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Value creation and value capture alignment inthe shift to open business models
Luleå University of Technology, Centre for Management of Innovation and Technology in Process Industry, Promote. Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0001-5464-2007
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
Luleå University of Technology.
Luleå University of Technology.
2019 (English)Conference paper, Published paper (Refereed)
Abstract [en]

This study argues that successful shift to open business models relies on aligning value-creation and value-capture activities through interactive processes involving both provider and customer. Yet, little is known about how such processes unfold. To address these research gaps, this study examines how provider-customer relationships unfold by examining outcome-based contracts (OBC). Data from two successful and four failed OBC relationships within the manufacturing and process industry demarcates three phases in the shift to open business models - defining value potential, designing value delivery and delivering value improvements. The success or failure of each phase stems from the interplay and alignment between value creation and value capture activities specific to that phase, instead of focus on value creation in one phase and value capture in another. More precisely, the process model shows that the provider and the customer engaged in OBC relationship iterate and align between: 1) revising the value-creation logic and assessing the value-capture potential 2) formulating value-creation processes and constructing value-capture mechanisms and finally 3) enhancing value-creation activities and regulating value capture. This process model contributes to the literature streams on open business models and servitization by showing that both providers and customers needs to be actively involved in managing the dynamic interdependencies between value creation and value capturing activities in the shift to open business models and OBC.

Place, publisher, year, edition, pages
2019.
Keywords [en]
outcome-based contracts, performance-based contacts, business model innovation, open business models, value creation, value capture, servitization, advanced services, digitalization
National Category
Business Administration
Identifiers
URN: urn:nbn:se:ltu:diva-76185OAI: oai:DiVA.org:ltu-76185DiVA, id: diva2:1356204
Conference
Academy of Management Conference 2019, Boston, USA
Available from: 2019-10-01 Created: 2019-10-01 Last updated: 2019-10-01

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf