The mediator role
In structural equation modelling, a mediator is a construct that sits between an antecedent (Resources) and a consequence (Outcomes), through which the antecedent's effect operates. The empirical Value Chain specifies Drivers as the principal mediator between Resources and Outcomes.
Mediation matters because it changes how investment decisions should be framed. The relevant question is not whether Resources or Drivers are more important — both matter — but whether Resources investments are actually translating into Drivers improvement. If they are, Outcomes improvement follows. If they are not, Resources investment is wasted.
Why drivers explain so much variance
Drivers explain 67% of variance in Outcomes — large explanatory power for a single construct. The size of the effect reflects the fact that Drivers operate at three different organisational layers (cognitive, operational, human) and together address the principal sources of cross-functional friction.
Alignment fixes the definitional problems. Integration fixes the data and system problems. Collaboration fixes the human-process problems. Together, the three address most of what creates friction between differentiated revenue functions. Outcomes improve when friction reduces.
Practical implications
The Drivers-as-mediator finding makes Drivers the most consequential focus for capability investment. Specific actions follow: instrument Drivers directly (measure alignment, integration, collaboration separately rather than treating them as a black box), invest in all three drivers rather than just integration (the most visible one), and evaluate Resources investments by their downstream impact on Drivers rather than their direct outcome effect.
The Value Chain framework operationalises this — Drivers in the middle, with Resources upstream and Outcomes downstream.