Value Processes in Industrial Networks: Identifying the Creation and Realisation of Value

Production of value is an important topic among business researchers (i.e. Ramirez, 1999; Kale et al., 2001). In imperfect markets characterised by differentiation and heterogeneity, which often take the form of a network (Håkansson and Snehota, 1995), the ability to create value and then realise the value potentials can be the key to growth and well-being for the business firm, as this ability is imperfectly spread among the actors. However, in contrast to Barney (1986), Denrell et al. (2003) and Kirzner (1997), who argue that finding opportunities and producing value in relation to other actors is a result of luck, serendipity and the firm’s alertness, we maintain that the industrial network has its own logic, which is understandable to those who participate in, or otherwise have experience with, the network. Taking not only the firm or the dyad into consideration but also the network of firms and relationships, we argue that the mechanism behind what produces value is better understood if we separate the value process into two parts: value creation and value realisation. Creating and realising value is not a random process experienced only by the lucky few, nor is it a process that is isolated from other actors in the network. Rather, it is a process for those who have patience, experience in relations with other actors, and knowledge about the use of complex resource constellations.