IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Value Creation and Value Capture at Manufacturing Firms : Importance of Non-functional Value

Listed author(s):
  • Nobeoka, Kentaro
Registered author(s):

    Most large Japanese manufacturers are good at creating value utilizing their engineering capabilities but poor at capturing value in terms of creating profit and added value. This paper discusses conditions to capture value, after explaining a distinction between value creation and value capture. In order to capture value, manufacturers have to (1) link manufacturing excellence with uniqueness and differentiation from competitors, and (2) create customer value, enticing customers to pay premiums for the differentiation, and to do these two things simultaneously. In the second half of this paper, we particularly focus on customer value and discuss the importance of the non-functional value. Non-functional value has become a critical factor for manufacturers to capture value by creating customer value.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Institute of Innovation Research, Hitotsubashi University in its series IIR Working Paper with number 10-01.

    in new window

    Length: 38 p.
    Date of creation: Apr 2010
    Handle: RePEc:hit:iirwps:10-01
    Contact details of provider: Postal:
    2-1 Naka, Kunitachi City, Tokyo 186-8601

    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:hit:iirwps:10-01. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.