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Article
Publication date: 8 June 2012

Christian Grönroos and Pekka Helle

Relationship is based on the idea of creating a win‐win situation for parties involved in a business engagement. The purpose of the article is to develop a model of mutual value…

4654

Abstract

Purpose

Relationship is based on the idea of creating a win‐win situation for parties involved in a business engagement. The purpose of the article is to develop a model of mutual value creation and reciprocal return on relationships (RORR) assessment, which enables calculation of joint and separate gains from a relational business engagement.

Design/methodology/approach

The approach takes the form of a conceptual analysis, which is tested empirically through a real‐life case. The empirical part is based on a longitudinal empirical study including several empirical cases.

Findings

Following a practice matching process, resulting in mutual innovation and aligning of their processes, resources and competencies, the parties in a business engagement make investments in the relationship. This enables the creation of joint productivity gains. Valuation of joint productivity gains produces an incremental value, which can be shared between the parties through a price mechanism. Finally, based on this shared value and costs of investments in the relationship by the parties, a reciprocal return on the relationship can be assessed and split between the business parties.

Research limitations/implications

The study addresses dyadic business engagements only. The findings enable calculation of reciprocal return on relationships (RORR) and form a basis of further development of marketing metrics and financial contribution of marketing, and of developing financial measures of intangible assets called for by the finance and investor communities.

Practical implications

Using the conceptual model and corresponding metrics, the financial outcome of the development of customer relationships as well as an assessment of the return on relationships with customers can be established.

Originality/value

The approach to assess the value of customer relationships as a two‐sided endeavor is novel, as well as the joint productivity construct and the value sharing approach, and the way of assessing ROR as a reciprocal measure that can be split between the business parties.

Article
Publication date: 12 October 2010

Christian Grönroos and Pekka Helle

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…

6838

Abstract

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.

Details

Journal of Service Management, vol. 21 no. 5
Type: Research Article
ISSN: 1757-5818

Keywords

Content available
Article
Publication date: 9 March 2012

Christian Grönroos

368

Abstract

Details

Journal of Service Management, vol. 23 no. 1
Type: Research Article
ISSN: 1757-5818

Keywords

Content available
Article
Publication date: 16 January 2014

223

Abstract

Details

Journal of Business & Industrial Marketing, vol. 29 no. 1
Type: Research Article
ISSN: 0885-8624

Book part
Publication date: 29 May 2018

Björn Axelsson and Mats Vilgon

The topics of this chapter are quite fundamental for the book. The chapter deals with value in B2B; what is value, what creates value, how could value be identified, estimated…

Abstract

The topics of this chapter are quite fundamental for the book. The chapter deals with value in B2B; what is value, what creates value, how could value be identified, estimated, and exploited. For these reasons, the chapter presents a value calculation model and carries out a critical discussion of the meaningfulness of doing such calculations.

A second theme is a discussion about solution sales relative to product sales and also systems selling. We also provide a comparison between business ventures focusing on selling goods, a goods-dominant logic, relative to services, a service-dominant logic. This comparison is made with reference to the two underlying themes of the book, the solution-oriented business and the continuously ongoing organizing activities.

Content available
Article
Publication date: 30 January 2009

387

Abstract

Details

Corporate Communications: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1356-3289

Article
Publication date: 30 November 2012

Monica J. Barratt, Martin Bouchard, Tom Decorte, Vibeke Asmussen Frank, Pekka Hakkarainen, Simon Lenton, Aili Malm, Holly Nguyen and Gary R. Potter

Unlike other plant‐based drugs, cannabis is increasingly grown within the country of consumption, requires minimal processing before consumption, and can be easily grown almost…

533

Abstract

Purpose

Unlike other plant‐based drugs, cannabis is increasingly grown within the country of consumption, requires minimal processing before consumption, and can be easily grown almost anywhere using indoor or outdoor cultivation techniques. Developments in agronomic technologies have led to global growth in domestic cultivation, both by cannabis users for self‐ and social‐supply, and by more commercially‐oriented growers. Cross‐national research is needed to better understand who is involved in domestic cultivation, the diversity in cultivation practices and motivations, and cultivators' interaction with the criminal justice system and cannabis control policies.

