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This paper explores the dynamics of value distribution within a sector. It provides exploratory quantitative evidence on how conditions within the segments of a sector's value chain affect the relative profitability of those segments. We consider how value shifts from one part of the value chain to another by linking two different but causally connected levels of analysis: the inequality of capability within a segment and the segment's share of total sector profit. We show that the presence of superior firms ('kingpins') in a segment increases the segment's share of total sector value, and establishes the segment as a bottleneck. Although kingpins exert a positive externality on their direct competitors, a 'bottleneck' segment displays more internal inequality, making the presence of 'kingpins' a double-edged sword. [ABSTRACT FROM AUTHOR]