Value Network Creation and Value Appropriation in E-commerce
Value Network Creation and Value Appropriation in E-commerce

Summary/Abstract: The purpose of this paper is to examine the model of creating and appropriating value (VCA – value creation-appropriation) in the context of e-commerce value network. Specifically, this paper tries to answer the following questions: What is the relation between creation and appropriation of value? (1) What are the mechanisms of creation and appropriation of value? (2) What are the specifics of e-commerce and the value of e-commerce? (3) How can value creating and appropriating networks be modeled and analyzed in the context of e-commerce? (4) The paper is theoretical and provides an analytical review of strategic management, marketing, logistics and economic literature concerning value in order to clarify the VCA models and discuss VCA in the context of e-commerce value network. On the basis of this analysis a network governance concept is proposed. The paper provides a discussion on determinants of value creation and appropriation mechanisms in the e-commerce context. It concludes that the e-tailer’s share in value distribution depends on its position in the network determined by possessing tacit and complex information, rare and valuable competences and social ties with customers.

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