The power of embeddedness: how nodal power affects the value appropriation potential of firms in economic networks?

Saroj Kumar Pani, Madhusmita Tripathy
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引用次数: 0

Abstract

Purpose

This paper explains why some firms manage to capture disproportionate value from their network of relationships, leading to superior performance. The paper examines how a firm's dependencies affect its value appropriation potential (VAP) in economic networks.

Design/methodology/approach

The paper follows the axiomatic method and the embeddedness perspective of firms to develop an index called nodal power, which captures the power that accrues to a firm in exchange-based economic networks. Thereafter, using the formal method and simulation, it shows nodal power reflects a firm's VAP in economic networks.

Findings

The study analysis and findings prove that a firm's dyadic level exchange relations and the embedded network structure determine its VAP by affecting the nodal power. A firm with lesser nodal power is likely to appropriate less value from its relations even if it equally contributes to the value creation. This finding explains how the structural and relational characteristics of a firm's network enable disproportionate value appropriation.

Practical implications

Nodal power furthers the scope of analyzing firms' economic relationships and changing power equations in dynamic networks. It can help firms build optimal strategic networks and manage the portfolio of relationships by predicting the impact of changing relations on firms' VAP.

Originality/value

The paper's original contribution is to explain, through formal analysis, why and how the structure and nature of relations of firms affect their VAP. The paper also formalizes the power-dependence principle through a dependency-based index called nodal power and uses it to show how interfirm dependencies are key to value appropriation.

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嵌入的力量:节点力量如何影响企业在经济网络中的价值占有潜力?
目的本文解释了为什么有些公司能够从其关系网络中获取过高的价值,从而取得卓越的业绩。设计/方法/途径 本文采用公理法和企业嵌入性视角,建立了一个名为节点力量的指数,该指数捕捉了企业在基于交换的经济网络中获得的力量。研究分析和结果证明,企业的二元层面交换关系和嵌入式网络结构通过影响节点力决定了企业的 VAP。节点力量较小的企业即使同样为价值创造做出了贡献,也可能从其关系中获取较少的价值。这一发现解释了企业网络的结构和关系特征是如何促成不成比例的价值占有的。本文的原创性贡献在于通过形式化分析,解释了企业关系的结构和性质为何以及如何影响企业的 VAP。本文还通过一个基于依赖关系的指数--节点力量--将力量依赖原则正式化,并用它来说明企业间的依赖关系如何成为价值占有的关键。
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来源期刊
CiteScore
7.90
自引率
9.70%
发文量
87
期刊介绍: ■Organisational design and methods ■Performance management ■Performance measurement tools and techniques ■Process analysis, engineering and re-engineering ■Quality and business excellence management Articles can address these topics theoretically or empirically through either a descriptive or critical approach. The co-Editors support articles that significantly bring new knowledge to the area both for academics and practitioners. The material for publication in IJPPM should be written in a manner which makes it accessible to its entire wide-ranging readership. Submissions of highly technical or mathematically-oriented papers are discouraged.
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