Co-creating value with suppliers: a conceptual framework

Abstract

PurposeThis study aims to put forward a conceptual framework to promote strategies for exploring and exploiting value co-creation with suppliers through dynamic capabilities development.Design/methodology/approachThe conceptual framework was developed by applying deductive logic to blend the theoretical perspectives of value co-creation and dynamic capabilities concerning interaction and innovation.FindingsThe suggested framework emphasized that to co-create value with suppliers, health-care organizations need to integrate innovation abilities with interactional abilities for assimilating mutual processes and resources. The study also points out the crucial role of middle managers to articulate the diverse value perspectives and act as change catalysts.Practical implicationsThis paper provides a roadmap for health-care managers to develop internal bundles of resources and integrate inter-organizational processes in the direction of co-creating value. The approach suggests the use of project pipelines and performance measures as managerial tools for aligning value co-creating initiatives with suppliers.Originality/valueThe study is a pioneering attempt to develop a conceptual framework for co-creating value with suppliers and, consequently, to provide innovative services to patients. The study aligns with previous value co-creation and dynamic capabilities works in terms of interaction and innovation development. However, based on the interrelation of these two dimensions, the study puts forth four interrelated processes (experimenting new possibilities of value creation; articulating value alignment initiatives; implementing mutual benefits; and executing and managing performance improvement) attached by mutual change mechanisms.