Challenges Of Value Creation Research Articles

Boundary spanners as a key to value creation in infrastructure procurement

PurposeInfrastructure forms a basis for the operations and sustainability of the modern society. This paper aims to recognize value creation from the infrastructure procurement ecosystem perspective to achieve those goals. The pursuit of enhancing value creation involves an examination of infrastructure procurement challenges, boundaries as well as boundary spanners that facilitate effective knowledge transfer and interaction.Design/methodology/approachThe qualitative study is based on content analysis of 25 thematic interviews. Data was transcribed and coded via Atlas.ti software.FindingsInfrastructure procurement value creation challenges appear complex and related to boundaries that hamper collaboration, coordination and knowledge sharing. Our results show that these boundaries locate within and between different levels of procurement ecosystem. Therefore, value creation in infrastructure procurement requires boundary spanners for leveraging knowledge sharing and interaction. Artifacts, discussion, processes and brokers as identified boundary spanners are strongly nested and interrelated in the industry. Special attention should be given to supporting individuals to act as brokers, since they play the key roles in trust building, culture steering and usage of other boundary spanners.Social implicationsPromoting value creation in infrastructure procurement helps to achieve socio-economic development goals.Originality/valueThis study offers a unique perspective on value creation in the context of infrastructure by adopting an ecosystem lens and examining boundary crossing mechanisms. The results support future development of collaboration and knowledge sharing practices fostering procurement productivity.

Comparative Study on the Challenges of Distribution of Finished Goods to Customers in Different Types of Retail Stores

The study was undertaken as qualitative research. The purpose of this study is to compare the channels chosen by retailers to distribute goods to the final consumer. For the purpose of the study 3 different kinds of retails stores were chosen to understand their distribution of goods to the final customer. The retail stores chosen were Malls, Kirana stores and a cloth shop. The method of research was by interview method. The variables chosen for the study were types of channels, channel management, hybrid channels which were independent variables, and the dependent variable was creation of value. Five major questions were asked based on the value creation challenges retailers face in distribution management. From the study it was understood that retailers choose hybrid channels for distribution of goods to the final consumer to enhance the value.

Challenges of value creation in Eco-Industrial Parks (EIPs): A stakeholder perspective for optimizing energy exchanges

Eco-Industrial Parks (EIPs) are complex organizations to facilitate Industrial Symbiosis (IS) among a set of production units. IS can generate values from material and energetic wastes in the Circular Economy domain. However, there are very few examples of well-functioning EIPs in practice due to the complexity of creating a win-win equilibrium for all participants in material or energy exchanges. A barrier for initiating synergies in an industrial zone is the lack of methods to measure the profitability and environmentally friendly resolutions that EIPs can provide. Stakeholders (e.g. industrial zone managers) are more interested in a real synergetic network that could add value to all the stakeholders rather than exporting the extra steam from one site to another. This paper is based on an empirical study of an industrial zone in France to propose a tool for modeling and optimizing streamline exchanges among industries sites. The optimization objectives are defined for the cost and environmental impact of exchanges to be minimized. To bridge gaps in the existing optimization models, real conditions and technical features are considered to decide optimal industrial symbiosis, especially for heat exchange networks. The proposed method has been used to optimize an industrial park in France. The uncertainty analysis shows the resilience of established connections in the network under variations of key economic, social, and environmental parameters. Thus, it helps decision makers in identifying optimized networks to be invested for sustainable objectives.

Opportunities and Challenges of Value Creation through Merger and Acquisitions in Cyclical Economies

Despite prevailing financial turmoil and economic uncertainty, global M&A market has shown in 2014 an unseen growth since sub-prime crisis. The research focuses on reaching understanding and reconstructions on how management and corporate strategists can benefit from opportunities arising during various economic cycles. Development of a theoretical model that interlinks prevalence of M&A with macroeconomic variables through the thorough analysis of existing scientific empirical literature supports that M&A can represent a successful and value creating strategic growth mode during economic uncertainty periods. Global economic uncertainty highlights changes in value proposition offered by M&A.

Call for Papers—Service Science Special Issue: Multi-actor Value Creation in Service Innovation

Collaborative value creation builds on orchestrated social action among the different stakeholders involved. In service innovation, joint value creation calls for specific network leadership and resource integration capabilities, because advanced service entails complex configurations of people, technologies, organizations, and shared information. Hence, mutually beneficial outcomes may be difficult to achieve within such configurations through traditional approaches to innovation. Previous research in service has emphasized the cocreation of value. It has improved our understanding of the constituents of value in both business and consumer settings. However, the cocreation of value becomes more complex as the number of participants in the cocreation activity increases. Therefore, we would like to encourage you to submit research articles on collaborative value creation in service to this special issue, focusing especially on the questions of multi-actor value creation associated with innovation in service. This special issue explores the perspectives on joint value creation in both consumer business and business-to-business contexts, placing special emphasis on multi-actor service systems. In particular, we encourage attention to the processes, practices, means, and challenges of value creation in service innovation. This special issue calls for both conceptual and empirical research investigating the topic using multiple methodological approaches.

