Exploiting the control revolution by means of digitalization: value creation, value capture, and downstream movements

This article explains why firms move downstream to profit from the value they create for customers through improved control. Under certain circumstances, product innovations and services are dynamically interdependent in the sense of improved control creating value for the customer. Since value capture is distinct from value creation, firms may need to change their means of appropriation to profit. Empirically, the article analyses how firms can...