VALUE CREATION AND VALUE CAPTURE WITH FRICTIONS

摘要

In this paper, we develop a formal analysis of the drivers of firm performance that incorporates critical elements of both industry, firm, and resource levels of analysis. This model is based on the formal literature that has sought to develop value-based foundations of superior performance (Bran-denburger and Stuart, 1996, 2007; Lippman and Rumelt, 2003; MacDonald and Ryall, 2004; Adner and Zemsky, 2006; Chatain and Zemsky, 2007).We introduce the concept of friction in a value-based model to analyze how different levels of rivalry affect both industry structure and firm capability development. Frictions give rise to incomplete linkages between buyers and sellers, which limits the ability of players to find alternatives.This reduces the high degree of rivalry that can be found when the solution concept of the core is used without mitigating factors.'Our goal is to make value-based strategy more consistent with traditional approaches to industry analysis (Porter, 1980) where rivalry among firms varies at different stages of the industry value chain. We do so in this paper through the introduction of frictions into a stylized model of market competition where the probability of a missing link in the industry supply chain serves to parameterize the intensity of rivalry. Using this model, we can analyze several questions of interest to strategy research. How are value creation and value capture affected by frictions? How do other competitive forces, such as the threat of entry and buyer bargaining power, interact with frictions and