JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Value Creation and Value Appropriation: An Integrative,
Multi-Level Framework
Author(s): Dante Di Gregorio
Citation: Dante Di Gregorio, (2013) "Value Creation and Value Appropriation: An Integrative, Multi-Level Framework," Journal of Applied Business and Economics, Vol. 15, Iss. 1, pp. 39-53
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Value creation by individuals and firms plays a central role in the evolution of populations by enabling
adaptive efficiency. Once created, value may become embedded in resources which require deployment
for value to be appropriated. Value appropriation is a two-step process through which a firm first
competes against other firms to create and protect appropriation streams (i.e., inter-organizational value
appropriation), then managers, employees, shareholders and other stakeholders compete to capture the
value that has been retained within the firm (i.e., intra-organizational value appropriation). I argue that
the inter- and intra-organizational value appropriation processes are driven by common elements,
including not only bargaining power and isolating mechanisms but also relation-based power and
opportunity-based action. I advocate an integrative approach due to the interplay between value creation
and value appropriation processes.