Our study elucidates collaborative value creation and private value capture in collaborative networks in a context of sustainability. Collaborative networks that focus on innovative solutions for grand societal challenges are characterized by a multiplicity and diversity of actors that increase the complexity and coordination costs of collective action. These types of inter-organizational arrangements have underlying tensions as partners cooperate to create collaborative value and compete to capture or appropriate value on a private or organizational level, resulting in potential and actual value flows that are highly diffuse and uncertain among actors. We also observe that network participants capture value differentially, often citing the pro-social (e.g. community, belonging, importance) and extrinsic benefits of learning and reputation as valuable, but found it difficult to appropriate economic or social benefits from that value. Differential and asymmetric value appropriation among participants threatens continued network engagement and the potential collective value creation of collaborative networks. Our data indicates that networked value creation and capture requires maintaining resource complementarity and interdependency among network participants as the network evolves. We develop a framework to assess the relational value of collaborative networks and contribute to literature by unpacking the complexities of networked value creation and private value capture in collaborative networks for sustainability.
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Coopetition (simultaneous competition and collaboration between firms) is an important driver for innovation, as competing organizations benefit from pooling resources and ideas for new products, processes and achieving benefits such as collective reputation. However, a key issue facing such relationships is the notion of value creation and capture–how does value get created and distributed amongst competing partners. This issue becomes increasingly salient when the coopetition includes multiple actors and common pool resources such as land and water. In this symposium, we bring together scholars who are investigating coopetition between different actors such as direct competitors, actors from the same industry, and organizations sharing similar collective goals such as sustainable manufacturing. In showcasing this diversity of context we shed light on the notion of value creation and capture in coopetitive relationships.
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This article aims to uncover the processes of developing sustainable business models in innovation ecosystems. Innovation ecosystems with sustainability goals often consist of cross-sector partners and need to manage three tensions: the tension of value creation versus value capture, the tension of mutual value versus individual value, and the tension of gaining value versus losing value. The fact that these tensions affect all actors differently makes the process of developing a sustainable business model challenging. Based on a study of four sustainably innovative cross-sector collaborations, we propose that innovation ecosystems that develop a sustainable business model engage in a process of valuing value in which they search for a result that satisfies all actors. We find two different patterns of valuing value: collective orchestration and continuous search. We describe these patterns and the conditions that give rise to them. The identification of the two patterns opens up a research agenda that can shed further light on the conditions that need to be in place in order for an innovation ecosystem to develop effective sustainable business models. For practice, our findings show how cross-sector actors in innovation ecosystems may collaborate when developing a business model around emerging sustainability-oriented innovations.
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This full paper works towards merging ‘frugality’ and ‘design thinking’ into a simplified framework for a workshop routine as a stepping stone for SMEs in developed countries to create and capture value of frugal innovations. Innovations which are born out of the notion that we can do more with less, or for less. This framework is aimed at reaching a specific group of SMEs, in this paper called the peloton of SMEs, a large group of SMEs which generally have lower growth ambitions and growth potential in comparison to the frontrunners. This group is often overlooked by (regional) governmental innovation programmes due to a primary focus on the same industry’s frontrunners. The framework was first tested with students, discussed with experts and eventually tested with SMEs from the Agribusiness sector in the Netherlands. Frugal Elements added to the design thinking process are; (a.) a Frugal Lens (b.) Frugal Business Model Patternsfor BMI (c.) Frugal leadership development (d.) Frugal Validation of the solution (e.) Frugal Intervention (limited time, limited theory, vertical learning community, practical tools). Although the first Pilot has been a succes in terms of helping participating SMEs to create innovations, more research is necessary for the design of a final framework which is expected to contribute to the frameworks that are currently available to SMEs in frugal and sustainable business modelling.
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Our study elucidates relational value creation and appropriation in collaborative networks for sustainability (CNfS), which focus on grand societal challenges and include a multiplicity and diversity of actors. Using a relational view lens, we conducted a longitudinal, multiple case, field study of collaborative networks for sustainability in the circular textile and fashion industry, unpacking the interplay between value creation from relational interdependence, relational-specific assets and material output and the multilevel appropriation of that value. Our findings show that value appropriation is contingent on the perception of use value and cascades through individual, organizational and network levels. The ability of actors to capture cascading value on different levels has a direct influence on sustaining the continuity of value creation and to achieving the shared societal goals of CNfS. We developed a model of value appropriation in CNfS to illustrate the cascading flow of value at micro (individual), meso (organizational) and macro (network) levels. Our study makes novel contributions to the literatures on strategic alliances, cross-sector partnerships, and open innovation networks.
