How Do Value Creation and Competition Determine Whether a Firm Appropriates Value?

Authors:
Glenn MacDonald;Michael D. Ryall
Affiliations:
-;-
Venue:
Management Science
Year:
2004

Citing 0
Cited 8

Assessing the Resource Base of Japanese and U.S. Auto Producers: A Stochastic Frontier Production Function Approach

Management Science
The Interaction Effect of Rivalry Restraint and Competitive Advantage on Profit: Why the Whole Is Less Than the Sum of the Parts

Management Science
Is the Resource-Based View a Practical Organizational Theory?

Organization Science
Mixed Source

Management Science
On Evaluation Costs in Strategic Factor Markets: The Implications for Competition and Organizational Design

Management Science
The Division of Gains from Complementarities in Human-Capital-Intensive Activity

Organization Science
Intraconnectivity and Interconnectivity: When Value Creation May Reduce Profits

Marketing Science
Digital business strategy and value creation: framing the dynamic cycle of control points

MIS Quarterly

Quantified Score

Hi-index	0.01

Visualization

Abstract

How does competition among economic actors determine the value that each is able to appropriate? We provide a formal, general framework within which this question can be posed and answered, and then provide several results. Chief among them is a condition that is both required for, and guarantees, value appropriation. We apply our methodology to (i) assess the familiar notion that uniqueness, inimitability, and competition imply value appropriation, and (ii) determine the value appropriation possibilities for an innovator whose unique discovery is of use to several others who can compete for the right to use it.