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The purpose of this article is to demonstrate the importance of a strategic approach to collaborative innovation and the use of a value chain research methodology for identifying opportunities for co‐innovation.

Value chain analysis is used to map three flows in the Houston Farms value chain; material flow, information flow and relationships. Having diagnosed the current level of co‐innovation we then identify improvement projects and opportunities for co‐innovation to reduce cost and add value, for the benefit of the value chain as a whole.

The application of the value chain analysis methodology to the Houston Farms value chain revealed the importance of strategy and robust processes in key areas for co‐innovation – R&D and new product development. It also revealed that small businesses can enjoy a degree of success as a result of comparative advantage in certain areas but that sustainable competitive advantage cannot occur by chance – identifying the potential for co‐innovation is an important first step in the right direction.

The value chain innovation roadmap represents a useful framework for exploring the current state and future capability for co‐innovation in a value chain. The value chain analysis methodology is an effective diagnostic tool as it focuses on what happens at the interface between stakeholders and how this relates to what final consumers regard as value adding, rather than traditional financial and functional KPIs which make it difficult to explore the competitiveness of the value chain as a whole.

The explicit and objective measurement of what consumers value is an important addition to the value chain analysis methodology and the co‐innovation roadmap is an original attempt to illustrate the core drivers and capabilities for achieving co‐innovation in a value chain. The insights from the case demonstrate the value of this approach to companies who are open to innovation and recognise the need to focus the use of scarce value‐adding resources on specific value chains and the needs and wants of final consumers therein.

In electronic commerce, businesses require to integrate two kinds of activities – ones that are embedded into the physical value chains and the others that are built through information into the virtual chain. Although the relative importance of these two kinds of chain depends on the characteristics of the products and services, their integration, nevertheless, plays a critical role in the success of e‐commerce. In e‐commerce, more and more value chain activities are conducted electronically, therefore, businesses should understand the implication of the virtual value chain activities. The virtual chain offers a number of distinct advantages over the physical value chain. Some of these advantages lie in forging alliances between customers and manufacturers, advertising products and services selectively with effects of audio, video, and graphics, and saving time and money in efficiently processing customer orders and enquiries. Besides, e‐commerce offers flexibility in option pricing and customization of products and service, by reducing the constraints of time and space.

Porter's value chain has been a keystone of strategic analysis. However, because of processes associated with economic globalization: outsourcing, brand marketing and “knowledge economy” phenomena, value drivers have changed dramatically over the last 20 years. The added‐value chain provides an expanded mental model for practitioners and academics to develop and communicate strategies for value creation.

The expanded set of activities in the added‐value chain was developed based on experience using the value chain in real world situations and analyzing leading business and strategy models that are commonly used by firms today.

The added‐value chain incorporates new sources of value creation such as the firm's brand, reputation and “social capital” or goodwill in addition to profit margin. The Added‐Value Chain also adds three primary activities.

Managers performing value‐chain analysis need to take into account newly important business drivers.

Expanding the value chain ensures that no potential strategic activity is forgotten and no opportunity for enhancing value is over‐looked.

The paper aims to offer a five‐step method for discovering a customer's particular strategic needs based on a unique application of value‐chain analysis.

The paper presents a five‐step approach. Step 1 explains how internal and external value chains can be used separately and in related ways. Step 2 shows how to construct a customer's value chain. Step 3 shows how to identify the customer's business strategy by examining this value chain and using other kinds of information. Step 4 explains how to use additional information and intelligence to leverage that understanding into strategic needs and priorities. Step 5 explains how a firm's marketing function can best use this method of value‐chain analysis as a new strategic capability.

The benefits for doing this analysis on important customers include: identifying new high value business opportunities (and improving revenue); and strengthening the business‐to‐business (B2B) customer relationship: clarifying their strategic priorities allows enhanced alignment of actions with desired results.

A value‐chain analysis – combined with other kinds of information –is key to discovering the B2B customers' strategic needs and creating new business that will not only get a receptive audience but also command premium margins.

For B2B service companies, it is the external value chain that presents many new opportunities for business growth. Even though these processes occur outside the corporation, the strategic opportunities they reveal and areas of risk they highlight warrant careful study.

This paper aims to question the capacity of firms embedded in global value chains to manage their natural resources in a sustainable way. Thus, it offers guidelines for more sustainable value chains.

While business strategies have focused on optimizing natural resource exploitation and on constructing global value chains to face sustainability issues, this study first explains why these strategies are not effective in preventing natural resource depletion. Second, it offers a model for anticipating resource depletion. The cut flower industry constitutes a central case to explain the model. Two other industry cases complement the demonstration.

To anticipate natural resource depletion and thus improve industry sustainability, firms must shift from the exploitation of endangered natural resources to the use of alternative local ones. This shift, however, encourages firms to reconstruct value chains and rethink how they create value within these new value chains. It also has an impact on firms’ growth strategy: they must replicate value chains on a local scale instead of taking part in global value chains.

The findings rely on illustrations from the cut flower, fishing and textile fiber industries. Generalization to other industries may strengthen the argument.

This study offers a model of sustainable growth for firms willing to anticipate natural resource depletion by offering a shift in value chains. It consists of exploiting alternative natural resources and of rethinking the value offered to consumers. Thus, it goes against current models that merely focus on optimizing natural resource exploitation within global value chains.

