How value is created, captured and destroyed
Abstract
Purpose
The purpose of this paper is to address value and the value‐creation process. It argues that the firm operating in line with investor interests, acts as both a customer and a supplier of value and considers the internal activities that reflect these motivations.
Design/methodology/approach
A series of propositions are developed regarding the creation, capture and destruction of value.
Findings
It is argued that two types of value‐creating activities can be identified. In addition there are activities directed at the maintenance of the firm, and the maintenance of its capital stock, and there are activities that destroy value. Value capture is determined by bargaining relationships between stakeholders and their representatives. The paper concludes with some comments regarding value appropriation.
Originality/value
The paper addresses the critical issue of “value” in the resource‐based view (RBV) and specifically begins to develop the RBV away from its neo‐classical roots.
Keywords
Citation
Bowman, C. and Ambrosini, V. (2010), "How value is created, captured and destroyed", European Business Review, Vol. 22 No. 5, pp. 479-495. https://doi.org/10.1108/09555341011068903
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited