Title: Value modes effect and analysis (ValMEA): a PLS-based theory validation

Authors: Djoko Setijono, Angappa Gunasekaran

Addresses: Division of Production Economics, Department of Management & Engineering, Linkoping University, S-58183 Linkoping, Sweden. ' Department of Decision & Information Sciences, Charlton College of Business, University of Massachusetts – Dartmouth, 285 Old Westport Road, North Dartmouth, MA 02747-2300, USA

Abstract: Value modes effect and analysis (ValMEA) suggests that the concept of customer value can be categorised according to its existence in three different contexts (i.e. production/supply, buying/purchasing, and use) and these three |modes| of value are interrelated. Based on the collected customer survey data in the house-building construction, two structural models of ValMEA are tested using partial least squares (PLS). The findings from this study confirm previous theory propositions by various researchers. Firstly, these modes of value construct a chain (serial) interconnection, meaning that value in the production/supply context influences the value in the purchasing (buying) context, and the value in the buying context influences the value in use. Individually, value in the production/supply context and purchase value has significant effect on the value in use. Secondly, value in the buying context is a function of core value and added value. Thirdly, value in the buying context can only partially explain the richness of value in use.

Keywords: value modes effect and analysis; partial least squares; PLS; house building; construction; customer value.

DOI: 10.1504/IJPQM.2010.030743

International Journal of Productivity and Quality Management, 2010 Vol.5 No.2, pp.213 - 230

Available online: 01 Jan 2010 *

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