Value co-creation practices and capabilities: Sustained purposeful engagement across B2B systems

The paradigm of value co-creation in business markets is now well established in the marketing literature. However, the practices and capabilities for collaborative value co-creation are less understood, particularly in increasingly boundary-less interorganizational, network and ecosystem relationships. This paper describes sets of practices that organizations in business markets adopt to co-create value. We provide a theoretically-grounded, empirically-informed classification of value co-creating practices, identifying the underlying capabilities needed to realize value in B2B systems. We adopt a case study approach utilizing various methods of data collection to explore co-creation practices from four organizations. The analysis reveals that ‘sustained purposeful engagement’ underpins the organizations' ability to co-create and capture value. Implications for organizations willing to develop co-creation capabilities and practices are discussed.     

Resource integration: Adopting a paradox perspective to inform the management of tensions in customer resource allocation

Service-dominant logic maintains that value is created collaboratively through a process of resource integration. Knowledge-intensive business services, the context for this study, are heavily dependent on customer resources for the fulfilment of the value proposition. Value co-creation is compromised when resources are not allocated in appropriate quality or quantity. While there is a growing body of research identifying antecedents to customer resource input, few studies investigate how customers might overcome barriers to resource allocation, particularly when faced with competing demands. This article uses a paradox perspective to explore the management of tensions affecting resource allocation. Empirically, we draw on interviews with service providers to identify perceived resource deficiencies, and with customers to explore resource allocation management. We show that it is possible to manage resource allocation tensions by devising novel solutions that integrate the two opposing demands. In addition, these solutions can result in an ‘augmented’ resource, particularly if the service provider is permitted to influence customer resource deployment. Finally, these novel solutions can activate an unintended by-product or secondary resource, enhancing the relationship between provider and customer.     

Co-creating integrated solutions within business networks: The KAM team as knowledge integrator

This study derives from a need that is both practical and theoretical: the need to increase knowledge of how KAM teams might ensure more successful value co-creation with their business customers in the service sector. The KAM teams in this study are formed of members originating from several supplier companies that integrate and apply resources with their customers in a business network. In the co-creation of integrated solutions within such business networks, KAM teams – drawing on organizational learning theory and knowledge management – are considered as knowledge integrators. The purpose of this study is to analyze the KAM teams' absorptive capacity — that is, how knowledge is acquired, assimilated, and applied in the co-creation of integrated solutions. The study employs a qualitative case study approach, based on 30 in-depth interviews in nine supplier companies operating in advertising, marketing and consulting, and in three key customer companies. The study contributes to the KAM literature by providing new conceptual understanding and empirical insight in respect of networked co-creation of integrated solutions and the influence of the KIBS context on the solutions process.     

A bibliometric analysis of extended key account management literature

Key account management (KAM) has played an important role in business, and this study reviews key account management research using bibliometric techniques. This review includes 373 KAM relevant articles published in 68 journals between 1979 and 2016. In our analysis, we extend the discussion on KAM literature by highlighting areas such as the roles of technology and conflict as well as relationship planning and implementation. We discuss the value of co-creation, inter-organizational design elements, and dyad-level performance measures. We examine five distinctive time-periods and find that KAM relevant literature has progressed 1) from selling and relationship-building approaches to key network management, 2) from network innovation to governance, 3) from network-level performance to co-creation of business solutions and values, 4) from product and service performance to incorporating sustainability. Finally, we present the fifth transition based on a network-view of KAM and identify future research aimed at integrating areas such as network-based orientation, applications of organizational theories, organizational innovativeness, network competence for optimal structure and processes, network-based KAM teams, value-sharing mechanisms, co-created value measurement, and value sustenance within networks. We identify areas of future research and expect the adoption and application of key account management concepts to grow across multiple disciplinary fields.     

The intermediator role in value co-creation within a triadic business service relationship

This study aims to enhance the knowledge of the roles played in value co-creation adopted by parties to triadic service business relationships. We approach the research issue through theoretical considerations and explore it empirically with a qualitative case study of triadic service relationships in the property maintenance business.     

