Value-creating networks – A conceptual model and analysis

Value and supply chains have been studied widely in the field of strategic management. Value nets and networks are more familiar in the fields of e-commerce and mobile-commerce. None of these, however, have been studied widely in the field of infrastructure and technical networks. Studies have mostly been theoretical in nature and there is a lack of empirical studies concerning value creation. Objective of this research is to understand communities’ technical networks value creation processes and networks providing the value to the end customers.

But before going into detailed discussion of value chains and value networks, one question should be asked – Why organisations even exist? This question was first asked by Coase (1937) when he pondered around market forces and questioned the existence of organisations. At the end Coase concluded that organisations should exist because 1) discovery of relevant prices through price mechanism is expensive, 2) difficulty of forecasting leads to situation where the direction of resources are dependent on the buyer and the entrepreneur, and 3) expensive market transactions are eliminated within a firm. …

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