Browsing by Subject "value creation"

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  • Lahti, Tom; Wincent, Joakim; Parida, Vinit (2018-08-07)
    This paper contains a theory review of value creation and the implementation of next-generation sustainable business models to profit in the circular economy. While previous research has pointed to the influence of society and regulatory policy on companies’ ability to address larger sustainability concerns and to change their ways of working, the field suffers from little theoretical guidance outlining how undertake circular business mode transformation in practice. By reviewing the field’s main theories, we illustrate significant implications for how future research can study profitability and competitiveness in the circular economy. This paper introduces the central components of circular business models and discusses links to contingency theory, transaction cost theory, resource-based theory, theory on networks and industrial economics, and agency theory. Understanding the circular economy and the ways companies can compete in the circular economy based on these theories is important for establishing important new research directions for scholars of sustainable business and circular business models.
  • Holttinen, Heli (Svenska handelshögskolan, 2013-11-11)
    This thesis investigates consumer value creation as an everyday sociocultural and situational phenomenon. The first objective was to understand and conceptualize how cultural ideals and practices inform consumer everyday value creation. I examined empirically how consumers enact cultural ideals in mundane consumption in the empirical context of a weekday dinner practice among Finnish households. The second objective was to contextualize a value proposition concept in customers’ practices. The approach consisted of a theoretical investigation of how consumers experience and evaluate value propositions in their practices in order to draw theoretical implications. Integrating complementing knowledge from S-D logic, Consumer Culture Theory, and Practice Theory provided me insightful theoretical lenses for the examinations. The findings highlight the primacy of cultural ideals and practices in consumer everyday value creation and value co-creation. They inform the consumers regarding which value propositions are desirable and thereby guide resource integration and thus purchasing decisions. This thesis portrays consumers as pragmatic, flexible and fragmented value-creating agents. It demonstrates how the consumers enact and compromise cultural ideals and identity projects in relation to practices. They compromise identity projects and cultural ideals in some practice(s) but not across practices. As the practices serve different ends for the consumers at different times, the meaning of the practices is constantly re-created by consumers. As resource integrators the consumers accept and use value propositions in the practices in their own ways irrespective of firms’ intentions, in order to enact cultural ideals. Value becomes co-created only when the consumers (as customers) can enact cultural ideals by integrating firms’ offerings with their other resources - and as a result experience value. While this thesis illuminates the interplay among cultural ideals, practices, value propositions, and consumer action, it offers a cultural and practice-theoretical conceptualization of how consumers, material objects and a sociocultural environment interact and co-create each other at a certain time in history and in the consumers’ lives. The findings represent the value of an offering as a dynamic, context-dependent, intersubjective and subjective notion that is constantly co-created and re-created by customers. This thesis introduces firms a sociocultural and practice-theoretical approach for the new offering development process. It means perceiving and investigating customers’ lives and value-creating activities as a mosaic of practices in which the customers try to enact cultural ideals by integrating value propositions with their other resources. By contextualizing the value propositions in the customers’ practices, the thesis helps firms to improve the effectiveness of the new offering development process. Effectiveness here refers to the ability of the firms to create offerings that are both culturally and practically desirable for the customers. By addressing the cultural ideals and the practical realities of everyday life, effective offerings make it possible for the customers to enact the cultural ideals in their everyday lives.
  • Mickelsson, Jakob (Svenska handelshögskolan, 2014-04-29)
    Due to changes in technology, customers are increasingly empowered in their interactions with companies. Information is readily available, and customers can choose, learn and contribute in ways previously unimaginable. Even though marketers have acknowledged the importance of understanding the customer as an active participant in service, there have been few efforts to systematically understand and illustrate the customer’s structures of activity. Customer activity has within marketing traditionally been viewed as a response to inputs from the provider. Advertising, for example, is seen as having a persuasive function: It should result in the customer’s activity of buying. Similarly, in service research, the customer’s activities are considered to be either directed by service design or as inputs into an interaction process. This thesis presents an alternative view on customer activity: It is a perspective on service use. In contrast to earlier perspectives, the customer activity perspective incorporates service as an enabling or supporting element in the customer’s activities. The thesis defines ‘customer activity’ as a discrete sequence of behaviour that through its outcomes aims at creating or supporting some type of value in the customer’s life or business. This definition enables new types of analysis. By identifying many separate customer activities, service providers can uncover interlinked systems of activity. Customer activities are connected to each other through, for example, frequency links, functional links, resource links, temporal links, cognitive links or geographical links. The role of service is to enable customer activity and serve as an ingredient in the customer’s interlinked systems of activity. Consequently, the thesis takes a customer-dominant stance on service. Customers are seen as controlling and combining the services of different providers with each other to serve their own ends. Customer activity is presented as a focal concept for understanding this process. Moreover, customer activity is viewed as more than simply interactions with a service provider or inputs into realizing a particular service. Rather, activities are elements that customers use to organize their own lives. The thesis contains empirical examinations of the relationship between customer activity and service. These show that customers maintain different types of activity systems, and that the same service can play different roles in the life of the customer. Service providers can use this information as input for service design, communication and customer segmentation.
