Value Chain Model Research Articles

Human resources and manufacturing: where and when should they be aligned?

PurposeThe purpose of this paper is to analyse the effect that a horizontal fit between two functions (human resources (HR) and manufacturing) has on firm performance, distinguishing between fit in objectives and fit in achievements.Design/methodology/approachThis study uses 144 double surveys, addressed to two different respondents per company. Structural equation modelling was used to investigate the mediating role of fit in achievements in the relationship between fit in objectives and performance.FindingsThe study provides evidence of the particular way in which the two components of horizontal fit that the authors distinguish (fit in objectives and fit in achievements) the impact on performance: fit in objectives has an indirect effect on performance, which is fully mediated by the fit in achievements. The results also show that environmental dynamism has a significant impact on both the advantages and drawbacks of fit.Practical implicationsBy highlighting the importance of both levels of horizontal fit and distinguishing between them, this paper calls upon HR and manufacturing managers to show a greater understanding of the key dimensions common to both areas.Originality/valueThis study analyses horizontal fit by developing a framework of priorities in HR management (HRM) similar to that traditionally used in production management. In particular, it adapts the framework of production competence to the area of HRM to study the fit between the two functional strategies. This study also supports the value chain model proposed by Porter (1985).

Study of Value Chain of Indian Textile Handicrafts : A Case of Lucknow Chikankari

This paper studied different types of existing value chain models of Lucknowi Chikankari in context of the value chain model given by Porter (1985). Chikankari being an unorganized sector, the paper focused on the primary activities of Porter's value chain model. To have an in-depth understanding of different models and to highlight differences between them, field-based qualitative research in an informative manner seemed appropriate. Therefore, multiple-case-based research methodology was adopted for data collection and analysis. The study identified and outlined the prevalent three types of value chain models as traditional, contemporary, and mixed with respect to the primary activities of the value chain. The findings drew a comparison between various types of value chains prevalent in the industry, highlighting the relevant differences among them and suggesting the best suited one in artisans' interests. The study stated that the interventions that can be undertaken through collaboration of government, private organizations, and NGOs to improve the situation of artisans and contribute towards sustainability of the craft can be achieved by improvements and modifications in design and execution of activities. The suggestions and recommendations were made pertaining to eliminating the involvement of middlemen to reduce the cycle size and increase artisans' wages. The government should work towards educating the progressive artisans in e-commerce and linking them to e-commerce portals. The study suggested that for development of organizations, government, marketers, and producers (artisans), evolving a sustainable value chain in the interest of artisans and the industry is required.

A Comprehensive Review of the North American Hotel Industry: An Application of the Value Chain Model

This study provides an update on the North American hotel industry. It adopts content analysis by analyzing retrieved articles according to the adjusted Porter's value chain model. Major findings showed that most of the previous studies merely investigated one or two topics within the value chain model, and the connections between different types of activities have been largely ignored. Findings on the methodology revealed that nearly 80% of the retrieved articles used primary sources, and more than 85% of these articles applied quantitative data analysis. Future studies should analyze the value chain in its entirety and investigate the relationships among different topics (i.e., interdisciplinary research). Hotel managers may consider the value chain in its entirety and not merely its separate components to facilitate overall strategic decision making.

Performance evaluation of China's high-tech innovation process: Analysis based on the innovation value chain

The Chinese high-tech industry has developed greatly since the beginning of China's “National High-tech R&D (863) Program” and “China Torch Program”. This paper introduces a conceptual model extended from the innovation value chain model to simultaneously estimate the R&D and commercialization efficiencies for the high-tech industries of 29 provincial-level regions in China. To match reality, a network DEA incorporating both shared inputs and additional intermediate inputs is constructed to open the “black box” view of decision making units used in single-stage DEA. This study is the first attempt to link the R&D and commercialization with a solid theoretical foundation and feasible mathematical methods. The empirical findings show that most of the 29 regions have low efficiency in the commercialization sub-process compared to the R&D sub-process, although there are regional differences in China's high-tech industry. Pearson correlation shows that the R&D sub-process is not closely correlated to the commercialization sub-process in terms of efficiency. Our analysis can provide information for the formulation of policies to achieve high innovation efficiency.

