Value co-destruction and its effects on value appropriation

Abstract

ABSTRACTThe importance of the fair appropriation of co-created value in business relationships has been widely emphasised in the literature. However, in business relationships, value can be both co-created and co-destructed, but what happens to value appropriation when value is co-destructed? Previous studies have focused on what causes value co-destruction, rather than its effects. The question posed is relevant because some actors experience higher diminutions in value appropriation, generating perceptions of inequities, dissatisfaction, and tensions. By analysing data from 39 qualitative interviews with companies that have experienced value co-destruction, this paper attempts to identify the reasons for the unbalanced relationship between value co-destruction and value appropriation. Two higher-level dimensions – awareness of value and awareness of context – are identified and used to generate four clusters of reasons for disproportionate value co-destruction effects. The paper also pinpoints specific actions for managing unfairness from value co-destruction.