Key Value Chain Research Articles

Sustainable Economic Analysis of Oil Palm Value Chain in Imo State Nigeria: Opportunities and Challenges.

Abstract Oil palm production abounds with opportunities and challenges to sustainable economic growth in developing economies like Nigeria. The main objective of the study was to analyse the economics of the value chain of oil palm in Imo State. This study took into consideration three key value chain actors; which were mapped as the farmer, the processors and the marketers. It evaluated the different actors and their functions in the value chain to understand their dynamics and potential growth in the value chain. The identified opportunities in the value chain are job creation, increased demand for the products of oil palm, economic diversification, value chain integration and collaboration with other stakeholders, export potential and Interventions from governments and investors across the globe. There has been different government intervention to improve this sector of agriculture in Imo state. The challenges identified were inflation, lack of finance, land constraints and the tenure system, limited market information and the pricing dynamics that have affected the value chain actors in the expansion of the oil palm enterprise in Imo State. In summary, the study has shown the potential and the limitations faced by the value chain actors of oil palm in Imo State, Nigeria.

Investigating market-based opportunities for the provision of nutritious and safe diets to prevent childhood stunting: a UKRI-GCRF action against stunting hub protocol paper

BackgroundInadequate access to affordable, safe, desirable and convenient nutrient-dense food is one of the underlying causes of child stunting. While targeted nutrition-sensitive interventions (eg, backyard ‘nutri-gardens’) may increase dietary diversity...

Partial intermediary value-chain coordination and its effects on productivity of sweet potato in Tanzania

This study investigates the effect of partial intermediary coordination on Tanzania sweet potato productivity. A cross-sectional research design was used, and a sample of 100 small-scale farmers from Kilosa and Gairo Districts were surveyed using both purposive and simple random sampling techniques. Data analysis tools included the Statistical Package for Social Sciences, Microsoft Excel and Ethnographic Content Analysis. Three key value chain actors primary, secondary, and tertiary were identified by the study, along with their roles and linkages. The majority of farmers identified three main factors that affected crop productivity in the research area: Lack of improved cultivars, restricted access to cash, and small parcels cultivated. Coordination between the horizontal and vertical chain is critical for productivity and efficiency. The study also discovered that weak institutional frameworks exist among key participants in value chain nodes. Farmers and buyers conducted the majority of their business on the spot, and all agreements were unwritten. Meanwhile, only 6% of respondents reported that extension officers had notified them of market price offers and demands from profitable markets. Growers are unable to use innovative production techniques that could lead to economies of scale in shared services and collaborative ventures because of current production practices. It was noticed that rather than raising production, the existing intermediate corporations have contributed to lowering transaction costs. Despite these challenges, there is a lot of potentials for the sweet potato crop to transform rural livelihoods and turn into a valuable commodity. Governance needs to be supported by policies that improve market information flow and necessary infrastructures. While intermediate organizations are essential for improving market connections and lowering transaction costs for dispersed smallholders, it is critical for increasing productivity at the primary production level. Last but not least, the local government should put into effect a strategy designed to promote a climate suitable to the crop. Key words: Partial, Productivity, Coordination, Sweet potatoes, Value-Chain, Smallholders, Actors, Farmers

INDUSTRY 5.0 - THE PERSPECTIVES AND CHALLENGES OF THE BIOECONOMY

In this article, a study of the development of the fifth industrial revolution is made. Due to the rapid development of the bioeconomy and biotechnologies, which in turn change the environment for the functioning of industries and society, the topic is therefore extremely relevant. Different interpretations of the term "Fifth Industrial Revolution" are presented, while the key characteristics of the preceding industrial revolutions are examined and explored. In its main part, the article analyzes the scientific studies of the vision of the fifth industrial revolution, as well as the identification of the main opportunities and threats facing the world economy, industries and society. The relationship of Industry 5.0 with the economic performance of various industries is described, as well as its impact on environmental sustainability and the reduction of resource use. Special attention is paid to the process of adaptation of the economy itself to the upcoming changes in the key value chains. Thanks to the analysis, the authors found that Industry 5.0 will be defined by a new and expanded focus consisting of three main elements: human focus, stability and sustainability. The concluding part shows the importance of balancing the economy by improving sustainable value chains, adaptive production facilities and flexible business processes.

