Value Creation Approach Research Articles

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

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

Design for Mobility – A Customer Value Creation Approach

It is a global trend nowadays for manufacturing and service firms to create and increase customer value either during initial design of a product/service or by modifying their existing products/service. When a product already exists, customer value can be increased by adding new qualities/features to a traditional product that would add much needed services while keeping price competitive. Qualities, such as foldability and mobility when product is not in use, are examples of creating and improving customer value. This paper presents a design model that helps designers incorporate foldability, mobility and personalization in a regular product design.

Shareholders Value Creation and Measurement: Approaches

This paper aims to explain what shareholder value creation means, how the present emphasis on shareholder value measurement as a strategic initiative has developed in management practice and the present day tools and techniques of shareholder value creation and measurement. The shareholder value creation approach helps to strengthen the competitive position of the firm by focusing on wealth creation. It provides an objective and consistent framework of evaluation and decision-making across all functions, departments and units of the firm. It can be easily implemented since cashflow data can be obtained by suitably adapting the firm’s existing system of financial projection and planning. The only additional input needed is the cost of capital. The adoption of the shareholder value creation approach does require a change of the mind-set, and educating the managers about the shareholder value approach and its implementation.

Entrepreneurship in Cyberspace: What Do We Know?

The paper provides an overview of specific features of entrepreneurship in cyberspace, compared to basic models of entrepreneurship. Over the last two decades ICTs, and especially cyberspace technologies, have significantly modified the start of new businesses and entrepreneurial processes. Although not dependent on technological breakthroughs, the cyberspace has multiple direct effects on new products and services, as well as ways to conduct business. Direct and indirect effects of cyberspace on the start of the businesses are surveyed, along with the transformation business models in cyberspace and novel value creation approach. Conclusions are drawn on new qualities of entrepreneurship in cyberspace and novel approach needed to study and understand it. The paper represents work in progress in a rapidly developing field. Case studies mentioned in the paper are limited with respect to the scope of the paper and are only instrumental for illustrating different aspects of entrepreneurship in cyberspace.The paper may serve as the basic framework for further study of the entrepreneurship in cyberspace, as well as basic material for classroom discussion. Further research of the entrepreneurship in cyberspace as a distinct social phenomenon is envisaged.

Exploring infrastructure procurement by Australian state governments

PurposeThe purpose of this paper is to report on a research thesis that explores how Australian state government agencies procure infrastructure projects and the extent to which they view the procurement process as an opportunity to deliver more than just a physical facility. The primary purpose of this study was to understand the practice of construction project procurement by project managers on behalf of Australian state government agencies and to explore the creation of public value through procurement.Design/methodology/approachThis thesis presents results drawn from ten case studies of state government organisations that procure infrastructure; either roads or buildings. A total of 37 highly experienced project managers operationally responsible for the procurement of infrastructure within these organisations were interviewed.FindingsThe findings show that there is considerable scope for improving infrastructure procurement by Australian state governments and that broader public value creation approaches in the form of policy by‐products are either not considered or inconsistently pursued.Practical implicationsThe broader policy implications flowing from the research findings provide valuable commentary that inform the practice of infrastructure procurement and point to areas to which improvement efforts may be directed. These areas include the challenge of developing the next generation of infrastructure procurement managers, applying non‐price criteria in a rigorous way, using prequalification registers to engage in supplier development and delivering policy by‐products as part of standard procurement approaches.Originality/valueThis thesis presents qualitative data focused on the perspective of procurement professionals, a group who have, hitherto, been somewhat underrepresented in the literature.

Value creation logics and resource management: a review

PurposeThe purpose of this paper is to locate different value creation logic contingencies within the resource management framework. While Sirmon et al. discuss how external environmental contingencies, such as environmental munificence, impact resource management, this paper aims to discuss a second key contingency; that is how the firm's choice of value creation logics impacts its resource management choices. This paper seeks to argue that management of the firm's resources and capabilities is contingent on the value creation logic employed by the firm.Design/methodology/approachThis paper reviews three value creation logics: value shop, value network, and value chain and then integrates them within the resource management framework.FindingsA review of extant literature indicates that value shop firms, value network firms, and value chain firms enact very different environments and thus require very different resources and capabilities to support their value creation approaches. It is argued that Sirmon et al.'s resource management framework should reflect these differences.Research limitations/implicationsThis paper points to new directions for research in value creation logic theory and provides a basis for future empirical work.Practical implicationsThis paper argues that a mismatch between a firm's value creation logic and its resource management practices will have an adverse impact on the firm's performance.Originality/valueThis study is one of the first to integrate Stabell and Fjeldstad's value creation logic theory with Sirmon et al.'s resource management framework.

