Exploring value co-creation within networks : actor-to-actor service provision within a public transport service system

Purpose: This study explores how value co-creation occurs at a network level in a service system comprising representatives of business, consumer, and community actors. The research centres on the following questions: 1) what kind of operand and operant resources are contributed and integrated in the value co-creation process? 2) What value-in-use is experienced by actors? 3) What factors facilitate service-system functionality and value cocreation? Drawing on service-dominant logic, IMP literature and a qualitative case study the paper provides new insights into value co-creation at a network/system-level. Methodology: A case study approach is employed to examine a unique partnership between a public transport provider and community groups who are invited to ‘adopt’ railway stations in Scotland. The ‘adopt a station’ scheme allows community users to utilize unused space within the station free of charge in order to provide services or facility improvements to benefit the community. The case represents a service-system where value co-creation occurs within Actor to Actor interactions in the interplay of C-to-C, B-to-C and B-to-B context, involving consumers, members of the community, rail staff and governmental organisations. Findings: The study describes resource contribution and integration involving a range of actors. In the Adopt a Station case, organizational actors contributed principally operand (financial and physical) resources, and the community actors and rail operator become in themselves the operant resources that integrate resources, promote the network and build relationships through their drive and passion to make the adopt project a success. The provision of resources was motivated by the value-in-use each actor anticipates gaining from involvement in the service-system. Four critical prerequisites for value co-creation within the service-system were identified: the provision of access and nature of that access; the level of ownership taken by adopters; user empowerment, and an increased level of support from other actors in the service-system. Contribution: The study of value creation within service systems comprising of relationships between a range of actors (both business and consumer) represents an interesting research gap in both S-D logic and IMP literature. This paper addresses calls for research to increase understanding of value co-creation at the service system and network level. The paper contributes by illustrating a) resources contributed and integrated at network-level and b) the value-in-use experienced by multiple actors c) the prerequisites for successful value co-creation. We suggest that firms should explore the potential for engaging versatile stakeholders and their networks of relationships around a common cause and make use of organically emerging service systems

Complex City Systems

Information and communications technology (ICT) is being exploited within cities to enable them to better compete in a global knowledge-based service-led economy. In the nineteenth and twentieth centuries, cities exploited large technical systems (LTSs) such as the telegraph, telephony, electrical networks, and other technologies to enhance their social and economic position. This paper examines how the LTS model applies to ICT deployments, including broadband network, municipal wireless, and related services, and how cities and city planners in the twenty-first century are using or planning to use these technologies. This paper also examines their motivations and expectations, the contribution to date, and the factors affecting outcomes. The findings extend the LTS model by proposing an increased role for organizations with respect to an individual agency. The findings show how organizations form themselves into networks that interact and influence the outcome of the system at the level of the city. The extension to LTS, in the context of city infrastructure, is referred to as the complex city system framework. This proposed framework integrates the role of these stakeholder networks, as well as that of the socioeconomic, technical, and spatial factors within a city, and shows how together they shape the technical system and its socioeconomic contribution. The CCS framework has been presented at Digital Cities Conferences in Eindhoven, Barcelona, Taiwan, London and at IBM’s Global Smart Cities Conference in Shanghai between 2010 and 2012. Its finding are timely in the context of major policy decisions on investments at regional, national and international level on ICT infrastructure and related service transformation, as well as the governance of such projects, their planning and their deployment

Problem solving and the co-ordination of innovative activities

In the context of increasingly globalized markets, ever more complex supply chains and international manufacturing networks, corporate decision-making processes involve more and more actors, variables and criteria. This is a challenge for corporate head quarters. Many have argued that the role once attributed to the integrated innovative organisation and its R&D laboratories is increasingly associated with the functioning of networks of specialised innovators. The aim of this paper is to argue that the role of large firms may have changed, but it is far from disappeared. It looks at the interplay of increasing knowledge specialisation, the development of products of increasing complexity that perform a widening range of functionalities, and the emergence and diffusion of new design strategies for both products and organisations, namely modularity. The emergence of modularity as a product and organisational design strategy is clearly connected to recent trends in organisational design. Modularity would allow the decoupling of complex artifacts into simpler, self-contained modules. Each module would, at the extreme, become the sole business of a specialised trade. This paper builds upon the idea that there are cognitive limits to this process of modularisation: what kinds of problems firms solve, and how they solve them, set limits to the extent of division of labour among firms. We draw implications of such limits for both management and economic theory.large firms, knowledge specialisation, complex products, modularity,

Authority in the Age of Modularity

This paper builds upon on-going research into the organisational implications of 'modularity'. Advocates of modularity argue that the Invisible Hand of markets is reaching activities previously controlled through the Visible Hand of hierarchies. This paper argues that there are cognitive limits to the extent of division of labour: what kinds of problems firms solve, and how they solve them, set limits to the extent of division of labour, irrespective of the extent of the market. This paper analyses the cognitive limits to the division of labour relying on an in-depth case study of engineering design activities. On this basis, this paper explains why co-ordinating increasingly specialised bodies of knowledge, and increasingly distributed learning processes, requires the presence of knowledge integrating firms even in the presence of modular products. Such firms, relying on their wide in-house scientific and technological capabilities, have the 'authority' to identify, propose, and implement solutions to complex problems. In so doing, they co-ordinate networks of suppliers of both components and specialised competencies.modularity, division of labour limits, knowledge integrating firms

