Creating Novel Consumer Value vs. Capturing Value: Strategic Emphases and Financial Performance Implications

Journal of Business Research, Forthcoming

51 Pages Posted: 18 Sep 2010

See all articles by Jaakko Aspara

Jaakko Aspara

Hanken School of Economics; Aalto University School of Business (formerly known as Helsinki School of Economics)

Henrikki Tikkanen

Aalto University - Department of Marketing and Management

Date Written: August 2010

Abstract

Business researchers have a growing interest in value creation perspectives to firm strategy. The present article provides a novel examination of the financial performance implications of strategic emphases on (i) creating novel consumer value vs. (ii) capturing value. The empirical study examines the strategic orientations and financial performances of a sample of firms, from a survey of over 500 companies. The results indicate that neither strategic emphasis on novel consumer value creation nor value capture have independent linear influence on profitable firm growth. Yet, the results also reveal that certain strategic configurations are more feasible than others, in terms of average profitable growth. For both large and small firms, firms with high emphasis on novel consumer value creation and low on value capture are found to have above-average profitable growth. A high emphasis on both novel consumer value creation and value capture, in turn, is found to be a feasible configuration for large firms but less feasible for small firms. The moderating effects of environmental turbulence are also examined.

Keywords: value creation, value capture, strategy, innovation, consumer value, financial performance, profitable growth, Blue Ocean Strategy, open innovation

Suggested Citation

Aspara, Jaakko and Tikkanen, Henrikki, Creating Novel Consumer Value vs. Capturing Value: Strategic Emphases and Financial Performance Implications (August 2010). Journal of Business Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1678153

Jaakko Aspara (Contact Author)

Hanken School of Economics ( email )

P.O. Box 479
Helsinki, Helsinki 00101
Finland

Aalto University School of Business (formerly known as Helsinki School of Economics) ( email )

P.O. Box 21230
Helsinki, 00076
Finland

Henrikki Tikkanen

Aalto University - Department of Marketing and Management ( email )

P.O. Box 1210
Helsinki, FIN-00101
Finland

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