IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v17y2013i03ns1363919613400082.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919613400082
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919613400082?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. van Damme, E.E.C., 1999. "Sexuele voorlichting en praktijk," Other publications TiSEM e3ecec71-14ed-4ba2-9677-f, Tilburg University, School of Economics and Management.
    2. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914, December.
    3. Mikkel Lucas Overby, 2005. "Partner Selection Criteria in Strategic Alliances When to Ally with Weak Partners," DRUID Working Papers 05-07, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tobias Knabke & Sebastian Olbrich, 2018. "Building novel capabilities to enable business intelligence agility: results from a quantitative study," Information Systems and e-Business Management, Springer, vol. 16(3), pages 493-546, August.
    2. Sunder Shyam, 2011. "Imagined Worlds of Accounting," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 1(1), pages 1-14, January.
    3. Miguel Pina E Cunha, 2007. "Entrepreneurship As Decision Making: Rational, Intuitive And Improvisational Approaches," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-20.
    4. McCown, R. L., 2002. "Changing systems for supporting farmers' decisions: problems, paradigms, and prospects," Agricultural Systems, Elsevier, vol. 74(1), pages 179-220, October.
    5. Basile, Luigi Jesus & Carbonara, Nunzia & Pellegrino, Roberta & Panniello, Umberto, 2023. "Business intelligence in the healthcare industry: The utilization of a data-driven approach to support clinical decision making," Technovation, Elsevier, vol. 120(C).
    6. Loris Gaio, 2005. "A diversity-based approach to requirements tracing in new product development," ROCK Working Papers 031, Department of Computer and Management Sciences, University of Trento, Italy, revised 13 Jun 2008.
    7. B. A. Huberman & N. S. Glance, "undated". "Diversity and Collective Action," Working Papers _001, Xerox Research Park.
    8. Zhewei Zhang & Youngjin Yoo & Kalle Lyytinen & Aron Lindberg, 2021. "The Unknowability of Autonomous Tools and the Liminal Experience of Their Use," Information Systems Research, INFORMS, vol. 32(4), pages 1192-1213, December.
    9. David Stadelmann & Benno Torgler, 2012. "Bounded Rationality and Voting Decisions Exploring a 160-Year Period," Working Papers 2012.70, Fondazione Eni Enrico Mattei.
    10. Francis Marleau Donais & Irène Abi-Zeid & E. Owen D. Waygood & Roxane Lavoie, 2021. "A Framework for Post-Project Evaluation of Multicriteria Decision Aiding Processes from the Stakeholders’ Perspective: Design and Application," Group Decision and Negotiation, Springer, vol. 30(5), pages 1161-1191, October.
    11. H. Christopher Frey & Sumeet R. Patil, 2002. "Identification and Review of Sensitivity Analysis Methods," Risk Analysis, John Wiley & Sons, vol. 22(3), pages 553-578, June.
    12. Marie-Laure Salles-Djelic & Michel Gutsatz, 2000. "Managerial Competencies for Organizational Flexibility: The Luxury Goods Industry between Tradition and Postmodernism," Post-Print hal-01892018, HAL.
    13. Rennard, Jean-Philippe, 2006. "Artificiality in Social Sciences," MPRA Paper 1458, University Library of Munich, Germany.
    14. Luoma, Jukka, 2016. "Model-based organizational decision making: A behavioral lens," European Journal of Operational Research, Elsevier, vol. 249(3), pages 816-826.
    15. Dalila Cisco Collatto & Aline Dresch & Daniel Pacheco Lacerda & Ione Ghislene Bentz, 2018. "Is Action Design Research Indeed Necessary? Analysis and Synergies Between Action Research and Design Science Research," Systemic Practice and Action Research, Springer, vol. 31(3), pages 239-267, June.
    16. Nadia Fiorino & Emma Galli & Ilde Rizzo & Marco Valente, 2023. "Public procurement and reputation. An agent‐based model," Metroeconomica, Wiley Blackwell, vol. 74(4), pages 806-832, November.
    17. Olivier L. de Weck & Marshall B. Jones, 2006. "Isoperformance: Analysis and design of complex systems with desired outcomes," Systems Engineering, John Wiley & Sons, vol. 9(1), pages 45-61, March.
    18. Hippel, Eric von., 1992. "Adapting market research to the rapid evolution of needs for new products and services," Working papers 3374-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    19. Konstantinos S. Boulas & Georgios D. Dounias & Chrissoleon T. Papadopoulos, 2023. "A hybrid evolutionary algorithm approach for estimating the throughput of short reliable approximately balanced production lines," Journal of Intelligent Manufacturing, Springer, vol. 34(2), pages 823-852, February.
    20. Richard Fellows & Anita M.M. Liu, 2012. "Managing organizational interfaces in engineering construction projects: addressing fragmentation and boundary issues across multiple interfaces," Construction Management and Economics, Taylor & Francis Journals, vol. 30(8), pages 653-671, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:17:y:2013:i:03:n:s1363919613400082. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.