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The paper attempts to analyze the network structure of value activity in manufacturing clusters, propose the model of value creation of cluster's value activity network, and explore the inner mechanism and optimization strategies of value creation in manufacturing clusters from the perspective of cluster's value activity network.

This paper applies a genetic algorithm to optimally search in the target space, and repeatedly exerts genetic operation (select, cross, variation) on the population to explore the optimal configuration strategy between value creation activity and resource utilization. It also analyzes the relation between object function of value creation and relative parameters.

The total value created by value activity network was impacted by the degree of effective configuration between all kinds of resources and value activities; the total value created by value activity network is positively related to activity units' elasticity coefficient of value creation of human resource, material resources and relations resource, and is negatively correlated to cost coefficient of human resource, material resources and relations resource; when the cooperative relations between activity units create positive relationship profit, the total value created by value activity network increases with the increase of cooperative relations between activity units.

Enterprises in clusters should reasonably configure and incorporate the resource among value activities through adding, deleting or reconfiguring activities, which makes the value activities network create maximum value; enterprises can transform the type of activity units to increase elasticity coefficient of value creation of human resources, such as transforming production activities into the high value‐added activities; enterprises can optimally incorporate the technical, material resources and human resources among activities to increase value creation elastic coefficient of material resources; enterprises can decrease cost coefficient by maintaining the stability of long‐term cooperation with the suppliers and strengthening the cultivation of talents; enterprises can increase profits from relation resource or reduce cost coefficient of relationship by updating activities, building trust mechanism and communication mechanisms and establishing long‐term cooperation relationship to improve value creation activities.

This paper proposes the model of value creation from the perspective of cluster's value activity network, and applies a genetic algorithm to explore the optimal configuration strategies between value creation activity and resource utilization.

In this interview with Prof. Venkat Ramaswamy, Strategy & Leadership reviews the way the concept of co-creation of value with customers is being implemented on its tenth anniversary. Prof. Ramaswamy explains the basic elements of the co-creation playbook.

Based on his research with companies pioneering innovation co-creation with customers, Prof. Ramaswamy offers insights for executives into what makes this perspective different and powerful.

Prof. Ramaswamy discusses the guiding principle underlying the transformation of enterprises towards co-creation: how to engage people to create valuable experiences together while enhancing network economics.

In designing and managing a co-creation platform, ask, how accessible is it to consumers or any other key stakeholders; how well does it facilitate dialogue among them; how transparent is this interaction to all, which helps to build trust and attract even more participants; and how well does it enable the reflexive leveraging of the innovation and learning generated to enhance the value of the platform?

Senior executives need to know how co-creation engagement platforms can also be used to generate ideas for continuously improving products and services through the lens of customer experiences.

Social media has significantly impacted the value creation processes within the consumer–brand relationship. This study aims to examine value formation processes within a cosmetics social media brand community and to establish the types of value formation associated with different categories of interactions within a social media brand community.

The research adopted a netnographic approach and followed the operational protocols of netnography. Conversations in one large cosmetics social media brand community were observed and downloaded for analysis over a two-month period. Examples of value-creation and formation processes were identified using netnographic interpretative procedures to develop higher-order themes.

The findings supported the creation of a “Consumer and brand value creation and co-creation framework” highlighting disparate value types within the following interactions: consumer-to-consumer; brand-to-consumer; and consumer-to-brand. The identified value types were specific to the actors (i.e. consumers and brands) involved in value formation processes. The analysis also revealed consumers’ ability to independently generate value through direct interaction with a social media brand community and the brands’ role in supporting consumers in value formation through value facilitation.

The pivotal role of disparate actors’ interactions in value formation processes is highlighted, alongside the autonomous ability to form value with the aid of resources stored and shared within the social media brand community. The network of interactions and value-creation processes contribute to a holistic understanding of the interactions in a social media brand community. Furthermore, the research explores and highlights the emerging role of social media brand communities as “value vestiges”.

The purpose of this paper is to present a critique of the use of governance value analysis (GVA) for assessment of value creation in supply chains.

The study presents a conceptual analysis of the assumptions, factors, and range of GVA as it applies to assessment of value creation in supply chains.

GVA lacks comprehensiveness in assessing value creation in supply chains in that it ignores: certain important factors that affect value creation in supply‐chain relationships; governance issues beyond transaction‐specific investments; and cooperative value‐creating activities among supply‐chain members.

The critique calls into question the applicability of GVA in governing value creation, especially in the context of dynamic contemporary conceptions of supply‐chain relationships. It is not recommendable to analytically treat cooperation in supply‐chain relationships as transactional exchange.

This is an original and timely critique of the presumption that GVA is an appropriate model for assessment of value creation in supply chains.

