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Paper info: Value Creation in Industrial Networks


Value Creation in Industrial Networks


Martin Johanson
Uppsala University
Martin Johanson and
Torkel Strömsten
Stockholm School of Economics
Torkel Strömsten

Place of Publication

The paper was published at the 16th IMP-conference in Bath, U.K in 2000.


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This paper deals with value creation in industrial networks. The argument put forward is thatvalue is realised in the exchange between two business actors. However, the antecedents ofthe value must be search for both beyond the focal exchange of resources, as well as belowthe same. Therefore we argue that the industrial networks contains two layers. The first isexchange layer and the second is the resource layer. Furthermore, the authors claim that theexchange layer is embedded in the resource layer. In order to find potential value and realisethe value of an exchanged resource, a firm must recognise and manage the embeddedness.The arguments are supported by a case from the pulp and paper industry, where a specificpaper grade is exchanged between two major European firms within this field.Key words: Exchange, Networks, Value Creation, Resource, Embeddedness.