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Book part
Publication date: 23 December 2005

Arabella Mocciaro Li Destri and Giovanni Battista Dagnino

Various authors have brought forth the idea that the increase in context turbulence and the relentless change in today's economic and competitive environments have…

Abstract

Various authors have brought forth the idea that the increase in context turbulence and the relentless change in today's economic and competitive environments have rendered it essential for an effective firm strategy to combine both value appropriation and value creation (Porter, 1996; Moran & Ghoshal, 1999; Venkataraman & Sarasvathy, 2001; Hitt, Ireland, Camp, & Sexton, 2001b). Nonetheless, the methodological bases and the assumptions that characterize contributions concerning value appropriation and value creation are notably different and in many respects opposite to one another. These profound methodological differences hinder the possibility of a combined consideration of value appropriation and value creation issues within a coherent interpretative framework. By reinterpreting more conventional strategy studies in the light of the Austrian process view, this article builds a process framework which is able to consider and render mutually compatible both value appropriation and value creation within the unitary process of firm development. In addition, the use of the Austrian approach as an interpretative lens enables an evolution and extension of the resource-based theory that consents it, not only to grasp the mechanisms behind value appropriation, but also to suggest new ways of viewing post-industrial firm behavior that help to interpret its dynamic and proactive role in the value creation process.

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Strategy Process
Type: Book
ISBN: 978-1-84950-340-2

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Article
Publication date: 3 December 2020

Sami Rusthollkarhu, Pia Hautamaki and Leena Aarikka-Stenroos

Digital ecosystemic business environments challenge dyadic approaches to value creation and particularly to business-to-business (B2B) sales. This paper aims to offer a…

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2548

Abstract

Purpose

Digital ecosystemic business environments challenge dyadic approaches to value creation and particularly to business-to-business (B2B) sales. This paper aims to offer a novel conceptualization of the connection between value creation and B2B sales, which indicates practical implications and builds an agenda for future research.

Design/methodology/approach

This conceptual paper integrates theoretical insights on service-dominant logic, service ecosystems, interactional value co-creation and B2B sales. This paper uses anecdotal evidence from the field of B2B sales to illustrate theoretical concepts developed in the paper.

Findings

The paper develops the concept of value idea emergence (VIE), the process through which B2B entities become aware of a pursuable benefit. The paper further proposes that value (co-)creation in ecosystems happens through VIE’s intertwinement with the process of value proposition creation, a process, which includes all activities needed to bring a value proposition to a customer. The paper then discusses the role of B2B in these processes and proposes an agenda for future research.

Practical implications

The novel conceptualizations of value (co-)creation can help B2B sales managers to understand the ecosystemic nature of the interactions that affect sales and value creation in the current business environment.

Originality/value

The paper contributes to the literature on B2B sales and value creation by proposing a novel concept of VIE, introducing a conceptual model of interactive value (co-)creation in ecosystems and reformulating the role of B2B sales in value creation. These theory-developing insights can be used to guide both academic and managerial attention to interactions happening in the ecosystem outside of the buyer-seller dyad.

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Journal of Business & Industrial Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 5 June 2020

Yasir Rashid, Anisha Tanveer, Zeeshan Shaukat and Imran Sadiq

This paper aims to highlight four features of value co-creation among actors in a business-to-business environment. Service-dominant (S-D) logic of marketing is used as a…

Abstract

Purpose

This paper aims to highlight four features of value co-creation among actors in a business-to-business environment. Service-dominant (S-D) logic of marketing is used as a theoretical lens to view at the process of value co-creation.

Design/methodology/approach

Using an interpretive methodological approach, the authors collected empirical material from a single case based in New Zealand. The case was based on the collaboration, interaction and relationship between vendor and client during an information and communication technology (ICT) systems integration project. The unit of analysis was “points of value creation.” Empirical material came from observation, in-depth interviews and documents such as meeting notes and email logs. Interpretation highlighted four features of the value co-creation process: motivators, outcomes, disadvantages and management. Moreover, personal and network aspects of value co-creation process emerged.

Findings

The findings of this study capture benefits, as well as conflicts and frustrations, in a value co-creation process. Furthermore, it provides future research motivations for researchers currently working to develop S-D logic of marketing.

Originality/value

It is suggested that there is relatively little direction on how value co-creation process should be undertaken in different contexts such as retail, education, health care and ICT. There is a need to understand the dynamics and specification of value co-creation process, as the literature is scarce in this field.

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Article
Publication date: 4 July 2016

Martti Lindman, Kyösti Pennanen, Jens Rothenstein, Barbara Scozzi and Zsuzsanna Vincze

The purpose of this paper is to investigate the firm’s role in the value creation process. In particular, after categorizing the activities that firms carry out to…

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1407

Abstract

Purpose

The purpose of this paper is to investigate the firm’s role in the value creation process. In particular, after categorizing the activities that firms carry out to facilitate the creation of value, the “value space,” an actionable framework within which different dimensions of value creation are integrated, is developed and discussed.

