Value Measuring and Value Appropriation in Business Networks

A highly relevant issue for management is the measurement and appropriation of jointly created value. The existence of relationships is challenging for accounting and for the sharing and appropriation of values. Interdependences that characterise business relationships make value measurement and appropriation problematic. Yet, measuring value is important for orienting managers’ behaviours, and it affects the solutions implemented in business relationships on which value creation and appropriation depend. Values are created in relationships because resources are combined through relationships. Defining clear boundaries is important to produce measurements, but setting boundaries in interdependent relationships and networks is always problematic, and to some extent, arbitrary. Business relationships have a number of soft and multiple effects that are difficult to measure and consequently difficult to divide among the involved business actors creating specific appropriation problems. An interesting development is underway as companies attempt to develop special tools for handling these problems.