Modelagem da cadeia de valor do centro de desenvolvimento de sistemas do exército brasileiro

A gestão do conhecimento fundamenta-se na compreensão dos processos relevantes para as organizações. É imprescindível que os processos de negócio estejam alinhados com a estratégia organizacional e que a entrega de valor por meio das atividades que geram produtos e serviços seja conhecida. A cadeia de valor identifica essas atividades e as organiza de acordo com o seu foco em agregação de valor, gestão e suporte. A modelagem da cadeia de valor como processo de captura e organização do conhecimento deve ser estudada. Este estudo propõe um modelo de cadeia de valor para o Centro de Desenvolvimento de Sistemas (CDS) do Exército Brasileiro baseada na identificação e análise dos processos da organização. Esta proposta tem como objetivo prover insumos para que a organização coordene e aperfeiçoe a utilização dos seus recursos, garantindo uma gestão do conhecimento efetiva através da compreensão de seus processos e do fluxo de agregação de valor que o modelo apresenta.

Influence of institutions on value creation activities of micro and small enterprises in rural Tanzania

Economic development initiatives in Tanzania recognise the importance of enterprises in the country’s economy. Similarly, rural entrepreneurship has the potential to stimulate the rural economy. The promotion of rural entrepreneurship can help to fulfil that potential, with creation of value for customers as one of the promotion initiatives. Institutions govern the value creation activities of enterprises. By focusing on the wood furniture industry, this research article analyses the influence of institutions on the value creation activities of rural Micro and Small Enterprises (MSEs) in Tanzania. The institution theory and the value chain model are its theoretical bases. The Mvomero district is the study area. Interviews and discussions are the data collection methods used in this qualitative study and 14 cases are analysed. The study finds that four institutional concerns influence the value creation activities of enterprises and these are: regulations compliance; regulations enforcement; regulations knowledge; and regulatory costs. However, the study excludes informal institutions. Its findings may be beneficial to stakeholders such as policymakers, development stakeholders, researchers – as well as rural MSEs.

New measure of brand equity status of a basketball club

ABSTRACT“Brand Status” is defined as a measure that examines the equity “health” and “strength” of a brand in each stage of the brand value chain. A six-stage brand value chain model was developed where Stage I highlights the marketing efforts of the brand equity building; Stage II focuses on the customer’s attitudinal mind-set; Stage III describes actual customer behavioral outcomes (such as attachment and commitment); Stage IV refers to the strength of the brand and its relative advantage in the marketplace (such as brand preference, re-purchase, and premium pricing); Stage V reflects the company gains in sales and profits and the last, Stage VI refers to financial value of the brand for shareholders. Analyzing data obtained from 1,330 fans of basketball clubs gave sufficient evidence to propose a “new” model that can be used to estimate the value scores of the brand’s equity status for each of the various stages in the model and provide the brand’s total brand equity status score.

Value Chain of Poultry Hatcheries in Bangladesh : A Comparative Study of SMES versus Large Players by Porter's Value Chain Model

Value Chain of Poultry Hatcheries in Bangladesh : A Comparative Study of SMES versus Large Players by Porter's Value Chain Model

Coopetition among nascent craft breweries: a value chain analysis

Purpose The purpose of this paper is to employ an inductive approach to explore how small, nascent, firms in the craft brewing industry use cooperative behaviours with direct competitors to achieve their goals. Design/methodology/approach Data were gathered from interviews with the founders of seven small, newly established, craft brewers in a Midwestern city in the USA for this exploratory study. Data analysis followed the general tenants of inductive coding. Porter’s value chain model was used as a framework to organise and conceptualise the coopetitive behaviour uncovered. Findings The firms engage in cooperative behaviours with their direct competitors in areas such as process technology development, procurement, inbound logistics and marketing. A particularly interesting and common collaborative activity was breweries recommending/promoting competing breweries to their own customers. Practical implications This study provides clear examples of how relationship building with competitors could be advantageous and help small, nascent firms overcome the liabilities of newness and smallness. Originality/value Research on coopetition has called for a greater understanding of the nature of cooperative behaviours in small firms, start-ups and firms outside of high-technology industries. Moreover, research has called for finer-grained approaches to conceptualising coopetition. This paper fills these gaps and shows how Porter’s value chain is a useful tool for organising the types of collaborative behaviours that can be part of coopetition. The findings enhance understanding and facilitate future research by illustrating a broad array of cooperative activities that occur between direct competitors.

