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Where is value created within the global value chain? Case: Whitevector Ltd.

TitleWhere is value created within the global value chain? Case: Whitevector Ltd.
Publication TypeThesis
Year of Publication2011
AuthorsRummukainen, M
Academic DepartmentDepartment of Management and International Business
Number of Pages129
UniversityAalto University

The purpose of this thesis is to analyze the impact of innovation ownership both in terms of company-specific value capture and national economic growth. The thesis is based on a case study, where a Finnish online service provider Whitevector Ltd. was taken into inspection through value chain analysis.

As an end result, the case study showed that companies that create innovative products and services, especially if they are online services that do not require an extensive physical infrastructure for upkeep, can be a strong source of value added, while the key providers within the same value chain are left with a very small margin of value added.

The findings go to show, that at least in the case of Whitevector – and perhaps similar companies as well – innovation ownership can have a very positive impact on both the company’s growth as well as that of the national economy, where such companies are headquartered. Vice versa, the other primary activities needed for producing the service Whitevector offers were left with a significantly smaller share of value added, and thus production ownership in a similar value chain does not seem to be as an essential growth driver as innovation ownership can be.