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

Abstract

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. © Emerald Group Publishing Limited.