Employeess Value Creation and Value Capture. The Case of Airline Industry

2015 ◽  
Author(s):  
Valentina Della Corte ◽  
Giovanna Del Gaudio
Author(s):  
Roberto Garcia-Castro ◽  
Joan Enric Ricart ◽  
Marvin B. Lieberman ◽  
Natarajan Balasubramanian

Productivity gains play a crucial role in value creation and distribution in firms. This chapter connects the strategy framework of value creation and value capture with the tools from the productivity literature in order to understand better how returns are distributed between different stakeholders in the business and how this distribution might evolve over time. The authors distinguish between business model innovation and replication as two genuine sources of value creation. The historical analysis of Southwest Airlines in the US airline industry illustrates the insights that can be gained using a formal model to measure productivity gains at the firm level.


2014 ◽  
Vol 12 (1) ◽  
pp. 453-463
Author(s):  
Valentina Della Corte ◽  
Giovanna Del Gaudio

The aim of this research paper is twofold: first, to verify whether and to what extent employees’ productivity influences firm’s value creation and performance; secondly, if and to what extent employees appropriate part of firm’s value. We focus empirically on a selected sample of firms in airline industry, in order to check if personnel’s productivity creates value, thus contributing to firm performance and sustainable competitive advantage. The reason why we chose this industry is because in this sector operations are critical factors in firm performance


2021 ◽  
Author(s):  
Eunkwang Seo ◽  
Deepak Somaya

Research has long recognized the importance of collaboration for innovation, but relatively little is known about the strategic drivers of collaborative innovation in firms. We posit that robust collaboration within firms can increase the interfirm mobility of inventors and increase spillovers of innovative knowledge to competitors by mobile inventors. Therefore, by mitigating these value capture hazards associated with collaboration, barriers to employee mobility may induce firms to increase collaborativeness in innovation. Additionally, consistent with the mechanism underlying this proposition, we hypothesize that firms whose innovation entails more complex knowledge, which is known to impede interfirm knowledge spillovers, will increase collaboration less when employee mobility increases. We test these hypotheses by leveraging quasi-exogenous changes in two legal mobility barriers for inventors across U.S. states and find that higher-mobility barriers are associated with greater inventor collaboration (as observed in patented innovation), and this effect is weaker for firms possessing more complex knowledge. These findings deepen our understanding of the strategic tradeoffs between value creation and value capture entailed in collaborative innovation within firms and of human capital strategies that help to manage these tradeoffs.


Author(s):  
Carliss Y. Baldwin

How do firms create and capture value in large technical systems? In this paper, I argue that the points of both value creation and value capture are the system’s bottlenecks. Bottlenecks arise first as important technical problems to be solved. Once the problem is solved, Then the solution in combination with organizational boundaries and property rights can be used to capture a stream of rents. The tools a firm can use to manage bottlenecks are, first, an understanding first of the technical architecture of the system; and, second, an understanding of the industry architecture in which the technical system is embedded. Although these tools involve disparate bodies of knowledge, they must be used in tandem to achieve maximum effect. Dynamic architectural capabilities provide managers with the ability to see a complex technical system in an abstract way and change the system’s structure to manage bottlenecks and modules in conjunction with the firm’s organizational boundaries and property rights.


2021 ◽  
pp. 1481-1488 ◽  
Author(s):  
Amineh A. Khaddam ◽  
Hani J. Irtaimeh ◽  
Ahmad Rajaa Salameh Al-Batayneh ◽  
Suliman Raja Salameh Al-Batayneh

The aim of the study is to investigate the impact of business model innovation (BMI) on firm performance. The sample of the study consisted of 120 managers from Alban Al-youm Company in Jordan, a leading dairy company. Data were collected using a questionnaire administered to managers. Eighty-seven questionnaires were retrieved valid for the purpose of data analysis. BMI was measured using three components: value creation, value proposition and value capture innovations while company performance was assessed via self-rated questions about operational measures of performance. The results accepted the hypotheses that all dimensions of BMI had significant effects on company performance. That being so, the study contributed to the literature on BMI on company performance in the absence of such studies that use samples for Arab countries, particularly, from Jordan in one of the most vital industries, which is a dairy industry.


Author(s):  
Alvaro Lopes Dias ◽  
Georg Dutschke

This chapter presents in a simplified way that communities in volatile economies can create value through the identification, valorization, and operationalization of knowledge, traditions, and other cultural dimensions, many of them in the domain of tacit knowledge, available in the minds of people and community shared value. Through a cycle of identification of local knowledge, it is possible to begin the whole process, which necessarily passes through the cooperation between the various local actors. In a third phase, it is essential to structure the positioning, which represents the conceptual dimension concerning the way the community intends to present itself to the market. Next, it is essential to structure this offer, promoting value creation and capture. As such, the community should value their products or services by enhancing local knowledge and taking value creation initiatives in favor of local development (value capture).


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lucy Sojung Lee ◽  
Weiguo Zhong

Purpose This paper aims to investigate the importance and prevalence of Guanxi in business interactions in network-based societies such as China, few studies have the phenomenon from a dyadic view. In a business dyad, one partner may not value Guanxi and take it as a template for actions as the other does. Design/methodology/approach The authors propose that such collective and asymmetric Guanxi orientation influence both the creation and distribution of relational rent in a Guanxi dyad. Furthermore, relationship-specific investments (RSIs) moderate the relationship between dyadic Guanxi orientation and relational rent creation and distribution. Findings Based on a matched sample of supplier-buyer dyads in China, the authors find that joint Guanxi orientation is positively related to joint pie creation, whereas Guanxi orientation imbalance has a positive effect on the pie distribution imbalance. Originality/value These results contribute to the literature by revealing how dyadic Guanxi dynamics and practices affect dyadic performance and providing managers with meaningful implications for dyadic Guanxi management.


2018 ◽  
Vol 62 (1) ◽  
pp. 14-29
Author(s):  
Inka Gersch

Abstract The fundamental restructuring processes of agri-food networks in developing and emerging markets have intensified the debate on how to improve the integration of smallholders into so called modern value chains. In this context, the company-driven contract farming model and the member-based model of producer organizations are discussed by practitioners and in the scholarly literature as alternatives to traditional market systems. This study compares the models’ abilities to address economic challenges of highly fragmented and small-scale dominated agriculture on a household as well as on an aggregate level. It analyzes empirical data from the Indian floriculture sector with the global value chain approach. The study reveals that the smallholders perceive both contract farming and producer organization to be beneficial for their households’ economic risk situation, while only the producer organization has a positive effect on the households’ income. The contract farming benefits production and value chain efficiency, whereas the producer organization does not show an impact in these respects. We thus observe that the contract farming model increases value creation in the overall chain, but it does not raise the producer’s value capture; while the producer organization model does not heighten value creation in the overall chain, but it lifts the producers’ value capture. The organization’s individual capabilities determine how each model addresses the economic challenges. Overall, the author argues that contract farming and producer organizations are supplementing, not competitive, strategies and should be applied in combination.


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