Abstract
The core function of any profitable firm is capturing a share of the value that customer perceives in the firm's offering. Value capture is traditionally considered to relate to a competitive advantage at the firm level, but not the firm network level. However, the ever increasing role of information and knowledge in today's economy is profoundly changing how firms can create competitive advantages. Among these changes, we highlight reducing transaction costs in various areas of the economy, which drives the economy to organize more toward rapidly evolving networks or smaller firms. There is also an opposite trend for some internet firms to become larger due to economies of scale and due to network externalities. In this position paper, we examine the issue of value capture by firms that are increasingly small and operate in rapidly changing and evolving networks. We conclude by outlining future research on firm-level capabilities that are required to enable value capture in new forms of dynamic networks.
Original language | English |
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Title of host publication | Proceedings of 2013 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2013 |
Pages | 552-557 |
Number of pages | 6 |
DOIs | |
Publication status | Published - 2013 |
MoE publication type | A4 Article in a conference publication |
Event | International Conference on Service Operations and Logistics, and Informatics - Dongguan, China Duration: 28 Jul 2013 → 30 Jul 2013 |
Conference
Conference | International Conference on Service Operations and Logistics, and Informatics |
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Abbreviated title | SOLI |
Country | China |
City | Dongguan |
Period | 28/07/2013 → 30/07/2013 |
Keywords
- resource-based theory
- trasaction cost economics
- value
- value capture
- value creation