How much is enough? The role of effort in market shaping

Abstract

PurposeMarket shaping research predominantly focusses on the activities of the market shaper, rather than the equally important roles of other market actors. Market shapers may enhance resource density and value creation within markets, yet such influences cannot exhaustively explain how markets get shaped. Other market actors also must and do exert effort in the value co-creation processes; this study aims to explore the effects of reducing their efforts, as a mechanism to facilitate market shaping.Design/methodology/approachThis conceptual paper uses a theory adaptation approach to link value co-creation with market shaping and effort. It offers a conceptual framework and five propositions that outline the role of effort reduction in the value co-creation process to achieve market shaping.FindingsThe proposed conceptual framework indicates how enhanced resource density, resulting from the firm’s market shaping activities and reduced effort lead to enhanced value creation for market actors. Effort reduction can be achieved by reducing either the level of resource input required or the activities required to access, transform and combine resources to co-create value. Potential resource flows then may benefit the market shaper.Originality/valueThis research contributes to emergent market shaping literature by offering effort reduction as a viable tactic. Specifically, it broadens the scope of consideration of effort in value co-creation, and it advances understanding of resource density as a focal market shaping construct. The resultant framework offers a foundation for future market shaping research.