Paradox of Value Loops in Dynamic Markets: From Value Post‐(Un)capture to Sustainable Recapture

ABSTRACT The growing emphasis on sustainability necessitates a re‐evaluation of traditional value creation and capture challenges, highlighting the intricate interrelation between value (un)captured and recaptured. This study investigates the dynamics of overtourism and undertourism in the sustainable development of regions. This prominent incidence of oversupply and undersupply underscores the tension between short‐term economic benefits and long‐term sustainable value capture. Introducing the conceptual framework of value loops and a robust value cascade, this study explores how vendors generate, lose, and reclaim economic, social, and environmental value and how other value stakeholders perceive it. Focusing on overtourism and undertourism as an exemplary manifestation of sustainable value paradoxes, the study examines the cyclical processes of value creation, (un)capture, and recapture. These paradoxes illuminate the compromises inherent in sustainability ambiguities, such as balancing economic growth with cultural heritage conservation. The study identifies trailblazing actionable approaches for reclaiming previously uncaptured value, emphasizing the roles of heritage‐based, sustainable practices, stakeholder collaboration, and digital innovation.