Value Co-Creation with Suppliers
AbstractThe growing specialization of firms and the reinforcement of vertical disintegration have led to an increasing reliance on purchasing and supply management. This means that an increasing proportion of value is created outside the boundaries of the firm, namely by suppliers. In this context, the paper aims to relate the configuration of the bonds companies establish with their suppliers to the process of value creation. The paper furthers our understanding of buyer-supplier relationships as mechanisms for the coordination and development of capabilities on both sides of the dyad. Evidence was found that relationships affect not only the access and exploration of suppliers’ resources, but also the perception the buying firm has about their capabilities which is likely to condition the potential for joint value creation. The main contribution of the paper is that value co-creation involving suppliers must be regarded as a strategic option which depends on several conditions. This research puts in evidence two of these conditions: suppliers’ capabilities and the way the buyer-seller relationships are configured.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 342.
Length: 35 pages
Date of creation: Nov 2009
Date of revision:
Buyer-supplier relationships; capabilities; relationship configuration; value creation;
Find related papers by JEL classification:
- M19 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Other
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