Co-creation of IT-value in a cluster of small enterprises

Abstract

There is a growing emphasis on digital transformation in research and business practice. The creation of value from IT-investments is a critical factor in digital transformation. Research has documented that the ability to realize IT-value is a very challenging endeavor, especially for small enterprises who because of resource poverty are dependent on external input and cooperation with other companies. There is a general lack of research on the phenomenon of how IT-value is co-created, particularly in small firms.This paper reports from a study of a cluster of performing arts organizations, Blender Collective. They realized that audience data is a key issue, and that they lack the tools to work strategically with audiences. Blender Collective members therefore engaged in a project to develop a collaborative approach towards strategic audience development. The results expand our understanding of the dynamics related to co-creation in a cluster of small businesses. We find that co-creation can be an important avenue for small enterprises to invest in IT and realize IT-value. We propose a modified IT-value framework to explain how networks of small enterprises would co-create IT-value.