Porter's Value Chain Research Articles

Value Chain Identification and Impact of the Music Industry on Employment in Serbia

Research Question: The aim of paper is to identify value chain of the music industry and to determine the impact of music industry on employment in Serbia. Motivation: Creative industry is a very attractive topic among both scholars and professionals. A total of 52 sectors are considered as creative industry sectors, including music industry. Our goal was to identify the impact of the music industry on the economy, in addition to the entertaining and amusement value of the music. In order to do so, our goal was to understand all the sub-sectors and activities within music industries. Idea: Although excising NACE nomenclature of activities is rigid, our goal was to identify music industry activities within NACE codes, and to define how the value creation is distributed among various activities within the music industry value chain. Data: Measuring employment is based on combining data from the official statistics entities. Tools: Research required data on the four-digit level of activity (NACE), that were cross-referenced with the findings of the primary research and defined value chain activities of the music industries. Findings: The paper analyses the complexity of the value creation and value chain in the creative industries, specifically in the music industry. Findings support excising literature review and confirms complexity of the value chain in the music industries. In addition, the paper adds value to the scientific research by presenting novel approach that is based on using the Porter value chain model in the music industry and identifying a total of 29 activities within. Further, using created value chain model, paper results demonstrate the impact of the music industry on the employment in Serbia, that has been growing over the analysed period, no matter the COVID-19 crisis. Contribution: The paper expands the existing research related to creative industries and formulates the music industry value chain activities. The significance of this paper stems from the fact that, similar to other sectors within the creative industries, music industry is insufficiently covered by the data of the national statistical authorities. In addition,the paper measures the music industry impact on the employment in Serbia.

Transforming the value chain of local journalism with artificial intelligence

AbstractWith their advertising and audience revenues in decline, local news organizations have been experiencing comparatively high degrees of disruption in recent years. Artificial Intelligence (AI) offers opportunities for local news organizations to better cope with the economic challenges they face. However, local news organizations need to carefully prioritize where AI will create the most value. After all, they serve customers in the audience and advertising markets, with external effects on society. At the same time, they are limited by scarce resources, which constrains the implementation of AI. Therefore, based on Porter's value chain, this article pursues two goals. First, drawing on previous research, we provide a systematic overview of activities for which local news organizations see the biggest potential of AI to create value. Moreover, we highlight promising AI use cases based on benchmarking with national news organizations. Second, we discuss local news organizations’ challenges in implementing AI and how they might overcome such obstacles.

Strategy formulation to support automation and digitalization initiative: A case study of an aerospace component manufacturer in Indonesia

Purpose: Strategy formulation is part of organization design study to evaluate decision thoroughly, then enable organization to achieve company goal. This study aims to formulate strategy of automation and digitalization for PT XYZ, to be ready for welcoming future growth of demand by maintain competitive cost within the same industry. Method: The study collects primary data from focus group discussion with selected participant of PT XYZ, located in Bandung, Indonesia, with participant selection based on information rich person reference. Data collection and analysis utilize qualitative and quantitative approach, and utilize three steps of strategy formulation (input stage, matching stage and decision stage). Results: Strategy formulation steps as per theory, applicable to finalize strategy to support industry 4.0 transformation at PT XYZ. Focus Group Discussion able to collect organization aspiration, to ensure strategy will align to company objective. Combine steps with latest internal and external factor analysis method, such as PESTLE (Political Economy Social Technological Environment), VRIO (Value Rarity InImitable Organize), Porter Value Chain analysis and QSPM (Quantitative Strategic Planning Matrix) help broaden the perspective of the participant during discussion. The study resulted eight strategies, which then simplified by data reduction approach to be four. A decision of sequence implementation also agreed during focus group discussion with participants. Contributions: By conducting this study, author expect it will prove the practical implementation of strategy formulation in industry 4.0 transformation for aerospace industry in Indonesia and Asia.

