CONCEPTUALIZING THE CO-CREATION OF COMPETITIVE ADVANTAGE IN TECHNOLOGY-INTENSIVE B2B MARKETS: AGENT-BASED MODELING APPROACH

Markus A. Jääskeläinen (), Samuli Kortelainen () and Juha J. Hinkkanen ()
Additional contact information
Markus A. Jääskeläinen: Lappeenranta University of Technology, PO Box 20, 53851 Lappeenranta, Finland
Samuli Kortelainen: Lappeenranta University of Technology, PO Box 20, 53851 Lappeenranta, Finland
Juha J. Hinkkanen: Lappeenranta University of Technology, PO Box 20, 53851 Lappeenranta, Finland

International Journal of Innovation Management (ijim), 2013, vol. 17, issue 03, 1-17

Abstract: The importance and challenges of supplier–customer cooperation has been widely recognized in the academic literature but the dynamics of such relationship remain understudied. We do not yet fully understand how customer–supplier relationship should be pursued in order to co-create mutual competitive advantage. Our simulation results show that there are differences in absolute profitability and profit distribution between cooperation partners when moving from individual firm-level management to holistic system-based management. We further find that if the supplier manages cooperation from individualistic perspective it is able to achieve the highest short-term profits by sacrificing the profitability of its customer. However, when the supplier acknowledges the profitability logic of its customer, the long-term overall profitability of the cooperation as a whole, i. e., the system, becomes significantly higher than with opportunistic individually-oriented (short-term) management. In described cases, it is actually profitable for the supplier to limit the distribution of its unique resources (e. g., technology).

Keywords: Competitive advantage; cooperation; buyer–supplier; customer–supplier; resource-based view; strategic management; agent-based modeling (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1363919613400082
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijimxx:v:17:y:2013:i:03:n:s1363919613400082

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1363919613400082

Access Statistics for this article

International Journal of Innovation Management (ijim) is currently edited by Joe Tidd

More articles in International Journal of Innovation Management (ijim) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().