Value Appropriation within a Business Network

Chris Ellegaard, Jens Geersbro, Chris Medlin

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

This paper explores the interplay between value creation and appropriation of value by firms within a business network context. These two value processes are inter-linked. Collectively firms create a product of value to an end consumer and a part of that value is appropriated by each firm in the network. Value appropriation is composed of a number of different negotiation processes, value and cost moving between exchange parties and price making and taking spread across time. Value appropriation is a process. Value appropriation is important to a firm’s survival. Firms that appropriate a greater proportion of the value captured by the network, relative to their resource base and costs, will be more profitable. These firms are able to invest in new technologies, resources and business relationships to continually develop their network positions. Value creation in a business network is a result of individual firm efforts, either independently or in relationships. Equally, firms work alone and in groups to appropriate value. Understanding the dynamics and linkages between value creation and appropriation allows a better understanding of how value is created by business firms and by value nets. In the final sections of the paper we present propositions for further research and make recommendations for managers.
Original languageEnglish
Publication date2010
Number of pages17
Publication statusPublished - 2010
EventThe 4th IMP Conference in Asia - Kuala Lumpur, Malaysia
Duration: 6 Dec 20099 Dec 2009
Conference number: 4

Conference

ConferenceThe 4th IMP Conference in Asia
Number4
CountryMalaysia
CityKuala Lumpur
Period06/12/200909/12/2009

Keywords

  • Value appropriation
  • Value creation
  • Business relationship
  • Network

Cite this

Ellegaard, C., Geersbro, J., & Medlin, C. (2010). Value Appropriation within a Business Network. Paper presented at The 4th IMP Conference in Asia, Kuala Lumpur, Malaysia.
Ellegaard, Chris ; Geersbro, Jens ; Medlin, Chris. / Value Appropriation within a Business Network. Paper presented at The 4th IMP Conference in Asia, Kuala Lumpur, Malaysia.17 p.
@conference{bcfa5900043711dfae57000ea68e967b,
title = "Value Appropriation within a Business Network",
abstract = "This paper explores the interplay between value creation and appropriation of value by firms within a business network context. These two value processes are inter-linked. Collectively firms create a product of value to an end consumer and a part of that value is appropriated by each firm in the network. Value appropriation is composed of a number of different negotiation processes, value and cost moving between exchange parties and price making and taking spread across time. Value appropriation is a process. Value appropriation is important to a firm’s survival. Firms that appropriate a greater proportion of the value captured by the network, relative to their resource base and costs, will be more profitable. These firms are able to invest in new technologies, resources and business relationships to continually develop their network positions. Value creation in a business network is a result of individual firm efforts, either independently or in relationships. Equally, firms work alone and in groups to appropriate value. Understanding the dynamics and linkages between value creation and appropriation allows a better understanding of how value is created by business firms and by value nets. In the final sections of the paper we present propositions for further research and make recommendations for managers.",
keywords = "Value appropriation, Value creation, Business relationship, Network, Value appropriation, Value creation, Business relationship, Network",
author = "Chris Ellegaard and Jens Geersbro and Chris Medlin",
year = "2010",
language = "English",
note = "null ; Conference date: 06-12-2009 Through 09-12-2009",

}

Ellegaard, C, Geersbro, J & Medlin, C 2010, 'Value Appropriation within a Business Network' Paper presented at, Kuala Lumpur, Malaysia, 06/12/2009 - 09/12/2009, .

Value Appropriation within a Business Network. / Ellegaard, Chris; Geersbro, Jens; Medlin, Chris.

2010. Paper presented at The 4th IMP Conference in Asia, Kuala Lumpur, Malaysia.

Research output: Contribution to conferencePaperResearchpeer-review

TY - CONF

T1 - Value Appropriation within a Business Network

AU - Ellegaard, Chris

AU - Geersbro, Jens

AU - Medlin, Chris

PY - 2010

Y1 - 2010

N2 - This paper explores the interplay between value creation and appropriation of value by firms within a business network context. These two value processes are inter-linked. Collectively firms create a product of value to an end consumer and a part of that value is appropriated by each firm in the network. Value appropriation is composed of a number of different negotiation processes, value and cost moving between exchange parties and price making and taking spread across time. Value appropriation is a process. Value appropriation is important to a firm’s survival. Firms that appropriate a greater proportion of the value captured by the network, relative to their resource base and costs, will be more profitable. These firms are able to invest in new technologies, resources and business relationships to continually develop their network positions. Value creation in a business network is a result of individual firm efforts, either independently or in relationships. Equally, firms work alone and in groups to appropriate value. Understanding the dynamics and linkages between value creation and appropriation allows a better understanding of how value is created by business firms and by value nets. In the final sections of the paper we present propositions for further research and make recommendations for managers.

AB - This paper explores the interplay between value creation and appropriation of value by firms within a business network context. These two value processes are inter-linked. Collectively firms create a product of value to an end consumer and a part of that value is appropriated by each firm in the network. Value appropriation is composed of a number of different negotiation processes, value and cost moving between exchange parties and price making and taking spread across time. Value appropriation is a process. Value appropriation is important to a firm’s survival. Firms that appropriate a greater proportion of the value captured by the network, relative to their resource base and costs, will be more profitable. These firms are able to invest in new technologies, resources and business relationships to continually develop their network positions. Value creation in a business network is a result of individual firm efforts, either independently or in relationships. Equally, firms work alone and in groups to appropriate value. Understanding the dynamics and linkages between value creation and appropriation allows a better understanding of how value is created by business firms and by value nets. In the final sections of the paper we present propositions for further research and make recommendations for managers.

KW - Value appropriation

KW - Value creation

KW - Business relationship

KW - Network

KW - Value appropriation

KW - Value creation

KW - Business relationship

KW - Network

M3 - Paper

ER -

Ellegaard C, Geersbro J, Medlin C. Value Appropriation within a Business Network. 2010. Paper presented at The 4th IMP Conference in Asia, Kuala Lumpur, Malaysia.