Abstract—This paper performs a literature review research ofvalue configuration analysis (VCA) and its application in supply chaincoordination. By reviewing the theory of VCA and its application in supplychain management, it analyzes theoretical and managerial implications forsupply chain coordination based on in-depth exploring the range of the VCAtheory. By so doing, it concludes that the dynamic capabilities, theinterfaces, and the appropriate governance mechanisms concerning VCA areinteresting insights in supply chain coordination.
Keywords—value configuration analysis (VCA); supply chaincoordination; supply chains                                                                                                              1. Introduction

Firms rarely create value in isolation. Many managers whohad previously added value to their companies by nurturing competencies withinthe firm now add value by developing coordinate partnerships with outside firms(Prahalad and Ramaswamy, 2000; Kay, 1993; Hammervoll, 2009). A supply chain isa system of people, activities, information, and resources involved in creatinga product and then moving it to the customer. Many organizations attempt tointegrate and closely coordinate the various elements of their supply chains inorder to add value to their organizations, and further to enhance efficiency (Ketchen,et. al., 2008). A higher than normal level of inter-firm coordination acrossthe supply chain can provide significant competitive advantage (Fisher, 1997;Simatupang and Sridharan, 2005; Bailey and Francis, 2008).

Porter’s well-known valuechain modelhave profoundly influenced the perception of such strategicissues as value creation, coordination and positioning. However, this model isalso believed to limit fuller understanding of how knowledge- and service-based supply chain function (Normann, 2001; Huemer, 2006). In a dynamiceconomic and institutional setting, changes in the dominant competitive logicof supply chains are of particular interest (Prahalad and Hamel, 1994). Andthus, to completely consider the alternative forms of value creation is a prerequisitefor expressing and exploring how firms in supply chains differ in a competitiveenvironment (Stabell and Fjeldstad, 1998).