Creating superior customer value for B2B firms through supplier firm capabilities

In a dynamic global business-to-business (B2B) environment, innovation and marketing appear crucial to providing supplier firms' positional advantage through the ability to create value for customers. Our examination is grounded in seeking to address the research question: To what extent is the creation of superior performance, relationship, and co-creation value driven by market orientation, product innovation and marketing capabilities in B2B firms? The results of a survey of 155 large B2B firms show product innovation capability and marketing capability partially mediates the relationship between a firms' market orientation and its ability to create value (performance and co-creation), except for the role of marketing capability which we found acted as a full mediator of the relationship between market orientation and relationship value.     

Channel relationship and business uncertainty: Evidence from the Hong Kong market

This study examines the dynamics of channel relationships between an end user and multiple suppliers in Hong Kong, a major international logistics hub in Asia. Drawing on the literature on channel relationships, we examine the links between different channel relationship variables and the contingent effect of business uncertainty on the links between these variables and supplier commitment. The results of the study indicate that expected relationship continuity mediates the effects of trust and relationship quality on commitment. Furthermore, the positive effect of trust on commitment is found to be stronger when business uncertainty is high than when business uncertainty is low. As supply chain management is becoming essential for firms to succeed in today's business, industrial marketing managers need to be aware of the dynamics in channel relationships and to better manage their supply chains. The implications of our findings for research and for the practice of channel relationship management are provided.     

Using cross-functional,cross-firm teams to co-create value: The role of financial measures

Increasingly, the involvement of representatives from all major business functions in cross-functional, cross-firm teams is being viewed as a means to develop and maintain profitable business-to-business relationships. However, if the measurements of the value co-created in these relationships with customers and suppliers do not incorporate the financial outcomes of joint cross-functional initiatives, managers can be led to make decisions that jeopardize the long-term profitability of the two firms. In this paper, the authors explore the differences in value co-creation when a company is linked to key customers and key suppliers through cross-functional teams and when it is not. Using a case study approach, the authors measured value co-creation in financial terms and describe how managers changed their behaviors toward customers and suppliers when they were able to compare the value that was being co-created in each relationship. In each pair of relationships, one involved cross-functional teams and the other did not. The results indicate that cross-functional, cross-firm involvement leads to increased value co-creation. The research suggests that marketing scholars and managers should emphasize the use of cross-functional teams that involve all major functions to manage relationships with key customers, and should incorporate financial measures in the evaluation of relationship performance.     

Building B2B relationships via initiation contributors: Three cases from the Norwegian-South Korean international project business

Initiation is still an unclear phase of B2B relationship development. Here, we build on existing theoretical knowledge derived from relationship development, project marketing and international business literature. We use this to analyze three cases of business relationship initiations between Norwegian and South Korean actors in the shipping industry. By piecing together theoretical and empirical insights, we develop a dynamic model of the relationship initiation process that highlights the role of initiation contributors in international project business. The developed model reveals that multiple entities— such as contacts, rituals and standards—serve as initiation contributors. These trigger or facilitate the focal dyadic relationship initiation, while also preparing future initiations in the focal context. Thus, our key contribution is to bring processual and contextual dimensions to business relationship initiation. Our research also suggests practical insights as to which actors and entities suppliers need to mobilize, in order to initiate new business relationships in international project business contexts.     

Interpersonal influence strategies in complex B2B sales and the socio-cognitive construction of relationship value

The investigation of how exactly salespeople create value at the individual level of interaction is still incomplete. While there have been lively debates on value creation and co-creation processes at the organizational level in the business marketing literature, researchers have paid much less attention to the fact that such processes almost always start at the interpersonal level of buyer-seller interactions. Through utilizing a symbolic interactionist perspective and the ethnographic research method of shadowing, the present study moves research insights into value creation in sales forward by depicting the detailed activities and tactics that influence customers’ value perceptions during the sales encounter. We complement the sales influence literature with three additional tactics: disrupt, reassure and dedicate. We also expand the framework of value creation in sales interactions by identifying three value strategies that change, strengthen or expand customer value perceptions through different socio-cognitive mechanisms.     

Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process

This paper examines the collaborative process of value co-creation in the context of knowledge intensive business services. Through 120 qualitative interviews with suppliers and buyers of knowledge intensive services, the extensive exploratory study analyzes the activities, roles and resources of buyers and suppliers in the reciprocal value co-creation process, and their implications for the resulting value-in-use. The paper draws on the literature on value creation, solutions and professional services marketing, and service-dominant logic. It provides a framework depicting value co-creation that occurs through a dyadic problem solving process, comprising activities such as diagnosing needs, designing and producing solutions, organizing the process and resources, managing value conflicts, and implementing the solution. The framework serves as a managerial tool to determine critical resources and roles for suppliers and customers, facilitate joint activities, and optimize resource utilization. Insights from this research are broadly applicable to the contexts of knowledge intensive and solutions business.     

The role of B2B marketers in increasing cyber security awareness and influencing behavioural change

Although cyberspace is providing business opportunities, it is evident that B2B marketers need to pay attention to how to reduce the vulnerabilities associated with the use of computer technology. To reduce the possibility of a data breach, senior management need to increase threat awareness through the development of a behavioural awareness programme. We address how B2B marketers can contribute to increasing cyber security awareness by relating to an individual's knowledge and attitude that influences their behaviour. By drawing on the information systems management, marketing, communication and motivational research (social psychology) literature, we explain how persuasive communication theory in conjunction with motivation theory can be used to create an awareness programme to influence behavioural change. A qualitative research strategy was deployed and the critical friendship group and the group interview method were utilized. Fourteen highly experienced security experts participated in the study. The findings indicate that the process of knowledge creation can be enhanced by deploying functional theories of attitudes as this provides a basis to categorize staff according to their level of motivation and knowledge. This means that B2B marketers can play the role of co-ordinator when devising and implementing an appropriate cyber security awareness programme to help staff counteract the actions of cyber attackers. By reducing the gap between self-efficacy and perceived expectation, the confidence level of staff will be increased and attitudinal behavioural change will occur throughout the organization.     

Individual customers' use and integration of resources: Empirical findings and organizational implications in the context of value co-creation

This article addresses the call for empirical work to contribute to the ongoing critique of service-dominant (S-D) logic, and for an assessment of its potential reach to practitioners. It examines the appropriateness of a model of the resource-based view of consumers in an organizational context — the British Library (BL) — and concludes that the model can be adapted to include individual customers with varying motivations (personal/business) for using the BL's services. A detailed analysis of individual customer's operant resources (enabled through access to 565 messages posted to a BL user support forum) provided a different lens through which the organization could consider strategies to support value co-creation. The outcomes, from a collaborative research process, with executives and senior managers of BL, suggest that a sub-division of customer operant resources into physical, cultural and social has empirical support and managerial relevance, and that a focus on individual customer resources can provide insights into how to manage co-creation of value.     

Embracing uncertainty in value-based selling by means of design thinking

Service delivery and solution selling both strive to achieve increased value through co-creation. However, the concept of value co-creation is a macro concept that still lacks precise empirical grounding and accurate operationalisation. To uncover the microlevel processes of co-creation, we examined 15 sales cases via the lens of uncertainty management. We used design thinking and actor-network theory to explore how certainty evolves between a seller and the buyer. We argue that the common industrial logic for addressing and tackling customer problems in solution selling, hitherto portrayed as either deductive or inductive, is incomplete. Indeed, our research shows that solution selling and value co-creation both require a different, abductive epistemology to address the uncertainty. Our study also provides an empirical extension to the value co-creation literature.     

Managing in complex business networks

For many years, research and management thinking has focused on understanding business relationships and networks. Now, the focus is shifting to managing business relationships and networks. This new approach focus poses two questions. Since networks are loosely coupled systems, to what extent are business networks manageable? Furthermore, how can a firm's ability to manage a network be characterized and measured? This paper addresses these two questions by synthesizing the current state of knowledge on management issues in networks and the contribution to managerial abilities in complex relationships. The discussion leads to a set of propositions describing the abilities firms will need to successfully manage complex business networks.     