ANALISIS DAN RANCANGAN SISTEM INFORMASI MONITORING PIUTANG PELANGGAN BISNIS MENGGUNAKAN WHATSAPP GATEWAY API

PT XYZ as a company engaged in the service sector has services for sending letters and packages on credit to partners who already have cooperation agreements. Every incoming shipment from partners will become receivable, then the company records each incoming receivable so that it is monitored so that partners do not pay receivables beyond the due date. Activities that support the management of receivables are reporting of each receivable to determine the amount and maturity of the receivable. The current accounts receivable management business process is still semi-computed, therefore it is necessary to have a special system that can manage accounts receivable activities properly so that they can be controlled from period to period by providing receivable notification features to partners.
 In this study, which is part of the development of a receivables information system, which is reflected in the financial rules regarding receivables. Research activities are carried out in the analysis phase and the information system design phase. Information system analysis uses Porter's value chain to describe ongoing activities and BPMN notation to model the main activity business processes. As for the design is done using an object-oriented approach. In designing this system, the tools used to describe processes and databases are designed using the Unified Modeling Language (UML) which provides accounts receivable management features, notifications using Whatsapp chat media and accounts receivable reporting features.
 The output of the research is in the form of a report on the design of an information system for monitoring receivables using the Whatsapp Gateway API, software documents and research publications. The design of the information system built can make it easier for system developers to build management systems and monitor receivables at PT XYZ.

Influence of Supply Chain Integration Practices on Operation Performance at Trans-Nzoia County Government Treasury, Kenya

Supply chain integration practices are considered a powerful weapon to gain competitive advantages and linking performance measurement systems to supply chain integration practices can lead to increased success of supply chain initiatives. This study sought to analyze the influence of supply chain integration practices on operation performance at Trans-Nzoia County Government Treasury, Kenya. Porter's Value Chain Theory and Systems Theory guided the study. This study employed a descriptive research design. Data collection involved a diverse group of participants, totalling 1207 individuals, from which a sample size of 121 respondents was determined. Descriptive data analysis was conducted using SPSS version 28, enabling the examination of both quantitative and qualitative information through coding. The research instrument, a five-point Likert scale questionnaire, demonstrated high reliability through its internal consistency, with a Cronbach's Alpha correlation coefficient exceeding 0.7. To assess the data both descriptively and inferentially, statistical techniques, including means, standard deviations, Pearson's correlation, and regression analysis, were employed. The findings highlighted the significant impact of supply chain integration practices, encompassing efficient consumer response practices, customer relationship management practices, vendor-managed inventory practices, and enterprise resource planning practices on operation performance at Trans-Nzoia County Government Treasury. The regression analysis revealed that when considered together, these practices explained 73.4% of the variance in operation performance. Furthermore, a positive correlation was observed between these supply chain integration practices and operation performance. Based on these insightful findings, the study recommended a more substantial incorporation of supply chain integration practices, particularly in efficient consumer response practices, customer relationship management practices, vendor-managed inventory practices, and enterprise resource planning practices. These implications held value for various stakeholders, including policymakers, government entities, researchers, and academics. By providing actionable insights, this research facilitated informed decision-making, ultimately contributing to the enhanced operation performance at Trans-Nzoia County Government Treasury, Kenya.

Procurement Practices and Performance of Public Institutions in Turkana County, Kenya

The success of any institution is majorly determined by the procurement practices adopted and how well they are implemented. Procurement concept has dominated most of the activities in public institutions because of the value attached to the role of procurement in enhancing the overall performance of the institutions; hence, the study seeks to investigate the procurement practices and performance of public institutions in Turkana County, Kenya. This research was pinned on Principal- Agency Theory, Contingency Theory, Stakeholder Theory and Porter Value Chain Analysis Theory. The study utilized a descriptive survey research design. The target population comprised 140 officials in various public entities in Turkana. The study used census techniques to come up with 140 participants as a sample size. Data were descriptively analyzed using means and standard deviations and inferentially by Pearson's correlation and regression analysis to measure strength and direction. Regression results demonstrated that procurement practices (procurement planning, E-procurement practices, sourcing ethics and evaluation practices) all yield statistically significant influence on procurement performance. The Coefficient of Determination or R square stood at (p<0.05; R2= 0.785), which implied that 78.5% of the variation in the procurement performance was explained by variability in the variables under procurement practices (procurement planning, E-procurement practices, sourcing ethics and evaluation practices). The study recommends more pursuit of procurement practices involvement in procurement planning, E-procurement practices, sourcing ethics and evaluation practices. Public institution management, government, researchers and academicians will greatly benefit from this study as it provides viable insights that could guide decisions to serve their interests on the critical subject of enhanced procurement performance.

