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Conceptualizing The Co-Creation Of Competitive Advantage In Technology-Intensive B2b Markets: Agent-Based Modeling Approach

Author

Listed:
  • MARKUS A. JÄÄSKELÄINEN

    (Lappeenranta University of Technology, PO Box 20, 53851 Lappeenranta, Finland)

  • SAMULI KORTELAINEN

    (Lappeenranta University of Technology, PO Box 20, 53851 Lappeenranta, Finland)

  • JUHA J. HINKKANEN

    (Lappeenranta University of Technology, PO Box 20, 53851 Lappeenranta, Finland)

Abstract

The importance and challenges of supplier–customer cooperation has been widely recognized in the academic literature but the dynamics of such relationship remain understudied. We do not yet fully understand how customer–supplier relationship should be pursued in order to co-create mutual competitive advantage. Our simulation results show that there are differences in absolute profitability and profit distribution between cooperation partners when moving from individual firm-level management to holistic system-based management. We further find that if the supplier manages cooperation from individualistic perspective it is able to achieve the highest short-term profits by sacrificing the profitability of its customer. However, when the supplier acknowledges the profitability logic of its customer, the long-term overall profitability of the cooperation as a whole, i. e., the system, becomes significantly higher than with opportunistic individually-oriented (short-term) management. In described cases, it is actually profitable for the supplier to limit the distribution of its unique resources (e. g., technology).

Suggested Citation

  • Markus A. Jääskeläinen & Samuli Kortelainen & Juha J. Hinkkanen, 2013. "Conceptualizing The Co-Creation Of Competitive Advantage In Technology-Intensive B2b Markets: Agent-Based Modeling Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-17.
    • Handle: RePEc:wsi:ijimxx:v:17:y:2013:i:03:n:s1363919613400082
    DOI: 10.1142/S1363919613400082
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    Cited by:

    1. Giulia Nardelli & Marcel Broumels, 2018. "Managing Innovation Processes Through Value Co-Creation: A Process Case From Business-To-Business Service Practise," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-40, April.
    2. Ricarda Bouncken & Boris Plüschke & Robin Pesch & Sascha Kraus, 2016. "Entrepreneurial orientation in vertical alliances: joint product innovation and learning from allies," Review of Managerial Science, Springer, vol. 10(2), pages 381-409, March.
    3. Barile, Sergio & Carrubbo, Luca & Iandolo, Francesca & Caputo, Francesco, 2013. "From 'EGO' to 'ECO' in B2B relationships," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 6(4), pages 228-253.
    4. Xu, Shichun & Hao, Andy, 2021. "Understanding the impact of national culture on firms’ benefit-seeking behaviors in international B2B relationships: A conceptual model and research propositions," Journal of Business Research, Elsevier, vol. 130(C), pages 27-37.

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