Design/methodology/approach

The article introduces the Global Cannabis Cultivation Research Consortium (GCCRC), describes its evolution and aims, and outlines the methodology of its ongoing cross‐national online survey of cannabis cultivation.

Findings

Despite differing national contexts, the GCCRC successfully developed a core questionnaire to be used in different countries. It accommodates varying research interests through the addition of optional survey sections. The benefits to forming an international consortium to conduct web‐based survey research include the sharing of expertise, recruitment efforts and problem‐solving.

Research limitations/implications

The article discusses the limitations of using non‐representative online sampling and the strategies used to increase validity.

Originality/value

The GCCRC is conducting the largest cross‐national study of domestic cannabis cultivation to date. The aim is not only to better understand patterns of cannabis cultivation and how they differ between countries but also to build upon online engagement methodology with hidden populations.

Details

Drugs and Alcohol Today, vol. 12 no. 4
Type: Research Article
ISSN: 1745-9265

Keywords

Article
Publication date: 2 March 2015

Marko Kohtamäki and Petri Helo

The role of industrial services has increased in importance as product manufacturing oriented companies have been moving towards industrial services and integrated solutions…

1929

Abstract

Purpose

The role of industrial services has increased in importance as product manufacturing oriented companies have been moving towards industrial services and integrated solutions. While migrating towards solutions provision, manufacturing companies have been developing new Service offerings, service business models logics and methods of service delivery are developed by using new technologies for value co-production and co-creation. The purpose of this paper is to discuss the solution providers perspective by illustrating central approaches tapping into industrial services, such as environment-strategy-fit, scope of industrial service offering, industrial service business capabilities, and servitization process.

Design/methodology/approach

The paper reviews literature related to industrial service phenomenon providing a: framework for environment-strategy-fit in the context of Industrial Services taking Fit; defining industrial service business; defining industrial service business capabilities; and a critical perspective toward industrial service business research.

Findings

Where this paper provides a framework for environment-strategy-fit in the context of Industrial services, it also develops grounds to consider the maturity levels of servitization in a solution provider context. This paper recognizes the maturity levels of manufacturing companies providing a typology to analyze the level of servitization. Finally, this paper also serves as an introduction to an interesting special issue on industrial services.

Originality/value

The existing industrial service theory related industrial services can be strengthened by developing frameworks and typologies to better understand the transformation from products to industrial services and integrated solutions. technology digitalization and enable operational and outsourcing services, in addition to performance services.

Details

Benchmarking: An International Journal, vol. 22 no. 2
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 6 March 2017

Jukka Partanen, Marko Kohtamäki, Vinit Parida and Joakim Wincent

The purpose of this paper is to develop a new scale for measuring the scope (i.e. breadth and depth) of industrial service offering.

1315

Abstract

Purpose

The purpose of this paper is to develop a new scale for measuring the scope (i.e. breadth and depth) of industrial service offering.

Design/methodology/approach

The scale and its constructs are developed by combining the key insights from prior literature and practitioners gained through expert interviews; validating the constructs by 3 item-construct validation rounds with 9 academic experts; and by testing and further revising the scale, with a sample of 91 manufacturing firms.

Findings

The distinct contribution of the study is the construction and validation of a new multi-dimensional scale for operationalizing the scope of industrial service offering. In addition, the identified service categories (i.e. pre-sales services, product support services, product life-cycle services, R&D services and operational services) extend the current literature on service typologies.

Research limitations/implications

The data are somewhat biased toward small- and medium-sized industrial firms. Hence, the development of the measurement in the context of large industrial firms provides one fruitful avenue for further research.

Practical implications

For managers of industrial firms, the identified service categories provide novel insight on how to develop, bundle and commercialize industrial services to their varying customer segments.

Originality/value

This study develops a multi-dimensional, fine-grained, statistical and relationship-level scale for measuring the scope of industrial service business. Moreover, this study tests and further develops the scale with quantitative empirical data.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

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