- Research Article
17
- 10.1016/j.procir.2014.01.007
The Impact of Openness on Value Co-creation in Production Networks
- Jan 01, 2014
- Procedia CIRP
- Tobias Redlich + 5 more +5
The Impact of Openness on Value Co-creation in Production Networks
Recent research has suggested that consumers collectively co-create value through consumption practices. This paper provides additional insights into value creation by demonstrating how individual consumers play distinct roles in the value creation process. By focusing on microdimensions of co-consuming groups, we show how individual consumers engage in value creation processes in the context of brand culture. We bring together concepts of value creation, working consumers, and double exploitation to demonstrate the roles played by consumers and communities in value co-creation. We focus on value creation in a particular type of co-consuming group: an online football fan community. Results show that co-consuming groups are platforms for value creation. We argue that double exploitation is not necessarily a threat to consumers because it may instead enable them to play active roles in value co-creation and gain power against brand owners. This paper contributes to the existing literature on brand community and the value co-creation paradigm by: (1) demonstrating the dynamic roles played by consumers in the value co-creation; (2) revealing new forms of consumer organization; and (3) illustrating how working consumers work among themselves in managing brand communities.
The Impact of Openness on Value Co-creation in Production Networks
The Impact of Openness on Value Co-creation in Production Networks
Conceptualising the framework for effectiveness of customer value co-creation in service innovation
The involvement of customers as co-creators in new service innovation is increasingly being suggested as a successful strategy to improve the success rate of new services. Value-in-use is a central theme for the service-dominant logic because the customer is always a co-creator of value. Co-creation involves customer engagement in the creation of offerings through ideation, design and development. The objective of this paper is to develop the framework for successful development and implementation of customer value co-creation process in service innovation. Based on literature review, three phases of value co-creation have been developed. First, motivation for customer value co-creation is one of the important aspects to consider by a service firm. Extrinsic and intrinsic motivations play a key role for customer motivation to participate. Second, customers' role in value creation process have greater been developed. Customer experience during interaction becomes central to the value creation process. Customer participation in value creation process is divided into two parts: participation behaviour and citizenship behaviour. Third, criteria for superior value co-creation process have been developed. This research brings the framework that motivation for value co-creation creates positive impact on value co-creation process, which in turn leads to generate positive value co-creation experience.
Read moreBrand Community as Co-Creation Value in the Service-Dominant Logic of Marketing
Brand Community as Co-Creation Value in the Service-Dominant Logic of Marketing
Designing Business Models for Value Co-Creation
Purpose – The aim of this chapter is to investigate how a focal market actor may design or redesign business models for improved value co-creation.Findings – We posit that value is co-created in use as actors integrate resources in practices, which makes practices a fundamental unit of value creation. Greater density of resources, relevant to a specific practice and to the goals or mission of the actor, corresponds to greater value. The role of a provider is to support other actors in their value-creation processes by providing resources that 'fit' into their practices.We identify 12 categories of business model design elements that need to be defined and developed in parallel. We conclude that a focal actor needs to strive for both intra-actor and inter-actor (meso-level) configurational fit of business model elements in order to enable purposeful co-creation in specific practices.Finally, we propose that meso-level configurations develop in a three-phase process of origination, mobilization and stabilization. A focal actor wishing to improve co-creation in a network needs to develop value propositions not only for customers but also for other actor domains. Overall, the performative power of a market actor is dependent on its network position, the relative strength of its business model and the actor's ability to author compelling meanings.Originality – The research contributes to the discussion on value co-creation by identifying three shifts in the unit of analysis: (1) we argue that use-value is co-created as actors integrate resources in practices, rendering practices a fundamental unit of analysis, (2) as practices are outcomes of business models, we identified business model design as a key unit of analysis for the improvement of value co-creation and (3) our view on business models is network-centric and we focus on how to introduce new business model elements in a specific actor network.Practical implications – The realization of the fact that value creation occurs in networks of interdependent actors pinpoints the need for increased transparency both between functional silos and between actors. The business model framework identifies 12 design elements, which can act as a 'checklist' for managers wanting to engage in co-creative business models.