Analysis of Profit Model and Optimization Strategy of Mango TV

Launched in 2014, Mango TV is the streaming video platform of Hunan Broadcasting System's listed company, Mango Excellent Media Co., Ltd. While long video platforms such as Tencent Video, iQIYI, YOUKU and others are perennially losing money, Mango TV made a profit as early as 2017. Mango TV has a unique profitability strategy that makes it stand out. This paper applies the literature analysis method to introduce the background of Mango TV and then analyse the revenue and expense components. Because there is a correlation between profitability and value creation, this paper investigates Mango TV's profitability strategy based on Michael Porter's Value Chain. By analysing the value activities of Mango TV in the four aspects of infrastructure, human resource management, technology development, products and sales, it analyses and derives the profitability strategy of Mango TV in the directions of paid derivation, innovation track, middle office technology, TV station-network fusion, homemade content, and talent training. Based on the above research, it judges advantages and disadvantages and then proposes countermeasures and suggestions for the shortcomings. This paper hopes to provide some new ideas for Mango TV's sustainable profitability and to help it develop more up-to-date profitability strategies.

Strategic Optimization of Gastronomic Business Cooperation through the Value Chain

In the competitive environment of gastronomic business, the implementation of effective strategies has become essential for success and adaptability. This study set out to explore the value chain as a strategic analysis system to foster cooperativeness in this sector. Three fundamental objectives guided the research: first, to explain the value chain as a tool for strategic analysis and cooperation in business; second, to determine its relevance as a strategic system in the restaurant industry; and third, to identify the application of Porter's value chain in this sector. The results of a survey revealed that gastronomic entrepreneurs value the implementation of strategic systems, highlighting the importance and relevance of such systems. The value chain is perceived as an influential instrument in achieving successful objectives in these businesses. In terms of knowledge, it was found that most participants have a moderate familiarity with the concept of the value chain in the business context, and its importance is recognized at various levels.

Review of organizational value of science-intensive organizations configuration models (rocket and space industry organization case)

The article studies main models for compiling organizational cost of scientific-intensive enterprises used in rocket and space industry. Practical application of the most important value configurations analysis has been carried out, as well as analysis of economic activity. The implementation potential of the most promising algorithms of value creation in knowledge-intensive enterprises of the Russian Federation has been assessed. The “Introduction” describes the latest trends in intangible asset management development. The “Research Methods” describes three configurations of value creation (chain, workshop, network) in detail. The “Research Results” describes current architecture of Roscosmos (Porter value chain and Osterwalder business model). In conclusion, the results of the work done have been summarized: relevance of these tools application and what model is best for Roscosmos to move to.

Value Chain Analysis of the Marine Ornamental Reef: A Case Study in Banyuwangi, East Java, Indonesia

Coral is the main component of coral reefs and forms an ecosystem that is home to approximately 93 000 species of marine biota. In their development, corals are traded and become decorations in aquariums because of their beauty. Currently, in Indonesia, the trade in ornamental corals is still on an export scale, including hard coral species, which are strictly monitored because some are included in the Convention on International Trade in Endangered Species of Wild Fauna and Flora Appendix II. This research aimed to analyze the ornamental coral value chain at an ornamental coral company in Banyuwangi related to value-added activities, governance, and profit margins to see economic and environmental sustainability using the Porter value chain. The results showed that the primary activities that still needed to be more optimal were operational activities and outbound logistics, environmental factors (weather conditions), and improper handling causing coral death or damage (wounds). Meanwhile, the secondary activities that could have been more optimal are infrastructure and technology development. The profit margin obtained by the company was 97 523.53 US dollars with a value of 45.16% of revenue, showing that the business is profitable. Therefore, infrastructure improvements and technology development are still needed for optimal results. Further research is recommended to be conducted in relation to business development strategies and improvement of coral quality and packaging processes. Additionally, in order to support better traceability and long-term business sustainability for corals, the dearth of historical data on the ornamental coral trade in Indonesia needs to be tackled.