The greater part of the academic literature coincides in highlighting the positive influence that consumer participation has on the value created in service delivery. In this sense, research stands out which studies the consumer's role as a value co-creator in the service. However, there are few studies which analyze the consequences of co-creation behavior from the customer perspective. This research aims to fill this gap. To do so, it sets out from the measuring of co-creation from the perspective of the customers themselves and proposes that there is a direct relationship between value co-creation behavior and customer satisfaction with the service experience.

To verify the hypothesis proposed, adults over 18 were personally interviewed. They had to be regular users of firms in the beauty parlor and personal care sector. The data collection finished with 547 duly-completed questionnaires. The SPSS 20 and AMOS 20 statistical programs were used for the data analysis.

Regarding the causal model proposed, the data confirm the relationship set out in the hypothesis. It can therefore be stated that there is a positive relation between value co-creation and customer satisfaction. It allows a greater comprehension of the value creation process, analyzing the consequences for customer satisfaction. In this sense, the findings of the study suggest that service firms dedicated to personal care should foster the customers' active participation in the value creation process.

The analysis highlights the positive influence which taking part in the value co-creation has on satisfaction. This is the first study that clearly shows this relationship from the empirical point-of-view.

This second part of Strategy & Leadership's interview with Prof. Venkat Ramaswamy, one of the early proponents of co-creating value with stakeholders, asks him about the progress of the “co-creation transformation” of markets on its tenth anniversary and its wider implications for firm strategists and public policy makers. The interview concludes with a remembrance of the late C.K. Prahalad, a co-developer of the theory, and reviews his many contributions to the advancement of strategic management.

This interview considers how the co-creation view starts with interactions as the locus of value and platforms of engagements with individuals as the locus of value creation.

The co-creation paradigm is a dynamic perspective that sees the interaction of customers, employees and other stakeholders as forums for learning and ever-expanding capability building.

Strategy as “stretch and leverage” in the world of co-creation becomes about joint aspirations>joint resources.

Corporate managers need to understand that leading companies that have successfully adopted the co-creation model follow a simple principle – they focus their entire organization on the engagements with individuals.

Scholars have affirmed that a conceptualization of value co-creation in business relationships should reflect the nature and characteristics of interactional processes that occur in use. The advent of sales and marketing technologies, however, is changing the nature and dynamics of interactions. New trends in digitalization have played a significant role in emphasizing and facilitating the occurrence of business-to- business (B2B) collaborative or sharing economy. The B2B sharing economy and value co-creation are closely intertwined, as businesses harness the power of shared resources and collaboration to generate value in diverse ways. This study highlights the importance of going beyond value co-creation in studying B2B collaborative economy, unpacking the interconnected value processes that influence value co-creation. It also aims at showing the activities that characterize multiple joint value spheres among actors.

The study consists of 49 qualitative interviews with managers operating in different industries.

The paper shows that when considering digital B2B contexts, five joint value spheres in business relationships should be considered: a value co-creation, a value appropriation, a value communication, a value measurement and a value representation sphere. Each one is characterized by specific activities that are relevant from a managerial point of view.

This study highlights that value co-creation has often been over stressed when discussing business interactions, also with the advent of new technologies. Rather, this study offers a more comprehensive view of value co-creation that includes different value processes occurring in joint value spheres. These further processes are relevant because failure and success in business relationships within the B2B sharing economy are often dependent from activities outside the value co-creation process, which strongly affect it. Such knowledge will also open up new research venues and opportunities to better contribute to the practice of value management in business relationships.

The competitive luxury market raises higher requirements for luxury brands to effectively involve young generations in creating and endowing meanings to products, services and experiences. Several researchers suggest that art experiences create a fertile source of co-creation practices for cultural customers as they could engage in cognitive, emotional and imaginal activities to endowing meanings to products or services. Hence, bridging art and luxury is of significance for luxury brands to create value and engage their customers. This chapter delivers the essence of value for luxury brands and their customers and focusses on how luxury brands deploy art-based initiatives as a favourable technique in which value co-creation takes place.

With the development of tourism industry, online travel agencies (OTA) have gradually become an important channel for tourism product supplies and sales. Some OTAs provide consumers with a platform for tourism guidance and online travel sharing. They not only satisfy some tourists’ desire to share their experiences but also provide reference for more consumers to choose travel products. This process is the process of value co-creation by customers and online travel companies. This study is conducted under DART theory, a theoretical framework of value co-creation composed of four dimensions, namely dialog, access, risk-assessment, and transparency. Brand equity is divided into four aspects: brand loyalty, brand awareness, customer perceived value, and brand image. This study uses the structural equation model to investigate the impact of customer value co-creation behavior on brand equity of online travel enterprises and interprets the process and mechanism of customer value co-creation behaviors for online travel business brand equity, which provides more efficient strategies and methods for platform interaction and value co-creation.