Read moreSocietal value creation through digital technologies: Insights from stakeholder collaborations of Ukrainian agroholdings
This paper examines the rapid adoption of digital technologies by Ukrainian agroholdings, highlighting the transformative potential of agrifood digitainability, where digital innovation and sustainability intersect within agricultural practices through diverse stakeholder collaborations. We introduce a conceptual framework that categorizes firm-stakeholder interactions across two dimensions — primary versus secondary stakeholders and value creation versus legitimacy — capturing the complexity of these engagements. This framework redefines the concept of societal value creation, particularly emphasizing stakeholders traditionally classified as “secondary” within stakeholder theory. Our empirical analysis reveals that collaborations with both primary and secondary stakeholders generate significant social and environmental benefits, repositioning secondary stakeholders as active contributors to firm value creation. We argue that by treating secondary stakeholders as co-creators of societal value, agrifood firms can harness digital technologies to achieve both competitive advantage and enhanced legitimacy within their stakeholder environment.
Read moreShared value creation and sustainable development
Aim: A theoretical understanding of the process, causal linkages, and dynamics of creating shared value (CSV) is largely missing in the field of shared value creation and sustainable development. Hence, this research is explorative by nature and aims to contribute to theory building in this field. First, we collect empirical data and analyze it, to better understand how the shared value creation process in energy cooperatives works. Second, we present a first causal model of the dynamics and relationships between values, actors and cooperation, which needs to be further tested and refined.
 Design: First, we collect empirical data and analyze it, to better understand how the shared value creation process in energy cooperatives works. Second, we present a first causal model of the dynamics and relationships between values, actors and cooperation, which needs to be further tested and refined. This research was executed by conducting eight case studies in Belgium and Dutch energy cooperatives. Stemming from different countries, they are all moving towards new business models and provide insights about different institutional contexts.
 Findings: The findings show how a variety of values, more actors, and increased cooperation lead to (more) shared value creation. However, these relations are moderated by members’ differing needs, the involvement of the members, and characteristics of the organizational context. Additionally, new influential variables are discovered: professionalization and institutional context.
 Limitations: More (experimental) research is needed to exclude alternative causal explanations, as well as and to test and refine the model.
 Implications: This study provides a direction for testing the causal linkages found with other research designs and methods or in other organizational contexts. Additionally, the causal model could give practitioners and researchers insights into which variables to manipulate to get more or less shared value.
 Contributions: This study uniquely contributes to the knowledge of the concept of shared value creation to ultimately reach sustainable development by combining detailed insights into the value creation process with a comprehensive ready-to-test causal model.
 JEL: B55, L10, M21
Read moreHow Brand Community Practices Create Value
Using social practice theory, this article reveals the process of collective value creation within brand communities. Moving beyond a single case study, the authors examine previously published research in conjunction with data collected in nine brand communities comprising a variety of product categories, and they identify a common set of value-creating practices. Practices have an “anatomy” consisting of (1) general procedural understandings and rules (explicit, discursive knowledge); (2) skills, abilities, and culturally appropriate consumption projects (tacit, embedded knowledge or how-to); and (3) emotional commitments expressed through actions and representations. The authors find that there are 12 common practices across brand communities, organized by four thematic aggregates, through which consumers realize value beyond that which the firm creates or anticipates. They also find that practices have a physiology, interact with one another, function like apprenticeships, endow participants with cultural capital, produce a repertoire for insider sharing, generate consumption opportunities, evince brand community vitality, and create value. Theoretical and managerial implications are offered with specific suggestions for building and nurturing brand community and enhancing collaborative value creation between and among consumers and firms.
