Friday, 29 March 2013

3 models of value network: a brief note

Based on my study, there are three models of value network:

Model 1: This model of value network is related to the works of Verna Allee. This model mainly focuses on services and intangibles in enterprises at the inter-organizational levels. The model is claimed to be based on living systems theory. Representative references include:
  1. Allee, V. (2002) "A Value Network Approach for Modeling and Measuring Intangibles" a paper presented at Transparent Enterprise, Madrid, November
  2. Allee, V. (2000) "Reconfigure the Value Network" Journal of Business Strategy, 21(4), July-Aug.
  3. Related videos:
Model 2: This model is related to the works of Michael Porter. In this case, a value system is a system of value chains. The main references are:
  1. Porter, M.E. (1985) Competitive Advantage, Free Press
  2. Barlow, A. and Li, F. (2005) "Online value network linkages: integration, information sharing and flexibility" Electronic Commerce Research and Applications 4, pp. 100-112.

Model 3: "This model is related to the works of J.L. Mariotti. This model mainly belongs to the Supply Chain Management and Logistics Management literature. The main references are:
  1. Mariotti, J.L. (2002) The Value Network, Executive Excellence 19(7), pg. 18.
  2. Peltoniemi, M. (2004) "Cluster, Value Network and Business Ecosystem: Knowledge and Innovation Approach" a paper presented at the Conference "Organisations, Innovation and Complexity: New Perspectives on the Knowledge Economy", University of Manchester, 9-10, Sept., NEXSUS, The Complexity Society and CRIC Centre for Research on Innovation and Competition.

All these three models examine (or are capable of dealing with) information flows and intangibles at the inter-organizational/ business network level. In my view, there should be more intellectual efforts to compare these three models of value network as well as cross-fertilization of ideas among these three models. Otherwise, when people talk about "value network", it is not clear which model is referred to.

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