How Do Value Creation and Competition Determine Whether a Firm Appropriates Value?
AbstractHow does competition among economic actors determine the value that each is able to appropriate? We provide a formal, general framework within which this question can be posed and answered, and then provide several results. Chief among them is a condition that is both required for, and guarantees, value appropriation. We apply our methodology to (i) assess the familiar notion that uniqueness, inimitability, and competition imply value appropriation, and (ii) determine the value appropriation possibilities for an innovator whose unique discovery is of use to several others who can compete for the right to use it.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 50 (2004)
Issue (Month): 10 (October)
value appropriation; competition; competitive advantage; imitation; innovation;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Oliver Baumann & Nils Stieglitz, 2011. "Motivating Organizational Search," DRUID Working Papers 11-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Smith, Howard & Thanassoulis, John, 2006.
"Upstream Competition and Downstream Buyer Power,"
CEPR Discussion Papers
5803, C.E.P.R. Discussion Papers.
- Ramon Casadesus-Masanell & Gaston Llanes, 2009.
09-06, NET Institute, revised Sep 2009.
- Stuart Jr., Harborne W., 2007. "Creating monopoly power," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1011-1025, October.
- Chih-Jou Chen & Chia-Chin Chang & Shiu-Wan Hung, 2011. "Influences of Technological Attributes and Environmental Factors on Technology Commercialization," Journal of Business Ethics, Springer, vol. 104(4), pages 525-535, December.
- Najda-Janoszka, Marta, 2011.
"Zatrzymywanie Wartości W Sieciach Kooperacyjnych Przedsiębiorstw
[Value Appropriation in Cooperative Networks]," MPRA Paper 42582, University Library of Munich, Germany.
- Alexy, Oliver & Reitzig, Markus, 2013. "Private–collective innovation, competition, and firms’ counterintuitive appropriation strategies," Research Policy, Elsevier, vol. 42(4), pages 895-913.
- Smith, Howard & Thanassoulis, John, 2012. "Upstream uncertainty and countervailing power," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 483-495.
- Adegbesan, Tunji, 2007. "Strategic factor markets: Bargaining, scarcity, and resource complementarity," IESE Research Papers D/666, IESE Business School.
- Jacobides, Michael G. & Knudsen, Thorbjorn & Augier, Mie, 2006. "Benefiting from innovation: Value creation, value appropriation and the role of industry architectures," Research Policy, Elsevier, vol. 35(8), pages 1200-1221, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.