The author has presented a conceptual framework for the value-based management of relationships in strategic networks while integrating insights from the value-exchange model (VEM), Value-based management (VBM), Transaction Cost Economics (TCE), the relational view, the real options view, and the dynamic capability perspective of strategic networks. It is theorized that, following the logic of leverage, value-gap based competence-enhancing relational investments (CeRIs) induce commitment in nodes that enhances the network’s bottom-line by 1) increasing relational revenues as it (commitment) facilitates innovative service configurations (relational creativity), and 2) decreasing cost while substituting the costly formal governance. This simultaneous revenue enhancement and cost economization brings in more economic value-added to the strategic networks which if shared equitably increases partners’ satisfaction and provides them a rational ground to continue with the structural arrangement.
|Keywords:||Value-Based Management, Trust, Commitment, Relational Creativity|
Doctoral Scholar, Institute of Business Studies, University of Vienna, Vienna, wien, Austria
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