skip to main content

How Value Network-Based Co-Inovation Contribute in Competitive Advantage

*Maryono Maryono  -  Universitas Diponegoro, Indonesia
Imam Ghozali  -  Universitas Diponegoro, Indonesia
Amie Kusumawardhani  -  Universitas Diponegoro, Indonesia
Mahelan Prabantariksa  -  PT. Bank Tabungan Negara (Persero), Indonesia
Open Access Copyright 2020 JURNAL BISNIS STRATEGI

Citation Format:
Abstract

This study aims to develop a comprehensive integrated model which helps in explaining the impact of value chain integration’s (VCI)’s and relational capability impact on co-innovation in a network and competitive advantage. It also explores the role of value network-based co-innovation as a mediator in the relationship between supply chain integration and competitive advantage, and in the relationship between relational capabilities and competitive advantage of a housing bank sector. The study suggests that firm gains competitive advantage by utilizing value chain integration and relational capability. It is argued here that co-innovation based on value network has mediating role to create competitive advantage. The paper provides a discussion and implication on where value lies and how value is co-created in network of interdependent relationship and illustrate this by sketching a value map in network relationship and possible innovations that can be co-created in housing bank ecosystem. The study involved a single government owned bank located in different cities, therefore the results should be generalized cautiously. This paper constitutes an attempt to stimulate efforts and provide directions on the further conceptual development of value network-based co-innovation (VNBC). The newly developed measure of VNBC and CA exempt from past conceptual streams of the determinant of CA, could be used for valid measurements in future empirical studies in the field of strategic management. The paper provides a practical implications for managers to identify value and utilize new way of analyzing value-chain to create co-innovation within housing bank ecosystem. It also allows manager to practicing relational capability which gives the most impact to competitive advantage..

Fulltext View|Download
Keywords: Competitive Advantage; value network-based co-innovation;bank ecosystem;relational capability;value chain integration

Article Metrics:

