Industry Transition - Challenges for Value Capture

The transition period in the industry life cycle induces a profound reconfiguration in the competitive landscape. A shift from an early, fluid state to a mature stage generates both strategic threats and opportunities for capturing value by incumbents as well as new entrants. Thus the challenge is to identify early harbingers of that transition in order to formulate an appropriate strategic response allowing for protecting and strengthening captured value streams. Existing gaps regarding causal explanations of industry transformation and the processual nature of value appropriation ignited the discussion presented in the article. The aim of this study is to enhance the understanding of the dynamics of the value capture process by examining the features of industry transition. A thorough review of the theoretical and empirical studies on the subject matter enabled formulation of propositions that refer to the problem of identification of transition signals and relate the competitive dynamics of the transition period with the value capture practices.