Value Creation Mechanisms Research Articles

Does co-production build on co-creation or does co-creation result in co-producing?

PurposeThe purpose of this conceptual paper is to deepen the theoretical understanding on value (co-)creation particularly in the context of arts.Design/methodology/approachThrough critical readings of the current theories on co-creation and co-production, we analyse literature relating to the network and service-dominant logic from the perspective of the arts field.FindingsIt is argued here that the context for value co-creation might be better analysed through network relationships, allowing a better identification of actors and their roles. We highlight the role of non-expert consumers through their co-creational experiences. In addition, we question the implicit assumption that the outcome of value co-creation is always progressive.Practical implicationsThe paper provides deeper understanding for art managers of the mechanisms of value (co-)creation.Social implicationsThe paper provides new knowledge of the variety of levels of relations in the value co-creation.Originality/valueThe novelty of the paper lies in the new conceptual framework that offers both a wider perspective for theory building of value (co)creation in the context of arts management and deeper understanding for art managers of the mechanisms of value (co-)creation.

MODEL BISNIS, PENCIPTAAN NILAI DAN PENGUNGKAPAN MODAL INTELEKTUAL

Whenever a business enterprise is established, it employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management’s hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit. There is currently significant debate worldwide regarding business reporting. The concept of the ‘business model’ has entered into the discourse, as has the concept of ‘integrated reporting’, adding to the established debate regarding accounting for intangible assets and, more generally, intellectual capital (IC). The purpose of this article is to understand the influence of business model on intellectual capital disclosure.

Digital platform ecosystems

Digital platforms are an omnipresent phenomenon that challenges incumbents by changing how we consume and provide digital products and services. Whereas traditional firms create value within the boundaries of a company or a supply chain, digital platforms utilize an ecosystem of autonomous agents to co-create value. Scholars from various disciplines, such as economics, technology management, and information systems have taken different perspectives on digital platform ecosystems. In this Fundamentals article, we first synthesize research on digital platforms and digital platform ecosystems to provide a definition that integrates both concepts. Second, we use this definition to explain how different digital platform ecosystems vary according to three core building blocks: (1) platform ownership, (2) value-creating mechanisms, and (3) complementor autonomy. We conclude by giving an outlook on four overarching research areas that connect the building blocks: (1) technical properties and value creation; (2) complementor interaction with the ecosystem; (3) value capture; and (4) the make-or-join decision in digital platform ecosystems.

Collaborative governance in the Quebec Cancer Network: a realist evaluation of emerging mechanisms of institutionalization, multi-level governance, and value creation using a longitudinal multiple case study design

BackgroundPeople living with and beyond cancer (PLC) receive various forms of specialty care at different locations and many interventions concurrently or over time. They are affected by the operation of professional and organizational silos. This results in undue delays in access, unmet needs, sub-optimal care experiences and clinical outcomes, and human and financial costs for PLCs and healthcare systems.National cancer control programs advocate organizing in a network to coordinate actions, solve fragmentation problems, and thus improve clinical outcomes and care experiences for every dollar invested. The variable outcomes of such networks and factors explaining them have been documented. Governance is the “missing link” for understanding outcomes. Governance refers to the coordination of collective action by a body in a position of authority in pursuit of a common goal. The Quebec Cancer Network (QCN) offers the opportunity to study in a natural environment how, why, by whom, for whom, and under what conditions collaborative governance contributes to practices that produce value-added outcomes for PLCs, healthcare providers, and the healthcare system.Methods/designThe study design consists of a longitudinal case study, with multiple nested cases (4 local networks nested in the QCN), mobilizing qualitative and quantitative data and mixed data from various sources and collected using different methods, using the realist evaluation approach. Qualitative data will be used for a thematic analysis of collaborative governance. Quantitative data from validated questionnaires will be analyzed to measure relational coordination and teamwork, care experience, clinical outcomes, and health-related health-related quality of life, as well as a cost analysis of service utilization. Associations between context, governance mechanisms, and outcomes will be sought. Robust data will be produced to support decision-makers to guide network governance towards optimized clinical outcomes and the reduction of the economic toxicity of cancer for PLCs and health systems.

