Entrepreneurship and Organised Crime
Show Less

Entrepreneurship and Organised Crime

Entrepreneurs in Illegal Business

Petter Gottschalk

Entrepreneurship and Organised Crime provides a fresh and realistic insight into the problem of organised crime activity and the role of entrepreneurs in illegal business.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 4: Value Configurations in Criminal Entrepreneurship

Petter Gottschalk


Based on the enterprise paradigm of organised crime, this chapter outlines how value configuration analysis might be applied to criminal organisations. Distinctions are made between value chains, value shops and value networks. In the value chain, an entrepreneur organises flows of goods. In the value shop, an entrepreneur organises knowledge work. In the value network, an entrepreneur organises connections between actors. Based on the contingent approach to management, entrepreneurs will initiate different criminal organisations depending on the value configuration of a value chain, value shop or value network. For a long time, we thought the only possible value configuration for business organisations was the value chain developed by Porter (1985). Insights emerged, however, that many organisations have no inbound or outbound logistics of importance, they do not produce goods in a sequential way, and they do not make money only at the end of their value creation chain. Similarly, organised crime does not necessarily involve logistics and production, as defined by the value chain concept. Some criminal enterprises provide services, while other activities are mainly problem solving for law firm clients, consulting customers and hospital patients. In such cases, neither the beginning nor end of value creation is characterized by physical goods changing attributes in a sequential chain. Therefore, two alternative value configurations have been identified, labelled value shop and value network (Stabell and Fjeldstad, 1998). As we move into a knowledge economy, both legal and criminal organisations make their living from knowledge creation and knowledge application. The typical value...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.