Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1988

Abstract

In the past, cheap, centralized power and efficient but expensive production machinery tipped the competitive advantage toward large companies. Now low-cost computing and communications are tipping the advantage to a new organizational form: the "value-adding partnership". VAPs are groups of small companies that perform different steps along the value-added chain. The partners share information freely and perceive the whole chain as one competitive unit. VAPs have the benefits of both large and small companies: focus and flexibility as well as coordination and sharing. However, VAPs require a delicate balance of power between partners: What happens if one partner tries to take over another?

About

Abstract

In the past, cheap, centralized power and efficient but expensive production machinery tipped the competitive advantage toward large companies. Now low-cost computing and communications are tipping the advantage to a new organizational form: the "value-adding partnership". VAPs are groups of small companies that perform different steps along the value-added chain. The partners share information freely and perceive the whole chain as one competitive unit. VAPs have the benefits of both large and small companies: focus and flexibility as well as coordination and sharing. However, VAPs require a delicate balance of power between partners: What happens if one partner tries to take over another?

Related