Abstract
Value co-creation as a social process involves the interactions and dialogues between stakeholders. As such, the social ties that stakeholders develop have the propensity to influence their level of interaction in a co-creation activity. In this study, we examine the effect of social ties on consumer’s level of interaction and looked at how it moderates on consumers’ willingness to engage in interaction leading to co-creation. Data was collected from 535 automobile owners in Ghana through a self-administered questionnaire. The data was analyzed using structural equation model in AMOS and statistical tool package. The test results on consumers’ willingness and level of interaction, willingness and co-creation, social ties and level of interaction, social ties and co-creation, interaction and co-creation are significant. On the moderating effect of social ties on willingness, the result shows that social ties strengthen the positive relationship between willingness and interaction. We propose that organizations should manage social ties they develop with their customers effectively so as not to impact negatively on their willingness to engage in co-creation interactions.
Highlights
A new power shift has emerged in recent times as the consumer is playing a key role in the value creation process
We show how customers’ willingness in the form of their motivation and the social ties developed with the organization can influence the interaction and value co-creation drive
We propose that organizations should manage social ties they develop with their customers effectively so as not to impact negatively on their willingness to engage in co-creation interactions
Summary
A new power shift has emerged in recent times as the consumer is playing a key role in the value creation process. The concept emphasized on skills and knowledge as the fundamental unit of exchange and that customers are always co-creators of value This is in vast contrast to the goodsdominant logic (GDL) that viewed the customer as a destroyer of the value created by the firm. The GDL largely focuses on operand resources ( good), whereas the SDL centers on operant resources (skills and knowledge) These two logics view the customer differently with respect to the creation of value. The customer plays a significant role in the value creation, with the firm acting as a facilitator (Grönroos, 2008; Lusch & Vargo, 2004; Payne, Storbacka, & Frow, 2008; Ramirez, 1999; Vargo & Lusch, 2008). In 2011, The People’s Car Project initiated by Volkswagen in China received more than 200, 000 design ideas from about 13 million visitors
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