Understanding Of Value Creation Research Articles

Value Creation in Technology-Driven Ecosystems: Role of Coopetition in Industrial Networks

Coopetition, while offering significant strategic advantages, presents challenges in maintaining long-term collaboration among competitors, often due to a lack of perceived value for the participating actors. This study explores the role of technology in overcoming these challenges by applying the Service-Dominant Logic (S-D Logic) framework to investigate how technology-driven networks can enhance value co-creation among small and medium-sized enterprises (SMEs). The study hypothesizes that transitioning to technology-driven coopetition networks can substantially improve value co-creation. To test this hypothesis, the research critically evaluates existing theoretical approaches to coopetition, identifies gaps in understanding value creation mechanisms, and implements an experimental technology-driven coopetition network leveraging Internet of Things (IoT) technology. The research design is applied explicitly to the Portuguese ornamental stone industry, a significant economic and cultural sector. The findings confirm that technology-driven coopetition networks can enhance value co-creation and improve outputs. These results suggest that integrating technology into coopetition frameworks can provide a viable path to sustaining competitive advantages in SMEs.

Leader Attention to Information and Sustainability Performance

In contemporary business practice, sustainability has emerged as a focal point for understanding value creation. This study examines how leader attention influences sustainability performance. Specifically, it investigates two dimensions of leader attention: search intensity, which pertains to the depth and thoroughness of exploration, and search selection, which involves the criteria used to prioritize sustainability issues. This study employed a quantitative approach utilizing a survey methodology. Data collection of 30 SMEs was conducted through a postal survey, targeting the Malaysian service sector listed in the directory of the Federation of Malaysian Manufacturers (FMM). Data is analyzed using PLS-SEM to investigate perceptions regarding leader attention towards corporate sustainability performance. Employing the ABV theory, the findings indicate that search intensity positively impacts both corporate financial and non-financial performance, highlighting the importance of comprehensive information-gathering and analysis processes. However, the study does not find a significant relationship between search selection and financial performance, suggesting a limited impact of specific information search strategies. These results underscore the pivotal role of leader attention in shaping organizational sustainability performance. The study contributes to understanding how leader attention enhances sustainability and provides valuable insights for organizations. Despite its contributions, future research could explore mechanisms through which search intensity influences financial outcomes and consider moderating factors across industries and regions. In conclusion, this research emphasizes the importance of data-driven decision-making and comprehensive information search processes for corporate financial and non-financial performance in today's information-rich environment.

Understanding Value Creation in Acquisitions: A Fuzzy-Set Configurational Approach

Understanding Value Creation in Acquisitions: A Fuzzy-Set Configurational Approach

An axiomatic model towards understanding value creation and appropriation in demand-driven markets

PurposeIn demand-driven markets, customer value, sometimes called perceived use value or consumer surplus, is defined by the customer rather than the firm. The value a firm can appropriate, its profits, is driven by the customer’s willingness to pay for the value they receive, adjusted by costs. This paper introduces a conceptual framework that helps understand value creation and appropriation in demand-driven markets and shows how to influence them through strategic decision-making.Design/methodology/approachThis paper uses an axiomatic approach combined with an extended analytical formulation of the jobs-to-be-done framework to contextualise demand-driven markets. It mathematically derives implications for managerial decision-making concerning selecting customer segments, optimising customer value creation and maximising firm value appropriation in a competitive environment.FindingsRooting strategic decision-making in the jobs-to-be-done framework allows distinguishing between what customers want to achieve (goal), what product attributes need to be satisfied (opportunity space/constraints) and what value creation criteria related to features are important (utility function). This paper shows that starting from a job-to-be-done, the problem of identifying which customer segments to serve, what product to offer and what price to charge, can be formulated as an optimisation problem that simultaneously (rather than sequentially) solves for the three decision variables, customer segments, product features and price, by maximising the value that a firm can appropriate, subject to maximising customer value creation and constrained by the competitive environment.Practical implicationsApplying the derived results to simultaneously deciding which customer segments to target, what product features to offer and what price to charge, given a set of competing products, allows managers to increase their chances of winning the competitive game.Originality/valueThis paper shows that starting from a job-to-be-done and simultaneously focusing on customers, product features, price and competitors enhances firm profitability. Strategic decision-making is formulated as an optimisation problem based on an axiomatic approach contextualising demand-driven markets.