Read moreCluster social capital’s influence on regional public brands in specialty agriculture: a value co-creation perspective
Purpose This study aims to explore the collaborative value creation process in the context of regional public brands within the specialty agricultural products domain. It examines the role of cluster social capital in facilitating stakeholder interactions and cooperation, thereby enhancing the value of these brands. Design/methodology/approach The study adopts a value co-creation theoretical framework to construct a relational model that links cluster social capital, brand interaction, stakeholder perceived value, and the value of regional public brands. An empirical analysis is conducted using a sample of 404 valid responses to test this model and assess the influence of cluster social capital on brand value co-creation. Findings The findings reveal that cluster social capital significantly impacts stakeholder participation in value co-creation activities, thereby playing a crucial role in enhancing the value of regional public brands. The study also finds that brand interactions significantly affect stakeholder perceived value and the overall brand value, with perceived value acting as a partial mediator in these relationships. Originality/value This research contributes to the understanding of value co-creation in regional public brands, particularly in the agricultural sector. It provides new insights into how cluster social capital influences the value creation process, offering valuable implications for policymakers and practitioners working to develop and promote regional public brands in the specialty agricultural products market.
Read moreReconceptualising mega project success in Australian Defence: Recognising the importance of value co-creation
Reconceptualising mega project success in Australian Defence: Recognising the importance of value co-creation
Rural Entrepreneurship: A Rural Value Approach
This paper aims to advance the theory of rural entrepreneurship by bridging the gap between rural entrepreneurship and rural value creation. Rural entrepreneurship is part of a collaborative and resilient process of rural value creation to stimulate regional development. Rural entrepreneurship is embedded in and based on the characteristics of the place where it occurs and has a clear orientation towards social sustainability. The research question of this paper is to identify how rural entrepreneurship contributes to rural value creation. This question raises a further question: What is rural value, or what is considered value creation in rural areas? Through a bibliometric analysis, we identify research constructs in rural entrepreneurship that allow us to create a novel research taxonomy and a theoretical framework that focuses on a broad concept of rural value creation. Our findings and discussion highlight the collaborative nature of rural entrepreneurship in creating value for the rural community, contributing to local resilience and social sustainability through specific business models that go beyond the exclusive generation of economic benefits. We also propose a definition of rural value that will contribute to future research on rural entrepreneurship and all research focusing on rural issues from any perspective.
Read moreCoopetition and value creation and appropriation: The role of interdependencies, tensions and harmony
Coopetition and value creation and appropriation: The role of interdependencies, tensions and harmony
The influence of the Japanese tea ceremony on Japanese restaurant hospitality
Purpose– Recent discussions of value-in-use from the perspective of service dominant logic have focused on the customer’s determination of value and control of the value creation process. The purpose of this paper is to extend these discussions by exploring the value creation process in the Japanese tea ceremony and in thekaiseki ryoristyle of Japanese cuisine, which is based on the Japanese tea ceremony.Design/methodology/approach– A historical analysis is used to describe the history of the Japanese tea ceremony in Japan and its influence on Japanese culture. key principles underlying the Japanese tea ceremony and their relationship to Zen Buddhism are summarized and the ways in which these principles are reflected in the service provided by Japanese restaurants are explored.Findings– The two elite restaurants examined in this analysis have designed their service experience to reflect four principles of the tea ceremony: the expression of seasonal feelings, the use of everyday items, ritualized social interactions, and the equality of host and guest. Given these principles, we argue that the tea ceremony and restaurants based on this ceremony imply a co-creation process that is different in three important ways from the process discussed in the co-creation literature. First, the tea ceremony involves dual experiential-value-creation processes. Both the master and the customer experience value-in-use during the delivery ofkaisekicuisine, and the value-in-use each receives is critically dependent on that received by the other. Second, the degree to which value-in-use is created for both parties (the customer and the master) depends on the master’s customization of the service experience based on his knowledge of the customer and that customer’s with the tea ceremony,kaiseki ryoricuisine and Japanese culture.Research limitations/implications– We hypothesize that the dual experiential-value-creation model is potentially relevant whenever the service process contains an element of artistic creation. Potential examples include concerts, recitals, theatre performances and art exhibitions, as well as more mundane situations in which the service provider derives value-in-use from aesthetic appreciations of the service provider’s art.Originality/value– Recent discussions of value co-creation argue that the customer controls the value creation process and the determination of value. The authors argue that the tea ceremony can serve as a metaphor for value co-creation in service contexts where the customer’s value creation process depends on the creation of value-in-use by the service provider.
