Value creation in supply chain relationships: a critique of governance value analysis

Purpose – The purpose of this paper is to present a critique of the use of governance value analysis (GVA) for assessment of value creation in supply chains. Design/methodology/approach – The study presents a conceptual analysis of the assumptions, factors, and range of GVA as it applies to assessment of value creation in supply chains. Findings – GVA lacks comprehensiveness in assessing value creation in supply chains in that it ignores: certain important factors that affect value creation in supply‐chain relationships; governance issues beyond transaction‐specific investments; and cooperative value‐creating activities among supply‐chain members. Research limitations/implications – The critique calls into question the applicability of GVA in governing value creation, especially in the context of dynamic contemporary conceptions of supply‐chain relationships. It is not recommendable to analytically treat cooperation in supply‐chain relationships as transactional exchange. Originality/value – This is an original and timely critique of the presumption that GVA is an appropriate model for assessment of value creation in supply chains.