Value co-creation on technology-enabled platforms for business model responsiveness and position enhancement in global value chains
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Global value chains (GVCs) enable multinational enterprises (MNEs) to engage supplier and partner firms in developing/emerging economies for lower production costs and sell products in advanced economies for maximum profits. However, digital technologies are shifting the basis of value offering in GVC from products and services to platforms. Considering that these platforms facilitate business exchanges in multi-actor networks, the partner or supplier firms of MNEs can easily become competitors to MNEs if these firms participate in different networks. Nevertheless, relatively little research addresses how MNEs can develop structural flexibility for competitive association with and differentiation from their partner firms while developing effective strategies to optimize value creation and capture from their relationship with these partner firms. This study develops a conceptual framework to explain how value co-creation on technology-enabled platforms facilitates structural flexibility and strategic management of firm relationships and activities in GVC. The framework has significant implications for responsive business models and enhanced positions for firms to participate and influence value creation and appropriation in GVC.
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