The impact of e-commerce live streaming on China's apparel industry - an exploratory study based on value chain analysis

E-commerce live streaming (ECLS) has been a huge success in China's consumer goods industry, and the economic benefits of live streaming + e-commerce are widely discussed. Numerous researchers are intrigued by this burgeoning sales channel, but they prefer to examine how ECLS influences consumers' purchasing decisions from a psychological standpoint. Little is known about the influence of ECLS on industries such as the apparel sector. All elements that drive industry trends can have an impact on the profitability and sustainability of a business. China is the greatest producer and consumer of clothes in the world, with a significant number of apparel enterprises and international workers. Consequently, evaluating the success of ECLS in China's apparel business has significance for encouraging the strategic upgrading of global apparel enterprises. Due to the paucity of relevant empirical studies, the paper collects secondary data from ECLS reports and data analysis websites to perform an exploratory study based on Porter's value chain theory. The paper seeks to get a basic understanding of the primary elements that drive value creation in the value chain of ECLS in China's garment industry and to provide guidance and hints for future researchers. The findings show that: first, ECLS promotes consumer purchase intention; second, ECLS enhances consumer bargaining power; third, ECLS reduces upstream distributors' marketing costs; and fourth, ECLS promotes downstream suppliers' productivity improvement. Finally, the paper also provide some suggestions for the strategic upgrading of apparel companies.

Proposed Business Strategy for International Freight Forwarding Company (Case: PT Jahermosa)

PT Jahermosa is an international freight forwarding company established in 2012. This company has experience handling several types of goods with various services and modes of transportation. The services provided include export-import goods delivery using sea, air, and land modes. Due to COVID-19, the company’s sales performance has decreased from 2019 to 2021. However, according to data from the Central Bureau of Statistics, Indonesia’s total exports and imports from 2020 to 2021 have experienced a drastic increase. This gap indicates an increase in the market for goods delivery services to and from Indonesia but did not accompany PT Jahermosa’s ability to absorb the market. Therefore, this study aims to provide strategic business proposals for PT Jahermosa in the freight forwarding industry to improve the company’s sales performance. This research is qualitative research using primary data and secondary data. Primary data was obtained through interviews with several customers and management participants. While secondary data is obtained through company financial reports, websites, journals, and articles. First, an analysis was carried out on the external and internal conditions of PT Jahermosa’s freight forwarding business. External analysis was conducted using the PESTEL Framework, Porter’s Five Forces Model, Customer Analysis, and Competitor Analysis. Meanwhile, internal analysis was carried out using the Resource Based View Model, VRIO Analysis, Porter Value Chain Analysis. After that, the internal and external analysis will be put into the Business Model Canvas. Then, SWOT analysis is used to evaluate the strengths, weaknesses, opportunities, and threats to assess the condition of PT Jahermosa using the data from external and internal analysis. Evaluation of these four factors forms the basis for formulating strategic alternatives using the TOWS Matrix. Finally, root cause analysis is carried out to find the real cause of the problems encountered using Problem Tree Analysis. Based on the results of this research, the strategy is formulated using the Diamond Strategy Model by considering four factors: vehicles, arenas, differentiators, speed, and economic logic. Value proposition canvas is used to support the proposed strategy. The limitation of this research is that financial reports need to be explained in detail to keep company documents secret. In addition, this research only covers PT Jahermosa as a freight forwarding and logistics service company. Further investigation can be made based on this research in the supply chain management, human resource management, and marketing strategy.