How Does Information Transmission Influence the Value Creation Capability of a Digital Ecosystem? An Empirical Study of the Crypto-Digital Ecosystem Ethereum

With the advancement of digitization, digital ecosystems are playing an increasingly important role in value creation. The mechanism by which digital ecosystems create value, however, has been generally deemed to be a mixed effect due to various factors. On the basis of signaling theory, this paper explores the effect of information transmission on the value creation capability of a digital ecosystem from two dimensions: the scale and sustainability of value creation. Taking a sample of weekly transaction data from Ethereum during August 2015–August 2018, our research proposes an integrated framework of information transmission in value creating, and discusses the diffusion process of the network effect within the digital ecosystem. As a generally accepted exchange medium, digital currency traffic acts as an observable proxy of information flow in a crypto-digital ecosystem, where the effects of heterogeneity in transaction attributes are filtered. Empirical results show that information transmission positively influences the scale and sustainability of value creation activities in a digital ecosystem by affecting user number and transaction frequency. Further research reveals that user number is the initial driving force of the network effect and a critical factor for the overall ecosystem market capitalization. This research provides a new insight into the design of sustainable value creation mechanisms under digital circumstances.

Leveraging open-standard interorganizational information systems for process adaptability and alignment

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment.

The effects of e-business processes in supply chain operations: Process component and value creation mechanisms

Using a process component lens, this paper decomposes an e-business process into technical, relational, and business components. We then draw on resource orchestration theory to identify two managerial actions, resources structuring and capabilities leveraging in using e-business process components, to explain how these three components work together to improve competitive performance in supply chain operations. Two interesting insights emerge from our empirical research corresponds to value creation mechanisms. First, we identify the critical three portfolio effects to promote platform architecture flexibility and partner engagement to develop e-business operations capabilities (EBOCs) in three major e-business processes. Second, we reveal the transformation effect of EBOCs in different e-business processes in obtaining competitive performance. The notion of portfolio and transformation mechanisms of e-business process components offers theoretical and practical implications for developing successful digital supply chain platform.

Does Open Source Hardware Have a Sustainable Business Model? An Analysis of Value Creation and Capture Mechanisms in Open Source Hardware Companies

AbstractAnalyzing value creation and capture mechanisms of open source hardware startup companies, this paper illustrates how an open source strategy can make economical sense for hardware startups. By interviewing 37 open source hardware company leaders, 12 company community members as well as analyzing forum data of 3 open source hardware companies; we realize that by open sourcing the design of hardware, a company can naturally establish its community, which is a key element for a company's success. Establishing a community can increase customer perceived value, decrease product development and sales cost, shorten product go-to-market time, and incubate startups with knowledge, experience and resources. These advantages can compensate for the risks associated with open source strategies and can make open source design a viable product development strategy for hardware startups.

Addressing Intellectual Capital in the Context of Integrated Strategy and Performance: Emphasizing the Role of Companies’ Unique Value Creation Mechanism, While Targeting Better Organizational Reporting In Romania: The Case of Green Marketing and Green Marketing Strategies

Addressing Intellectual Capital in the Context of Integrated Strategy and Performance: Emphasizing the Role of Companies’ Unique Value Creation Mechanism, While Targeting Better Organizational Reporting In Romania: The Case of Green Marketing and Green Marketing Strategies

Towards sustainable business models for electric vehicle battery second use: A critical review