Transfer Pricing Considerations for Procurement and Sourcing Entities

This article deals with the arm’s length determination of transfer prices for intercompany sourcing activities. In particular, it challenges the view that intercompany sourcing activities represent merely routine services that should be entitled to a low cost-based remuneration without considering any markup on the procurement cost. On the contrary, sourcing activities are usually part of the key value chain of MNE groups meaning that the inclusion of the purchasing cost for raw materials or goods in the cost base is appropriate in the context of the application of the cost-plus method in accordance with the OECD Transfer Pricing Guidelines.

Evolution of value chain and governance actor responses to the plastic leakage problem in South Africa

An estimated 15,000–40,000 tons of plastic waste leaks into the oceans from South Africa annually. This has put the management of plastic products in the spotlight. In South Africa, life cycle management (LCM) is not a term that is commonly used however some companies have adopted LCM tools and concepts including cleaner production, sustainable procurement and design for recycling. Interviews with key value chain actors were conducted in 2017 and 2018–2019, on the influence of plastic leakage on plastic product life cycle management. In 2017, actors largely did not view themselves as responsible for plastic leakage, mostly putting blame on consumers. During the second interview period, a shift was observed wherein the actors recognized the role of product design in plastic leakage and started taking a more active role in its mitigation from the perspective of extended producer responsibility. The drivers for addressing marine pollution mirrored those for the adoption of LCM tools, including maintaining a competitive advantage and meeting investor and consumer expectations. In 2020, the South African Plastic Pact was developed and launched, which aims to create a circular economy for plastic packaging. As of October 2021, the majority of interviewed value chain actors are members. Ultimately the increasing concern surrounding plastic pollution has directly influenced value chain actors' perspectives and actions.

The fifth industrial revolution – innovations in the field of biotechnologies and neural networks

A comprehensive study of the phenomenon of the fifth industrial revolution is carried out. This topic is relevant due to the rapid development of biotechnologies and neural networks, transforming the environment of industries and society as a whole. Various interpretations of the term “fifth industrial revolution” are considered, and the key characteristics of previous industrial revolutions are identified and analysed. The main content of the research paper is an analysis of the scientific literature, consideration of visions of the fifth industrial revolution, as well as the identification of the main opportunities and threats that manufacturing enterprises, industries and society as a whole will face. The impact of Industry 5.0 on the economic performance of industries while meeting the needs and interests of employees, as well as ensuring environmental sustainability and resource conservation is described. The importance of the readiness of future industries to adapt to changing conditions in key value chains is emphasized. Based on the analysis of the scientific literature, the authors have revealed that the fifth industrial revolution will be determined by a new and expanded purposefulness, consisting of three basic elements: human orientation, stability and sustainability. Finally, the importance of balancing production through the development of sustainable strategic value chains, adaptable production capacities and flexible business processes was emphasized.

Transformation of Value in Innovative Business Models: The Case of Pharmaceutical Market

Creating and developing innovative business models (BM) is currently one of the key success factors for contemporary business. Rapid complex changes in the world reemphasize the need to better understand how BM can be successfully innovated in different markets. The digital component of BM innovation comes under a special spotlight, using the example of a company within the pharmaceutical industry. In particular, this study demonstrates how BM innovation can be developed and implemented in practice within the pharmaceutical market, which accelerates its digital transformation to increase the value it brings to the healthcare systems around the world while sustaining the ongoing crisis. In order to do that, the current paper offers a framework for BM innovation that defines BM elements, BM innovation aspects, and BM innovation logic. The study covers six markets that represent different value creation systems and mechanisms. This paper demonstrates how technological innovations can be activated using managerial tools and insights and also how they can be combined into the holistic system based on the needs of the key value chain actors.

Life Cycle Assessment for Supporting Eco-Design: The Case Study of Sodium–Nickel Chloride Cells

The European Union is moving towards a sustainable, decarbonized, and circular economy. It has identified seven key value chains in which to intervene, with the battery and vehicle value chain being one of them. Thus, actions and strategies for the sustainability of batteries need to be developed. Since Life Cycle Assessment (LCA) is a strategic tool for evaluating environmental sustainability, this paper investigates its application to two configurations of a sodium–nickel chloride cell (planar and tubular), focusing on the active material and the anode, with the purpose of identifying the configuration characterized by the lowest environmental impacts. The results, based on a “from cradle to gate” approach, showed that the tubular cell performs better for all environmental impact categories measured except for particulate matter, acidification, and resource depletion. With nickel being the main contributor to these impact categories, future sustainable strategies need to be oriented towards the reduction/recovery of this material or the use of nickel coming from a more sustainable supply chain. The original contribution of the paper is twofold: (1) It enriches the number of case studies of LCAs applied to sodium/nickel chloride cells, adding to the few studies on these types of cells that can be found in the existing scientific literature. (2) The results identify the environmental hot spots (cell configuration and materials used) for improving the environmental footprint of batteries made from sodium/nickel chloride cells.

