Co‐creation of meaning as a prerequisite for market‐focused strategic flexibility

Abstract

PurposeIn this paper the authors aim to introduce the perspective of shared meanings as a prerequisite for the formation of market‐focused strategic flexibility.Design/methodology/approachThe authors apply the ideas of co‐creation of meaning, which derive from research into the narrative process of strategy and the practice turn of strategy. The authors' view is illustrated with a case example from a Finnish property rental company. Using action research methodology, data were collected through interviews and workshops from the company, from its clients and from its subcontractors.FindingsThe case presented here shows that the lack of common understanding may lead to poor service quality even though the provider aims at meeting clients' needs. On the other hand, the results confirm that developing a shared understanding is possible in business practice. A common lexicon and the conscious use of human narrative capability facilitate the achievement of this goal.Research limitations/implicationsSince the empirical results are based on one case, the possibility for generalisations is limited. However, the study highlights important aspects of strategic flexibility that are worthy of further research.Practical implicationsThe study shows that flexible market orientation needs shared meanings between all the relevant actors in a service chain. The study also suggests some ideas on how the co‐creation of meaning can be promoted in practice.Originality/valueLinking the perspectives of co‐creation of meaning and market‐focused strategic flexibility is a new approach. The paper illustrates these topics in a subcontracting chain, whereas earlier studies have usually focused on companies.