As product markets mature, firms are increasingly offering industrial services, in order to differentiate themselves and remain competitive. The general strategic view emerging from the services literature is that service infusion in manufacturing industries takes a somewhat unidirectional path from products to service provision. Based on in-depth case study research in the materials handling industry and drawing on Lindblom's (1979) concept of disjointed incrementalism, this study shows how service infusion often takes place in small steps without clearly directed efforts. The study identifies elements of incrementalism central to service infusion and demonstrates how a successful service strategy involves continuous modifications, adaptability, the seizing of ad hoc innovation, a continuous recalibration of opportunities, and the management of intertwining goals. The concept of agile incrementalism is introduced which aptly describes this contingency approach. The article contributes to a multifaceted and nuanced picture of service strategy and the service-infusion process.
Adopting a Service-Dominant Logic lens, recent research within industrial marketing contexts increasingly recognizes the role of operant resources in value co-creation. Incumbent within operant resources is actor competence. Despite this, an investigation into the role of actor competence in value co-creating processes is scant and the competence literature, in general, has tended to concentrate on specialized knowledge and skills based interpretations that potentially restrict our understanding of the construct. To address this gap, this research adopts a phenomenological approach to explore perceived behavioral attributes of competent actors.Findings confirm two broad behaviorally based conceptualizations of competence: 1) extra-role behavior demonstrated through organizational citizenship behavior, and 2) in-role behavior demonstrated through understanding of work, and engagement behavior. To this end, the contribution of this research is twofold. First and from a theoretical perspective, it offers empirical insights into a relational based framework of competency within industrial marketing contexts. Second, and from a pragmatic perspective, this framework may aid managers in developing a broader understanding of actor competence and how such competencies may be enhanced within the workplace to optimize value co-creation.
PurposeThis paper addresses the question of how value can be created through social responsibility programs or other means, so that sustainability is achieved through increasing stakeholders' participation in the process of design and selection of such programs, so that transparency is maximised and trust can be built with the lasting benefits of co-creation of value. Design/Methodology/ApproachThis paper studies the relationship between sustainability, corporate social responsibility, and value co-creation based on qualitative research data gathered from two embedded case studies. The first case study in a large mining company operating in New Zealand and the second case study is based on the New Zealand Merino Company. FindingsFindings of this research suggest that sustainability is built with the participation of many interconnected entities, that is, suppliers, manufacturers, retailers, or more generally stakeholders whose actions are fostered by social responsibility that fuels the pride, trust, and consistency of the members of the value chain. Value in all forms -functional value, hedonic value, symbolic value and cost value-is a recurrent theme in this research data; however it is value co-creation, working together, living up to the values that their products and services promise that ultimately supports sustainability. Originality/ValueThis paper shows how the scope of sustainability has broadened from environmental matters to include other topics such as good corporate citizenship, business relationships and the value that is created and shared, not only with shareholders, but also within a wider community of stakeholders.In Case Study 1, interaction is facilitated by an existing working relationship, then, in subsequent interaction both parties utilise each other's resources in co-creating value. The involvement of the stakeholder in the project, legitimises the company's actions while making the stakeholder feel proud of the project outcome, thus, the company is seen as a good partner and thus the relationship becomes stronger. Later, the successfully completed project serves as the context of interaction where the parties are able to discuss and resolve problems that otherwise might be irreconcilable.While consistency and trust are well known dimensions of business relationships, pride, not previously studied, became a relevant issue in Case study 2. Pride emerges from the feeling of ownership value that co-created activities nurture. Pride, strengthens the network links promoting business bottom-line viability at little or no cost. It also reduces the parties' motivation for opportunistic behaviour. A virtual circle between value co-creation and the perception of value that a project delivers, derives from integrity. Integrity makes the company boundaries less sharp, and thus increases the parties' ownership of the outcomes that the operations of the company deliver.
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