Value creation in creative tourism: co-creation through data mining

Creative economy has been discussed extensively in many developing countries as there is an increasing awareness of creativity for their new services. In the tourism sector, it can be portrayed in the light of creative tourism in which creativity is asserted by both tourists and tourism providers. Typically, value creation is required conducting detailed analysis and performing new service development process. Nevertheless, the challenges of value creation of creative tourism are that experiences cannot be easily transferred and shared by only particular features of tourism service items. This paper proposes an additional approach for value creation by employing data mining techniques to ensure value realisation as emerged from tourist perspectives in creative tourism environment. The analysis is made by using a sample of tourists in a selected area of Bangkok city. The results illustrates that such approach can enhance value co-creation when coping with intellectual capital and networking behaviour of the tourism system or enterprise.

Who is in charge? A property rights perspective on stakeholder governance

The fields of strategy and organization are dominated by the stylized idea that the purpose of the firm is to maximize returns on investment for equity shareholders. This idea is based on simplifying assumptions about externalities, contractual ties, investments, and the nature of competition. As a result, the dominant conceptualization of the firm’s purpose as shareholder value maximization may lead to serious misunderstandings regarding the firm’s contractual obligations. Furthermore, the idea of shareholder value maximization may lead to problematic and inaccurate representations of organization, innovation, and other aspects of value creation and capture. Creating and capturing value in the presence of spillovers, relationship-specific investments, and complex contractual ties is difficult in ways that are obscured by a relentless focus on shareholder value. In this essay, we develop these claims and point to the consequences for the canonical business school curriculum, which does not deal sufficiently with the challenges of value creation and capture under more realistic assumptions. We compare the shareholder view with a stakeholder view and seek to advance a synthetic agenda that puts limits on stakeholder claims without problematic, stylized assumptions. 453108 SOQ10310.1177/1476127012453108Klein et al.Strategic Organization 2012

Process-based vs. product-based innovation: Value creation by nanotech ventures

Nanotechnology is frequently heralded as the next wave of technological advance, poised to enable radical innovation across many industries. But as yet little is known about how firms will ultimately create that value. We do know that nanotechnology is based on process innovation, a category of innovation less well understood than product innovation. And we know that new ventures are an important vehicle for commercializing radical technology. As new ventures seek to commercialize nanotechnology, they evolve value creation strategies to better link fundamental scientific advance with the creation of value for users and investors. This paper asks “How do the successful value creation strategies of technology ventures differ in process vs. product-based innovation?”An investigation of 12 ventures representing the extremes of value creation through process-based (nanotech) and product-based (fuel cell) innovation reveals significant differences in their value creation challenges, in the mechanisms of technology–market matching and alliance building, and in their levels of experimentation. Ventures exploiting process innovation faced greater uncertainty in their value chain positioning, market breadth, customization, and the changes required of their customers in contrast to product-based ventures. Our evidence shows that nanotechnology ventures benefit from prioritizing technology–market matching, alliance building and experimenting with technologies in new value networks.

The problem of control and the role of home–host ties in explaining multinationals' foreign operations, competitiveness, and performance

AbstractThe existing multinational enterprise (MNE) literature has focused on capabilities and value creation challenges, including related to cultural and other distance. To better understand heterogeneity in the foreign country performance of MNEs, however, we need to go beyond the global strategy challenges of capabilities and coordination. Specifically, we need to explore MNEs' value capture challenges abroad and attend to control as a chronic dilemma that is inadequately addressed by internalization. In operating in foreign host countries, MNEs are chronically exposed to two types of largely uninsurable discretion: sovereign discretion of host governments and delegated discretion of host country employees, partners, suppliers, and such. The problem in the first case relates to power; and in the second it relates to information. Power and information are the sine qua non of effective control. Control is a prerequisite for anticipated value capture, which influences the extent of MNEs' capability transfer, input localization, and output adaptation in a given host country. Transfer, localization, and adpatation are the essence of host country value creation, which influences competitiveness and performance there. Accordingly, beyond differences in MNE capabilities, heterogeneity in access to credible power and reliable information in a focal host country predicts heterogeneity in MNEs' competitiveness and relative performance there. This is why and how heterogeneity in macro‐level home–host ties (HHTs) explains durable performance differences among foreign MNEs operating in a focal host country. In terms of global strategy research and practice, this turns the spotlight on macro‐level HHTs, nonmarket strategy, and, eventually, focused internationalization. It also argues for more microfoundations research on the limits and actual control benefits of internalization.

Utilização de Indicadores de Desempenho para a Tomada de Decisões Estratégicas: um Sistema de Controle

Globalization and technology, especially developed for communications and information technology areas, impose to entrepreneurs and executives the necessity to prepare themselves with managerial tools, techniques and methods for decision making in a timely manner and with minimal chance for error. It's noteworthy that the performance indicators emerge as one of the tools to help define the strategic planning and the consequent determination of business strategies. Accordingly, they allow the verification of the appropriateness of the decision taken. This paper presents the main concepts of indicators, highlighting the Balanced Scorecard, presenting then an application to use a system of performance indicators for financial and nonfinancial variables that were previously developed by a well-known Balanced Scorecard. This system was built and used in energy companies in the state of Sao Paulo, but can be used, in general, for any company in order to evaluate its performance as a whole and/or parts of its activity, according to its characteristics and the economic sector of operation. As competition increase, once globalization and multinational companies are increasingly present, it is essential to master monitoring techniques to guide decision making and show the quality of results. Initially, we carried out bibliographic research on performance indicators and strategic decisions in a competitive environment with challenges of value creation in the face of growing pressures of globalization and integration of the corporations. Based on the information obtained and due to the experience of the authors' developing work in the area of indicators, a proposal is presented for a system of performance indicators used by energy companies in the state of Sao Paulo in the period 1987/1996.