In buyer-seller relationships, the focus has moved beyond individual firms
to value-creating networks formed by key firms in the value chain that deli
ver value to the end consumer. The article develops a rationale for value-c
reating networks using three core building blocks: superior customer value,
core competencies, and relationships. The rationale is developed based upo
n an understanding of the value-creation process and its links to core capa
bilities of firms in the network. The importance of inter-firm relationship
s in realizing the true potential of the value-creation networks is also hi
ghlighted. The authors argue based on their sample analysis of some example
s that competition in the future will shift to the network level from the f
irm level. The influence of some emerging business tools such as electronic
commerce on redefining value creation is also discussed. rights reserved.
(C) 2001 Elsevier Science Inc. All rights reserved.