A global mass market adoption of electric vehicles (EVs) is still hindered by the high costs of lithium-ion batteries (LIBs). Repurposing degraded EV batteries in second use applications holds the potential to reduce first-cost impediments of EVs. New business models are emerging rapidly within the EV and battery second use (B2U) industries but they focus on economic aspects without integrating social and environmental dimensions. Simultaneously, the emerging research topic around sustainable business models (SBMs) seem to be able to bridge the environmental management concerns in conjunction with economic and social changes. This paper addresses this paucity in the literature by offering an interdisciplinary approach by drawing upon key perspectives from the emerging sustainable technology of EVs and its underlying B2U market in relation to SBMs. Findings reveal major contributions to theorists and practitioners. B2U holds the potential to facilitate current unsustainable practices in the EV industry. This in turn, will lead towards a faster EV market uptake and improvements of overall sustainability performance through SBM perspectives. Accordingly, a B2U business model framework is conceptualised that embodies the cross-sector multi-stakeholder impact and the shared value creation mechanism for the EV industry and emerging B2U market. We finally conclude that as such B2U holds the potential to prove itself to be a viable and efficient case for sustainability. This can be implemented by taking a multi-stakeholder network centric business model design compared to traditionally firm-centric models, which ultimately refreshes the traditional business models on sustainability.

Creating a Platform Based Business Model In Dental Industry

Abstract Purpose: The article considers one of the possible approaches to building a fundamentally new business model for dental industry with a concept of a self-organizing industry management system based on blockchain platform, crypto currency and reward for consumer target behavior.Design/methodology/approach: The theoretical design based on literature review, the content analysis and practical experience of business model transformation in digital platform economy and innovative blockchain technology, while the authors develop, describe and implement a new concept of a new business model in dentistry. The factual basis was the materials of an experiment conducted in the Netherlands to create a platform community Dentacoin based on blockchain platform.Findings: The developed concept of the business model in dentistry shows the main mechanisms that make the model attractive to the consumer services: obtaining objective information about services and producers; formation of a contract on the basis of independent diagnostics and its insurance; financial and logistical support of the service.Research/practical implications: The results of theoretical and practical research confirmed the possibility and expediency of the business model innovation of dental industry. The analysis of the current stage of Dentacoin Project implementation shows that business model works.Originality / significance. The proposed concept of business model based on blockchain technology is fundamentally new for the dental industry. It is the first time describe and systemize a new management mechanism of value creation together with utilizing the blockchain advantages. The creation and implementation of the first blockchain-based platform in dentistry allows achieving transformative change of a whole industry and will greatly enrich both the theory and practice of transformational phenomena.JEL Codes: 014, 033, M13

Enhancing value co-creation in professional service projects: The roles of professionals, clients and their effective interactions

Projects are value creation mechanisms for organizations. In this paper, we build on service-dominant logic theory to theorize how value is perceived and co-created by service providers and clients in professional service projects. From two studies, we found that for service providers to create their value, particularly non-monetary value (e.g., enhanced reputation), client values (e.g., solving a business problem) must first be generated. The results further highlight the importance of reciprocal interactions between service providers and their clients in co-creating value for both parties. Service providers' professional knowledge and competence and their clients' levels of professional knowledge and motivation to interact are critical to enable effective interactions. However, the influence of service providers' professional ethics and clients' trust in professionals on project value co-creation is more complex than theoretically predicted. This paper advances the project value creation literature by providing a more holistic view of what value means for different stakeholders, how it is created, and by whom.

Wartości na sprzedaż. Budowanie wizerunku marki w mediach społecznościowych

Values for sale: Building the brand image in social media The aim of our article is to analyze the mechanisms of value creation on the example of the brand promoted by Ewa Chodakowska, a popular fitness trainer, the owner of a company selling products and services related to physical activity. At the beginning, we describe the recent changes in marketing theory, with special emphasis on the concept of marketing 3.0. In the second part of the article, we analyze the material collected on Ewa Chodakowska’s Facebook page and recon­struct the language and symbolic mechanisms of linking brand activity to a specific value system. As a result, we show the process of objectivation of abstract content values under the supervision of Ewa Chodakowska’s brand.