Microbial contamination and associated risk factors in retailed pork from key value chains in Northern Vietnam

Pork and pork products are important staple food in the diet of Vietnamese consumers. The safety of pork, including biological contamination, is a concern to several public authorities and value chain actors. This cross-sectional study aimed to identify Salmonella and total bacterial count (TBC) contamination of cut pork sold in different outlets, and determine the potential factors leading to contamination. A total of 671 pork samples were collected from different retail channels in three provinces in Northern Vietnam. Hygiene conditions and practices at pork vending premises were also observed and recorded. Data analysis used descriptive statistics and regression analysis. Overall, Salmonella prevalence in retailed pork was 58.1%. Salmonella contamination in pork from traditional retail, modern retail and food services were 60.5%, 50.9% and 80.5%, respectively. Eighty percent and 68% of fresh pork in canteen and street food was contaminated with Salmonella. Only a small proportion of a subset of the pork samples (6.2%) tested met the Vietnamese standard requirement for TBC contamination. Average concentration of TBC in fresh pork in traditional retail, modern retail and food services were 6.51 (SD: 0.64), 6.38 (0.65), and 6.96 (0.85) LogCFU/g, respectively. Transport time, use of the same tools for pork and other types of meat, storage temperature, and environment hygiene are important factors that might affect microbial contamination. The findings underline the high level of microbial contamination, which requires practical interventions to improve food safety hygiene practices and behavior of pork retailers.

Value Chain Analysis of Large Cardamom in Taplejung District of Nepal

This study assessed the value chain analysis of large cardamom (Amomum subulatum Roxb) in Taplejung district, Nepal and explored the functional linkage and upgrading strategies among the key value chain actors. One hundred and sixty farmers were surveyed purposely along with 5 local and district level traders, 5 regional level traders and exporters and 5 enablers who were sampled using rapid market appraisal in March 2018. The study presents a comparative analysis among large holders (n=72) and smallholders (n=88) large cardamom farmers using SPSS and MS-Excel. The majority of farmers used suckers as propagating materials which was a major source of disease conduction. 62.5% of farmers adopted traditional dryers for curing, which reduced the quality of large cardamom whereas about 30% of them used improved dryers for curing that enhanced quality. The majority of farmers had not adopted value addition practices like tail cutting, grading and packaging which were carried out at trader level. Large cardamom prices were normally determined by the export market of India. The average land area of large cardamom per household was 21.56 ropani with 36.74 ropani for the large landholder farmers and 9.14 ropani for the smallholders. The key problems faced by farmers and traders were high price swing, lack of disease-free propagating materials, reliance on the Indian market, aged orchards, shrinking productivity, and minimal collaboration among the chain actors. Therefore, adoption of Good Management Practices (GMPs)- upgraded bhattis, transfer of tail cutting technology and storage management, along with value addition activities like grading (color and size), tail cutting and packaging need to be adopted with strong adherence to export quality. This study revealed that necessary action needs to be taken to maintain a high level of collaboration among the value chain actors thereby increasing the value chain efficiency of Nepalese large cardamom.

Late globalization and evolution, episodes and epochs of industries: Evidence from Danish textile and fashion industry, 1945–2015

AbstractThis paper explores the conceptual terrain of what we term late globalization. The late globalization phenomena are multilevel and multidimensional; this paper offers an initial portal into these phenomena. Understanding late globalization would provide academic insights and help in shaping practices at international, national, sectoral, and corporate levels. The paper follows a macro‐conceptual to a micro‐empirical path to provide illustrative empirical evidence. Studying the emergence and evolution of Danish Textile and Fashion Industry (DTFI) between 1945 and 2015—a quintessential sector for globalization—allows the examination of several interrelated issues: critical events, impediments, pressures, and turning points that shaped DTFI; main institutional players that motivated key policy changes in and evolution of DTFI; and effects of late globalization on size, mission, location, knowledge, growth, and structure of DTFI. This longitudinal case study of the development of the DTFI brings to the fore key features that shape late globalization at the sectoral‐national level: government industrial policies toward domestic and foreign players in an industry, global competition that shapes and continually reshapes (cost as well as quality‐driven) location of key value chain activities (and the concomitant global distribution of core competencies and skills), and the growing role of information technologies that enable globally‐dispersed value chains to function in cohesive and unified ways. Late globalization has additional levels and dimensions; and we point to implications for future research.

