The value of the manager in the value chain

Abstract

Purpose

It is argued that the management of the diverse commercial imperatives of the participants in the value chain is partly achieved by negotiation. Seeks to describe the mechanism by which negotiation achieves satisfactory outcomes, capturing ome of the strategic financial impacts by the cash conversion coefficient and its derivative, the velocity of money.

Design/methodology/approach

An analysis of the ways in which negotiation contributes to the mutual benefit of partners in the value chain.

Findings

It is demonstrated, using the metric of money, that both parties can be better off, and shows the “value” they bring to the partnership.

Originality/value

A demonstration of why market‐based, negotiated outcomes leave both parties to a transaction better off. Inter alia introduces the concept of the velocity of money in an industrial context.

Citation

Glaser, S. (2006), "The value of the manager in the value chain", Management Decision, Vol. 44 No. 3, pp. 442-447. https://doi.org/10.1108/00251740610656304