An integrated perspective of value creation and capture: a systematic literature review

Purpose The existing literature is fragmented across disciplines and does not provide a holistic, comprehensive view on how value is created, deployed and captured. This paper aims to provide a structured view of the current literature and facilitates a theoretical understanding of value creation and capture in buyer–supplier relationships. Design/methodology/approach A systematic literature review was conducted on 195 articles published in 21 leading journals in marketing, operations management and strategy disciplines. Findings An integrated, generalizable and expandable framework is proposed based on the causal or interactive relationship among four components, namely, dimensions of value creation; processes and interactions by which buyers and suppliers enable value creation; relationship characteristics that affect these components; and value capture. Two new areas for future studies are also suggested. Research limitations/implications The findings are based on papers published in peer-reviewed academic literature. Future studies could include more heterogeneous publications in languages other than English and/or professional journals to compare scholars' and managers' perspectives. Practical implications This study offers simple, practical guidelines that managers can apply in their real-world situations to increase the value they gain from their relationships. Originality/value The framework does not pretend to be exhaustive because such an attempt would be impractical. Rather, this study provides practical examples for each component, and shows how additional concepts and constructs can be incorporated to make it inclusive and generalizable. Two new manners of value capture other than price negotiations are presented (volume and collaborative benefits).

Value creation and capture in systemic innovation implementation: case of mechanical, electrical and plumbing prefabrication in the Finnish construction sector

Purpose Systemic innovations emerge and create value in an inter-organisational context. However, innovation studies rarely investigate the role of value creation and value capture among multiple organisations in successful innovation implementation. This paper aims to understand the role of value creation and value capture in the implementation of systemic innovations in construction which is by nature, an inter-organisational context. Design/methodology/approach The empirical research focused on the barriers, enablers and opportunities for value creation and value capture of the Finnish construction project parties when trying to implement mechanical, electrical and plumbing (MEP) prefabrication, which is a systemic innovation. Data were collected through interviews, observations and action workshops. Findings The empirical study identified interaction patterns on how social, political, technical and economic barriers lead to uneven value capturing, lack of value-based procurement and unclear value creation between MEP design and installation. They hinder the implementation of MEP prefabrication. The results point to enablers leading to fairly shared value to all parties, procurement of value and collaborative value creation, thus increasing the usage of MEP prefabrication, a systemic innovation. Originality/value The study adds new knowledge by demonstrating that the identification of barriers and their interaction with enablers and opportunities for value creation and capture lay a baseline for suggestions on how to implement a systemic innovation. This study stresses the importance of enabling value creation and capture for all construction project parties when implementing a systemic innovation.