Embracing the Paradox of Interorganizational Value Co‐creation–Value Capture: A Literature Review towards Paradox Resolution

Abstract

This study reviews literature on paradoxical tensions between value co‐creation and capture in interorganizational relationships (IORs). The purpose of this review is to make a re‐evaluation of the literature by engaging a paradox theory lens, thereby identifying factors that render tensions salient and factors that lead to virtuous or vicious cycles. This review of 143 articles reveals factors that make tensions salient: these relate to plurality (e.g. coopetition), scarcity (e.g. lack of experience with IORs), change (e.g. changes in collaboration scope) or combinations thereof (e.g. IORs in weak appropriability regimes). Results also uncover factors that resolve paradoxical tensions of value co‐creation and capture, thus spurring virtuous cycles (e.g. carefully mixing trust and contracts), as well as factors that promote vicious cycles, owing to the emphasis on either value co‐creation or capture (e.g. myopia of learning). This review further reveals a new category of factors that may stimulate either virtuous or vicious cycles, depending on the extent to which they are enforced. This finding expands the value co‐creation–capture paradox resolution and brings to light new dynamics in the paradox framework of dynamic equilibrium. This study thus contributes by: (1) reassessing the existing literature and applying paradox theory to the well‐known hazard of value co‐creation and capture; (2) highlighting factors that amplify paradoxical tensions related to this hazard; and (3) outlining factors that help solve the paradox by embracing its contradictory poles and factors that hinder paradox resolution by emphasizing either value co‐creation or appropriation.

Collaboration and Internationalization of SMEs: Insights and Recommendations from a Systematic Review

“…Second, we used the AMO framework to integrate the findings of previous studies. Although this framework has served our analysis well and its use is in line with other reviews (Niesten and Stefan 2019; Street and Cameron 2007), there may be some limitations in coding the studies. However, as we used an iterative inductive–deductive approach, we are confident that we identified the most important themes in the SME collaborative internationalization literature.…”

Business models for environmental sustainability: Contemporary shortcomings and some perspectives

“…Tensions can depend on conflicting mechanisms related to create or to capture value (Niesten & Stefan, 2019). For example, value creation at a social level takes into account the opportunity 'to create social value by stimulating social change or meeting social needs' (Mair & Marti, 2006, p. 37), whereas value capture at a private level requires appropriation mechanisms (Veer, Lorenz, & Blind, 2016) at the managerial level (Capaldo & Petruzzelli, 2011).…”

“…This research gap originates from a tension between creating value at a social level and capturing value at a private (business and organizational) level (Smith, Gonin, & Besharov, 2013; Spieth et al, 2019). Some scholars have stated this kind of tensions between the two (Chowdhury, Gruber, & Zolkiewski, 2016; Ritala & Hurmelinna‐Laukkanen, 2009), seeing a contradictory yet interrelated relationship between value creation and value capture (Niesten & Stefan, 2019). Tensions can depend on conflicting mechanisms related to create or to capture value (Niesten & Stefan, 2019).…”

“…Some scholars have stated this kind of tensions between the two (Chowdhury, Gruber, & Zolkiewski, 2016; Ritala & Hurmelinna‐Laukkanen, 2009), seeing a contradictory yet interrelated relationship between value creation and value capture (Niesten & Stefan, 2019). Tensions can depend on conflicting mechanisms related to create or to capture value (Niesten & Stefan, 2019). For example, value creation at a social level takes into account the opportunity ‘to create social value by stimulating social change or meeting social needs’ (Mair & Marti, 2006, p. 37), whereas value capture at a private level requires appropriation mechanisms (Veer, Lorenz, & Blind, 2016) at the managerial level (Capaldo & Petruzzelli, 2011).…”

Erratum

“…‘Embracing the Paradox of Interorganizational Value Co‐creation–Value Capture: A Literature Review towards Paradox Resolution’ by Niesten and Stefan () in International Journal of Management Reviews, volume 21 (issue 2), pp. 231–255.…”