A competence-based approach to understanding the orchestration of value chains in the development of “new” value architectures

Abstract

Growth strategies exist, specifically for business divisions with a poor competitive position, by “orchestrating” value chains in external networks. The theory of competence development provides a basis for successfully developing new value architectures, since massive changes in a business division can take place only if they are based on durable competences. Four steps to orchestrating value chains can be deduced: (1) identifying changes in the value architecture as a possible growth strategy, (2) creating the organizational prerequisites for the deconstruction of value chains, (3) selling nonspecific value-added and (4) building networks around the core business that link (nonspecific) noncore activities to the firm.

Citation

Proff, H. (2008), "A competence-based approach to understanding the orchestration of value chains in the development of “new” value architectures", Martens, R., Heene, A. and Sanchez, R. (Ed.) Competence Building and Leveraging in Interorganizational Relations (Advances in Applied Business Strategy, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 93-115. https://doi.org/10.1016/S0749-6826(07)11004-0