Support Activities

The primary value chain activities described above are facilitated by support activities. Porter identified four generic categories of support activities, the details of which are industry-specific:

– Procurement – the function of purchasing the raw materials and other inputs used in the value-creating activities.

– Technology Development – includes R&D, process automation, and other technology development used to support the value-chain activities.

– Human Resource Management – the activities associated with recruiting, development and compensation of employees.

– Firm Infrastructure – includes activities such as finance, legal, quality management, etc.

Support activities are often viewed as «overhead», but some firms successfully have used them to develop a competitive advantage, for example, to develop a cost advantage through innovative management of information systems.

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