The evolution of value networks

Abstract

Customers' needs for a product define the features and attributes of its production. To meet these needs, a group of organisations with complementary strategies, resources and capabilities link together in a manner that all the participants of the consortium benefit. Organisations act in these networks collectively to produce an output that customers value enough to purchase it. However, the crucial value features of products' progress constantly depend on customers' needs. As a consequence, the value network is under a continuous and, at least, partially capricious change. The paper explores why and how the value network emerges and develops from the standpoint of the existing value network theories. The evolutionary (life cycle) perspective is used to combine the views of the different theories to construct a view that explains at least some of the reasons behind, first of all, the emergence and, secondly, development of value networks.