Analysis based on capabilities$

Abstract

Value co-creation via collaboration and networking is a hot issue right now. In this study, we suggest categorizing the several ways in which suppliers provide value to their relationships with their customers based on their efficiency, effectiveness, and network functions. These roles are connected, yet they also stand on their own. One way to think about the value generation process is as a spectrum stretching from base value to supplementary value to potential future value. In the case of the core value, if there is adequate benchmarking information in the form of current alternative products and solutions, a relatively accurate assessment of a supplier's value-producing potential is possible. Value-added and future-value initiatives are difficult to assess beforehand since their success is contingent on the growth of a wide range of businesses and sectors. at this end, we propose that a buyer look at a supplier's competence profile to determine whether or not they are a good fit for a certain value creation project. The management ramifications of proposing a framework linking certain competencies to various forms of value generation are examined.