Understanding the effects of technological advancement (Internet of Things) on value co-creation and firm performance

This paper focuses on the effects of technological advancement in the relationships between value creation and firm performance. Specifically, this paper will explain how the concept of internet of things (IoT) can influence value co-creation and co-destruction towards firm performance from the perspective of resource-based view (RBV) and service-dominant (S-D) logic. This paper is motivated to discuss on the mentioned relationships due to four reasons. Firstly, although value co-creation has always been associated with positive implications on consumers (Terblanche, 2014); there are also some possible negative implications related to them (Grönroos, 2012). The same observation could also be happened to firm performance. For instance, increasing consumer participation will reduce firm controls on the outcome of the process. This situation would be ended up co-destructing the value through the very same consumer-firm interactions that are used in value co-creation (Terblanche, 2014). Therefore, the possibility of value co-destruction should not be overlooked (Plé & Cáceres, 2010) as it may as well affect the firm performance (Alexander, 2012). Despite of that, the numbers of studies focusing on both value co-creation and co-destruction in a single topic is still relatively low. Since the concept of value co-destruction is still in blur (Plé & Cáceres, 2010), the interrelationships between value co-creation and co-destruction need to be further explored

Information and communication technology: Studies under the digital era

This paper focuses on the effects of technological advancement in the relationships between value creation and firm performance. Specifically, this paper will explain how the concept of internet of things (IoT) can influence value co-creation and codestruction towards firm performance from the perspective of resource-based view (RBV) and service-dominant (S-D) logic. This paper is motivated to discuss on the mentioned relationships due to four reasons. Firstly, although value co-creation has always been associated with positive implications on consumers (Terblanche, 2014); there are also some possible negative implications related to them (Grönroos, 2012). The same observation could also be happened to firm performance. For instance, increasing consumer participation will reduce firm controls on the outcome of the process. This situation would be ended up co-destructing the value through the very same consumer-firm interactions that are used in value co-creation (Terblanche, 2014). Therefore, the possibility of value co-destruction should not be overlooked (Plé & Cáceres, 2010) as it may as well affect the firm performance (Alexander, 2012). Despite of that, the numbers of studies focusing on both value co-creation and co-destruction in a single topic is still relatively low. Since the concept of value co-destruction is still in blur (Plé & Cáceres, 2010), the interrelationships between value co-creation and co-destruction need to be further explored

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

Co-creative pricing (CCP) : a conceptual development of consumers’ participation in pricing practicing in services

Keskustelu yhteisestä arvonluonnista on saavuttanut yhä laajempaa huomiota niin nykypäivän tieteellisteoreettisessa markkinointikirjallisuudessa kuin käytännössä. Suosiosta huolimatta keskustelusta on jäänyt miltei tyystin huomioimatta arvokäsitteen eräs varsin oleellinen ulottuvuus: hinta. Siitä syystä on ensiarvoisen tärkeää tutkia hinnan merkitys arvokäsitteen, yhdessä tuottamisen ja hinnan muodostamassa suhteiden kolmiossa, sillä vaihdannassa hinta on yksi arvonmuodostuksen tärkeimmistä osatekijöistä. Toissijaisia tutkimusmenetelmiä käyttäen, tämän tutkimuksen tarkoitus on pyrkiä käsitteellistämään yhteinen hinnanluonti arvon lisääjänä. Niinikään tutkimus tarjoaa mallinnuksen niistä vallitsevista olosuhteista, jotka ovat arvon muodostuksessa välttämättömiä. Esitetty malli perustaa juurensa palvelumarkkinoinnin Service-Dominant Logic -ajattelusta, muodostaen fuusion yhdessä ARA-mallin ja markkinointikeskustelussa vallalla olevan elämysmarkkinointiajattelun kanssa. Tutkimus edistää yhteisen arvonluonnin tieteellistä keskustelua syventämällä jo olemassa olevaa tietoa arvon muodostuksesta. Lisäksi, tutkimus edistää käytännön tietämystä esittämällä eksploratiivisen avauksen hinnoittelun dynaamisesta yhteisajattelusta haastamalla markkinoijia ajattelemaan myös hinnoittelua uudesta innovatiivisesta yhteiseen arvonluontiin perustuvasta näkökulmasta. Nykyajan asiakkaat ovat yhä halukkaampia, pystyvämpiä sekä resursseiltaan rikkaampia osallistumaan hinnoittelupäätöksiin kuin aikaisemmin. Yhdessä tuotettu arvo hinnoittelun kautta tarjoaa vaihtoehtoisen ajattelutavan pitkään vallinneelle yritysten sisäänpäin suuntautuneelle hinnoitteluajattelulle ja esittää, että kääntämällä katse asiakkaan suuntaan, saavutetaan todellinen arvo, sellaisena kuin asiakas sen määrittelee. Tutkimuksessa esiin tuotu ajattelutapa tarjoaa uusia mahdollisuuksia vaihtoehtoisille hinnoittelumenetelmille sekä palveluinnovaatioille.Co-creation debate has increasingly become a key topic in the contemporary services marketing theory and practice. Domains of co-creation and value have thus far attracted plenty of academic interest, however, there is an evident deficiency of one essential dimension of value: price. In the triangular relation of co-creation, value and price, it is of high importance to research the role of price, as it is one of the prime components contributing to the formation of value in an exchange. Using secondary research methods, this research works towards a conceptualization of CCP and offers a model of the conditions that need to be in place for value through CCP to occur. The model builds its foundations on Service-Dominant Logic debate. Combined together with the ARA model, and the prevalent thinking of experiential marketing, the work contributes to the academic co-creation literature by adding to the knowledge of value creation. Further, it presents an explorative opening of dynamic pricing thinking for practitioners by challenging the marketers to think their pricing from an innovative co-creation based view. Co-created pricing offers an alternative logic to inwardly focused value creation of the firm and suggests that by turning the focus on the customer, the true value, as perceived by the customer, is captured. Today’s customers are increasingly willing, capable and rich in their resources to participate in pricing decisions, thereby offering an opportunity for alternative pricing methods and service innovations