Hallmarks of Integrated Thinking

Integrated Thinking, the management approach associated with Integrated Reporting, has been hailed as a way of improving organisational decision-making and internal communication, leading to sustainable value creation. Yet Integrated Thinking remains poorly defined and understood. By analysing and synthesising the findings from an emerging body of case study evidence, this paper brings new theoretical insights into how Integrated Thinking is conceptualised and practised and its unique relationship with Integrated Reporting. We reveal Integrated Thinking to bring considerable tension to organisations as managers attempt to adapt to conflicting stakeholder priorities. Organisations which manage this tension and experience some success with Integrated Thinking typically exhibit four ‘hallmarks’, namely: 1) a deliberate drive by the board and CEO to encourage Integrated Thinking, 2) an Integrated Strategy developed through extensive stakeholder engagement and understanding of value creation, 3) the creation, or enhancement, of an organisational culture of trust and collaboration, and 4) the development of Integrated Intelligence, comprising integrated Performance Management Systems (PMS) and the use of multi-functional teams for decision-making. We present a new conceptual framework of Integrated Thinking in practice, reflect on its relationship with developments in sustainable management practices more broadly and propose several avenues for future research.

Value creation in the metaverse age: a thematic analysis of press releases

PurposeSince Zuckerberg's announcement to change Facebook's name to Meta Platforms Inc. on October 28, 2021, the concept of the metaverse has gained unprecedented popularity in the business world. Tech giants, SMEs and start-ups across various sectors are making substantial investments in metaverse-related technologies. Despite this, scholarly research in entrepreneurship and strategic management regarding the metaverse remains limited. This paper, grounded in value creation theory, aims to analyze how value is generated in the metaverse era.Design/methodology/approachThis paper conducts a thematic analysis of 895 press releases published by LexisNexis between October 28, 2021, and October 28, 2022. The analysis identifies the primary emerging themes related to value creation in the metaverse age.FindingsThe thematic analysis reveals four significant emerging themes concerning value creation in the metaverse age: (1) factors enabling value creation, (2) digital resources contributing to value creation, (3) motives driving value creation and (4) practices of value creation.Originality/valueThis paper represents the inaugural attempt to analyze the metaverse through a value creation lens. Given the substantial investments and growing academic interest in the metaverse, understanding value creation in this context is a pressing concern. Additionally, this study provides valuable insights and suggests critical questions for future research on the metaverse.

Model of Value Transfer in Crowdfunding and Sustainable Development of Small and Medium-Sized Enterprises in Poland—Based on Survey Research

This paper presents the results of a survey of small and medium-sized enterprises (SMEs) in Poland that have benefited from crowdfunding (CF). Based on these results, a new business model was developed. On this basis, the CF equity, reward and donation models were analyzed, and the impact of CF on the way of creating value in the company in the context of sustainable development was determined. The survey results show that the use of CF promotes the sustainable development of SMEs in Poland and significantly impacts their business model. In practical terms, this research has contributed to a better understanding of value creation by these companies. The results of our analysis are useful for consulting companies and CF platforms that help SMEs organize campaigns. In theoretical terms, the study conducted and the methodology used allow the presentation of a new definition of CF and a sustainable business model for a company using CF as well as contribute to the value management theory in SMEs.

Overcoming Challenges to Enable the Potential of Metaverse Platforms: A Qualitative Approach to Understand Value Creation

Overcoming Challenges to Enable the Potential of Metaverse Platforms: A Qualitative Approach to Understand Value Creation

Overcoming Challenges to Enable the Potential of Metaverse Platforms: A Qualitative Approach to Understand Value Creation