Internal market orientation as a value creation mechanism

PurposeThis paper aims to re-examine the nature, aim and scope of internal market orientation (IMO) and introduce it as a value creation mechanism for the firm’s internal market. A service-dominant logic (SDL)-based perspective of the IMO notion is advanced, and the key steps and phases for value creation in the internal market are outlined.Design/methodology/approachThis conceptual paper bridges the IM discourse with the SDL literature, and the latter’s implications for internal marketing theory and practice are discussed.FindingsDrawing on the premises of the SDL, IMO re-surfaces as an interconnected operant resource that can be enacted through performing three sets of activities central in the value creation process for internal stakeholders (i.e. value-identifying, value-generating and value-enhancing activities). These groups of relevant value-enabling activities required for IMO enactment are extensively discussed and their role in the value creation process is scrutinized.Originality/valueThis conceptual paper aspires to provide a managerially relevant understanding of value creation in the firm’s internal market. An SDL-driven understanding of IMO is advanced setting it as a value creation mechanism appealing to a wider range of organizations.

Sources of value creation and destruction in horizontal mergers and acquisitions

PurposeThe purpose of this paper is to investigate the determiners to create and destroy value in horizontal mergers and acquisitions (M&A) using accounting indicators supposed to influence the new entity’s value.Design/methodology/approachUsing a sample of 90 French listed companies and stepwise regression method, the authors test eight accounting indicators supposed to influence the new entity’s value.FindingsTo create value after a horizontal M&A, it is necessary to concentrate on turnover and the restructuring of charges without neglecting the control of debt capacity. To avoid destroying value after a horizontal M&A, it is necessary to concentrate on the control of debt capacity and restructuring of charges in order to reduce financial charges and financial risk. Horizontal M&A also create value through the reduction of investment costs and through tax optimization.Research limitations/implicationsThis paper is different from other contributions in that the majority of existing literature concerning the sources of value creation in M&A has been based on abnormal returns or microeconomic data. This paper analyzes accounting data that are likely to be influenced over the long term by corporate decision making. These kinds of decisions influence the firm’s value as well as the long-term gains that industrial investors may hope to obtain.Originality/valueThis study makes a significant contribution to the existing literature insofar as it seeks to divide the sources of value creation into three categories: sales synergy, cost synergies and hybrid synergies. To the best of the authors’ knowledge, this is also the first study to provide explanations from companies’ accounting data, which can lead managers to a greater vision of post-merger strategy management, reinforcing the mechanism for value creation.

Business Model Innovation for Sustainable Beekeeping in Tanzania: A Content Analysis Approach

The understanding of a business model has been contained by the necessity to comprehend new ways of commercializing innovation. i.e. to define the architecture of the value creation, delivery, and capture mechanisms. Since the beekeeping sector in Tanzania remained non-commercial, this study analyzes how commercial beekeeping can be achieved through the business model innovation. Using a qualitative literature review, content analysis approach, a commercial beekeeping business model is suggested. The study provides a theoretical building block for innovative business model in the beekeeping sector. It also addresses the gap about the use of the business model in beekeeping sector.

Governments as partners: The role of alliances in U.S. cleantech startup innovation

Accelerating innovation in clean energy technologies is a policy priority for governments around the world aiming to mitigate climate change and to provide affordable energy. Most research has focused on the role of governments financing R&D and steering market demand, but there is a more limited understanding of the role of direct government interactions with startups across all sectors. We propose and evaluate the value-creation mechanisms of network resources from different types of partners for startups, highlighting the unique resources of government partners for cleantech startups. We develop and analyze a novel dataset of 657 U.S. cleantech startups and 2,015 alliances with governments, firms, research organizations, and not-for-profit organizations from 2008 to 2012 and analyze short-term firm outcomes from the different alliances. Our findings highlight the importance of governmental partners in technology development alliances to catalyze cleantech startup innovation (the patenting activity of cleantech startups increases by 73.7 percent with every additional governmental technology alliance when compared to those startups that did not engage in such alliances) and as quality signals to private sector investors for licensing alliances (private financing deals increase by 155 percent for every additional license from a government organization). Overall, these findings extend the alliance perspectives on innovation, contribute to the emerging research on entrepreneurial ecosystems, and underline the need to develop empirical evidence in different sectors.

