Improving Indonesia’s Cross-Border Marketplace Business Through The Value Co-Creation Process

Abstract

Service science has become a significant talking point in business nowadays. As a value-based service science, the value co-creation paradigm focuses on collaborating between ecosystem actors to generate a new value that enhances the current system. By implementing value co-creation, providers can gain a better understanding of customer needs and expectations, as well as the value generated by the service. This study aims to review the newly implemented system of cross-border marketplace business in Indonesia using the value co-creation concept. The business ecosystem of the new marketplace system comprises sellers, buyers/customers, marketplace companies, courier service companies, national banks, and customs. The new system extends the concept of delivery duty paid (DDP) term from the International Chamber of Commerce (ICC) to collect import duties and taxes on the purchase of goods abroad. To gain comprehensive knowledge about the system, a key informant from customs was interviewed. This study gives a thorough understanding of how value co-creation may be applied in public service and proposes a new model that benefits all actors in the ecosystem. This study makes a sustainable strategy recommendation to policymakers and service providers for increasing value in order to improve the new system's engagement experience, as well as an alternative decision support method for government and service providers to improve the new cross-border marketplace system. The study is novel in that it connects e-commerce to the body of knowledge in the field of service science, a combination that is rarely discussed, especially in Indonesia.