Strategic Decision Making for a Footwear Industry Using Activity Based Costing and Value Chain Models

Strategic Decision Making for a Footwear Industry Using Activity Based Costing and Value Chain Models

Power, profits and payments for ecosystem services in Hilsa fisheries in Bangladesh: A value chain analysis

Commitments for sustainable growth often look good on paper but are messy in the practice. The Government of Bangladesh shows huge initiative towards SDG 14 (conservation and sustainable use of marine resources) by establishing measures to improve the stock of hilsa fish in the country, thus ensuring the supply of a valuable and charismatic fish species. Initial reports of the measures are optimistic, suggesting larger sizes of fish caught across the seasons. Bigger hilsa fetches better prices – as high as US$25 per kilo in niche markets. It is conservation business with profits. Yet the costs of these regulations are falling squarely on the shoulders of small fishermen who are poor, uneducated and in permanent debt. The government offers a small in-kind payment for ecosystem service (PES) in the form of rice, which is good but does not compensate for the loss of revenues and household protein during bans. These small fishers have no bargaining power and no voice in the design of policies that affect them. A common problem in policy design is the lack of clarity of the markets they affect, especially if they are informal. This study uses value chain models to unpick the hilsa value chain. It study provides hard data and evidence on processes, power, and profit creation. This consultation can help policy makers design better strategies to re-govern markets in more inclusive ways and help to achieve Sustainable Development Goals commitments.

Simulation modeling for facility allocation of outpatient department

ABSTRACTIn the value chain model, activities of one firm can be classified into two types: primary activities and support activities. From such a concept, patient flow in outpatient departments (OPDs) is developed in this study as an outpatient flow value chain by classifying the OPD facilities into two types: primary and support facilities. This paper demonstrates how OPD facilities can be allocated based on the value chain concept. This process starts by describing patient flow at the OPD; then the new OPD is built, and some support facilities are moved to the new building. Discrete-event simulation technique is used to model the patient flow at the OPD and the new OPD. Simulation experimental results show that separating the primary and support facilities can reduce congestion in the floor area of the OPD’s clinics. More importantly, the results also claim that at the new building, the only processes which happen after clinical processes are worth for the capacity optimization.

Crossing the Valley of Death—An Integrated Framework and a Value Chain for Emerging Technologies

The paper develops an integrated technology-push and market-pull framework, a value chain model for crossing the valley of death (VOD—the gap between laboratory and market) for emerging technologies based on primary and secondary data analyses, and a survey conducted on European research and development projects. The study uses a case of micro- and nano-manufacturing technology (MNT), and confirms the existence of the VOD through the survey data analysis. A mixed-methods approach was adopted that investigated the business and technical challenges to the commercialization of MNT. A notable finding is that the emerging MNT often does not have a direct link with market demand, and the result suggests that an intermediary role between advanced technology and market demand should be integrated to act as a co-ordinator for overcoming the VOD. The paper also examines how an intermediary is crucial to escape the VOD within the value chain of the interdependent relationships between actors.

Socioeconomic impacts of innovative dairy supply chain practices – The case of the Laiterie du Berger in the Senegalese Sahel

This study analyzes the Laiterie Du Berger (LDB)’s milk supply chain and its contribution to strengthening the food security and socioeconomic resources of Senegalese Sahelian pastoral households. Porter’s value chain model is used to characterize the innovations introduced by the LDB dairy in its milk inbound logistics and supplier relationships. A socioeconomic food security index and qualitative data are used to assess the dairy’s supply chain’s contribution to strengthen smallholder households’ livelihoods. Data for this research were obtained through individual surveys, focus groups and in-depth interviews of LDB managers and milk suppliers. Results show that milk income contributes significantly to household food security. Suppliers who stabilize their dairy income between rainy and dry seasons, diversify income sources and have larger herds are more likely to remain food secure. The LDB innovations contribute by helping herders access biophysical and economic resources, leading to better livestock feed and household food security.