Effects of business model innovation on corporate sustainability: intervening role of organisational learning and strategic flexibility

In the current competitive economic environment, business models through their value creation mechanisms act as a support system in fostering the sustainability of a firm. Business model innovation is typically performed either by renewal or replication strategy. Drawing on the instrumental and integrative theories, a framework of hypotheses is developed that underlines the effects of business model innovation (renewal and replication) on a firm's corporate sustainability practices. The operational responsiveness of the relationship between business model innovation and corporate sustainability practices is tested using organisational learning, strategic flexibility as sequential mediating variables and environmental dynamism as a moderating variable. Using a conclusive research design, the present study employed survey questionnaire to managerial workforce of the select Indian pharmaceutical companies. Some of the findings indicate that the types of business model innovation significantly predict corporate sustainability practices; organisational learning and strategic flexibility acts as sequential mediators and environmental dynamism strengthens the relationship.

Aspect Regarding the Design of Active Strategies for Venture Capital Financing – the Flexible Adjustment for Romania as a Frontier Capital Market

Industry 4.0 revolution find a real interest of entrepreneurs but in the case of frontier and emerging markets it is difficult to find a reliable source of long-term financing. The decoupling of the technological evolution from the evolution of the access to financing capacities must be analysed from different point of view (financial, legislative, socio- technical). In Romania, as a frontier market there are only few alternative investment solutions capable to respond to the long-term financing demand of performant projects. The main interest is to understand the strategies for adaptation of venture capital fund (VCF) at real conditions. Venture capital funds (VCF) represents a particular form of private equity investments, scale down and more focused on innovative start-up (or even expansions on technology or markets) projects (the typical value is 10 mil Euro). This form of investments is a personalized response to the general problem related to the actors that do not have tangible assets for collaterals and/or cannot demonstrate the ability to make a profit. In the case of VCF, as a vehicle oriented on innovation and technology, the business plan represents the main element for project portfolio selection in the context of matching the interests of investors with the interests of financed firm’s managers. This contribution is especially important for the case of frontier and emerging markets characterized by additional restrictions (access to strategies, liquidity problems, and agency costs beyond a simple monitoring). For Romania, it is essential to adapt VCF investors' objectives to all phases (selection, evaluation, contract signing and restructuring, progress monitoring, stimulating value-added and, especially, closing the VCF cycle) to real conditions and considering the performance indicators balancing with the value creation mechanisms specific of industry 4.0.

Research on the mechanism of value creation and capture process for urban rail development

Based on the principle of financial sustainable development of urban rail system, this paper discussed the essentiality of “value capture”, as well as the classification and stakeholders of different generated value. The first step is to identify the interrelationships between beneficiaries and payers during the process of urban rail development. It discussed the cycle process of value creation and value capture, and proposed different value capture principles according to different stakeholders. Then the value capture mechanism was simulated taking advantage of system dynamics model, which is used to demonstrate how added value is created, proliferated, transferred and ultimately captured by different stakeholders. Through analyzing the cause-effect relationship among elements under the system dynamics model, a customized system dynamic model for urban rail on its value creation and capture properties is developed. At last, urban rail system in Shanghai has been taken as a case study to research the benefit-burden relationships among all the interest groups. The data on Shanghai real estate and transport system was simulated with the model to predict the urban rail construction and operation trend, and the cost-benefit ratio of each stakeholder. The research shows the proportion of benefits for passengers, property owners and businesses along the line increases with the length of urban rail network. This fully reflects the economies of scale of metro system. Among all beneficiaries, property owners capture the most value created; while government receives a progressive gain in the initial stage, but begins to lose momentum in capitalization after a certain point.