Value creation and value capture under moral hazard: Exploring the micro-foundations of buyer- supplier relationships

2014 ◽  
Vol 36 (8) ◽  
pp. 1146-1163 ◽  
Author(s):  
Tomasz Obloj ◽  
Peter Zemsky
Keyword(s):  
Moral Hazard ◽  
Value Creation ◽  
Value Capture ◽  
Supplier Relationships ◽  
Micro Foundations

Guanxi orientation, value creation and value capture in buyer-supplier relationships: a dyadic perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lucy Sojung Lee ◽  
Weiguo Zhong
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
The Other ◽  
Matched Sample ◽  
Value Capture ◽  
Supplier Relationships ◽  
Content Type ◽  
Specific Investments ◽  
The Relationship ◽  
Positive Effect

Purpose This paper aims to investigate the importance and prevalence of Guanxi in business interactions in network-based societies such as China, few studies have the phenomenon from a dyadic view. In a business dyad, one partner may not value Guanxi and take it as a template for actions as the other does. Design/methodology/approach The authors propose that such collective and asymmetric Guanxi orientation influence both the creation and distribution of relational rent in a Guanxi dyad. Furthermore, relationship-specific investments (RSIs) moderate the relationship between dyadic Guanxi orientation and relational rent creation and distribution. Findings Based on a matched sample of supplier-buyer dyads in China, the authors find that joint Guanxi orientation is positively related to joint pie creation, whereas Guanxi orientation imbalance has a positive effect on the pie distribution imbalance. Originality/value These results contribute to the literature by revealing how dyadic Guanxi dynamics and practices affect dyadic performance and providing managers with meaningful implications for dyadic Guanxi management.

scholarly journals VALUE CREATION AND CAPTURE IN BUYER-SUPPLIER RELATIONSHIPS: A NEW PERSPECTIVE

2016 ◽  
Vol 56 (5) ◽  
pp. 474-488 ◽  
Author(s):  
FÁBIO CAMPOS TESCARI ◽  
LUIZ ARTUR LEDUR BRITO
Keyword(s):  
Value Creation ◽  
Intrinsic Value ◽  
Research Paper ◽  
Value Capture ◽  
Supplier Relationships ◽  
New Model ◽  
Relational Value ◽  
Value Creation And Capture ◽  
New Perspective ◽  
The Relationship

ABSTRACT This research paper develops and tests a new model for value creation and capture in buyer-supplier relationships. In addition to including both value creation and capture in the same model, value creation is unraveled by the identification of its sources, both intrinsic and relational. Intrinsic value is the set of benefits derived from resources belonging to one party that can be captured by another party if there is a relationship between them, even if this relationship is non-collaborative. Relational value encompasses the mutual benefits that are generated as the collaboration between buyer and supplier increases. The model was tested using a survey of 127 dyads (buyer and supplier). The results indicated that both sides benefit from the total value created by the relationship, but the degree of value capture varies. The value perceived by the supplier is greater than that perceived by the buyer, which consequently encourages the former to boost its efforts even further to ensure that the relationship continues.

Living It Up at the Hotel California: Employee Mobility Barriers and Collaborativeness in Firms’ Innovation

2021 ◽  
Author(s):  
Eunkwang Seo ◽  
Deepak Somaya
Keyword(s):  
Human Capital ◽  
Value Creation ◽  
Knowledge Spillovers ◽  
Value Capture ◽  
Employee Mobility ◽  
Mobility Barriers ◽  
Collaborative Innovation ◽  
Complex Knowledge

Research has long recognized the importance of collaboration for innovation, but relatively little is known about the strategic drivers of collaborative innovation in firms. We posit that robust collaboration within firms can increase the interfirm mobility of inventors and increase spillovers of innovative knowledge to competitors by mobile inventors. Therefore, by mitigating these value capture hazards associated with collaboration, barriers to employee mobility may induce firms to increase collaborativeness in innovation. Additionally, consistent with the mechanism underlying this proposition, we hypothesize that firms whose innovation entails more complex knowledge, which is known to impede interfirm knowledge spillovers, will increase collaboration less when employee mobility increases. We test these hypotheses by leveraging quasi-exogenous changes in two legal mobility barriers for inventors across U.S. states and find that higher-mobility barriers are associated with greater inventor collaboration (as observed in patented innovation), and this effect is weaker for firms possessing more complex knowledge. These findings deepen our understanding of the strategic tradeoffs between value creation and value capture entailed in collaborative innovation within firms and of human capital strategies that help to manage these tradeoffs.

scholarly journals Bottlenecks, Modules, and Dynamic Architectural Capabilities

2018 ◽  
Author(s):  
Carliss Y. Baldwin
Keyword(s):  
Property Rights ◽  
Value Creation ◽  
Technical System ◽  
Maximum Effect ◽  
Organizational Boundaries ◽  
Value Capture ◽  
Technical Problems ◽  
Technical Architecture ◽  
Complex Technical System ◽  
Technical Systems

How do firms create and capture value in large technical systems? In this paper, I argue that the points of both value creation and value capture are the system’s bottlenecks. Bottlenecks arise first as important technical problems to be solved. Once the problem is solved, Then the solution in combination with organizational boundaries and property rights can be used to capture a stream of rents. The tools a firm can use to manage bottlenecks are, first, an understanding first of the technical architecture of the system; and, second, an understanding of the industry architecture in which the technical system is embedded. Although these tools involve disparate bodies of knowledge, they must be used in tandem to achieve maximum effect. Dynamic architectural capabilities provide managers with the ability to see a complex technical system in an abstract way and change the system’s structure to manage bottlenecks and modules in conjunction with the firm’s organizational boundaries and property rights.

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