Global Enterprises: contemporarisation of khadi products in India

Theoretical basis This paper aims to explain the theory of stakeholder, value chain analysis and triple bottom line sustainability approach. Research methodology The present case was developed from both primary and secondary data sources. The primary sources included visits to Global Enterprises and collected data through a structured interview. The secondary sources included enterprise annual reports and websites. Case overview/synopsis This case presents the innovative approach adopted by a for-profit social enterprise, utilizing locally available resources, changed products and an improved business model to deliver the desired social impact. It highlights the challenges social entrepreneurs face and how the people at the grass-root level are uplifted through the success of a social entrepreneurial venture. The case study is based on an interview conducted with the founder and managing director of Global Enterprises and other stakeholders (farmers, women artisans and employees). An interview schedule was used for conducting the interviews. The researchers tried to understand the business model deployed, stakeholders involved, challenges faced, competencies needed and strategic decisions made by the social entrepreneur that helped the enterprise become sustainable. The social problems identified by the entrepreneur include unavailability of quality raw material at a reasonable price on time; financial scarcity and massive dependence on non-institutional financial sources; lack of product development, market research and production; and the high price of handmade products compared to factory-made products. The case explains how the entrepreneur addressed the problems of cotton farmers, women artisans and local youths through his enterprise. The case also explains how he could make a social venture sustainable in the long run. Complexity academic level This case targets graduate-level students and is designed to be taught in Entrepreneurship, Social entrepreneurship, Rural entrepreneurship, Business administration and Entrepreneurship development. It can also be used for other programmes, where problem identification, opportunity recognition, stakeholder analysis and porter's value chain analysis are taught.

Pemodelan Proses Bisnis Peternakan Ayam Petelur

Laying hens are all activities related to the production of laying hens from the chick stage to the adult stage. The business process of laying hens in general starts from the activities of the biosecurity system, breeding, rearing, housing, and the animal feed and health system. Based on three studies that have been carried out in the period 2017-2021, the business process of laying hens is still minimally modeled. The problem that arises when the laying hen's farm business process is not modeled is that many business activities are repeated and missed. Therefore, business process modeling needs to be done to improve coordination between process units. This research aims to model the business process of laying hens, which refers to Porter's value chain analysis. This study uses data taken from observations and interviews with local laying hens in Malang. The data used is related to details of business activities, the parties involved, and SOPs in the laying hens business. The method in this study uses the BPMN approach. This research begins with data collection, analysis of porter's value chains, analysis of the relationship between business processes, then denotes the process obtained with BPMN notation. This research produces a business process model for laying hens which BPMN denotes. This business process model can solve coordination problems in the laying hens business.

Key fundamentals of strategy for decision-making in international business

The objective of this research article is to identify the conceptual foundations of strategy in international business and its articulation with the sources of competitive advantage of the value chain model, key factors to consider an internationalization process in companies. This research was based on a case study of the firm Café Galavis, in Cúcuta, Colombia, focused on measuring and recording the behavior of the parties of interest of the object of study and analyzing the phenomenon in its real context. The research was descriptive in nature, seeking to achieve an approximation of the conceptual foundations of strategy in international business. The sample was selected by convenience (general manager, employees, suppliers and customers). The results obtained made it possible to identify the determinants of the internationalization or transferability of the firm through Porter's value chain model and the pyramidal model of the key concepts of international business strategy proposed by Verbeke (the location-specific advantages of the country «LAs», The firm-specific advantages and the internationally transferable FSAs «or without localization»).

Creating value for whom? Digitization and governance practices of nontraditional export firms in Africa

AbstractThe nontraditional export (NTE) sector promises to be the antidote to Africa's economic woes in the face of dwindling traditional exports. Adopting the Porter's Value Chain Framework and a case study design, we explore how alcoholic beverage companies in the African NTE sector could create value in their upstream, midstream, and downstream value chain activities through effective governance and digitization. In exploring these intricacies of governance and digitization within African global value chains (GVCs), we draw on two major case studies, Diageo South Africa and Kasapreko Ghana Limited. Our study shows that the NTE sector can contribute to both economic and social upgrading activities, contribute to industrialization and create international competitiveness for African firms. Second, GVC governance and digitization, even though still at its infant stages in Africa, has the potential in propelling economic value through the NTE sector.

