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Managing value appropriation in buyer-supplier relationships : The role of commercial decision resources

Hallberg, Niklas Lars LU (2017) In European Management Journal
Abstract
The resource-based view explains firms’ value appropriation in buyer-supplier relationships by pointing to sustained differences in economic efficiency across firms. Firms with more efficient resources create more value than competitors, which in turn provides a “protective cushion” against price-/quality competition. However, just as firms may differ in the economic efficiency of their resources and in the value they create, they may also differ in their information processing and how successful they are at appropriating value. Building on the decision-making under uncertainty literature in psychology, I argue that firms may increase their value appropriation in exchange relationships by investing in commercial decision resources that... (More)
The resource-based view explains firms’ value appropriation in buyer-supplier relationships by pointing to sustained differences in economic efficiency across firms. Firms with more efficient resources create more value than competitors, which in turn provides a “protective cushion” against price-/quality competition. However, just as firms may differ in the economic efficiency of their resources and in the value they create, they may also differ in their information processing and how successful they are at appropriating value. Building on the decision-making under uncertainty literature in psychology, I argue that firms may increase their value appropriation in exchange relationships by investing in commercial decision resources that allow for more effective information processing in commercial decisions. Examples of commercial decision resources include IT-based systems for product costing and tracking customers/competitors, the design of commercial organization, control systems, and commercial experience and skill. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
commercial decision resources, resource-based view, value appropriation, pricing
in
European Management Journal
pages
10 pages
publisher
Elsevier
external identifiers
  • scopus:85011018183
ISSN
1873-5681
DOI
10.1016/j.emj.2017.01.004
language
English
LU publication?
yes
id
deff2ff2-e093-46c2-b47c-75e6bf5bee10
date added to LUP
2017-01-07 19:02:07
date last changed
2018-01-07 11:43:56
@article{deff2ff2-e093-46c2-b47c-75e6bf5bee10,
  abstract     = {The resource-based view explains firms’ value appropriation in buyer-supplier relationships by pointing to sustained differences in economic efficiency across firms. Firms with more efficient resources create more value than competitors, which in turn provides a “protective cushion” against price-/quality competition. However, just as firms may differ in the economic efficiency of their resources and in the value they create, they may also differ in their information processing and how successful they are at appropriating value. Building on the decision-making under uncertainty literature in psychology, I argue that firms may increase their value appropriation in exchange relationships by investing in commercial decision resources that allow for more effective information processing in commercial decisions. Examples of commercial decision resources include IT-based systems for product costing and tracking customers/competitors, the design of commercial organization, control systems, and commercial experience and skill.},
  author       = {Hallberg, Niklas Lars},
  issn         = {1873-5681},
  keyword      = {commercial decision resources,resource-based view,value appropriation,pricing},
  language     = {eng},
  month        = {02},
  pages        = {10},
  publisher    = {Elsevier},
  series       = {European Management Journal},
  title        = {Managing value appropriation in buyer-supplier relationships : The role of commercial decision resources},
  url          = {http://dx.doi.org/10.1016/j.emj.2017.01.004},
  year         = {2017},
}