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Paper info: Capability and power in value net

Title


Capability and power in value net

Authors


Anni-Kaisa Ahtonen and Katrina Lintukangas

Place of Publication


The paper was published at the 24th IMP-conference in Uppsala, Sweden in 2008.

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Abstract


The strategic meaning of business relationships has increased because of the constantly changing business environment. Companies are forced to develop relationships through which the use of complementary capabilities is enabled. Today, these relationships are developed and established in value nets. Value net is a dynamic network where several actors are creating value through collaboration. The capabilities and resources of the value net actors affect their roles and power positions in a net. A firm with control over unique resources through which it is able to create unique value has a strong power position in a value net. By developing appropriate capabilities internally firms can change their power position in a value net and achieve greater value for the whole network. The approaches of value net and capabilities and power in business relationships are examined in the context of supplier networks and analyzed in the case study from the Finnish food industry.