Read moreCustomer-to-customer value co-creation and co-destruction in sporting events
Previous scholars have examined value co-creation and co-destruction processes that take place between customers and service organizations or employees. Despite most service consumption situations occurring in the presence of other customers, few studies have examined customer-to-customer value co-creation and co-destruction. This lack of attention is particularly prevalent in sport service research. The purpose of the current study is to examine how other customers’ value creation (i.e. passion) and destruction (i.e. dysfunctional behavior) factors influence focal customers’ perceived value (i.e. economic, social, emotional, and epistemic), which in turn leads to customer citizenship behaviors (i.e. helping behavior and word-of-mouth). By using a convenience sampling method, data were collected from 318 spectators of professional golf tournaments. The results of structural equation modeling indicated that other customers’ passion had a positive influence on focal customers’ economic, social, emotional, and epistemic values (i.e. customer-to-customer value co-creation). Other customers’ dysfunctional behavior was negatively associated with customers’ emotional value (i.e. customer-to-customer value co-destruction). Emotional and epistemic values positively predicted helping behavior. Social, emotional, and epistemic values had positive effects on word-of-mouth. Overall, the present study contributes to value co-creation and co-destruction literature by highlighting other customers as potential value integrators. Further, the current work indicates that customer behaviors can serve as a double-edged sword, and it offers golf event practitioners novel insights regarding the necessity of strategic management aimed at facilitating customers’ passionate behaviors while protecting against the deleterious effects of dysfunctional behaviors.
Read moreFirm-brand community value co-creation as alignment of practices
Purpose – The purpose of this paper is to contribute knowledge regarding the nature of successful and unsuccessful value co-creation processes between firms and brand communities and the strategies used to address the latter. Design/methodology/approach – The paper draws on a netnographic study of the online collaborative platform known as Alfisti.com, which carmaker Alfa Romeo launched to enhance co-creation with its most devoted consumers, the “Alfisti”. Findings – The findings identify three groups of collaborative practices: interacting, identity and organizing practices. The paper details how firm and brand community members enact the elements – procedures, understandings and engagements – of collaborative practices and how the alignment of these enactments impacts value co-creation. Research limitations/implications – The paper suggests that co-creation of value succeeds when the enactment of collaborative practices aligns, i.e. when firm and brand community members enact practices in a similar way, and that co-creation fails when the enactment of practices misaligns. Firms and brand communities use three realignment strategies – compliance, interpretation and orientation – to address the misalignment and failure of co-creation. The fact that the research draws on a single qualitative case study is a limitation. Practical implications – Managerial implications include using realignment strategies to manage firm-brand community co-creation. Originality/value – Creating an empirical-based framework regarding successful and failing co-creation and how the latter is addressed in the context of brand community makes the paper original.
Read moreEnabling Value Co-Creation in the Sharing Economy: The Case of Mobike
The disruptive rise of the sharing economy has inspired multiple social innovations embodying significant potential towards achieving urban sustainability in crucial areas like low-carbon mobility. Increasingly, consumers in such sharing systems participate in activities of value co-creation together with firms and peers, such as through enforcing rules that help maintain trust and reciprocity. Why do people choose to invest their time and energy in co-creating values that may benefit wider social and environmental sustainability in the sharing economy? This study addresses this question through an analysis of an emerging shared mobility community, the innovative socio-economic relationships it has spawned, and the cultural and cognitive forces that underpin these new forms of economic organization and value creation in relation to sustainability. Through a mixed method case study of a newly emerged free-floating bike sharing system in China, called Mobike, the paper explores the main enabling factors which is transforming people from passive product/service receivers to active value co-creators in the sharing economy, such as self-efficacy, cognition of duty, anticipated awards and learning processes. The paper argues that business, social and government organizations may leverage these enabling factors to achieve a more sustainable sharing business and society. Finally, based on quantitative and qualitative data analysis, the article proposes a value co-creation framework between users and firms that involves a clear social learning process on the one hand, and has strong links with social innovations towards sustainability, on the other.
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