This study identifies micro-level value co-creation mechanisms that support the design of digital services. As services are now becoming digital—or at least digitally enabled—how to design digital services that enable value co-creation between a service provider and customers has become an increasingly important question. Our qualitative research study provides one answer to this question. Based on 113 in-depth laddering interviews analyzed using interpretive structural modeling, our study shows that value co-creation mechanisms differ between business-to-business and customer-to-customer digital service types. We identify five mechanisms to support value co-creation in the design of digital services: (1) Social use, (2) Customer orientation and decision making, (3) Service experience, (4) Service use context, and (5) Customer values and goals. We claim that firms can readily utilize these mechanisms to improve their customers’ service experiences.
This paper presents a systematic literature review (SLR) investigating the factors that enable and hinder value co-creation in organizations' continuous service development processes. Employing the lens of servicedominant (S-D) logic, we classify the identified factors into three interrelated dimensions: institutions, resources, and service exchange. Our systematic findings may inform organizations' efforts to support the emergence of positive rather than negative value outcomes when implementing continuous practices in their service development. In addition, we outline avenues for further research in this emerging topic area.
While the importance of sustainable consumption is well acknowledged and consumers increasingly demand sustainable alternatives, the consumption of environmentally strenuous products continues to grow. Technological solutions have been discussed for addressing the misalignment between consumers' attitudes and behavior. This study is the first to use the service-dominant logic lens to investigate how digital services may be harnessed to drive the co-creation of sustainability value in the retail industry. We conduct 10 semi-structured interviews with a Finnish retail company and its customers and reflect on the customers' experiences with respect to the company's value propositions in the servicescape. Our findings indicate that understanding and harnessing consumers' personal sustainability goals may be the key to designing digital services that help mitigate the impacts of consumption through value co-creation (VCC). We propose a preliminary framework for sustainability VCC and value co-destruction (VCD) in the retail industry and discuss its implications.
The service-dominant (S-D) logic lens for understanding value co-creation and customers’ interactive roles in the service exchange has emerged as a focal theme of interest among service academics and practitioners. While recent investigations have also focused on the process of value co-destruction—that is, how potential negative outcomes occur—the concept and its distinction from value co-creation remain unclear. This conceptual review synthesizes the concept of value co-destruction and proposes a framework consisting of two interrelated dimensions—actor–actor interaction and individual actor —and their components at three temporal points of the service encounter. We distinguish value co-destruction from other closely related concepts and take steps to integrate the value co-destruction concept into the S-D logic framework and the concept of value co-creation. The proposed integrative framework can help researchers and service practitioners alike to identify, analyze, and rectify the value co-destruction components in the service exchange and, thereby, avoid potential negative outcomes of service interactions. A threefold research agenda is proposed to obtain a more balanced understanding of the two dynamically interrelated concepts of value co-creation and value co-destruction and their application in practice.
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