Perencanaan Sistem Informasi Strategis Menggunakan Model Ward and Peppard (Studi Kasus : Klinik Yulia Asniati)

Purpose: This article aims to make strategic planning of information systems and application requirements in health clinics so that they can provide optimally, integrated, and innovative contributions that can unite all supporting aspects in achieving clinical business strategies to increase their competitiveness value in health services in Pagar Alam City.
 Research Methodology: This article uses a case study at the Klinik Yulia Asniati in Pagar Alam City using the Ward and Peppard strategic planning model. Based on multi-disciplinary literature, the Ward and Peppard Model uses a strategic planning framework and process that includes the external business environment analysis stages using the PEST method, the internal business environment analysis using the value chain method, internal and external IS/IT environmental analysis.
 Results: This analysis produces an IS/IT strategic planning using McFarlan Strategic Grid Analysis, this stage produces 13 application portfolios that are arranged based on the priority of business needs and information system strategies.
 Limitations: This article uses the Ward and Peppard model with PEST analysis methods, Michael's Porter value chain, and McFarlan Strategic Grid analysis. This article only uses data and cases at the Klinik Yulia Asniati, Pagar Alam City

The Development Minerals Value Chain Policy Model: The Case of Rwanda in the East African Region

The objective of this policy paper is to examine, assess and propose a solid theoretical model that will assist in [1] assessing the current status of development mineral value chains; [2] identifying social economic activities for mining systems, and [3] proposing consistent recommendations on policy options and other incentives necessary to enhance the contribution of the mining sector and their value chains to sustainable social economic development in Rwanda.
 This is a theoretical paper based on literature reviews on policy models using classical Michael Porter's (1979) Value Chain Model, (VCM) articulating full range of social economic activities – including design, input sources, production, marketing and distribution – businesses conduct to bring a product or service from conception to delivery. Value chain analysis has been a strategic policy tool used to analyze internal firms, sectorial and national operational objectives and strategies given external environments.
 The policy findings and solution emphasizes the importance of strengthening all optimal mineral-based linkages while resources are extant so as to maximize the developmental and inter-generational impact of those resources. The nation's mining policy objective is to ensure efficient and effective utilization of mineral deposits, explorations, extractions, processing, beneficiations, trades and marketing, and final consumptions systems by national social economic entities such as households, firms and communities.
 The paper recommends that Rwanda government to develop and achieve the “transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development. The Rwandese must ensure that all social economic entities have to share a common goal of achieving profitability, productivity and optimal cash flow for the entire development mineral value chain. It follows that national development mineral operations management, implemented through value chain management, requires a new, operational and different perspective of relationship management.

The Analysis of Development Natural gas-based Petrochemical Industry in Teluk Bintuni Regency

ABSTRACT
 The petrochemical industry, especially the petrochemical industry in Teluk Bintuni Regency, West Papua Province, is an industry engaged in natural gas processing by considering the needs of the Upstream Plastic Product Industry Market and its use in supporting human activities. It is hoped that the integration of the upstream-downstream industry can build a strong supply chain. This is in line with the application of industry 4.0 according to the roadmap of Making Indonesia 4.0, which aims to increase the competitiveness of the national industry in the global arena. Examples of upstream petrochemical industry products include methanol, ethylene, propylene, butadiene, benzene, toluene, xylene, coproduct fuels, petrol pyrolysis, fuel oil pyrolysis, raffinate, and C4 mixtures. The analysis developed is using an Industrial Tree Model and porter's value chain analysis and supply chain analysis. The results of this research are seven points.
 

Information System Strategy Planning Using Enterprise Architecture Planning in College Libraries

The library of the National University of Jakarta currently records transactions manually, which makes the librarian's performance inefficient. Here, the researcher is trying to create information system planning that covers all perspectives of the organization and business with the help of the enterprise architecture planning (EAP) technique using the Zachman framework. The EAP model is limited to the main business area, the library sector, which creates the main activities and support activities according to Porter's value chain. Based on the business processes implemented by the library, EAP can show the design for an integrated architecture within the library information system, which includes business architecture, data architecture, application architecture, infrastructure architecture, and implementation plans to bring about changes for the better.