Governance of international franchise networks: Combining value creation and value appropriation perspectives

2022 ◽  
Vol 139 ◽  
pp. 267-279
Author(s):  
Maria Jell-Ojobor ◽  
Ilir Hajdini ◽  
Josef Windsperger
Keyword(s):  
Value Creation ◽  
Value Appropriation ◽  
Franchise Networks

Trade-off between value creation and value appropriation?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cleo Schmitt Silveira ◽  
Marta Olivia Rovedder de Oliveira ◽  
Rodrigo Heldt ◽  
Fernando Bins Luce
Keyword(s):  
Value Creation ◽  
Generalized Method Of Moments ◽  
Impulse Response Functions ◽  
Value Appropriation ◽  
Trade Off ◽  
Content Type ◽  
Short And Long Term ◽  
Long Term Performance ◽  
Term Performance

PurposeManagers face the challenge of balancing resources needed to support value creation and value appropriation. In this study the authors analyze the impacts of innovation investments (i.e. value creation: VC) on advertising expenditures (i.e. value appropriation: VA), and vice versa, and verify the effects of these options on short- and long-term performance.Design/methodology/approachThe effects of these two activities on short- and long-term performance were analyzed observing a panel of 4,090 companies of Standard and Poor's Compustat database from a 40-year period. The authors adopted the panel vector autoregressive (VAR) approach, using the generalized method of moments (GMM).FindingsAlthough there is a trade-off between the strategic emphases on creating and appropriating value, there is also a synergy between them. The results from the impulse response functions support the argument for a virtuous business circle: companies that choose to intensify their investments in R&D tend to increase advertising expenditures, and vice versa.Practical implicationsManagers, rather than having to deal with a trade-off between allocating resources either on VC or VA activities, can capitalize on synergetic benefits resulting from the interaction among them.Originality/valueThe relationship between the VC and VA activities transcends the trade-off imposed by resource restrictions, since the interaction between them creates additional benefits afforded by the synergy of these activities.

scholarly journals Value creation and value appropriation in innovation process in publicly-traded family firms

2015 ◽  
Vol 53 (9) ◽  
pp. 1921-1952 ◽  
Author(s):  
Esra Memili ◽  
Hanqing Chevy Fang ◽  
Dianne H.B. Welsh
Keyword(s):  
Family Business ◽  
Value Creation ◽  
Generational Differences ◽  
Family Firms ◽  
Innovation Process ◽  
Family Ownership ◽  
Publicly Traded ◽  
Value Appropriation ◽  
Content Type ◽  
Significant Difference

Purpose – The purpose of this paper is to examine the generational differences among publicly traded family firms in regards to value creation and value appropriation in the innovation process by drawing upon the knowledge-based view (KBV) and family business literature with a focus on socioemotional wealth perspective. Design/methodology/approach – The authors tests the hypotheses via longitudinal regression analyses based on 285 yearly cross-firm S & P 500 firm observations. Findings – First, the authors found that family ownership with second or later generation’s majority exhibits lower levels of value creation capabilities compared to non-family firms, whereas there is no difference between those of the firms with family ownership with a first generation’s majority and non-family firms. Second, the authors also found that family owned firms with a first generation’s majority have higher value appropriation abilities compared to nonfamily firms, while there is no significant difference in value appropriation between the later generation family firms and non-family firms. Research limitations/implications – The study help scholars, family business members, and investors better understand family involvement, and how it impacts firm performance through value creation and value appropriation. Originality/value – The paper contributes to the family business, innovation, and KBV literature in several ways. While previous family business studies drawing upon resource-based view and KBV often focus on the value creation in family governance, the authors investigate both value creation and value appropriation phases of innovation process.

Value creation mechanisms of business models

2018 ◽  
Vol 19 (3) ◽  
pp. 166-176 ◽  
Author(s):  
Vladyslav Biloshapka ◽  
Oleksiy Osiyevskyy
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Business Value ◽  
Value Proposition ◽  
Value Appropriation ◽  
Value Capture ◽  
Fine Grained ◽  
Case Vignettes ◽  
Current Article

Management scholars and practitioners generally agree that the primary functions of a business model are value creation and value capture. However, the meaning (conceptualization) of these terms, their measurement, and the factors and mechanisms affecting them remain contentious. In the current article, we provide answers to these questions by clarifying the consumers’ value creation and business value capture constructs. Then, we demonstrate how they are determined by four business model mechanisms: value proposition and value targeting (affecting consumers’ value through willingness to pay) and value appropriation and value delivery (affecting business value through price and cost). We demonstrate that a fine-grained analysis of a business model’s value creation cannot be adequately performed without reference to these four mechanisms. The developed conceptual framework is illustrated and corroborated by the mini-case vignettes. We finish by outlining an application of the proposed framework to two crucial real-world business model situations: escaping the Giver Trap and remaining the Winner.

VALUE APPROPRIATION AND INNOVATION COLLABORATION DYNAMICS: A REVIEW AND RESEARCH AGENDA

2021 ◽  
Author(s):  
JIALEI YANG ◽  
PIA HURMELINNA-LAUKKANEN ◽  
ARUSHI SHARMA ◽  
MIKA WESTERLUND
Keyword(s):  
Value Creation ◽  
Text Analysis ◽  
Innovation Management ◽  
Analysis Method ◽  
Value Appropriation ◽  
Proper Understanding ◽  
Collaborative Value Creation ◽  
Collaboration Dynamics ◽  
Conceptual Foundations

Contemporary innovation management studies on collaboration dynamics and value appropriation lack coherent theoretical articulations and underlying conceptual foundations. It is challenging to manage collaborative value creation without a proper understanding of the dynamic connections between collaboration for and appropriation of innovation. This study conducts a systematic literature review to uncover the dynamic connections between innovation-related value appropriation and collaboration. Topic modelling, a machine-learning-based text analysis method, is applied to a corpus of 270 scholarly articles to uncover relevant elements. Additionally, 77 articles are selected for an in-depth content analysis to examine the elements in a more detailed manner. With these steps, the study contributes to the literature by illustrating and elaborating the role of dynamics of collaboration in value appropriation, and vice versa.

Trading off between Value Creation and Value Appropriation: The Financial Implications of Shifts in Strategic Emphasis

2003 ◽  
Vol 67 (1) ◽  
pp. 63-76 ◽  
Author(s):  
Natalie Mizik ◽  
Robert Jacobson
Keyword(s):  
Financial Performance ◽  
Value Creation ◽  
Stock Return ◽  
Limited Resources ◽  
Value Appropriation ◽  
Technological Environment ◽  
The Past ◽  
Sustained Competitive Advantage ◽  
Strategic Emphasis ◽  
Isolating Mechanisms

Firms allocate their limited resources between two fundamental processes of creating value (i.e., innovating, producing, and delivering products to the market) and appropriating value (i.e., extracting profits in the marketplace). Although both value creation and value appropriation are required for achieving sustained competitive advantage, a firm has significant latitude in deciding the extent to which it emphasizes one over the other. What effect does strategic emphasis (i.e., emphasis on value creation versus value appropriation) have on firm's financial performance? The authors address this issue by examining the effect that shifts in strategic emphasis have on stock return. They find that the stock market reacts favorably when a firm increases its emphasis on value appropriation relative to value creation. This effect, however, is moderated by firm and industry characteristics, in particular, financial performance, the past level of strategic emphasis of the firm, and the technological environment in which the firm operates. These results do not negate the importance of value creation capabilities, but rather highlight the importance of isolating mechanisms that enable the firm to appropriate some of the value it has created.

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