Abstract
The paradigm of value co-creation in business markets is now well established in the marketing literature. However, the opportunities and case studies for value co-creation are less well understood, especially in the increasingly limited inter-organizational, networking and ecosystem relationships. This article describes the sets of practices that organizations in business markets are adopting to create value together. We propose a theoretically based, empirically based classification of value co-creation practices, identifying the basic capabilities required to realize value in B2B systems. We use a case study approach using a variety of data collection methods to explore the practice of co-creation among organizations. Analysis shows that “sustained, focused engagement” is at the core of organizations' ability to co-create. The implications for organizations wishing to develop co-creation opportunities and practices are discussed. Conceptually, the potential for value co-creation relates to understanding “the processes, resources and practices that customers use to manage their operations.” Achieving value co-creation requires finding a “structural fit” between the customer's activities and the seller's activities. Value creation is collaborative and interactive in nature, and value is no longer just the exchange value inherent in firms' offerings, but also value in use, so value is created jointly in interactions between customers, vendors and other participants in complex B2B systems. In particular, customers interact with the vendor to gain access to the resources needed for their own value creation process, with the ultimate realization of value taking place in the client's organization, thereby also giving rise to the notion of "client dominant logic".
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