Design/methodology/approach

The framework is built up on process theory, an in-depth review of the literature and a multiple case study carried out on 65 European firms in the furniture industry.

Findings

The value space is both a practical and theoretically based framework which contributes to the development of a more holistic and “actionable” view on the role of firm in the value creation process; also it provides managers with a tool to support the analysis, management and innovation of the value creation process.

Originality/value

The systematic categorization of firms’ activities and their subsequent integration into a value creation framework are a missing piece in terms of understanding the value creation process carried out by firms. Also, by facilitating the analysis and innovation of the value creation process, the framework can be used to support both exploitative and explorative business process management.

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Business Process Management Journal, vol. 22 no. 4
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 14 June 2013

Jaakko Siltaloppi and Suvi Nenonen

Research on value co‐creation has gained ground rapidly but remained at a very theoretical level. Thus, it has provided relatively little insight into the nature of…

Abstract

Purpose

Research on value co‐creation has gained ground rapidly but remained at a very theoretical level. Thus, it has provided relatively little insight into the nature of individual processes of service provision/value creation, and how firms interact with their customers and contribute to their value creation processes. On this basis, the purpose of this paper is to identify and elaborate possible roles firms and their customers enact in the service provision/value creation process.

Design/methodology/approach

The research utilizes a multiple case study approach building primarily on qualitative interview data from eight service concepts in the Finnish residential real estate industry.

Findings

The research reveals three roles of the firm based on the extent to which firms engage in service provision/value creation processes with their customers. At one extreme, the output of the firms acts as a resource, which is transformed into an outcome and used by the customers. At the other, firms and customers jointly co‐create value, with the firm coordinating the whole offering for the customer. In between, firms transform their resources into relatively standardized outcomes, which customers use in their value creation processes.

Research limitations/implications

The results contribute to the understanding of service provision by categorizing firm‐customer interaction into differing configurations of roles. This reinforces the notion that the depth of interaction affects the extent to which value is co‐created between the firm and customer; different services having different configurations of roles which shape the interaction. Limited to eight service cases, the results only exemplify aggregate role configurations. Moreover, by focusing only on the perspectives of firm representatives, the results do not allow a closer analysis on customer‐specific roles in the value creation process.

Originality/value

This research presents an empirical analysis and interpretation of the service co‐production/value co‐creation process, complementing the extensive theoretical research on the topic. Particularly, the results display different depths of interaction between firms and their customers in co‐producing and co‐creating value, which suggests that it is not necessarily meaningful to consider everything co‐creation from an empirical perspective.

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International Journal of Quality and Service Sciences, vol. 5 no. 2
Type: Research Article
ISSN: 1756-669X

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Article
Publication date: 13 July 2015

Kofi Osei-Frimpong, Alan Wilson and Nana Owusu-Frimpong

The purpose of this paper is to investigate value co-creation processes from the focal dyad of the patient and the physician and how their experiences in the consulting…

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1599

Abstract

Purpose

The purpose of this paper is to investigate value co-creation processes from the focal dyad of the patient and the physician and how their experiences in the consulting room affect the value that is created.

Design/methodology/approach

Semi-structured interviews incorporating the critical incident technique (CIT) were conducted with 8 doctors and 24 outpatients in selected hospitals in Ghana, exploring their experiences during their encounter in the service delivery impacting on the value creating healthcare opportunities. An abductive and thematic analytical approach was used to identify 76 useable critical incidents that had clear consequences on both the outcome of the service and the service experiences of the patient.

Findings

The study reveals three critical areas needed to support the value co-creation process and respective elements or activities to be considered during the service encounter. The critical areas comprise of the social context, beliefs and perceptions, and partnership between the focal dyad. The findings also suggests that patients do not consider “getting well” as the only value that they seek, but also the total experiences they go through in the consulting room. Also some physicians find it difficult to accept the recent changes in the patients’ behaviour and attitudes, resulting in knowledge conflict that adversely affects actors’ experiences in the consulting room.

Research limitations/implications

The study considered only one of the many professionals in the healthcare delivery, which may affect the true value perceptions of the patient.

Practical implications

The study provides service providers understanding of the processes that influence the patients’ experiences and value creation and the changing trends in the patient’s attitudes. The findings suggest a need for providers to take a holistic view of the service delivery and consider the critical areas, which could impact on the overall service outcomes.

Originality/value

This study extends the research on CIT to exploring the value co-creating processes in the healthcare setting. This also provides clarity in understanding the interdependence of the two actors and how this is managed as a resource in the value co-creation process at the micro level.