Coordinating Social Media Management Interfaces Across the Organization

To establish a holistic framework for approaching social media management that offers a way to approach new, amplified and emerging interfaces affecting organizations. We apply Porter's historic value chain model as a scaffold to approach a holistic understanding of social media management and organize highly cited concepts related to social media management from the fields of IT and Corporate Communication. We find that classifying current studies in relation to secondary and primary activities from an historic value chain scaffold enables researchers to define and classify interfaces that can inform our understanding of social media management in a holistic manner. From an activity perspective, both primary and secondary activities related to social media can be argued to have interfaces with social media platforms, participants and audiences. In addition, interfaces enabled by social media technology affordances can be classified as new, amplified or emergent. Using a historic approach to organizationa...

The Economic Cost of Climate Change and the Benefits from Investments in Adaptation Options for Sri Lankan Coconut Value Chains

Agriculture in low latitude countries such as Sri Lanka is already operating at the maximum temperature limits for crop growth and face increased production risk from expected climate change. Sri Lanka is a developing country with limited economic and technological capacity to develop adaptation strategies; hence more vulnerable to climate change than developed countries. Coconut (Cocos nucifera L) is a rain fed perennial crop important in Sri Lankan culture, food consumption and the economy. It is the second most important food in the Sri Lankan diet after rice. Several studies have examined the impact of climate change on Sri Lankan agriculture, but none were conducted to simulate the impact of future climate change and future adaptation strategies on coconut production, or to calculate the economic welfare effects for different stakeholders in the coconut value chain. In this paper we report the development of an economic model of the coconut value chain that allows prediction of welfare impacts, and a quantitative representation of coconut yield that allows the impact of changing climatic conditions on yield. The average outcome of 16 climate models was used to generate future climatic conditions, with two future climatic scenarios for 2020, 2030 and 2050 considered for three production regions. The most important yield estimate was a yield decline of more than 10 percent in the wet zone with the expected increase of maximum temperature. Without extra adaptation measures this is predicted to result in a loss to the industry of 4,795 Rs.Million annually by 2020, which is nearly 4.7 percent of the total value of the industry at equilibrium. The negative impact of climate change has the potential to be reduced with the implementation of additional adaptation practices. However, the cost effectiveness of these practices needs to be considered in comparing the practices. Wider adoption of fertilizer application at specific times and moisture conservation practices are estimated to be economically beneficial.

The performance effect of network and managerial capabilities of entrepreneurial firms

Building on the organizational capabilities view, this study explores the impact of network and managerial capabilities on the performance of entrepreneurial firms in the architecture and real estate sector. We apply an extended organizational capabilities model by integrating Porter’s value chain model and Grant’s hierarchy of organizational capabilities. Starting from differences in entrepreneurial orientation between architecture and real estate development firms, we argue that under higher environmental uncertainty, network capabilities are more important for the performance of architecture firms whereas managerial capabilities are more important for the performance of real estate development firms. Employing data from Austria, Germany, and Switzerland, the research results support the hypotheses. This study integrates Porter’s value chain concept and the organizational capabilities model and delivers a contribution to the organizational capability theory. In addition, it contributes to the entrepreneurship literature by showing that network capabilities are more important for creating competitive advantage in entrepreneurial firms than in other firms.

B-4 バリューチェーンモデルと戦略的アプローチ(モデル化、システム化/活性化と組織,経済危機を突破するイノベーション経営の仕組みと仕掛け-新たなものづくり、ことづくり、絆づくり-)

B-4 バリューチェーンモデルと戦略的アプローチ(モデル化、システム化/活性化と組織,経済危機を突破するイノベーション経営の仕組みと仕掛け-新たなものづくり、ことづくり、絆づくり-)

The Design of the Operation Procedure and Rules of a Commercial Society Simulation Game

Based on the research of prevailing ERP simulation game, this paper, which is aiming at the cultivation of innovative and entrepreneurial talents, initially elaborates the operation procedure and rules of a model of value chain—a simulation sandbox system named Pioneering Era, which simulated the creative design, manufacturing and distribution in a science and technology commercial society as a whole.

Research on BIM-based building information value chain reengineering

The achievement of value and value-added factor to the building engineering information is accomplished through a chain-flow, that is, building the information value chain. Based on the deconstruction of the information chain on the construction information in the traditional information mode, this paper clarifies the value characteristics and requirements of each stage of the construction project. In order to achieve building information value-added, the paper deconstructs the traditional building information value chain, reengineer the information value chain model on the basis of the theory and techniques of BIM, to build value-added management model and analyse the value of the model.