The package logic: A study on value creation and knowledge flows

SummaryThe analysis of how value is created is often associated with the value chain, a framework that aligns resources and activities into deliveries. However, it is questionable whether the value chain logic is applicable to all firms. As a consequence, the value shop model has been suggested to meet the critique of the chain logic. This article addresses the topic of value creation logics and value configurations by challenging the value chain and the value shop perspectives. The aim is to identify a new value configuration, and define its associated value creation logic positioned between the chain and shop logics. By bringing in research on knowledge flows we identify a distinct new configuration and logic in order to provide a better understanding and a better basis for analyzing cost and value aspects of firms acting on industrial markets.

► Analysis of how value is created and configured.
► Focus on four cases from different industries operating on industrial markets.
► Identifies a new value configuration by focusing on knowledge flows.
► The new logic is positioned between chain and shop logic for value creation and value configuration.
► The new logic can be used by managers for value and cost analysis of the firm as well as of competitors.