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Value creation logics and resource management: a review

Rozhan Othman (Faculty of Business, Economics and Policy Studies, Universiti Brunei Darussalam, Bandar Seri Begawan, Brunei)
Norman T. Sheehan (Edwards School of Business, University of Saskatchewan, Saskatoon, Canada)

Journal of Strategy and Management

ISSN: 1755-425X

Article publication date: 22 February 2011

4661

Abstract

Purpose

The purpose of this paper is to locate different value creation logic contingencies within the resource management framework. While Sirmon et al. discuss how external environmental contingencies, such as environmental munificence, impact resource management, this paper aims to discuss a second key contingency; that is how the firm's choice of value creation logics impacts its resource management choices. This paper seeks to argue that management of the firm's resources and capabilities is contingent on the value creation logic employed by the firm.

Design/methodology/approach

This paper reviews three value creation logics: value shop, value network, and value chain and then integrates them within the resource management framework.

Findings

A review of extant literature indicates that value shop firms, value network firms, and value chain firms enact very different environments and thus require very different resources and capabilities to support their value creation approaches. It is argued that Sirmon et al.'s resource management framework should reflect these differences.

Research limitations/implications

This paper points to new directions for research in value creation logic theory and provides a basis for future empirical work.

Practical implications

This paper argues that a mismatch between a firm's value creation logic and its resource management practices will have an adverse impact on the firm's performance.

Originality/value

This study is one of the first to integrate Stabell and Fjeldstad's value creation logic theory with Sirmon et al.'s resource management framework.

Keywords

Citation

Othman, R. and Sheehan, N.T. (2011), "Value creation logics and resource management: a review", Journal of Strategy and Management, Vol. 4 No. 1, pp. 5-24. https://doi.org/10.1108/17554251111110096

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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