How do value co-creation activities relate to the perception of firms' innovativeness?

Value co-creation is an emerging marketing and innovation paradigm describing a broader opening of the firm to its customers by providing them with the opportunity to become active participants in the design and development of personalized products, services and experiences. It has a great potential in affecting the way firms operate and innovate and has, therefore, attracted the attention of both scholars and practitioners. However, there is not yet a fully satisfactory theoretical vision about its distinctive characteristics as compared to more traditional value creation approaches. The present paper provides empirical research results in answering two research questions. The first question is: What are the principal components of value co-creation? The second question is: What is the relationship between the degree of firms’ involvement in value co-creation activities and the perception of their innovativeness. The paper starts with a review of the literature and a conceptual refinement of the value co-creation paradigm to continue with the identification of the key components of value co-creation based on a research methodology using web search and Principal Component Analysis techniques applied to data collected from a sample of 273 firms selected for being representative of the breadth of their value co-creation activities. The second part of the paper discusses the results from a linear regression analysis examining the relationship between firms’ degree of involvement in value co-creation and the perception of their innovativeness. The analysis leads to research insights about the relevance of specific value co-creation components in terms of their innovation-related outcomes. To the best of our knowledge this is the first work discussing value co-creation implementation patterns based on the relationship between firms’ involvement in value co-creation and the perception of innovativeness.JEL Codes: L1, L2, L17, O31

Value Frame Fusion in Cross Sector Interactions

Prior research flags the inherent incompatibilities between for-profit and nonprofit partners and cautions that clashing value creation logics and conflicting identities can stall social innovation in cross sector partnerships. Process narratives of successful versus unsuccessful cross sector partnerships paint a more optimistic picture, whereby the frequency, intensity, breadth, and depth of interactions may afford frame alignment despite partners’ divergent value creation approaches. However, little is known about how cross sector partners come to recognize and reconcile their divergent value creation frames in order to co-construct social value. Using longitudinal narratives of four dyads, we show that partners initially contrast their sector-embedded diagnostic frames and then work together to deliberately develop partnership-specific prognostic frames. We extend the literature on framing by developing a four-stage grounded model of frame negotiation, elasticity, plasticity, and fusion which unpacks the relational process of value creation in cross sector partnerships. Our qualitative analyses further show how partners orchestrate multilevel coordination that helps scaffold and calibrate this relational process of frame fusion.

The usefulness of the process approach for value creation in the telecom sector

The usefulness of the process approach for value creation in the telecom sector

Service Innovation Myopia? A New Recipe for Client-Provider Value Creation

Traditional management thinking addresses either the service provider's or the client's individual competences and competitive advantage in service innovation. This is myopic in the extreme; value creation should be based on the simultaneous recognition of the interests and competencies of both parties. This article examines the service innovation strategies in the ICT field from the perspective of the resource-based view of the firm and the management competencies involved. First, the characteristics of three main types of service innovations (established service, incremental service innovation, and radical service innovation) are outlined, as these can be shown to require different value creation approaches. Second, a service strategy matrix is constructed illustrating the client-driven, provider-driven, and collaborative service innovation strategies. The article provides a recipe for managing the service co-creation modes, with guidelines given on how to succeed through collaborative capabilities and culture, as well as appropriate business models.

How much difference is there between industrial district firms? A net value creation approach

We argue that industrial district firms possess a number of shared resources that explain the competitive superiority of these firms. These factors include common reputation, intensity of exchange and combination of resources, and participation of the local institutions. Using these shared resources we aim to address an unsolved question in the industrial district literature, namely, the internal heterogeneity of the clustered firms. Our empirical research drew upon a sample of 288 Spanish manufacturing firms belonging to industrial districts. Findings suggest that, even assuming a certain degree of homogeneity among internal district firms, they develop their own particular relationships and networks and, as a result, exploitation of the shared resources is irregular. These differences can therefore be used to explain the differences in value creation among firms.