Exploring the potential of using nudges to promote food hygiene in the pork value chain in Vietnam

Interventions designed to reduce the burden of foodborne illness often require value chain actors to alter undesired and risky behaviours. This desired behavioural change may be supported by ‘nudge theory’, a sub-field of behavioural economics, which describes how individuals can be encouraged, or ‘nudged’, to act in ways which produce net societal benefits without restricting freedom of choice.This research aimed to investigate the use of nudges in the pork value chain in Vietnam. Key informant interviews (n = 12) were initially utilised to document the type of nudges being used within existing food safety interventions, followed by a questionnaire-based survey (n = 132) to describe the behavioural elements of pork value chain actors which could be amenable to nudging. Finally, a workshop was conducted to measure the response of stakeholders (n = 30) to various nudge elements which could be used to support future food safety interventions.Key informant interviews demonstrated that the use of behavioural nudges were a common aspect of food safety interventions in the pork value chain in Hanoi and Hung Yen Province. Survey participants reported that when considering food safety, veterinarians and actors’ peers were highly trusted, and reputation was thought to be an effective incentive to illicit behavioural change. During the workshop, stakeholders appeared aware of the major slaughter and retail contamination points and cited lack of access to improved infrastructure as the limiting factor in their ability to improve hygiene. Value chain actors reported positive responses to the concept of using posters containing photographic images as nudges and stipulated that media should reflect the local context and contain language framed to suit the target audience.We suggest that the findings of this study are used to create site specific nudges for the Vietnamese pork industry targeting key value chain actors, such slaughterhouse workers and traditional retailers, which should be tested in the field to investigate their effectiveness.

Analysis of cassava value chain in Ghana: implications for upgrading smallholder supply systems

PurposeCommercialization of cassava is increasing because of increased urban demand for processed products and increased recognition of the industrial potential of the crop. This study aims to examine the cassava value chain in Ghana and its implications for upgrading.Design/methodology/approachA combination of purposive, simple random and snowball sampling methods was adopted to select key actors in the cassava value chain. A semi-structured questionnaire was used to collect primary data. Analysis of the data was largely descriptive, except for profitability of cassava production in selected regions, which was examined by employing gross and net marketing margin analysis. A comprehensive value chain map was generated to show the different product pathways for cassava from the farm gate to the final consumer, and roles of key value chain actors and their relationships were summarized through simple narrations.FindingsEvidence has shown chains of more than four different channels through which fresh cassava roots move from the farm gate to final consumers. Production of cassava in Ghana is profitable, generating positive net marketing margins across major producing centres. Processing of cassava has both dry and wet/fresh value chains depending on the derived products for the final consumer. There is weak governance system in the cassava value chain in Ghana as majority of actors use spot market transactions in dealing with trading partners. The use of standardized grading and weighing system is very limited in the chain, and limited access to credit is a critical constraint to value chain upgrading.Research limitations/implicationsWith the exception of results from the profitability analysis of producers, the findings on marketing margins of other value chain actors may not be generalizable. Future studies could determine the profitability associated with cassava value-adding activities like processing into various forms and explore the possibility of converting waste from processing into energy.Practical implicationsThe study includes implications that focus on product and process upgrading efforts by smallholders in the cassava value chain. This paper recommends innovative financing models for smallholders to improve access to microcredit via internal and external funding sources.Originality/valueThis paper reveals specific intervention areas in which smallholders can direct efforts in an attempt to improve the cassava value chain through product, process and functional upgrading.

