A1 Journal article (refereed), original research

Value creation and appropriation in economic, social, and environmental domains: Recognizing and resolving the institutionalized asymmetries


Open Access publication

Publication Details
Authors: Ritala Paavo, Albareda Laura, Bocken Nancy
Publisher: Elsevier
Publication year: 2021
Language: English
Related Journal or Series Information: Journal of Cleaner Production
Journal acronym: JCP
Volume number: 290
ISSN: 0959-6526
eISSN: 1879-1786
JUFO-Level of this publication: 2
Open Access: Open Access publication
Location of the parallel saved publication: http://urn.fi/URN:NBN:fi-fe202101081365

Abstract

Value
creation and appropriation are much-studied processes in business and
management fields. However, both academia and business practice have
traditionally focused on how value is created and appropriated in the
economic context and by economic actors. This overemphasis on economic
logic has created institutionalized asymmetries in managing the
relationship between business, society and ecological environment. In
this paper, we broaden the value creation and appropriation analysis
along two dimensions: (1) the type of economic goods used to create
value (private and club goods, public goods and common goods) and (2)
value creation and appropriation domains (economic, social, and
environmental). Building on this framework, we argue that there are
several institutionalized asymmetries in the relationship between the
goods used to create value and the domains in which the value is
eventually appropriated. We point out the system-level tendency of value
over-appropriation in the economic domain over the two other domains as
well as value over-appropriation in the social domain over the
environmental domain. We also discuss how existing organizational
practices, such as corporate social responsibility, shared value
creation, and sustainable business models, have attempted to overcome
them, and reflect on the main critiques to these approaches. Finally, we
identify potential business-based solutions to the institutionalized
asymmetries and provide implications to research and practice.


Last updated on 2021-10-02 at 07:46