution, plus a margin that ensures sustainability. Genethon has opted for in-house production and distribution in order to maintain control over the supply of its products and sell them at a ‘fair and controlled price’. The firm has decided to occupy the whole chain of value creation, from discovery to large-scale manufacturing and sales. However, it lacks the experience in launching, selling, and distributing medicines, which may delay or jeopardize patient access to Genethon’s innovative therapies. Ethical issues include spending public funds on commercial sales activity and investing them into a sales venture that will bring a return on investment much below the potential return in the for-profit sector. Further, lower pricing constitutes a disincentive for the for-profit sector to develop further products in the same disease area and the risk of drying out the for-profit sector R&D is high. Since the antitrust law does not permit non-profits to impose prices on potential licensees, these companies face ethical challenges when making decisions on licensing and pricing their inventions. Licensing their products to for-profit companies will bring high royalties that could be reinvested into further R&D, but will also result in high drug prices.

Industry 4.0: Technologies and their impact on productivity of industrial companies

The idea of the fourth technological revolution on the one hand is conceptual as formulates understanding of occurring changes, on the other hand, institutional, so creates the base for a number of the political initiatives developed and supported by the state and business for development of a research and development program. In article questions are considered:• Where the third industrial revolution comes to an end and the fourth begins?• What distinctive features and elements characterize "the industry 4.0"?• What changes expect an industry and the enterprise? the main characteristics of industrial production carry are: • digitalization and vertical integration on a value creation chain; digitalization and horizontal integration of several chains of value creation; • digitalization of products and services; • digital business models and access of clients; • the developed technological platform. The analysis of influence of the technologies characterizing the fourth industrial revolution on increase of productivity of the industrial companies is carried out. Application of the specified technologies not only allows to reduce number of unplanned shutdowns of the equipment considerably; time spent for jet, emergency work; but thus to increase time spent for pro-active, preventive maintenance. Besides, transformation of industrial production affects business-models of the industrial companies. The carried-out analysis of cases, allowed to allocate three new models of the organization of plants: the clever automated plants, the plants focused on the client, and mobile plants.

ASSESSING THE IMPACT OF INTEGRATION ON ECONOMIC GROWTH AND FOOD SECURITY IN ECOWAS

This study analyzes the potential of regional integration through the culture of trade value chains in accelerating economic growth and achieving food security with a focus on ECOWAS. Some strategies that regional integration can promote to stimulate economic growth and increase food security are compared. The study examines whether countries must develop strategies to raise international trade through increasing openness degree or whether countries must develop policies to reinforce community or regional trade through the potential of value chains inside the regional integration. Three instruments are investigated (trade openness, intra-regional trade openness and the community insertion to value chains). Two models are estimated with panel fixed effects using data from 1995 to 2012. The findings support that regional integration needs to be strengthen and better promoted in order to stimulate the potential of each country to move from discontinuous growth to sustained growth. International trade is not a solution for ECOWAS countries to boost economic growth, but regional trade linked to creation of value chains among each country can be the engine of the region growth and food security.

Digital organization: Transformation into the new reality

Vladimir I. Ananyin - Senior Lecturer, Department on Business Processes Management, The Russian Presidential Academy of National Economy and Public Administration Address: 82, Prospect Vernadskogo, Moscow, 119571, Russian Federation E-mail:v.ananiin@gmail.comKonstantin V. Zimin - Editor-in-Chief, Information Management Journal, Member of the Board, The Russian Union of CIO Address: 34, Seleznevskaya Street, Moscow, 123056, Russian Federation E-mail: konst.zimin@gmail.comMikhail I. Lugachev - Professor, Head of Department of Economic Informatics, Lomonosov Moscow State University; Academic Supervisor, IBS Corporate UniversityAddress: 1, build. 46, GSP-1, Leninskie Gory, Moscow, 119991, Russian FederationE-mail: mlugachev@gmail.comRinat D. Gimranov - Head of IT Department, OJSC Surgutneftegaz; Head of Surgutneftegaz Department of Vocational Relationships, Surgut State University Address: 1, block 1, Grigoriya Kukuevitskogo Street, Surgut, 628415, Russian FederationE-mail: gimranov_rd@mail.ruKirill G. Skripkin - Associate Professor, Department of Economic Informatics, Lomonosov Moscow State University;Address: 1, build. 46, GSP-1, Leninskie Gory, Moscow, 119991, Russian FederationE-mail:k.skripkin@gmail.com This article discusses the characteristic changes in management practices occurring in the context of the digital transformation of business. It shows the mutual interconnections of these changes, as well as the links to changes in the organizational culture of the organization. Among the new management practices reviewed are those both at the level of the enterprise as a whole (digital products, digital business models, digital management of value creation chains, digital business processes), as well as on the local level in adoption of management decisions - unlimited knowledge and management of the enterprise in real time (Real Time Enterprise). The article demonstrates the need for formation of certain cultural norms in the organization, including total knowledge management and an orientation to rapid changes. Review is made of the succession and qualitative distinctions of traditional automation from digitalization of enterprises. We discuss the possibility of using theories and methods connected with such concepts as complementary assets for research into new forms of organization for the digital enterprise. The article also presents a research program conducted in the framework of a program for digital transformation of activities of the OJSC Surgutneftegaz, Orbita 2.0. In the given research program the accent is placed on analysis of the problem of sustainability of the organization. In order for the organization to be flexible and changeable, it should periodically be in a condition of instability. In the contrary case, strong resistance to change will develop in it. The search for principles and forms of organization ensuring the controllability of sustainable organizations is an important area of this research.

