The Strategic Value Ecology Model and Framework: A Living Systems Theory of Value Creation, Dissipation, and Renewal

This paper introduces the Strategic Value Ecology Model and Framework (SVEMF), a comprehensive paradigm that redefines business as a living system of value dynamics. SVEMF proposes eight interdependent dynamics—Value Creation, Exchange, Capture, Distribution, Retention, Transmission, Transformation, and Dissipation—through which value circulates, transforms, and regenerates across actors and time.

Moving beyond traditional competitive advantage paradigms, SVEMF conceptualizes business as an autopoietic ecology where value behaves like energy, requiring continuous awareness and ethical renewal to prevent entropy. The framework integrates value theory, systems thinking, strategic management, phenomenology, ethical sustainability, and thermodynamics into a unified meta-theory.

Each dynamic is operationalized through measurable indicators forming a Strategic Value Profile (SVP) instrument for corporate valuation, M&A due diligence, organizational diagnosis, and turnaround strategy. Three empirical cases (HP-Autonomy, Disney-Pixar, LEGO) demonstrate diagnostic power across failure, success, and renewal contexts.

SVEMF is scale-invariant, applying to individuals, organizations, and AI networks. Key innovations include: Value Dissipation as an entropic boundary, awareness as a negentropic force, dissolution of the supplier-customer dichotomy, complete value life-cycle mapping, and integration of six theoretical traditions. Applications span corporate valuation, M&A, turnaround management, and regenerative growth strategy.

Feedback on empirical applications or case collaborations is warmly welcome.