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This study aims to explore ways to enhance competitiveness of commercial lighting industry because of the growing digitally connected stakeholder community. Positive responses from stakeholders to recurring business interactions help build trust and formation of a community; value chains being one form of such trusted community. Because of the increasing trust, the effort to search right value chain partners diminishes, business interactions become less formal and transaction costs are reduced, thus increasing the competitiveness.

In this research, a cross-sectional study of commercial lighting industry domain in Australia was carried out, focusing on two states: New South Wales and Victoria. Based on the findings, an approach and a supporting platform to enhance competitiveness of commercial lighting industry were synthesized.

Based on the findings from the study, formation of such value chains, namely, “Entrusted Circles” and its two types of formations, fully and partial, were observed. Their further growth was hindered by high transaction costs. To reduce this transaction cost, this paper proposes a platform to create dynamic value chains, among stakeholders of commercial lighting industry, making use of growing digital connectivity leading toward agile formation of Entrusted Circles to enhance competitiveness.

This study focuses on the commercial lighting industry in Australia, which is not tested in any other domain to investigate its wider applicability. However, it is conceptually applicable to be used in industries with compliance and standard procedures.

This paper shows how to identify Entrusted Circles and build, support and sustain such relationships among value chain partners to successfully conduct business transactions in a dynamic value chain.