Abstract:

After demonstrating the connection between two models of value appropriation—the Brandenburger and Stuart model and the VCA model—we consider how value appropriation by a firm’s stakeholders is linked to value creation and firm performance. Applying the VCA model to annual data on 16 airlines over four decades, we find that while economic gains are shared among multiple stakeholders, economic losses are largely borne by capital. Our findings suggest nuanced patterns of value capture that depend not only on the magnitude of value creation but also on whether value creation is positive or negative. Drawing from this asymmetry, we propose a value-sharing "diamond framework" to measure two key dimensions of stakeholder value appropriation described in the literature: residual claimancy and bargaining power. 

General information:

Attendance to this seminar is possible by invitation only. Please send an e-mail to secbs-abs@uva.nl if your are interested in attending this seminar.