Multi-focused strategy in value co-creation with customers: Examining cumulative development pattern with new capabilities

The previous research of capabilities development has largely focused on the established capabilities, i.e., quality, delivery, cost and flexibility, although there are a wide variety of possible dimensions. Few studies report the accumulation effect about adding new capabilities on an established base in a different strategic setting. Motivated by the increasingly important strategy of value co-creation with customers, this study aims to examine the patterns of capability development with consideration of adding service and customerization capabilities. Taking a downstream-focused view and based on the data collected at Chinese firms, this study extends the cumulative theory to the scenario of value co-creation with customers by identifying the mutual enhancement effect when adding new capabilities on an existing base. Specifically, this study finds that firstly, new capabilities (i.e. service and customerization) and established capabilities (i.e. flexibility and delivery) are mutually supportive in value co-creation scenario; Secondly, flexibility plays a primary role to amplify other capabilities in the new strategy; Thirdly, the capabilities development follows a sequence of flexibility, delivery, service and customerization. The findings of this study also enrich value co-creation studies by offering proposed capabilities development pattern which facilitates strategists to operationize the concept of value co-creation with customers and helps guide companies to take both upstream-focused and downstream-focused views of capabilities development to excel in coming competition.     

Managerial perceptions of service-infused IORs in China & India: A discursive view of value co-creation

This paper explores the managerial challenges facing firms seeking to build relationships with other network actors while doing business in foreign markets. By taking a critical perspective on an area of increasing importance in both manufacturing and service sectors, that of value co-creation, the paper explores how managers in different cultural contexts make sense of the notion of ‘value’ in inter-organizational B2B relationships between New Zealand service and service-infused supplier firms and buyers in China and India. From an analysis of the interview-based accounts on both sides of the buyer–seller dyad marked differences emerge regarding value-creation within managers' discourse around partnerships, collaboration and cooperation. Our findings suggest that the Indian manager's discursive use of ‘partnership’ draws on service-dominant logic in viewing this type of interaction as a means for co-creating value; they and their New Zealand suppliers are jointly involved in co-creating value within a service system, creating value-in-use. In contrast, the predominant perspective seen in the discourse of Chinese managers is the use of cooperation as a means of making transactions more cost-effective, or to fill gaps in their supply chains, resulting in the creation of transaction-based, co-production of value, which suggests a value-in-exchange orientation. In both cases, there is repeated reference to more peripheral actors whose efforts result in what we interpret as network value creation, based on their interactions with actors within the buyer–seller dyad.     

Marketing solutions in accordance with the S-D logic: Co-creating value with customer network actors

In the last ten years industrial companies have gone from offering products to offering products/services and then to offering solutions. At the same time, the theory of marketing has also evolved to provide, under the heading of S-D logic, an enlarged conceptual framework. In this article we apply the conceptual framework of S-D logic to the marketing of solutions. Based on two case studies, we highlight the limits to current offering strategies in terms of co-creation and involving customer network actors. We suggest an approach to co-create value in customer networks based on a switch from customer value proposition to customer network value proposition.     

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.