A value network development model and implications for innovation and production network management
AbstractIn managing their value network, firms have to balance current and future value concerns and own and network partners' concerns. Firms generate immediate value through manufacturing and selling the current generation of products together with other firms in their production network. Firms generate future value by developing a new product generation with other firms and research institutes in their innovation network. Product innovation and production often take place simultaneously and recurrently. We take the discernible production and innovation activities to occur in co-evolving layers of the same network. We formulate a biplex value network development model that lays out the temporal pattern of production and innovation activities in the value network. We introduce terminology to pinpoint temporal interactions between the innovation and production activities. We study several exemplary complications in the cross-table of inter- and intragenerational interactions versus interactions within and across network layers.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 51393.
Date of creation: Jul 2013
Date of revision:
value network; network management; network development; innovation network; production network; temporal complication;
Find related papers by JEL classification:
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-29 (All new papers)
- NEP-COM-2013-11-29 (Industrial Competition)
- NEP-CSE-2013-11-29 (Economics of Strategic Management)
- NEP-INO-2013-11-29 (Innovation)
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