ОБҐРУНТУВАННЯ ЕФЕКТИВНИХ РІШЕНЬ У КОНТЕКСТІ СТРАТЕГІЧНОГО УПРАВЛІННЯ ВИТРАТАМИ ПІДПРИЄМСТВ ЛЕГКОЇ ПРОМИСЛОВОСТІ НА ОСНОВІ АНАЛІЗУ ЛАНЦЮЖКА ЦІННОСТЕЙ

The paper offers argument-based provisions in the application of value chain analysis for making effective decisions on strategic cost management of light industry enterprises, revealing the essence of the value chain concept as well as its specifics in the light industry sector. The key steps in value chain creation for light industry enterprises are suggested along with identifying the methods to gain competitive advantages for enterprises of consumer goods industry. Corporate strategy implications to increase profits are provided. The value chain components for core activities of light industry enterprises are demonstrated. The study also presents a clear methodology to increase profits in the context of value chain model application. The case of the return on assets per unit of light industry output together with profit creation within the value chain is discussed. A matrix of the correlation of market size expansion and market share is displayed.

Social entrepreneurship by cooperative: examining value chain options of an indigenous fisherman's co-op

Indigenous cooperative supporting community development objectives has potential to flourish as a social enterprise. Our study draws on social value creation and value chain to find value addition opportunities of a community-based cooperative. Field study was conducted in Norway House Cree Nation community, Northern Manitoba, Canada, adopting qualitative case study methods. We surveyed fisher-households and cooperative members. As well, we conducted semi-structured interviews with experts, government officials, NGO personnel, fish distributors, retailers, and marketing agents. We also held two focus group discussions in the community. We observed that the studied cooperative operates only as a supplier to the primary market. Results show that intervention in the upstream value chain with establishment of modern processing facilities would ensure cooperatives' participation in the secondary markets, create employment opportunities in the community, and enhance its capacity for further social contributions. We conclude that value chain intervention, if made at the community level where producers work corporately as a primary suppliers under a cooperative, creates further value in the society.

Importance of Motivation and Work Pay of Young Employees in the Value Creation Chain of a Business Company: Assessment of Changes in and Formation of Expectations

As business companies compete in the market and seek to acquire a competitive advantage, one of the most important factors is well-motivated employees who are satisfied with their job. The success of companies operating in various sectors is determined by the quality of products, while the quality is ensured by qualified employees having appropriate skills and knowledge, whose work should be appreciated by monetary work pay established based on reasonable and clear criteria as well as other means of motivation. The process of human resources management in a business company places an ever-growing importance on the development of competences of employees, strengthening of cooperation, empowerment of employees as well as their work pay and motivation in order to achieve an employee’s work quality and productivity, satisfaction of customer needs and successful operation of a company. In the process of the company’s human resources management, special focus should be given to the satisfaction of the expectations and needs of new employees (who are usually young and inexperienced) as well as their integration, which ensures the generation of new and creative ideas in the company and, at the same time, high quality of products and work productivity.

Word-Of-Mouth in Social Media. The Case of Polish Tourist Industry

AbstractThe core objective of this paper is to determine the level of online dialogue in social media between the tourist industry leaders and their customers. This study applies sequential explanatory industry-representative comparison with statistical and qualitative analysis of online word-of-mouth communication. Its main finding is that even if online marketing is a hot topic, online channels seem to be neglected by the companies failing to provide real-time dialogue services. This results in the loss of customer attention and engagement and can be linked with overall corporate relationship management immaturity. In addition, the article offers vital insight into customer value creation chain of hotel and tour operators.

From data to value: A nine-factor framework for data-based value creation in information-intensive services

Service is a key context for the application of IT, as IT digitizes information interactions in service and facilitates value creation, thereby contributing to service innovation. The recent proliferation of big data provides numerous opportunities for information-intensive services (IISs), in which information interactions exert the greatest effect on value creation. In the modern data-rich economy, understanding mechanisms and related factors of data-based value creation in IISs is essential for using IT to improve such services. This study identified nine key factors that characterize this data-based value creation: (1) data source, (2) data collection, (3) data, (4) data analysis, (5) information on the data source, (6) information delivery, (7) customer (information user), (8) value in information use, and (9) provider network. These factors were identified and defined through six action research projects with industry and government that used specific datasets to design new IISs and by analyzing data usage in 149 IIS cases. This paper demonstrates the usefulness of these factors for describing, analyzing, and designing the entire value creation chain, from data collection to value creation, in IISs. The main contribution of this study is to provide a simple yet comprehensive and empirically tested basis for the use and management of data to facilitate service value creation.