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Our study elucidates relational value creation and appropriation in collaborative networks for sustainability (CNfS), which focus on grand societal challenges and include a multiplicity and diversity of actors. Using a relational view lens, we conducted a longitudinal, multiple case, field study of collaborative networks for sustainability in the circular textile and fashion industry, unpacking the interplay between value creation from relational interdependence, relational-specific assets and material output and the multilevel appropriation of that value. Our findings show that value appropriation is contingent on the perception of use value and cascades through individual, organizational and network levels. The ability of actors to capture cascading value on different levels has a direct influence on sustaining the continuity of value creation and to achieving the shared societal goals of CNfS. We developed a model of value appropriation in CNfS to illustrate the cascading flow of value at micro (individual), meso (organizational) and macro (network) levels. Our study makes novel contributions to the literatures on strategic alliances, cross-sector partnerships, and open innovation networks.
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Both research and practice acknowledge that an increasing number of business models are realized by multiple organizations in innovation ecosystems. Little research addresses how organizations develop these business models jointly over time and balance the tensions that occur from the divergent goals and interests of each actor. We propose that the concept of value valuation may be helpful in understanding this process. Value valuation is a balancing process that takes place between actors in an innovation ecosystem when collaborating around a business model for sustainability, making sure that the benefits of ecosystem membership outweighs its costs, leading to continuing support of the initiative. Based on four smart city projects for a circular economy we find that value is valuated along two dimensions: economic, environmental and social value; and mutual and individual value. Value valuation takes place in iterative cycles and is characterized by a number of mechanisms, including action-based experimenting. These findings open up a research agenda to study the dynamics of ecosystem-based business model development.
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The circular economy (CE) is heralded as reducing material use and emissions while providing more jobs and growth. We explored this narrative in a series of expert workshops, basing ourselves on theories, methods and findings from science fields such as global environmental input-output analysis, business modelling, industrial organisation, innovation sciences and transition studies. Our findings indicate that this dominant narrative suffers from at least three inconvenient truths. First, CE can lead to loss of GDP. Each doubling of product lifetimes will halve the related industrial production, while the required design changes may cost little. Second, the same mechanism can create losses of production jobs. This may not be compensated by extra maintenance, repair or refurbishing activities. Finally, ‘Product-as-a-Service’ business models supported by platform technologies are crucial for a CE transition. But by transforming consumers from owners to users, they lose independence and do not share in any value enhancement of assets (e.g., houses). As shown by Uber and AirBNB, platforms tend to concentrate power and value with providers, dramatically affecting the distribution of wealth. The real win-win potential of circularity is that the same societal welfare may be achieved with less production and fewer working hours, resulting in more leisure time. But it is perfectly possible that powerful platform providers capture most added value and channel that to their elite owners, at the expense of the purchasing power of ordinary people working fewer hours. Similar undesirable distributional effects may occur at the global scale: the service economies in the Global North may benefit from the additional repair and refurbishment activities, while economies in the Global South that are more oriented towards primary production will see these activities shrink. It is essential that CE research comes to grips with such effects. Furthermore, governance approaches mitigating unfair distribution of power and value are hence essential for a successful circularity transition.
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The aim of this study is to understand how governance mechanisms in cross-sector collaborations (CSCs) for sustainability affect value creation and capture and subsequently the survival of this organizational form. Drawing on a longitudinal, participatory, single-case study of collaborative action in the textile industry, we identify three governance mechanisms—safeguarding, bundling and connecting—that coevolve with the rising and waning of collaborative tensions and the shifting levels of action in the CSC we studied. These mechanisms aided value creation and helped facilitate private value capture. We integrate these insights into a process model that visualizes the interplay between governance mechanisms of tensions and systems of value creation and capture in CSCs for sustainability. Our study contributes to the cross-sector collaboration literature by providing a dynamic and nuanced understanding of how governance mechanisms influence outcomes in CSCs for sustainability. We also add to the business model for sustainability literature by theorizing the value creation and capture system of collaborative rather than individual organizations. Our findings have important implications for policymakers who fund collaborative organizations and practitioners who manage or participate in them.
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Launching smart city activities and projects requires political support. For sustainable approaches, a concrete strategy, and leadership endorsement from the municipal government is crucial. In accordance with the most prevalent definitions of a smart city, postulating that a city must enhance quality of life and provide benefits to the people living and working there, this book chapter focuses on one specific aspect of public value, the value it can bring to citizens. Through discussion of earlier theoretical approaches and empirical evidence, we provide a framework to better capture, analyze and model value creation in a given municipal ecosystem. By analyzing two different cases—Amsterdam and Winterthur—it becomes clear that “smartness” is not just a state to be achieved, but rather the enablement of processes that continuously and dynamically change the city, improving quality of life by providing different benefits and amenities. The key enablers to develop an ecosystem for a smarter city strategy involve Private-Public-Partnership models, the direct involvement of citizens, the availability of data infrastructures, and social interaction platforms.
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