Open Data Impact Narratives – Stories of Impact of Open Data in Agriculture and Nutrition

The GODAN Action project examined the current state of the art of impact evaluation in the field of open data, developed an impact evaluation framework accounting for the specifics of open data use in developing countries, and performed a mix of desktop research and empirical work on case studies to test and underpin its research. This document describes the outcomes of these case studies, examining the potential of open data through the analysis of impact narratives in three thematic topics: weather data, land data and nutrition data. Three use cases per thematic topic have been selected that best illustrated the contexts, impact mechanisms, main actors and barriers towards the achievement of impact. Each thematic topic describes their use cases following a different structure adapted to the specifics of the domain. All cases, however, show the pathways to impact within the different topics and contexts of study, and specific Theories of Change have been developed for each of them. For the weather data case studies, the focus was on the important role of information and service intermediaries as key value chain partner to achieve impact. These case studies are: NOAA Open weather data (United States), a portal that provides weather data information and forecasts including yield predictions; the CommonSense project, which provides Ethiopian farmers with weather forecasts and farm management advice (e.g. based on earth observations and geographic data), to help them make more informed decisions on farming activities; and the GEOBIS project, which provides farmers in Bangladesh with weather related information and advice on farm management (usage of seeds, sowing, irrigation, fertilizers, among others). Land data impact narratives are described according to the different data aggregator levels: local, regional and global. On the global level and working towards a more inclusive data ecosystem, it analyses the work between Land Portal (a free online platform working towards a more accessible land governance information landscape) and Land Conflict Watch (a research-based data journalism project in India). At a regional level and related to the ‘enabling’ factor of data ecosystems, the impact narrative focuses on the Open Development Mekong, an open knowledge platform that advocates for transparency and promotes debate over basic data. Data mapping is described at a grassroots level through the example of NRMC, an advisory firm in India that attempts to bridge information gaps, create evidence-based advocacy and build platforms for connection among land stakeholders. Open nutrition data impact pathways have been assessed by examining the work of an open data intermediary, the Global Nutrition Report (GNR) and its relevance for national and regional policy actors. The GNR is a flagship publication which weaves together (open) data from a variety of sources to create a snapshot of the state of nutrition worldwide and capture progress towards the SDGs. The examination of GNR’s work highlights some additional opportunities and challenges of placing open data at the heart of sense-making and action. The cases of two national/regional initiatives, the Tanzanian Food and Nutrition Centre (TFNC) and the New Partnership for Africa’s Development (NEPAD) illustrate how such initiatives use data of global aggregators in the work they undertake.

VALUE CHAIN PALM OIL INDUSTRY ANALYSIS ON THE POLYOL POLYESTER PATHWAY

Palm oil is one of important Indonesia's export commodities. In 2017, the export value of palm oil and its derivatives (excluding oleochemicals and biodiesel) penetrated US $ 22.97 billion. The bright prospect of the palm oil commodity in the world vegetable oil trade encouraged the Indonesian government to develop an integrated palm oil industry. On the other hand, some downstream petrochemical products have begun to experience difficulties in raw materials, including Polyurethane. Polyurethane is a polymeric material from polyols and isocyanates which are widely used as packaging. Polyol itself is a polyether produced from the petroleum fraction. The polyol industry can be developed in the industrial tree branch of glycerol / glycerin in the large palm oil industry tree. Glycerin is generally the most end product of the palm oil fractionation industry, after cooking oil, margarine, shortening, and soap. In addition, glycerin is also a by-product of fatty acid esterification during biodiesel production. The value chain analysis carried out in the palm oil industry chain shows that polyol production has added new pathways that can extend the palm oil downstream industry chain. Analysis carried out on the main chain and the combined oil palm industry chain has been successfully used to map the polyol industry value chain on the palm oil track. The extension of the palm oil industry value chain on the polyol industry pathway can unite the industry with the chain of production of the petrochemical industry, in this case polyurethane, which at least can help substitute raw materials. A more detailed analysis of the perceptions of the role of the polyol industry in two directions, namely the palm oil industry chain with the polyurethane industry shows that there is a very large intersection of interests. Almost all perceptions of the role of key value chain activities in the polyurethane industry can be covered by the role of the value chain main activities in the palm oil polyol industry. Both value chains can be said to complement and complement each other. The production of polyester polyols can be absorbed by the needs of the polyurethane industry.

Tourism Sector in Kyrgyzstan: Trends and Challenges

This paper examines the current state of the Kyrgyz tourism sector and identifies major obstacles impeding its dynamic and sustainable growth. Kyrgyzstan is far from reaching its tourist potential due to its underdeveloped infrastructure and poor marketing. The limited choice and low quality of tourist products compounded by their short seasonality are also hampering growth in the sector. A series of recommendations aimed at addressing these constraints are provided. The paper also analyses the key value chains in the tourism sector, and finds that local communities at tourist sites receive an insignificant share of the proceeds. In addition to public sources of data, the paper draws on the results of a tourist firm survey conducted by the Institute of Public Policy and Administration, UCA, and extensive interviews with key stakeholders in the tourism sector.