The tourism industry consists of various players and tourism demand is met by the joint efforts of these players. However, it seems that there is no attempt in the tourism management literature proposing frameworks or models, which can assist the tourism companies, evaluate and control the overall tourism value chain. This paper attempts to show the usability of value chain concept in the tourism industry to manage and measure the value chain processes.

A tourism value chain model with four stages; win order, pre‐delivery support, delivery, and post‐delivery support, is developed. A value chain performance measurement model for the tourism industry is suggested according to the value chain model developed.

There is an opportunity to study the tourism industry as a value chain and to develop a value chain oriented performance management and measurement framework that would allow various players to communicate and coordinate their processes and activities in a more mature manner. Therefore, it becomes critical to measure and manage the overall efficiency and effectiveness of the tourism product and services from a value chain management perspective. The framework has some implications for both practitioners and researchers.

The tourism companies can use the suggested model as a guide to evaluate their performance in terms of customer and internal dimensions through the value chain perspective. Mapping of existing thinking on performance measurement against the proposed tourism value chain model reveals gaps for further research, such as: the need to study the tourism industry as an end‐to‐end value chain; the need for understanding and measuring the performance of front‐end win‐order and pre‐delivery‐support processes; and the need for managing the delivery process as a whole rather than as two or three unrelated services. The model is intended to be useful for the practitioners when designing and implementing a framework who search for the whole tourism chain effectiveness using both internal and customer related metrics.

The paper highlights the need to evaluate the overall tourism value chain through the customer and internal dimensions and suggests a unique model for this aim.

This study explores the relevance of the value chain concept in internet‐driven business and assesses the extent to which businesses utilize the internet from a value chain perspective. It attempts to answer the following three questions: is the value chain concept relevant and applicable to the internet as a means of understanding the internet? To what extent do organizations utilize the internet according to a value chain perspective? Does the business use of the internet change over time?

To answer these questions, a longitudinal survey study was conducted over a two‐year period. The first study collected data from 110 firms on the way they utilize the internet. Two years later, a similar survey was conducted with 70 firms using the same instrument used in the first study.

The study provided empirical support for the use of the value chain concept as a viable taxonomy for assessing the level of adoption of the internet. The study also provided a time‐lapsed glimpse of how organizations evolve in adopting the internet.

One of the shortcomings of the study is in the sampling process, although various measures were taken to ensure that the data represent a wide range of organizations, so that the findings can be reasonably generalizable.

The most important practical contribution of the study is that it provides practitioners with a tool to systematically plan and deploy an ever‐increasing array of internet applications. The internet value chain model should provide organizations with a strategic and macro perspective to evaluate and manage various internet applications.

An important contribution of this study is that it empirically observed the evolution of the internet practices in business according to the value chain framework. There has been plenty of anecdotal evidence of changes in the way business utilizes the internet, but no study has empirically assessed these changes systematically based on a theoretical framework. The study provides a valuable theoretical framework for researchers to continuously accumulate knowledge on the use of the internet in business.

Organizations are increasingly required to take up extended responsibilities for social and environmental outcomes, including in global value chains. To address these challenges, the organization must call upon stakeholders to engage, contribute, and innovate, and in turn, this requires the organization to have a stronger social basis for its relationships. An integrative model of global value chain management based on social cooperation shifts the focus from corporate reputation to value chain reputation, from a firm-centric view of corporate reputation to a multistakeholder conception of value chain reputation. This approach conceptualizes reputation as a dynamic and potentially vulnerable organizational feature which cannot always be managed by public relations but requires a more stable notion grounded in something more permanent in the organization’s character, history, and the quality of its relationships with stakeholders. We consider the prospects for attending to organizational integrity as a stabilizing force for its public reputation. Integrity may be adopted as a hypernorm for motivating stakeholders who share a concern for the organization’s reputation. Co-creating reputation depends upon a social bond of cooperation developed by stakeholders caring about the organization and in turn, the organization caring about its stakeholders. This socialized understanding of reputation-building is grounded in an ethic of care and manifested through joint purposes, boundary-crossing processes, collaboration practices, and a division of labor into which value chain members are integrated and brought into relation with one another. We propose a model of global value chain management that discusses organizational capabilities required for such an approach.

Managing diversity requires an understanding of culture. The majority of businesses have realised that competitiveness no longer stems from formal organisational structures but rather from the mindsets, competencies, and functioning of individuals who create, develop, and support the organisation and who frequently come from different cultural backgrounds. Understanding the essence of a culture, its components, variations, and how all these things effect the business and the managerial process is very beneficial for international managers. Businesses in global value chains need cross-cultural management practices to obtain a competitive advantage. Global value chains make it possible to benefit from the comparative advantages of other nations, and without cross-cultural management, these multinational corporations would be unable to carry on with their business operations. Although there are many explanations on global value chains in the literature, there is no study on the effect of different cultures in value chain management and how different cultures can be managed in global value chains.

In this chapter, the definition of the concept of culture, which is comprehensive and crucial in managing differences, will be depicted. Then, the concept of cross-cultural management will be emphasised and what cross-cultural management means and why and to what extent it is important will be explained. In addition, the impact of cross-cultural management in the inclusive global value chain will be discussed, emphasising the value chain analysis, how it emerged, its basic concepts, and its importance in the international context.