What is particularly interesting is that Mitsubishi Heavy Industries mentions five inputs, not the traditional four identified by Michael Porter in 1985.
Social relationship capital is Mitsubishi's "extra" input that addresses stakeholder relations so vital to today's competitive, global business environment, as shown in this comparison.
Porter's inputs:
- Procurement--obtaining raw materials and money and other resources for the firm.
- Human resources management--attracting, training and retaining managers and employees for the firm.
- Technological development--creating or acquiring the technological know-how and equipment/services to transform resources into finished goods or services.
- Infrastructure--the internal organization of departments and functions (such as finance, legal, etc) to support the firm's operations.
- Financial capital--money (assets, cash, debt and equity) to fund every aspect of the firm's planning and operations.
- Manufactured capital--buildings and investments in equipment and infrastructure needed to enable the firm to conduct business.
- Intellectual capital--patents and licenses, intellectual property of all types and knowledge needed to conduct business and in the future.
- Human capital--employees and managers plus partners, suppliers and distributors that have the core competencies to help the business achieve its goals.
- Social relationship capital--relationships with stakeholders and with the natural environment. (This set of inputs is not directly mentioned in Michael Porter's value chain, but its importance cannot be understated in contemporary business.)
