2011 Awards for Excellence

Citation

Grönroos, C. (2012), "2011 Awards for Excellence", Journal of Service Management, Vol. 23 No. 1. https://doi.org/10.1108/josm.2012.08523aaa.002

2011 Awards for Excellence

Article Type: 2011 Awards for Excellence From: Journal of Service Management, Volume 23, Issue 1

The following article was selected for this year’s Outstanding Paper Award for

Journal of Service Management

“Adopting a service logic in manufacturing: Conceptual foundation and metrics for mutual value creation”

Christian GrönroosCERS Centre for Relationship Marketing and Service Management, Hanken School of Economics, Helsinki, Finland

Pekka HelleCERS Centre for Relationship Marketing and Service Management, Hanken School of Economics, Helsinki, Finland

Purpose -- The purpose of this paper is to create a framework for measuring mutually created value in business relationships in the manufacturing sector, which also enables suppliers and customers to share this value between themselves.

Design/methodology/approach -- The starting point is that manufacturing firms adopt a service perspective or logic for their entire business. The framework created includes a conceptual foundation for understanding the process of mutual value creation as well as theoretical basis and metrics for calculating mutually created value, joint productivity gains (JPGs) and value sharing. The framework for mutual value creation is created conceptually. The theoretical basis for the metrics used for the calculations and the development of the metrics are empirically grounded in a longitudinal case study.

Findings -- By matching supplier and customer practices and thereby aligning corresponding processes, resources and competencies, suppliers can support their customers’ business more effectively and thus enable the customers and also themselves to create incremental value which can be shared between the business partners. It is showed that the metrics for calculating JPGs and for sharing these gains in the form of additional value for the business partners, through a price mechanism, can be created and used.

Practical implications -- Findings of the paper suggest an alternative way of creating value which is geared towards the demands of a service logic applied in business relationships. Productivity can be created jointly and not separately by the supplier and the customer, and an incremental value in the form of a JPG calculated and shared. To be able to do this, the business partners must have access to accounting data, and the customer and the supplier must be willing to open up their books and engage in mutual practice matching. This demands that a service logic is adopted for the entire manufacturing business, not separately for industrial service activities only, which is the traditional approach to studying service in manufacturing.

Originality/value -- Traditionally, value is viewed as an outcome, not as a process of mutual value creation, the outcome of which can be calculated. Productivity as a joint concept and jointly created productivity gains enable firms to share the gains created through mutual value creation. In the literature so far, productivity and value creation have not been studied as mutual concepts. In addition, approaching the entire manufacturing business from a service logic point of view is also novel.

Keywords: Industrial relations, Manufacturing industries, Value added

www.emeraldinsight.com/10.1108/09564231011079057

This article originally appeared in Volume 21 Number 5, 2010, pp. 564 - 590, Journal of Service Management

The following articles were selected for this year’s Highly Commended Award

“Emotion display rules at work in the global service economy: the special case of the customer”

Alicia Grandey, Anat Rafaeli, Shy Ravid, Jochen Wirtz and Dirk D. Steiner

This article originally appeared in Volume 21 Number 3, 2010, Journal of Service Management

“Organizational learning from customer feedback received by service employees: A social capital perspective”

Jochen Wirtz, Siok Kuan Tambyah and Anna S. Mattila

This article originally appeared in Volume 21 Number 3, 2010, Journal of Service Management

“A framework for evaluating the customer wait experience”

Kelly A. McGuire, Sheryl E. Kimes, Michael Lynn, Madeline E. Pullman and Russell C. Lloyd

This article originally appeared in Volume 21 Number 3, 2010, Journal of Service Management

Outstanding Reviewer

Professor Maria HolmlundHanken School of Economics, Finland