Abstract

This paper explores how a firm is able to consider the value co-creation potential of its suppliers, mediate the goals and actions of both its external and internal stakeholders, and develop strategic supplier partnerships that go beyond compliance to contractual agreements to innovative value co-creation activities. The study contributes to filling a knowledge gap in understanding the process of value co-creation in a service context by providing empirical evidence, by means of case-based action research in a global healthcare company (HCC), on strategic multi-sourcing decision-making and value co-creation within multi-stakeholders׳ collaborative partnerships. The case-based action research discussed in the paper lays a foundation for normative theories of multi-stakeholder multi-souring strategic decision-making. The paper describes how the firm uses the Kraljic portfolio purchasing matrix for initial screening of potential suppliers; identifies multiple stakeholders and mediates multiple stakeholder goals to establish behavioural factors for strategic sourcing decision-making and evaluating the effectiveness of multi-stakeholder collaborative decision-making during the process to develop a value co-creation system. The arguments and findings draw attention to a number of specific stakeholder expectations and goals that need to be considered before embarking on a strategy of a collaborative multi-stakeholder supplier innovation strategy. The findings of the research vindicate and qualify the approach used to develop an innovative collaborative partnership through stakeholder mediation to co-create value.

Highlights

  • In stakeholder theory, value creation is a necessary and explicit part of the business mission (Freeman 1994)

  • This case based action research developed and assessed potentially strategic suppliers based on the mediating collaborative partnership among the suppliers, healthcare company (HCC) and its internal stakeholders

  • This process aids in selecting the strategic suppliers by identifying the key behavioural metrics and mediating those through Facilities Management (FM) ecosystem platform

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Summary

Introduction

Value creation is a necessary and explicit part of the business mission (Freeman 1994). In order to remain competitive in today‘s business economy, strategic collaboration and partnerships between stakeholders and suppliers are essential in most firms (Ulaga 2003). A pool of potential strategic suppliers is identified in the first phase, while the second stage acts as a filter where the most appropriate strategic suppliers are selected based on their level of committments, collaboration and appropriate metrics by establishing a threshhold performance level (Spekman 1988). This process involves mediating multistakeholders for value co-creation activities

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