Metaverse is the buzzword of modern society. Practitioners and researchers have discussed metaverse platforms extensively, but the potential and meaning of the metaverse remain controversial. In this paper, we investigate and identify challenges that enable the potential of metaverse platforms. If these challenges are overcome, there will be value creation for practitioners, organizations, and society. We used a qualitative approach whereby we interviewed 34 metaverse experts to identify the challenges, potential, and value associated with the metaverse. Our results demonstrate that technical and societal challenges obstruct the ability to handle user-related and organizational challenges. If these challenges can be overcome, we can use the opportunities that our participants identified to create functional, social, and emotional value. Our work theoretically contributes to current knowledge on metaverse platforms by elaborating on handling metaverse platform ecosystems and determining instrumental challenges in their realization. With our qualitative approach, we provide room and directions for future research to develop a better understanding of the role and meaning of value creation in the metaverse. Our findings are useful to practitioners by presenting challenges organizations must overcome to create metaverse platforms or participate in a metaverse ecosystem. Furthermore, we present opportunities for vendors of metaverse platforms and organizations by identifying relevant processes that can be transferred into the metaverse.

FORMATION OF THE COMPETITIVE ADVANTAGES OF THE ENTERPRISE ON THE BASIS OF MARKETING OF VALUES

The study is devoted to the study of competitiveness in the modern conditions of the dynamically developing market. The relationship between competitiveness and marketing is substantiated. Systematization of existing views and approaches to determining competitiveness has been carried out. The main characteristics that act as a key parameter, a factor that determines the level of competitiveness of the economic system of one or another level are highlighted. The use of the methodology of system analysis allows to overcome the contradictions that have arisen in the analysis of competitive advantages. The task of increasing competitiveness can be successfully solved only with the coordination of purposeful and effective actions of the state and domestic business. The theoretical and methodological provisions of the company's competitiveness have been specified, taking into account the principles of the value approach within the framework of relationship marketing, including: the content of the company's competitiveness has been revealed as a comparative characteristic that reflects its ability to create value together with the consumer based on the integration of the consumer's experience of using the product (service) and key competence organizations; a model of interaction between the company and the consumer has been developed, which ensures an increase in the company's competitiveness due to the development of consumer loyalty in the process of joint value creation. The need and importance of the formation of a value approach to the competitiveness of the enterprise as a comparative characteristic reflecting its ability to create value together with the consumer is substantiated, as well as the development of an interaction model, clarifying the theoretical and methodological provisions of the competitiveness of the enterprise taking into account the principles of the value approach. The results of the theoretical and methodological studies carried out by research and production enterprises and organizations in the development of approaches to ensuring the competitiveness of the company, creating consumer value, and developing relations between the company and the consumer. The process of evolution from understanding value creation in terms of product or service orientation, which is the dominant logic in marketing and strategy, and moving towards considering value co-creation in terms of the receiving experience opens up striking new possibilities for researchers. This new approach also allows us to challenge deeply held beliefs about some marketing issues.

Are blockchain-based digital transformation and ecosystem-based business models mutually reinforcing? The principal-agent conflict perspective

This paper explores the implications of digitalization and business model innovation for the principal-agent conflict. Continuous digital transformation has recently become a feature sine qua non for companies. It is also stimulating business model innovation resulting in the growing adoption of ecosystem-based models. These trends may have significant implications for the principal-agent relationship, essential for understanding value creation by a firm. In order to analyze the impact of digital transformation, we use blockchain technology as a proxy. To measure the potential impact on the principal-agent conflict, we study management and shareholder-sponsored proposals at annual meetings. The level of shareholder involvement in governance is measured based on the number of shareholder-sponsored proposals received. In addition, we measure shareholder support for management-sponsored proposals. A sample of 2481 NYSE, Nasdaq and AMEX-traded firms for the period 2015–2019 is used. First of all, we show that digitalization per se has a mitigating impact on the agency conflict. Shareholders become more active, albeit not more hostile towards management. Secondly, we have identified the strongest impact in such sectors as information technology, communications, finance, and healthcare. These are the most significantly impacted by ecosystem-based business model innovation. We conclude that digitalization and ecosystem-based business models are mutually reinforcing in mitigating the principal-agent conflict.