Details

Journal of Service Theory and Practice, vol. 25 no. 4
Type: Research Article
ISSN: 2055-6225

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Article
Publication date: 3 April 2017

Christiane Marie Høvring

The debate on corporate social responsibility (CSR) as shared value creation is trapped between management scholars and business ethics scholars, focusing merely on the…

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2485

Abstract

Purpose

The debate on corporate social responsibility (CSR) as shared value creation is trapped between management scholars and business ethics scholars, focusing merely on the distribution of values from an outcome-oriented perspective. The result is a juxtaposition of shared value from either a corporate or a societal perspective, providing only little attention to the actual communication processes supporting the creation of shared value. The purpose of this paper is to re-conceptualize shared value creation from a communicative approach as an alternative to the current situation caught between the management and societal perspectives.

Design/methodology/approach

Building upon recent constitutive models of CSR communication, this conceptual paper explores the potentials and implications of re-conceptualizing shared value creation as an alternative approach that recognizes the tensional interaction processes related to shared value creation.

Findings

The paper suggests a new conceptualization of shared value creation, which is sensitive to and able to advance the understanding of the tensional and conflictual interaction processes in which the continuous negotiation of corporate and stakeholder interests, values and agendas may facilitate a new understanding of shared value creation.

Practical implications

In order to succeed with the shared purpose of creating shared value (CSV), the company and the multiple stakeholders should neither disregard nor idealize the interaction processes related to shared value creation; rather, they should acknowledge that processes filled with tensions and conflicts are prerequisites for CSV.

Originality/value

A re-conceptualization of shared value creation that provides an alternative approach that is sensitive toward the tensions and conflicts occurring between corporate voice and multiple stakeholder voices.

Details

Corporate Communications: An International Journal, vol. 22 no. 2
Type: Research Article
ISSN: 1356-3289

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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…

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6337

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

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Article
Publication date: 27 June 2008

Christian Grönroos

In the discussion on service‐dominant logic and its consequences for value creation and marketing the inner meaning of the value‐in‐use notion and the nature of service…

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24842

Abstract

Purpose

In the discussion on service‐dominant logic and its consequences for value creation and marketing the inner meaning of the value‐in‐use notion and the nature of service marketing have not been considered thoroughly. The purpose of this paper is to analyze the meaning of a service logic as a logic for consumption and provision, respectively, and explore the consequences for value creation and marketing.

Design/methodology/approach

Being a research‐based paper, the topic is approached by theoretical analysis and conceptual development.

Findings

Discussing the differences between value‐in‐exchange and value‐in‐use, the paper concludes that value‐in‐exchange in essence concerns resources used as a value foundation which are aimed at facilitating customers' fulfilment of value‐in‐use. When accepting value‐in‐use as a foundational value creation concept customers are the value creators. Adopting a service logic makes it possible for firms to get involved with their customers' value‐generating processes, and the market offering is expanded to including firm‐customer interactions. In this way, the supplier can become a co‐creator of value with its customers. Drawing on the analysis, ten concluding service logic propositions are put forward.

Research limitations/implications

The analysis provides a foundation for further development of a service logic for customers and suppliers, respectively, (“service logic” is preferred over the normally used “service‐dominant logic”) as well for further analysis of the marketing consequences of adopting such a business and marketing logic.

Practical implications

Marketing practitioners will find new ways of understanding customers' value creation and of developing marketing strategies with an aim to engage suppliers with their customers' consumption processes in order to enhance customer satisfaction.

Originality/value

For a scholarly audience, the paper provides a more truly service‐centric understanding of value creation and of its marketing consequences. For a practitioner audience, it offers service‐based means of further developing marketing practices.

Details

European Business Review, vol. 20 no. 4
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 6 May 2014

Christian Grönroos and Johanna Gummerus

– The purpose of this conceptual paper is to analyse the implications generated by a service perspective.

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12715

Abstract

Purpose

The purpose of this conceptual paper is to analyse the implications generated by a service perspective.

Design/methodology/approach

A conceptual analysis of two approaches to understanding service perspectives, service logic (SL) and service-dominant logic (SDL), reveals direct and indirect marketing implications.

Findings

The SDL is based on a metaphorical view of co-creation and value co-creation, in which the firm, customers and other actors participate in the process that leads to value for customers. The approach is firm-driven; the service provider drives value creation. The managerial implications are not service perspective-based, and co-creation may be imprisoned by its metaphor. In contrast, SL takes an analytical approach, with co-creation concepts that can significantly reinvent marketing from a service perspective. Value gets created in customer processes, and value creation is customer driven. Ten managerial SL principles derived from these analyses offer theoretical and practical conclusions with the potential to reinvent marketing.

Research limitations/implications

The SDL can direct researchers’ and managers’ views towards complex value-generation processes. The SL can analyse this process on a managerial level, to derive customer-centric, service perspective-based opportunities to reinvent marketing.

Practical implications

The analysis and principles help marketing break free from offering only value propositions and become an organisation-wide responsibility. Firms must organise service-influenced marketing and create a customer focus among all employees, beyond conventional marketing.

Originality/value

A service perspective on business has key managerial implications and enables researchers and managers to find new, customer-centric, service-influenced marketing approaches.

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