Resolving the tensions between economic and shared value creation in the global value chain : case of Tana Oy
Vanhanen, Minna (2022)
2022
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022061017307
https://urn.fi/URN:NBN:fi:amk-2022061017307
Tiivistelmä
Despite the industry, various value conflicts arise to meet the challenges of a changing world. Every company must assess the values of sustainable development and social responsibility in the face of social pressure and laws. It can be a competitive advantage in some sectors, while others focus on price competition.
The object of the study was to analyze the tension points between economic and social value creation and what are the solutions that benefit the entire value chain. Case company Tana Oy produces and develops environmental technology solutions for waste treatment. It operates as a network company and has outsourced most of its functions, which is why the parties in Tana's value chain were also interviewed. As a theoretical framework, the research adopted the shared value (CSV) dimension of redefining productivity in the value chain. It allowed focusing on six themes in the global value chain: energy use and logistics, resource use, procurement, location, distribution, and employee productivity. The study was qualitative, and its primary data was collected by interviewing five different individuals from Tana and its value chain.
The results showed that the pandemic was the most significant social challenge addressed in the value chain, affecting all themes analyzed. To meet this challenge, bringing the value chain from Asia to Europe was the best solution. The solution also generates social value by shortening transport distances and reducing emissions. However, this was hampered by the industry's cost structure, price competition, and the cost-efficiency of Asia. The use of resources was not reflected in the data collected and was not analyzed. The staff's productivity, i.e., well-being, was promoted in many ways and was considered necessary. Taking care of the well-being of employees also generates social value.
The object of the study was to analyze the tension points between economic and social value creation and what are the solutions that benefit the entire value chain. Case company Tana Oy produces and develops environmental technology solutions for waste treatment. It operates as a network company and has outsourced most of its functions, which is why the parties in Tana's value chain were also interviewed. As a theoretical framework, the research adopted the shared value (CSV) dimension of redefining productivity in the value chain. It allowed focusing on six themes in the global value chain: energy use and logistics, resource use, procurement, location, distribution, and employee productivity. The study was qualitative, and its primary data was collected by interviewing five different individuals from Tana and its value chain.
The results showed that the pandemic was the most significant social challenge addressed in the value chain, affecting all themes analyzed. To meet this challenge, bringing the value chain from Asia to Europe was the best solution. The solution also generates social value by shortening transport distances and reducing emissions. However, this was hampered by the industry's cost structure, price competition, and the cost-efficiency of Asia. The use of resources was not reflected in the data collected and was not analyzed. The staff's productivity, i.e., well-being, was promoted in many ways and was considered necessary. Taking care of the well-being of employees also generates social value.