Gaining Customer Loyalty with Tracking Information Quality in B2B Logistics

ABSTRACT Although vendor firms invest heavily in technologies to digitalize business-to-business (B2B) service orchestration, little is known about the mechanisms through which high quality information, a key resource generated from digitalization, creates customer loyalty. Positioning our work in the B2B logistics services context, we take a customer needs fulfillment perspective to understand value creation and capture from digitalization of service orchestration in B2B logistics relationships. We suggest that a vendor will capture exchange value, manifesting as customer loyalty, for the customer’s perceived use value of the service enabled by tracking information quality on service orchestration. We propose that service flexibility and service efficiency provided by the logistics vendor are two types of use value for customers, which serve as the value-creation pathways through which tracking information quality affects customer loyalty, the exchange value received by the vendor. We further argue that service modal variety, a key aspect of service complexity, moderates the value-creation pathways of tracking information quality. Using survey and archival data of B2B relationships between a Fortune 100 logistics vendor and its major customers, we find empirical support for the use value mechanisms through which tracking information quality affects customer loyalty in the context of B2B logistics services.

Stakeholders as Value Creators: The Role of Multi-Level Networks in Employee Wellness Programs

Recognizing the inherent limitations of a single level dyadic approach to stakeholders, this research uses a multi-level social networks perspective to examine value creation in wellness stakeholder networks. This study argues that stakeholder interactions at multiple levels of the network create value for the network and contribute to the marketization of wellness. At the macro level, network relationships create value through embeddedness, which shapes the structural boundaries of employee wellness programs. At the meso level, the stakeholders are relationally embedded in their networks and they create social and market congruence. At the micro level, the relationship among embedded actors contribute to the creation of cultural norms and institutionalization of employee wellness programs. The findings add to our understanding of value creation in stakeholder networks by going beyond dyads to focus on multi-level relationships and embedded actors. This article contributes to research by showing how embeddedness of the stakeholders in multi-layered networks and ties between these actors create value in wellness stakeholder networks. The findings provide insights into the marketization process of wellness as an important aspect of the contemporary marketplace.

Governing Value Creation in a Major Infrastructure Project Client Organization: The Case of Beijing Daxing International Airport

Major infrastructure projects (MIPs) are growing rapidly worldwide and have a “double-edged-sword” effect on the economy, society, and environment. Sustainability, therefore, has become a critical concern for MIPs. The sustainability of MIPs emphasizes the need to take the value creation view to scrutinize MIP practices, which calls for a deeper understanding of the value creation process of MIPs. Although research efforts have been devoted to understanding value creation in MIPs, scarce attention has been focused on the question of how a project client governs project activities, operational preparation activities, and their interplay to create value in MIPs. Based on an in-depth case analysis of the Beijing Daxing International Airport, we found that the project client adopted the three different governance arrangements of vertical blended integration, dynamic matrix integration, and continuous coupling to govern project activities, operational preparation activities, and their interplay, respectively; likewise, the hybrid values of project management value, business value, and public value were created. Following the results, we establish a conceptual framework for the governance of value creation in a project client organization of MIPs. This study not only contributes to the literature on project governance and project value, but also provides practical guidance for emerging MIPs worldwide.

Value Creation Framework and Roles for Smart Services

For several years now, the two megatrends of servitization and digitalization have had a major impact on business in manufacturing. Servitization means the addition of complementary services to products aiming for increased revenues, margins, and differentiation from competitors. Digitalization refers to the rapidly evolving information and communication technologies, enabling intelligent and interconnected products. The convergence of the two megatrends leads to so-called smart services; digital services that generate additional value from data of smart products. Smart services enable new promising business models going far beyond traditional services. Consequently, the value creation in manufacturing is shifting drastically. Manufacturing companies striving to offer smart services need to plan for their future value network (VN) and must define their position in it. However, this is not a trivial matter. Manufacturing companies must extend their often historically grown value creation with new mechanisms, such as processing machine data, and structures, such as digital platforms. Hence, the complexity of the underlying VN of a successful smart service business is far greater than traditional VNs in manufacturing. To tackle these challenges, our research aims for a design support for smart service VNs. The research follows the guiding principles of design science research, utilizes the design research methodology, and integrates a systematic literature review. This results in a framework giving a general understanding of smart service value creation. The framework is supplemented by 44 value creation roles for smart services, which help planning the VN and positioning of the focal company in it. Hence, we empower managers to design their companies’ future value creation for smart services. The framework and roles further extend the scientific knowledge base regarding the understanding of value creation through and with smart services.

