Value creation across organizational borders: towards a value gap theory

Eriksson, David; Hilletofth, Per; Tate, Wendy; Tan, Kim Hua

Abstract

Purpose-This study aims to explore and theorize value gaps within value chain management (VCM) by extending the service quality gap model to the context of global manufacturing value chains. Design/methodology/approach-Drawing upon a case study of a small, family-owned Swedish furniture wholesaler, Alpha, this research adapts the service quality gap model and integrates it into the VCM framework. The investigation examines the value creation and delivery processes across a network of actors, highlighting how various gaps emerge at different stages of the value chain.
Findings-The study identifies and describes several value gaps, including those related to consumer understanding, manufacturing capabilities and coordination across the value chain. Value creation gaps arise from poor communication about consumer needs and product features, whereas value delivery gaps are mainly tied to manufacturing capacity and material restrictions. These gaps can result in misalignment between consumer expectations and the delivered value.
Research limitations/implications-Although this study provides insights into the emergence of value gaps, further research is needed to determine the magnitude and reduction strategies for these gaps. In addition, understanding how consumers evaluate new products remains a critical area for investigation.
Practical implications-The research highlights the significance of a coordinated approach to managing value creation and delivery processes. It underscores the need for companies to capture accurate consumer data, consider manufacturing capabilities and engage in effective coordination with various actors in the value chain.
Social implications-By addressing value gaps, companies can enhance consumer satisfaction and minimize potential dissatisfaction caused by misalignment between consumer expectations and delivered value. This, in turn, can lead to improved relationships with consumers and other actors within the value chain.
Originality/value-This research offers a novel perspective on value gaps in VCM, extending the service quality gap model to the realm of manufacturing. It underscores the importance of managing both value creation and delivery processes for enhancing competitive advantage in a global market.

Citation

Eriksson, D., Hilletofth, P., Tate, W., & Tan, K. H. (2024). Value creation across organizational borders: towards a value gap theory. European Business Review, https://doi.org/10.1108/EBR-02-2024-0086

• Journal Article Type: Article
• Acceptance Date: Jun 23, 2024
• Online Publication Date: Aug 16, 2024
• Publication Date: Aug 16, 2024
• Deposit Date: Sep 25, 2024
• Publicly Available Date: Sep 30, 2024
• Journal: European Business Review
• Electronic ISSN: 0955-534X
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1108/EBR-02-2024-0086
• Keywords: Value chain management; Value gaps; Value creation; Value delivery; Coordination; Service gaps; Supply chain management
• Public URL: https://nottingham-repository.worktribe.com/output/39990853
• Publisher URL: https://www.emerald.com/insight/content/doi/10.1108/EBR-02-2024-0086/full/html