The interplay of internal and external determinants of value creation and capture in transforming business environment

Companies and their business environment are in a state of continuous change. Some trends have gained attention in the research and media, such as the digital technologies that transform companies' business environment. However, companies must have the ability to create value with their customers to maintain a sustainable development path. The concept of value creation is studied in strategic management and marketing literature using various approaches. Although value-creation mechanisms and value-based competitive advantages have been extensively researched, they are still not fully understood. Thus, new opportunities have emerged to create scientific and managerial knowledge by utilising different management literature streams.  The research aims to understand the interplay of internal and external determinants of value creation and capture in today's transforming business environment. To answer this research question, the dissertation consists of four manuscripts. The first manuscript explains why customers' capabilities have an important role in value co-creation. The second manuscript elaborates on how resource ownership control affects a company's capabilities. The third manuscript examines how the interplay between value creation and capture among stakeholders evolves during a company's digital transformation. The fourth manuscript reports on how companies adapt their value propositions in transforming business environments. These manuscripts apply research methods of conceptual literature review, qualitative case study, and quantitative panel data analysis.  As the main results, this dissertation provides an overview of how internal and external determinants of value creation and capture shape companies' competitive advantage in the transforming business environment. Especially important elements in this interplay are organisational capabilities and stakeholders. The capabilities of the companies and their stakeholders have a key role in how value is created and captured. The critical role of stakeholders is enhanced in the transforming business environment, driven by digital technologies, where value is co-created and captured in the malleable business ecosystems.  The impact of the research appears as new theoretical knowledge and managerial practices, such as conceptual models and new business strategies. Presented approaches are demand-based, aiming to increase total value creation. Therefore, customers and other stakeholders will also benefit from the demand-side view. An increase in total productivity will thus benefit society at large.