How Values Ground Value Creation: The practical inference framework

After more than two decades of searching, the holy grail of integrating norms into management and organization research remains elusive. Researchers still lack a clear framework that explains value creation in relation to normative values, and, in turn, a means to incorporate values into research methods and generate value-based practical insights. To fill that need, this article presents an epistemological framework for understanding value creation. The practical inference framework centers on the activity of practical reasoning, a kind of reasoning that is legitimized by intrinsic values. It turns the ordinary epistemic equation on its head by seeking reasons rather than causes, and justifications rather than descriptions. In doing so, it shows how both factor analytic and newer, divergent methods of research can integrate with a robust architecture of value creation in ways that offer relevant knowledge for managers and society.

Understanding Value Creation in Acquisitions: A Fuzzy-set Configurational Approach

Extant work has predominantly investigated how acquisitions create value by focusing on the isolated effects of individual determinants. We propose that this approach needs to be complemented with a configurational one that captures the multi-dimensional fit among these factors, thus lending itself to a more accurate depiction of the mechanisms through which acquisitions create—and fail to create—value. Using fuzzy-set qualitative comparative analysis (fsQCA), we draw on a fine-grained dataset of 101 acquisitions to examine the fit among three sets of factors that cover the essence of the existing acquisition literature: pre-deal characteristics, the acquirer’s acquisition capabilities, and post-acquisition decisions. Our findings highlight different configurations leading to value creation and failure thereof, together with novel insights regarding the multi-dimensional fit between the underlying factors.

Firm-Level Analysis of Global Supply Chain Network: Role of Centrality on Firm’s Performance

Over the past few years, academics and practitioners have started paying more attention to analyze and understand value creation and business models from a business ecosystem perspective. Such business ecosystems have been constructed based on the connected networks of people, firms, industries, and countries. Developing strategies to help sustain the firms’ competitive advantage in business ecosystems is a key challenge for businesses and policymakers worldwide. Recent disruptions to global supply chains due to the COVID-19 pandemic have exposed the high risk and challenges of managing sustainable global and intertwined supply chain networks. Using the data mined from financial records, the present study constructs the global supply chain network of the auto manufacturing sector. The data from 32,396 notable first-tier forward and backward supply chain connections were mined to build the global supply chain network in this sector. The global supply chain network structure was analyzed using centrality measures and clustering analysis. We utilized path analysis to explore the effect of various supply chain centrality measures on firms' financial performance, investment risk, and market value volatility. The findings provide new insight into our understanding of the relationship between the firm's location characteristics in the global supply chain ecosystem and various aspects of the asset's performance. Furthermore, discussions are presented about strategies that support sustainable collaborative value creation and sustainable competitiveness of businesses across the global manufacturing ecosystems. The research method used in this study has the potential to be applied to several industries.Supplementary InformationThe online version contains supplementary material available at 10.1007/s42943-021-00026-8.

Understanding value creation in digital context: An empirical investigation of B2B

In recent years, the context of B2B relationships has changed rapidly with the advent of new technologies that are reshaping the space dimension of business interactions and the time frame in which they occur. Notwithstanding the magnitude of this evolution, the literature only partially captures the implications of value creation in the B2B digital context, leaving the contextual nature of value to remain vague and described mainly at an abstract level. This lack of a micro-foundation of value creation in context also makes its management exceedingly difficult. This study proposes a conceptual model that explains value creation in the digitally interconnected B2B business environment. Our analysis of 34 qualitative interviews with B2B managers showed the importance of a granular examination of value creation in context by identifying its dimensions and processes. At the same time, we showed the need to combine a micro theoretical focus with the transition to a more holistic and systemic view.

Situational and personal factors influencing hospitality employee engagement in value co-creation

This study explores the situational and personal factors affecting hospitality employees’ engagement in the co-creation of value. The concept of value co-creation emerged from the general co-creation literature, and little research has assessed how situational and personal factors enhance our understanding of value creation. To explore these underlying factors, a qualitative study involving in-depth and focus group interviews was conducted at three luxury hotels in Hong Kong and Macao. The research findings indicate five situational factors and five personal factors impact cocreated value for hotel guests in the luxury sector. Insights are provided into the potential use of these factors to better manage employee engagement and the customer experience to facilitate value co-creation. The implications of the study and directions for future research are discussed.