New business and economic models in the connected digital economy

This paper discusses business models as a systemic phenomenon as opposed to traditional reductionistic approaches of business disciplines. It presents the ways connectivity change economic models due to the availability of consumption data as an economic resource, markets forming at consumption spaces, and how industries could disrupt one another when connected through consumption technologies. The paper further suggests that the challenges posed by connectivity results in the redrawing of traditional firm and market boundaries. It proposes for more research into modularity, transaction costs, the future role of the firm, and the necessary transformation of businesses to stay agile in a connected digital economy

Contextual variety, Internet-of-things and the choice of tailoring over platform : mass customisation strategy in supply chain management

This paper considers the implications for Supply Chain Management from the development of the Internet of Things (IoT) or Internet Connected Objects (ICO). We focus on the opportunities and challenges arising from consumption data as a result of ICO and how this can be translated into a provider’s strategy of offering different varieties of products. In our model, we consider two possible strategies: tailoring strategy and platform strategy. Tailoring strategy implies that a provider produces multiple varieties of a product that meet consumers’ needs. Platform strategy depicts the provider’s actions in offering a flexible and standardised platform which enables consumers’ needs to be met by incorporating personal ICO data onto various customisable applications independently produced by other providers that could be called on in context and on demand. We derive conditions under which each of the strategies may be profitable for the provider through maximising consumers’ value. We conclude by considering the implications for SCM research and practice including an extension of postponement taxonomies to include the customer as the completer of the product

'Datafication': Making sense of (big) data in a complex world

This is a pre-print of an article published in European Journal of Information Systems. The definitive publisher-authenticated version is available at the link below. Copyright @ 2013 Operational Research Society Ltd.No abstract available (Editorial

Why don’t people do what’s good for them? : an examination of the value(s) which affect physical activity.

One of the 21st Century’s major public health issues is physical inactivity. Therefore one of the greatest public policy challenges is to find new ways of conferring to an inactive population the health related benefits that arise from being physically active in a way that not only leads to knowledge acquisition, but which also leads to increased levels of participation in physical activity. Participation rates in physical activity across the UK have remained stubbornly static since the mid‐ 1980s and retain a range of gender, age, social‐economic and ethnic participation inequalities. Research has indicated that, when compared to men, women are more likely to: lead sedentary lifestyles (Hausenblas and Symons‐Downs, 2005), experience poor health (Bertakis et al., 2000), and feel more uncomfortable about their body image (Liechty et al., 2006), factors which impact on and/or result in lower participation levels, suggesting that social marketing campaigns to date have been largely ineffective. A central tenet of social marketing is to achieve a voluntary, not forced or coerced behaviour change by emphasising a value proposition that induces action from the consumer. Set in the context of publicly funded leisure facilities this paper offers empirical insights regarding the drivers, constraints and consumption values underpinning women’s participation in physical activity. Our results suggest that value perceptions regarding the costs, benefits and enjoyment of exercise do not differ with gender. However, statistically significant differences exist between the genders regarding: the physical environment within which exercise occurs; the quality of service experience; and intrinsic factors such as social and altruistic value. Insights gained from this research may be able to inform policymakers and leisure services providers regarding more effective methods of engaging ‘hard‐to‐reach’ groups, such as women. Specifically, our findings suggest that exercise adoption is likely to be increased with targeted social marketing campaigns which focus on emphasising the experiential aspects of consuming physical activity viewed from the perspective of value‐in‐use rather than from the traditional price‐based perspective that tends to focus on the trade off of costs against benefits