Servitization in global business-to-business distribution: The central activities of manufacturers

Manufacturers' servitization development is a prevalent trend in the current business world. Companies then aim to increase customer closeness and complement product offerings with services. However, extant literature on distribution and marketing channels literature remains limited in terms of the implications of servitization for global business-to-business distribution. Therefore, this qualitative multiple case study identifies the central activities of servitizing manufacturers in global distribution. The study concludes with the following research propositions: Servitizing manufacturers develop global service portfolios and customize offerings according to local customer characteristics; build global operation models and adjust local service processes; ensure global brand coherency and design the customer experience according to local customer expectations; and create global value propositions and enhance local value co-creation with business customers. The study outlines managerial implications in terms of organizing global distribution. It also discusses new knowledge sharing and capability needs regarding solution sales, service provision and customer relationship management.     

Zooming in on co-creation practices of international franchisors

There is limited knowledge on value co-creation in international franchising despite the collaborative nature of this major foreign entry mode. This article zooms in on international franchisors' co-creation practices through in-depth interviews with 28 French franchisors and 25 of their foreign franchisees, offering three main contributions. First, the interviews reveal that franchisors do not always co-create value with their franchisees. Instead, franchisor-franchisee co-dependency manifests in both value co-creation and facilitation. Second, this research offers a typology of the domains of co-creation in franchising, showing that franchisors can participate in foreign franchisees' value creation processes during the set up and launch of the franchise abroad, training and knowledge dissemination, adaptation of the offering, and management of problems. Third, it offers a typology of seven franchisor co-creation styles – mentor, custodian, broker, partner, strategically focused, controlling principal, and chameleon – and their underlying dimensions in terms of franchisor activities and preferences. The mapping of co-creation domains and styles offers international franchisors a detailed account of the practical ways to support their foreign franchisees' value creation processes depending on their preferences, resources, and capabilities.     

System supplier's customer strategy

The article addresses the management of dynamic customer relationships in large-scale, complex system business. It combines the existing knowledge on system business, high-tech services and buyer-seller relationships with an international multiple case study. As a result, we produce a framework model, which provides the answers to the following critical questions: What are the key activities through which a system supplier provides value for the customer? What are the system supplier's roles for the customer? How does the customer's strategy and capabilities influence the customer's need for the supplier's activities and its evaluation of potential suppliers? And, how does the stage of the supplier-customer relationship and the system's technology cycle influence the customer's perceived need for the supplier's activities? In sum, the framework model provides a major theoretical contribution to more profoundly understand and manage complex system supplier-customer relationships.     

What's in it for me? Capital,value and co-creation practices

Marketing research is increasingly concerned with the practices through which service providers and their customers interact and how these practices influence value co-creation.Applying S-D logic and drawing on practice theory developed in sociology research in past decades, we propose a definition of value in terms of the coexistence of diverse forms of capital and currency variations. We then develop a conceptual model to explain value co-creation in terms of service provider–customer interaction practices (SPCI practices). We employ an extensive, qualitative study in the context of professional service firms. Our findings reveal three general categories of SPCI practices (access to capital, capital exploitation and capital attrition) that affect value co-creation. These insights move forward business-to-business marketing theory and practice, advancing our understanding of how service provider–customer interaction practices can be used to define value propositions and assess the types and amount of value that are co-created.     

Information technology as a determinant of organizational learning and technological distinctive competencies

This study aims to assess the role played by information technology (IT) in organizational learning (OL) considered as a process of knowledge creation and determined by the interaction of stocks and flows variables. We also examine how IT and OL influence both business performance and the development of the technological distinctive competencies (TDCs), as well as the latter's influence on leading the firm towards better outcomes. These relationships have been tested via an empirical analysis carried out with a sample of 140 industrial companies, applying a structural equation linear model according to the Partial Least Squares (PLS) methodology. Our findings allow us to confirm that IT acts as an enabler of the OL process and influences on the development of TDCs, which allow the achievement of a better business performance. Such competencies are also the result of OL, thus demonstrating the influences of them both on perceived organizational performance.