Co-creation Willingness Matrix and Capability Continuum for Classification and Scaling of Services

Abstract

ABSTRACTInteraction-centric capabilities for engaging consumers are the basis of “co-creation capabilities” of a firm. These capabilities can be used as a strategic tool to develop competitive advantage for service firms under service-dominant logic. The authors develop a “co-creation continuum” for scaling of services, based on their relative extent of co-creation capability. The study establishes consumer's knowledge about the service process or the application technology, flexibility within the service processes, level of people interaction involved, and degree of importance of the service, as the underlying factors determining co-creation capability of a service. Practicing managers can use this continuum to effectively develop consumer co-creation strategies, by gauging the existing capabilities of their firm and hence, focusing on key areas of improvement. This research also conceptualizes a “co-creation willingness matrix,” which is helpful in classification of services based on the firm-consumer willingness to co-create. This classification is useful for the firms lying on the disadvantageous end of the co-creation continuum, to reap the benefits of high level of consumer value co-creation by displaying higher willingness to co-create and by generating consumers’ willingness to co-create by adopting suitable strategies. This article also sets out agenda for future research.