52‐1: Invited Paper: Driving Forces ‐ How Mobility of Tomorrow Influences Technologies of Today

The mobility needs of modern societies, cities and users are different from the past. Consequently, the dynamic changes of the automotive industry trigger both challenges and opportunities. The presentation will discuss these trends and plausible future scenarios.In order to facilitate these positive changes, we recognised the potential of innovative technologies, including the liquid crystal displays. As the display is the key interface between users and devices/ vehicles, key industry players have acknowledged its significant role in attaining users’ satisfaction. The presentation will outline several initiatives driving technology developments to fulfil the emerging needs.In the open innovation era, few companies can claim to possess all future technologies in‐house. Therefore, collaborations among players with complementary technologies are especially essential to accelerate new product/ service/ solution development. New industry formation also requires new quality of communication among key value chain players to learn industry insight and to establish mutually beneficial partnerships. The rationale and the objectives of our automotive platform will be introduced.

Testing for heterogeneity in complex mining environments

being variable/diverse and comprising different non-compatible elements or parts. In statistical terms a heterogeneous population can refer to a population comprising different non-compatible sub-populations or a multipopulation environment. The latter is commonly found in natural environments such as geological environments (Bardossy and Fodor, 2001). The inherent heterogeneity of complex geological environments is also referred to as spatial heterogeneity. Heterogeneity or variability, however, also occurs over time at mining operations. A case in point is variable ore composition on a conveyance system feeding a processing plant or product stockpile. Heterogeneity associated with the mining environment can significantly influence key aspects of day-to-day mining operations such as sampling, the use of descriptive, probabilistic, and inference calculations, and an operation’s ability to manage and control the mining value chain as a whole. The data generated from sampling campaigns forms the basis of nearly all decision-making at the operational, tactical, and strategic levels. As such, it can be argued that the quantity, quality, and correct use of sampling data greatly influence the sustainability of a mining operation. As far as sampling of heterogeneous environments is concerned, an attempt should be made to capture the variability (both spatial and in time) in all key value chain performance drivers through representative or random sampling. According to the theory of sampling developed by Pierre Gy (1983), sampling errors are induced mainly by high levels of heterogeneity of the population being sampled.

Fit and Misfit of Plural Sourcing Strategies and IT-Enabled Process Integration Capabilities: Consequences of Firm Performance in the U.S. Electric Utility Industry

Recent work has shown that a firm's plural sourcing strategy, which determines how much it chooses to make versus how much it chooses to buy, requires consideration of the complementarities and constraints that affect the differential advantages of making and buying. Elaborating on this perspective, we theorize how (mis)fit between a firm's plural sourcing strategy of simultaneously making and buying and its development of information technology (IT) enabled interfirm and intrafirm process integration capabilities influences firm performance in deregulated markets. We position our theory development and empirical tests in the context of the power-generation segment of the U.S. electric utility industry (EUI), an asset-intensive industry that has been deregulated to promote the separation of key value chain activities (i.e., generation, transmission, and distribution) and the development of wholesale energy markets. We draw on the transaction cost economics, coordination costs, and IT capabilities perspectives to theorize that a firm achieves fit (realizing performance benefits) by increasing market sourcing intensity (MSI)--or, how much it buys relative to how much it makes-- and developing IT-enabled interfirm process integration capability for external coordination with the market, or misfit (realizing performance penalties) by increasing MSI and developing IT-enabled intrafirm process integration capability for coordinating internal production. We collated data from archival sources for 342 utility firms in the power-generation segment to construct a panel dataset for the period 1994--2004 on (1) firms' MSI from wholesale electricity markets, (2) firms' IT investment decisions to develop interfirm and intrafirm process integration capabilities, (3) measures of firm performance, and (4) several control variables related to exogenous shocks (i.e., regulatory change, oil crisis), region of operation, and firm-level factors. Our results suggest that fit between MSI and the development of IT-enabled interfirm process integration capability improves firm profitability, assessed by return on assets, and misfit between MSI and the development of IT-enabled intrafirm process integration capability extracts penalties in firm profitability. We also find evidence that fit between MSI and the development of IT-enabled interfirm process integration capability improves market valuation, assessed by Tobin's Q, and asset turnover, assessed by operating revenue/total assets. We discuss the implications of our findings for the development of IT capabilities to accompany a firm's plural sourcing strategy and the literature on IT business value.