How costumers’ way of life influence the value co-creation

Purpose: This article is a contribution to the understanding of how value arises in wellestablished markets, and under which circumstances actors integrate resources from different service ecosystems to generate value. To understand this phenomenon, it is fundamental to consider which practices are performed by customers to co-create value and how they do so. Design/Methodology/Approach: Using a qualitative approach, the study provides fresh empirical insight into well-established market processes of value creation. After a literature review an ethnographic approach was chosen in order to understand how co-creation processes occur in the empirical setting of an international restaurant chain. Several observations, conversations and semi-structured interviews were undertaken concerning the analysis of the topic under study. Findings: The results show that even in a well-established market, a provider must consider individual customers’ distinct needs, present in their daily practices, to be able to assist them in the value creation process. It is argued that the practice styles are the building blocks for prevailing ways of life that actors assume, according to the context in which they are, to integrate resources. Practical implications: The study includes implications for service providers of a wellfounded market for facilitating value co-creation along with customers and fulfils the need to better understand this phenomenon. Originality/Value: Recent studies call for empirical evidence on co-creation processes in mature markets, accordingly, this study brings an additional understanding on how actors, depending on the context, adopt different ways of life that require unique resources, which activate to achieve what they want, in order to establish room for co-creation.peer-reviewe

Unfolding the impacts of transaction-specific investments: Moderation by out-of-thechannel-loop perceptions and achievement orientations

When distribution channel partners make specific investments, tailored to a particular supplier, it could prompt either opportunism or beneficial (e.g., extra-role) behaviors. The impact of the investment in turn may depend on whether the channel partner perceives that it is being left out of the channel loop by the supplier, as well as that partner’s achievement orientation. This study considers a sample of 155 IT professional service firms and finds that their knowledge-intensive, transaction-specific investments (TSIs) encourage distinct behavioral intentions. If they perceive that the supplier is leaving them out of the channel loop, the effects of the TSIs get amplified in relation to opportunistic and extra-role behavioral intentions. Furthermore, the firms’ achievement orientation moderates these influences. Suppliers thus should attend closely to achievement-oriented partners to ensure they do not perceive that they have been left out of the channel loop

Connectivity and Network Robustness of European Integrators

Abstract Although redundancy is often associated with lower efficiency, redundant networks can provide integrators with the flexibility and capacity to respond to issues in the delivery network. This study analyzes the air transportation network strategies and robustness of the four largest European integrators, estimating the loss in connectivity when a node becomes unavailable. Accordingly, we develop a robustness index that accounts for the importance of airports in the network to each of the four main integrators, in terms of connections and freight capacity. The outcomes reveal that integrators operating within a hub-and-spoke type network are less resistant to network disruptions, while robustness is higher in less concentrated networks. The results highlight that integrators develop different network strategies to manage the trade-off between network efficiency and robustness, which may vary depending on the standardized or customized services expected by clients

Strategies for Manufacturing in Southern China

This paper investigates the structure of industrial and business network strategies in the global manufacturing environment based on empirical data from 87 manufacturing firms in the Pearl River Delta of Southern China. Relevant data was collected using a questionnaire approach and analyzed using appropriate statistical techniques. Hierarchical cluster analysis was employed to devise taxonomy for industrial network strategies. Three distinct clusters were identified: Network Integrators, Network Learners and Network Conformists. Results indicate that the former two clusters, though differing in the extent of scale, adopt a holistic approach in developing both intra- and inter-firm strategies and that the third cluster can be described as static in terms of the network strategies used

Sustainable supply chain management needs sustainable logistics services. The strategic role played by logistics service providers

Purpose – The purpose of this research is to examine the concept of sustainable service co-creation in triadic business relationships in logistics and supply chain management. More companies seek to develop sustainable solutions that would not be sustainable exclusively for themselves but for the supply chain they belong to. In doing that – especially when dealing with services – they may need the external support from logistics service providers (LSPs). This paper aims to explore the innovative initiatives undertaken by LSPs in triadic relationship management with their customers and suppliers while co-creating sustainable services along the supply chain. Design/methodology/approach – To investigate the research question, a systematic literature review and empirical exploratory investigation through case study will be conducted adopting the qualitative methodology, to explore trends and evolving paradigms. Findings – A literature review conducted in this paper enriches existing literature through an integration of sustainability in a viable system approach and logistics service provision, in particular, it investigates the ways in which sustainability is achieved. It is assumed that the triadic relationship among an LSP and its customers and suppliers requires significant modifications in collaboration and an innovative approach in operating procedures. Research limitations/implications – This paper is an exploratory study and limited in its scope to an example of a relationship that focuses mainly on three actors: the supplier, the LSP and the customer. However, it could be extended in terms of numbers of case studies investigated. Practical implications – The implications arising from the literature and the empirical research offer a range of current sustainable practices in the services sector. This could be a starting point for other research and company activities. Originality/value – There is little research that addresses the issue of sustainability and logistics service providers simultaneously, hence the present paper is meant to fill the gap by providing a foundation which actors of different supply chains could use as a benchmark. This study gives evidence of how logistics services may contribute to sustainable development. Key words – sustainable supply chain management, logistics service providers, viable system approach, co-creation, business relationship managemen