  1. Abhari, K., Davidson, E. J., & Xiao, B. (2017). Co-innovation platform affordances: developing a conceptual model and measurement instrument. Industrial Management & Data Systems, 117(5), 873-895
  2. Adler, P. S., & Chen, C. X. (2011). Combining creativity and control: Understanding individual motivation in large-scale collaborative creativity. Accounting, organizations and society, 36(2), 63-85
  3. Allee, V. (2002). A value network approach for modeling and measuring intangibles. Transparent Enterprise, Madrid. Available at http://www. vernaallee. com
  4. Ayoub, H. F., Abdallah, A. B., & Suifan, T. S. (2017). The effect of supply chain integration on technical innovation in Jordan: the mediating role of knowledge management. Benchmarking: An International Journal, 24(3), 594-616
  5. Baldwin, C., & Von Hippel, E. (2011). Modeling a paradigm shift: From producer innovation to user and open collaborative innovation. Organization Science, 22(6), 1399-1417
  6. Bidar, R., Watson, J., & Barros, A. P. (2016). Literature review to determine environmental and cognitive factors underlying user value cocreation behaviour
  7. Borges, M. A., Soares, A. L., & Dandolini, G. A. (2016). Collaborative Networks as Ways to Improve Cross-sector Collaboration in Social Innovation: An Exploratory Study. Paper presented at the Working Conference on Virtual Enterprises
  8. Camarinha-Matos, L. M., & Afsarmanesh, H. (2006). Collaborative networks. Paper presented at the International Conference on Programming Languages for Manufacturing
  9. D’Souza, A., Wortmann, H., Huitema, G., & Velthuijsen, H. (2015). A business model design framework for viability; a business ecosystem approach. Journal of Business Models, 3(2)
  10. Danese, P., & Romano, P. (2012). Relationship between downstream integration, performance measurement systems and supply network efficiency. International Journal of Production Research, 50(7), 2002-2013
  11. Droge, C., Vickery, S. K., & Jacobs, M. A. (2012). Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study. International Journal of Production Economics, 137(2), 250-262
  12. Dvorak, T. (2013). Co-innovation: Customer motives for participation in co-creation processes via social media platforms
  13. Fidel, P., Schlesinger, W., & Cervera, A. (2015). Collaborating to innovate: Effects on customer knowledge management and performance. Journal of business research, 68(7), 1426-1428
  14. Fine, C. H., Vardan, R., Pethick, R., & El-Hout, J. (2002). Rapid-Response capability in value-chain design.(Executive Briefings). MIT Sloan Management Review, 43(2), 23-24
  15. Han, Y., & Li, D. (2015). Effects of intellectual capital on innovative performance: The role of knowledge-based dynamic capability. Management Decision, 53(1), 40-56
  16. Hienerth, C., Lettl, C., & Keinz, P. (2014). Synergies among producer firms, lead users, and user communities: The case of the LEGO producer–user ecosystem. Journal of Product Innovation Management, 31(4), 848-866
  17. Huo, B. (2012). The impact of supply chain integration on company performance: an organizational capability perspective. Supply Chain Management: An International Journal, 17(6), 596-610
  18. Jajja, M. S. S., Kannan, V. R., Brah, S. A., & Hassan, S. Z. (2017). Linkages between firm innovation strategy, suppliers, product innovation, and business performance: insights from resource dependence theory. International Journal of Operations & Production Management, 37(8), 1054-1075
  19. Jiang, W., Mavondo, F. T., & Matanda, M. J. (2015). Integrative capability for successful partnering: a critical dynamic capability. Management Decision, 53(6), 1184-1202
  20. Lee, S. M., Olson, D. L., & Trimi, S. (2012). Co-innovation: convergenomics, collaboration, and co-creation for organizational values. Management decision, 50(5), 817-831
  21. Liao, Y.-C., & Phan, P. H. (2016). Internal capabilities, external structural holes network positions, and knowledge creation. The Journal of Technology Transfer, 41(5), 1148-1167
  22. Liu, Shah, R., & Schroeder, R. G. (2012). The relationships among functional integration, mass customisation, and firm performance. International Journal of Production Research, 50(3), 677-690
  23. Liu, C.-L., & Lai, P.-Y. (2016). Impact of external integration capabilities of third-party logistics providers on their financial performance. The International Journal of Logistics Management, 27(2), 263-283
  24. Löfgren, A. (2014). International network management for the purpose of host market expansion: The mediating effect of co-innovation in the networks of SMEs. Journal of International Entrepreneurship, 12(2), 162-182
  25. MacCarthy, B. L., & Jayarathne, P. (2012). Sustainable collaborative supply networks in the international clothing industry: a comparative analysis of two retailers. Production Planning & Control, 23(4), 252-268
  26. Mariotti, J. L. (2002). The value network. Executive Excellence, 19(7), 18-18
  27. Monkkonen, P. (2013). Urban land-use regulations and housing markets in developing countries: Evidence from Indonesia on the importance of enforcement. Land Use Policy, 34, 255-264
  28. Moyano-Fuentes, J., Sacristán-Díaz, M., & Jose Martinez-Jurado, P. (2012). Cooperation in the supply chain and lean production adoption: evidence from the Spanish automotive industry. International Journal of Operations & Production Management, 32(9), 1075-1096
  29. Obayi, R., Koh, S., Oglethorpe, D., & Ebrahimi, S. M. (2017). Improving retail supply flexibility using buyer-supplier relational capabilities. International Journal of Operations & Production Management, 37(3), 343-362
  30. Peng, D. X., Verghese, A., Shah, R., & Schroeder, R. G. (2013). The relationships between external integration and plant improvement and innovation capabilities: the moderation effect of product clockspeed. Journal of Supply Chain Management, 49(3), 3-24
  31. Peppard, J., & Rylander, A. (2006). From value chain to value network:: Insights for mobile operators. European management journal, 24(2-3), 128-141
  32. Pham, T. S. H., Monkhouse, L. L., & Barnes, B. R. (2017). The influence of relational capability and marketing capabilities on the export performance of emerging market firms. International Marketing Review, 34(5), 606-628
  33. Porter. (1985). The value chain. The Value Chain and Competitive advantage: creating and sustaining superior performance
  34. Prahalad, C. K., & Ramaswamy, V. (2004). The future of competition: Co-creating unique value with customers: Harvard Business Press
  35. Pulles, N. J., Veldman, J., & Schiele, H. (2016). Winning the competition for supplier resources: The role of preferential resource allocation from suppliers. International Journal of Operations & Production Management, 36(11), 1458-1481
  36. Romero, D., & Molina, A. (2011). Collaborative networked organisations and customer communities: value co-creation and co-innovation in the networking era. Production Planning & Control, 22(5-6), 447-472
  37. Rukmana, D. (2018). Upgrading Housing Settlement for the Urban Poor in Indonesia: An Analysis of the Kampung Deret Program. In Metropolitan Governance in Asia and the Pacific Rim (pp. 75-94): Springer
  38. Salvato, C., Reuer, J. J., & Battigalli, P. (2017). Cooperation across disciplines: A multilevel perspective on cooperative behavior in governing interfirm relations. Academy of Management Annals, 11(2), 960-1004
  39. Santos, G., Murmura, F., & Bravi, L. (2018). Fabrication laboratories: The development of new business models with new digital technologies. Journal of Manufacturing Technology Management, 29(8), 1332-1357
  40. Schreier, M., Fuchs, C., & Dahl, D. W. (2012). The innovation effect of user design: exploring consumers’ innovation perceptions of firms selling products designed by users. Journal of Marketing, 76(5), 18-32
  41. Soosay, C. A., Hyland, P. W., & Ferrer, M. (2008). Supply chain collaboration: capabilities for continuous innovation. Supply chain management: An international journal, 13(2), 160-169
  42. Talavera, M. G. V. (2017). Supply chain integration and performance: Revisiting the Philippine experience. Philippine Management Review, 24
  43. Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13-35
  44. Tinoco, J. K., & Ambrose, S. C. (2017). Collaborative Customers and Partners: The Ups and Downs of Their Influence on Firm Technology Competence for New Product Development. Journal of Marketing Development & Competitiveness, 11(4)
  45. Tsou, H.-T., Cheng, C. C., & Hsu, H.-Y. (2015). Selecting business partner for service delivery co-innovation and competitive advantage. Management Decision, 53(9), 2107-2134
  46. Vanpoucke, E., Vereecke, A., & Wetzels, M. (2014). Developing supplier integration capabilities for sustainable competitive advantage: A dynamic capabilities approach. Journal of operations management, 32(7-8), 446-461
  47. Widoyoko, D. (2007). Good governance and provision of affordable housing in DKI Jakarta, Indonesia. Loughborough: Loughborough University Water, Engineering and Development Centre
  48. Yeniyurt, S., Henke, J. W., & Yalcinkaya, G. (2014). A longitudinal analysis of supplier involvement in buyers’ new product development: working relations, inter-dependence, co-innovation, and performance outcomes. Journal of the Academy of Marketing Science, 42(3), 291-308

Last update:

No citation recorded.

Last update: 2024-12-08 00:20:37

No citation recorded.