Impact of Value Networks on Business-to-Business Markets in the Engineering Industry

This research paper studies the impact of value networks on Business-to-Business (B2B) markets for the co-creation of value in a collaborative network between vendors and customers/business partners in the engineering industry. Value networks between organizations bring a lot of synergies through integrative efforts to reduce transaction costs and strengthen inter-organizational relationships as well as electronic data interchange within the network. This aim is for effective business processes and transparency in data transmission to create a global business environment and change the dynamics of the industry structure. The statistical analysis confirmed that the co-creation of value in external value networks has a strong influence on transaction costs, electronic data interchange and industry structure. The findings and model developed are helpful for vendors and customers to enhance collaborative value networks in the engineering industry