Exploring Value Cocreation in Relationships Between an ERP Vendor and its Partners: A Revelatory Case Study

Abstract

Contemporary business organizations are increasingly turning their attention to jointly creating value with a variety of stakeholders, such as individual customers and other business organizations. However, a review of the literature reveals that very few studies have systematically examined value cocreation within business-to-business (B2B) contexts. Using a revelatory case study of the relationship between an ERP vendor with a global reputation and its partners, and informed by the resource-based view (RBV) of the firm and related theoretical perspectives, we develop an understanding of value cocreation in B2B alliances associated with selling, extending, and implementing packaged software, specifically ERP systems. Our study reveals that there are different mechanisms underlying value cocreation within B2B alliances, and also points to several categories of contingency factors that influence these mechanisms. In addition to providing insights about the phenomenon of cocreation itself, the study contributes to the stream of packaged software literature, where the implications of value cocreation in alliances between packaged software vendors and their partners for the client organizations have not been sufficiently explored.

An empirical analysis of inter-organisational value co-creation in a supply chain: a process perspective

“…In general, according to the relational view (Dyer 2000;Dyer and Singh 1998), IT co-creations can be categorised into four layers: asset, knowledge, complementary resource and governance layers. IT promotes value co-creation in each layer or at multi-levels (Ceccagnoli et al 2012;Grover and Kohli 2012;Han et al 2012;Rai et al 2012;Sarker et al 2012). In the complementary capability layer, inter-firm IT capabilities, including logistics automation, coordination integration, and synchronisation, along with inter-firm communication, help build relational value for logistics companies (Rai et al 2012).…”

“…quarterly (Ceccagnoli et al 2012;Grover and Kohli 2012;Han et al 2012;Rai et al 2012;Sarker et al 2012) discussed on systematic research on the co-creation of IT value. In general, according to the relational view (Dyer 2000;Dyer and Singh 1998), IT co-creations can be categorised into four layers: asset, knowledge, complementary resource and governance layers.…”

Investigating the Effect of Customization on Rework in a Higher Education Enterprise Resource Planning (ERP) Post-Implementation Environment: A System Dynamics Approach

“…In some business models vendors establish a more close partnership with their customers, providing customization extensions and support (Sarker et al, 2012). These alternate business models should be explored and the resulting model from this study may need to be further adapted.…”

An economic framework for transitioning to capacity building

“…By the mid-point (time mid-point ) of the relationship (or when the relationship is mature enough for the community partners to handle many of the operational activities on their own), the strategic goal(s) should be shifting towards the development of co-creation of value. Co-creation of value occurs when two or more entities work together to create value, above and beyond value that can be created when using markets (or networks) alone (Sarker, Sarker, Sahaym, & Bjørn-Andersen, 2012). As an example, business partners may work together by sharing information between each other to more effectively and efficiently deliver value to the end-customer (Rai, Pavlou, Im, & Du, 2012;Sarker et al, 2012).…”

“…Co-creation of value occurs when two or more entities work together to create value, above and beyond value that can be created when using markets (or networks) alone (Sarker, Sarker, Sahaym, & Bjørn-Andersen, 2012). As an example, business partners may work together by sharing information between each other to more effectively and efficiently deliver value to the end-customer (Rai, Pavlou, Im, & Du, 2012;Sarker et al, 2012). In a global health context, GHOs and their partners should seek ways in which all participating entities can contribute to value creation (e.g., improved community health).…”