Impact of Industry 4.0 in service oriented firm

The first part of this study is devoted to concepts, approaches and some examples of the fourth industrial revolution. The basis of this revolution also well known as Industry 4.0 builds so called cyber-physical systems. They contain the integrated smart software systems including the internet address to enable the communication with environment as for product itself as for means of production and employees. All these enable the next level of efficiency and flexibility for both organizing and controlling of the value-creation chain over the whole lifecycle of products. In the first three chapters several Internet references and documents published by German Federal Ministry for Economic Affairs and Energy were used. Because of multiple cross references in documents, this report is written without detailed references in each paragraph of mentioned chapters. The last three chapters of the research presented undertake the short review of interdependencies between the Industry 4.0 and the well-known approach of computer-supported-cooperative-work established in the late 1980s. Long list of publications can be found in Wikipedia, and in many proceedings of ACM conferences on computer supported cooperative work (CSCW).

THE ROLE OF ECONOMIC ACTIVITIES’ CLUSTERS IN GROSS VALUE ADDED GENERATION IN THE BALTIC STATES

: Economic globalization affects regional development through different economic value creation chains. The structure of regional economic activities’ groups and size of clusters could also influence the structure and size of gross value added in a particular region. This paper examines the impact of the main labor force indicators on the generated gross value added in diverse economic activities in the Baltic States and the neighbor regions of Finland and Poland in the period of 2000-2013 according to Eurostat data. The research has shown that the structure of economic activities clusters in the Baltic States (Estonia, Latvia, Lithuania) significantly differs from the neighboring regions of Poland and Finland. We also found that the labour force input has a significant impact on the following economic activities’ clusters in the Baltic States: “Industry (except construction)”, “Wholesale and retail trade, transport, accommodation and food service activities”, “Construction”, “Professional, scientific and technical activities; administrative and support service activities”, “Financial and insurance activities”, “Arts, entertainment and recreation; other service activities; activities of household and extra-territorial organisations and bodies”. The impact of the labor force on generated gross value added differs in diverse economic activities. The authors believe that the results of this study could be useful for policy makers in building more progressive national and regional economic development strategies.

The Effect of Intellectual Capital Drivers on Performance and Value Creation: the Case of Tunisian Non-financial Listed Companies

The value of companies is traditionally estimated from the material wealth they hold. In the context of the knowledge economy (KE), these elements are no longer enough to estimate this value. Many authors are interested on new sources of value creation called immaterial. Nevertheless, the intangible elements, without physical or intangible substance, are difficultly taken into account by old accounting methods. The work done around our problem tries to define a model that reflects the overall performance of firms of the NE, by adding information about the intangibles to the old accounting data. The present study is looking for reliable measures of the performance of Tunisian firms which are operating in the new economy. The failure of accounting and financial data leads us to add other information. The pieces of information are related to intangible capital which is the main source of value creation for firms in the KE; however, they are ignored in traditional metrics. The results obtained, following the different operated regression, indicate the significance of the variables: “book value, BVE;” “return on equity, ROE;” and “return on assets, ROA.” However, the other ratios are insignificant. Furthermore, the explanatory power of the model is fairly low hovering around 20%. This result allows us to confirm the failure of classical accounting and financial data to translate firm performance of KE. Thus, we validated our initial hypothesis that stresses the usefulness of accounting and financial data in evaluating the performance of firms in the KE. Similarly, data on intangible capital is embodied in three aspects–structural, customer, and human–that play important roles in assessing this. The obtained results indicate that the explanatory power of the model, taking into account the intangible component, is higher than that based solely on the accounting and financial data. Indeed, adjusted R² lies in a range between 30 and 66%. This validates our second hypothesis on the role of intangibles in the chain of value creation. This study shows the important role of intangible capital information in the process of decision-making. Thus, investors and managers should give particular attention to immaterial components which allowed a better appreciation of the overall performance of Tunisian firms operating on NE. This is the contribution of our work.

ICT as Alternative Model for Poverty Reduction in Nigeria: An Appraisal of the Telecom Revolution

The objective of this paper is to assess the impact of ICT, particularly, the telecommunications revolution on poverty reduction in Nigeria. Using historical approach spiced with empirical observation, the paper argues that previous poverty reduction initiatives adopted by successive governments in Nigeria failed to yield the desired result because the ICT was neglected as a critical and strategic component. The paper contends that with the massive impact of the telecom revolution on the Nigerian economy as well as its remarkable contributions to poverty reduction in terms of employment generation and creation of value chains within a relatively short-time frame in Nigeria, the ICT appears to offer more viable and sustainable option to poverty reduction than previous approach. The paper concludes that to sustain the gains of the telecom revolution in Nigeria particularly in the face of increasing globalization, there must be concerted efforts by the government, development partners and indeed all stakeholders to deploy the use of ICT in all sectors of the national economy in order to enhance productivity and reduce poverty.