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- Publisher Website: 10.1287/mnsc.2015.2356
- Scopus: eid_2-s2.0-85013671044
- WOS: WOS:000394362500011
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Article: When suppliers climb the value chain: A theory of value distribution in vertical relationships
Title | When suppliers climb the value chain: A theory of value distribution in vertical relationships |
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Authors | |
Keywords | Value distribution Value chain climbing Value chain Capabilities |
Issue Date | 2017 |
Citation | Management Science, 2017, v. 63, n. 2, p. 477-496 How to Cite? |
Abstract | © 2017 INFORMS. Although offshore outsourcing has become an important strategy to lower production costs among Western firms, it gives rise to the phenomenon of value chain climbing-suppliers in emerging markets can develop capabilities by supplying, with aspirations to compete with the buyers in the product market. We build an analytical model to study the impact of value chain climbing on value distribution in vertical relationships. The analysis identifies a set of dominant relationships, characterizes how the buyer's optimal choice among these relationships depends on firms' relative competitiveness in the product market and the supplier's speed of capability development, and shows how the optimal choice evolves with the dynamics of the supplier's capability development. The results provide new insights into our understanding of value distribution in vertical relationships across different contexts and over time. By endogenizing the supplier's entry into the product market, our study enriches the literatures on vertical relationships, market entry, and the management of global value chains. |
Persistent Identifier | http://hdl.handle.net/10722/280159 |
ISSN | 2023 Impact Factor: 4.6 2023 SCImago Journal Rankings: 5.438 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Wan, Zhixi | - |
dc.contributor.author | Wu, Brian | - |
dc.date.accessioned | 2020-01-06T02:07:33Z | - |
dc.date.available | 2020-01-06T02:07:33Z | - |
dc.date.issued | 2017 | - |
dc.identifier.citation | Management Science, 2017, v. 63, n. 2, p. 477-496 | - |
dc.identifier.issn | 0025-1909 | - |
dc.identifier.uri | http://hdl.handle.net/10722/280159 | - |
dc.description.abstract | © 2017 INFORMS. Although offshore outsourcing has become an important strategy to lower production costs among Western firms, it gives rise to the phenomenon of value chain climbing-suppliers in emerging markets can develop capabilities by supplying, with aspirations to compete with the buyers in the product market. We build an analytical model to study the impact of value chain climbing on value distribution in vertical relationships. The analysis identifies a set of dominant relationships, characterizes how the buyer's optimal choice among these relationships depends on firms' relative competitiveness in the product market and the supplier's speed of capability development, and shows how the optimal choice evolves with the dynamics of the supplier's capability development. The results provide new insights into our understanding of value distribution in vertical relationships across different contexts and over time. By endogenizing the supplier's entry into the product market, our study enriches the literatures on vertical relationships, market entry, and the management of global value chains. | - |
dc.language | eng | - |
dc.relation.ispartof | Management Science | - |
dc.subject | Value distribution | - |
dc.subject | Value chain climbing | - |
dc.subject | Value chain | - |
dc.subject | Capabilities | - |
dc.title | When suppliers climb the value chain: A theory of value distribution in vertical relationships | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1287/mnsc.2015.2356 | - |
dc.identifier.scopus | eid_2-s2.0-85013671044 | - |
dc.identifier.volume | 63 | - |
dc.identifier.issue | 2 | - |
dc.identifier.spage | 477 | - |
dc.identifier.epage | 496 | - |
dc.identifier.eissn | 1526-5501 | - |
dc.identifier.isi | WOS:000394362500011 | - |
dc.identifier.issnl | 0025-1909 | - |