  • Voima, Päivi; Heinonen, Kristina; Strandvik, Tore (Svenska handelshögskolan, 2010-08-04)
    This paper extends current discussions about value creation and proposes a customer dominant value perspective. A customer-dominant marketing logic positions the customer in the center, rather than the service provider/producer or the interaction or the system. The focus is shifted from the company´s service processes involving the customer, to the customer´s multi-contextual value formation, involving the company. It is argued that value is not always an active process of creation; instead value is embedded and formed in the highly dynamic and multi-contextual reality and life of the customer. This leads to a need to look beyond the current line of visibility where visible customer-company interactions are focused to the invisible and mental life of the customer. From this follows a need to extend the temporal scope, from exchange and use even further to accumulated experiences in the customer´s life. The aim of this paper is to explore value formation from a customer dominant logic perspective. This is done in three steps: first, value formation is contrasted to earlier views on the company’s role in value creation by using a broad ontologically driven framework discussing what, how, when, where and who. Next, implications of the proposed characteristics of value formation compared to earlier approaches are put forward. Finally, some tentative suggestions of how this perspective would affect marketing in service companies are presented. As value formation in a CDL perspective has a different focus and scope than earlier views on value it leads to posing questions about the customer that reveals earlier hidden aspects of the role of a service for the customer. This insight might be used in service development and innovation.
  • Grönroos, Christian; Voima, Päivi (Hanken School of Economics, 2012-01-18)
    In order to further develop the logic of service, value creation, value co-creation and value have to be formally and rigorously defined, so that the nature, content and locus of value and the roles of service providers and customers in value creation can be unambiguously assessed. In the present article, following the underpinning logic of value-in-use, it is demonstrated that in order to achieve this, value creation is best defined as the customer’s creation of value-in-use. The analysis shows that the firm’s and customer’s processes and activities can be divided into a provider sphere, closed for the customer, and a customer sphere, closed for the firm. Value creation occurs in the customer sphere, whereas firms in the provider sphere facilitate value creation by producing resources and processes which represent potential value or expected value-in use for their customers. By getting access to the closed customer sphere, firms can create a joint value sphere and engage in customers’ value creation as co-creators of value with them. This approach establishes a theoretically sound foundation for understanding value creation in service logic, and enables meaningful managerial implications, for example as to what is required for co-creation of value, and also further theoretical elaborations.
  • Helle, Pekka (2011-01-05)
    There is an urgent interest in marketing to move away from neo-classical value definitions suggesting that value creation is a process of exchanging goods for money. In the present paper, value creation is conceptualized as an integration of two distinct, yet closely coupled processes. First, actors co-create what this paper calls an underlying basis of value. This is done by interactively re-configuring resources. By relating and combining resources, activity sets, and risks across actor boundaries in novel ways actors create joint productivity gains – a concept very similar to density (Normann, 2001). Second, actors engage in a process of signification and evaluation. Signification implies co-constructing the meaning and worth of joint productivity gains co-created through interactive resource re-configuration, as well as sharing those gains through a pricing mechanism as value to involved actors. The conceptual framework highlights an all-important dynamics associated with ´value creation´ and ´value´ - a dynamics the paper claims has eluded past marketing research. The paper argues that the framework presented here is appropriate for the interactive service perspective, where value and value creation are not objectively given, but depend on the power of involved actors´ socially constructed frames to mobilize resources across actor boundaries in ways that ´enhance system well-being´ (Vargo et al., 2008). The paper contributes to research on Service Logic, Service-Dominant Logic, and Service Science.
  • Laamanen, Mikko (Svenska handelshögskolan, 2017-02-01)
    The politics of value creation outlined in this dissertation challenges core assumptions of current value creation literature and particularly its service-dominant logic branch. Politics of value creation illustrates the weight that people individually and collectively give to an object or an issue; the social construction of meaning and valuation, its conventions and institutions; the authority afforded through these, and the struggle between different groups to maintain and change the above. This study engages current theory with an alternative conceptual framework and an unorthodox empirical setting. Sociological theories of collective action and strategic action fields are in conceptual dialogue with value-creating actors, their relationships and interaction, practices and outcomes. The collective–conflictual value creation theory developed in this study acknowledges systems of domination and skewedness of power in value creating contexts. The approach builds on the bearing that dominant ideologies are a product of a particular social order and interests that result in a conflict between incumbents and challengers, and have consequences to the wider environment. Rather than marginal and consequential, conflict is not only endemic, but causative when value-creating interactions are based on varying understandings and logics. The empirical study engaged the organised labour in Finland with critical ethnography examining societal macro-relations of the labour market institutions, meso-dynamics of the labour movement, and micro-practices in a trade union organisation. The politics of value creation is, on one hand, a critical analysis of current theory, and on the other, an exploratory study illustrating strategic collective action in value creation. With the collective–conflictual approach, value creation contexts are recast as porous arenas where various interactions, practice and outcomes constantly develop in collaboration and competition illustrating the permanence of dynamic tensions that instigate jockeying, using social skill in framing, and practicing ideologies and politics in an attempt to create and arbitrate value.
  • Grönroos, Christian (2009-11-20)
    The underpinning logic of value co-creation in service logic is analysed. It is observed that three of the ten foundational premises of the so-called service-dominant logic are problematic and do not support an understanding of value-co-creation and creation that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus and nature of value co-creation cannot be identified. Based on the analysis in the present article it is observed that a unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, the three problematic premises are reformulated accordingly.
  • Grönroos, Christian (Hanken School of Economics, 2009-12-01)
    The underpinning logic of value co-creation in service logic is analysed. It is observed that three of the ten foundational premises of the so-called service-dominant logic are problematic and do not support an understanding of value-co-creation and creation that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus and nature of value co-creation cannot be identified. Based on the analysis in the present article it is observed that a unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, the three problematic premises are reformulated accordingly.