Production Value Chain Model for Sustainable Competitive Advantage

Abstract In the Fourth Industrial Revolution, 4IR, manufacturing firms face more competitive environments, rapidly changing information and communication technologies (ICTs), and customers’ preferences than ever before. This paper analyzes relevant literature and proposes a systemic customer-centric knowledge-based production value chain (KPVC) to leverage distinctive core competencies (DCCs) and create sustainable competitive advantage (SCA) in manufacturing contexts. The paper introduces an integrative customer-centric KPVC model that enables companies to respond to environmental drivers, leverage DCCs, and create SCA. It adopts an exploratory approach to developing a unified and inherently interdisciplinary model based on a review of relevant scholarly literature. The KPVC integrated model comprises production value chain (PVC), knowledge management (KM) processes, and business process re-engineering (BPR) enabling activities. A successful move to KPVC requires a fully integrated and automated system allowing firms to define, track, and manage their work processes. Effective KPVC is a principal approach for leveraging DCCs in the quest for achieving SCA in today’s competitive business world and generating better values for customers and companies.