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Value modes effect and analysis (ValMEA): a PLS-based theory validation

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  • Djoko Setijono
  • Angappa Gunasekaran

Abstract

Value modes effect and analysis (ValMEA) suggests that the concept of customer value can be categorised according to its existence in three different contexts (i.e. production/supply, buying/purchasing, and use) and these three 'modes' of value are interrelated. Based on the collected customer survey data in the house-building construction, two structural models of ValMEA are tested using partial least squares (PLS). The findings from this study confirm previous theory propositions by various researchers. Firstly, these modes of value construct a chain (serial) interconnection, meaning that value in the production/supply context influences the value in the purchasing (buying) context, and the value in the buying context influences the value in use. Individually, value in the production/supply context and purchase value has significant effect on the value in use. Secondly, value in the buying context is a function of core value and added value. Thirdly, value in the buying context can only partially explain the richness of value in use.

Suggested Citation

  • Djoko Setijono & Angappa Gunasekaran, 2010. "Value modes effect and analysis (ValMEA): a PLS-based theory validation," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 5(2), pages 213-230.
    • Handle: RePEc:ids:ijpqma:v:5:y:2010:i:2:p:213-230
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