Development of value networks-an empirical study of networking in Swedish manufacturing industries

Value networks are increasingly being recognized as the future business paradigm. The aim of this kind of network organization with interconnected corporations is to mass produce products or services configured for individual customers. As customers get used to such mass customization, the need for companies to develop value networks is expected to increase tremendously. Already today, the first examples of these products or services can be seen. However, there seems to be confusion regarding what is actually required of a corporation when embarking on the development of value networks. This paper proposes a framework to be used for the evaluation of corporations aspiring to take part in a value network. The framework is derived from earlier research in a variety of disciplines and is used for comparison of two industry cases. The cases are based on interviews and documents from ABB and Ericsson, two major Swedish corporations, that see value networks as the future supply chain and organizational model. The paper ends by pointing out which technological and human limitations retard the development of value networks