How Knowledge Management Processes Increase Customer Value and Firm Performance Through Value Co-Creation

Abstract

The focus of this paper is to contribute to the strategy and value literature by examining how different knowledge management (KM) processes contribute to firm performance and customer value. In this study, we also examine how value co-creation affects firm performance and customer value. The context of the study is the Nigerian financial services industry. Using a Covariance-Based Structural Equation Modelling (CB-SEM), the results support a strong positive relationship between KM processes and value co-creation and between value co-creation and firm performance. The results also show that value co-creation improves customer value and the level of customer value realised is significantly associated with firm performance. The results show that a specific combination of KM processes can increase customer and firm value, and that value creation from the firm’s perspective begins by providing value to customers.