There is, I think, something ethereal about i —the square root of minus one. I remember first hearing about it at school. It seemed an odd beast at that time—an intruder hovering on the edge of reality.

Usually familiarity dulls this sense of the bizarre, but in the case of i it was the reverse: over the years the sense of its surreal nature intensified. It seemed that it was impossible to write mathematics that described the real world in …

I and i

The surge in academic and practical interest in the topic of value co-creation (VCC) highlights an equivocal understanding of its conceptual boundaries and empirical constituents. Our search of the diverse scholarly literature on VCC identified 149 papers, from which we extract the two primary conceptual VCC dimensions of co-production and value-in-use. Though the combination of these two distinct dimensions is theoretically necessary to describe VCC, 79% of the studies in our dataset consider only one or the other. Such underlying theoretical ambiguity may explain conflicting results in earlier studies and motivates our effort to offer four contributions to the literature. First, we conduct a rigorous review, integrating existing work to expose the theoretical core of VCC. Second, we utilize the results from our review to isolate the two main theoretical dimensions of VCC and expose the three conceptual elements which underlie each dimension. Third, we apply our theoretical findings to derive empirical measurement constructs for each dimension. Fourth, we refine, analyze, and test the resulting measurement index in an investigation into consumer satisfaction.

Value co-creation: concept and measurement

Research to date on service innovation is rooted primarily in traditional new product development focusing on tangible goods. In this article, the authors invoke insights from the emerging service-dominant logic (SDL) perspective and propose a conceptual framework for investigating the antecedents and consequences of service innovation. They then develop a set of hypotheses pertaining to potential predictors of two distinct facets of service innovation (volume and radicalness) and the impact of the latter on two measures of firm performance (revenue growth and profit growth). They test their proposed model using data from a sample of luxury hotels and find that (a) collaborating with customers fosters innovation volume but not radicalness (and vice versa for collaborating with business partners); (b) a firm’s customer orientation—both directly and in interaction with innovative orientation—contributes to innovation radicalness; (c) collaborating with contact employees enhances both innovation volume and r...

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Service Innovation Viewed Through a Service-Dominant Logic Lens: A Conceptual Framework and Empirical Analysis:

– Noting that a fundamental tenet of service‐dominant (S‐D) logic is the co‐creation of value‐in‐use, this paper aims to explore the theoretical possibility that the interactions between service systems cannot only co‐create value, but also have adverse consequences leading to actual value co‐destruction., – This conceptual paper critically reviews the dominance of value co‐creation and value‐in‐use in S‐D logic. Noting the relative lack of research in the converse possibility, the study proposes and explores the implications of value co‐destruction as a new concept which should be introduced within the framework of S‐D logic., – The study proposes a formal definition for the new proposed concept of value co‐destruction. It describes in detail the process by which it occurs, showing that value can be co‐destroyed through the interactions between different systems, resulting in value destruction‐through‐misuse. Indeed, value co‐destruction occurs when a service system accidentally or intentionally misuses resources (its own resources and/or those of another service system) by acting in an inappropriate or unexpected manner., – This paper is purely conceptual and exploratory. Empirical examination of the theoretical findings regarding value‐co‐destruction is required. Possible avenues of interest for such empirical research of value co‐destruction are suggested., – Limiting the occurrence of misuse by aligning the mutual expectations of interacting service systems should reduce the risks of value co‐destruction. Recovering from misuse should also be considered., – This study is apparently the first to have introduced the notion of value co‐destruction into the conceptual framework of S‐D logic.

Not always co-creation: introducing interactional co-destruction of value in service-dominant logic

A retail business model articulates how a retailer creates value for its customers and appropriates value from the markets. Innovations in business models are increasingly critical for building sustainable advantage in a marketplace defined by unrelenting change, escalating customer expectations, and intense competition. Drawing from extant strategy and retailing research, we propose that innovations in retail business models are best viewed as changes in three design components: (1) the way in which the activities are organized, (2) the type of activities that are executed, and (3) the level of participation of the actors engaged in performing those activities. We propose six major ways in which retailers could innovate their business models to enhance value creation and appropriation beyond the levels afforded by traditional approaches to retailing. We also describe the drivers of business model innovations, the potential consequences of such innovations, and numerous examples from retail practice that highlight our concepts and arguments. In doing so, we provide a starting point for academic research in a domain that is deficient in theoretical and empirical research, and offer retailing managers a framework to guide retail business model innovations for sustainable competitive advantage.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1997189_code1720149.pdf?abstractid=1997189&mirid=3

Innovations in Retail Business Models

Service innovation is one means of gaining an advantage in a highly competitive environment. In addition, service delivery has played a key role in interactions with customers in recent years. Yet, research on the link between innovation and service delivery is scant. This article theoretically and empirically examines innovation in service delivery and its antecedents and consequences. The authors identify innovation orientation, external partner collaboration, and information technology capability as the antecedents of service delivery innovation and analyze the impact of service delivery innovation on firm performance. Respondents were managers in the marketing and information technology departments of financial firms in Taiwan. Overall, 298 responses were received (including 123 paired responses from both department managers). Findings indicated that service delivery innovation contributes to firm performance. These results support the crucial influences of innovation orientation and information techn...

Service Delivery Innovation Antecedents and Impact on Firm Performance

Co-production and its effects on service innovation

Few academic studies have investigated how information technology (IT) capability and service process innovation can create performance gains for firms through customer service. We propose that customer service is a significant mediator through which IT capability and service process innovation influence the performance of a firm, and that IT capability is also a critical factor that facilitates service process innovation. Empirical support for our argument was derived from data collected from 174 firms in the Taiwan IT industry. The results suggest that managerial initiatives should be directed at developing IT capability and service process innovation and leveraging them to facilitate customer service to attain superior firm performance. Furthermore, greater IT capability would lead to a higher degree of service process innovation.

Performance effects of IT capability, service process innovation, and the mediating role of customer service

Antecedentes. La importancia de la tecnologia de la informacion en las practicas empresariales actuales ha atraido durante mucho tiempo la atencion de profesionales y academicos.
Proposito. Este articulo intenta ampliar nuestra comprension de la innovacion en los servicios como una capacidad organizacional critica a traves de la cual, la adopcion de la tecnologia de la informacion influye en la ventaja competitiva de una empresa. En el contexto de las empresas financieras, este estudio examina como se adopta y gestiona la tecnologia de la informacion para mejorar las practicas de innovacion en servicios y si las practicas de innovacion pueden influir en la ventaja competitiva de las empresas y como.
Metodo. Se proponen un marco de investigacion y las hipotesis asociadas. Se realizo un estudio empirico y se mandaron por correo encuestas a 558 empresas financieras en Taiwan.
Analisis. Se reunio y analizo un total de 124 observaciones validas usando la tecnica de los minimos cuadrados parcial.
Conclusiones. Los resultados sugieren que la adopcion de la tecnologia de la informacion tiene efectos positivos en las practicas de innovacion en servicio, aumentando la ventaja competitiva de las empresas

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Information Technology Adoption for Service Innovation Practices and Competitive Advantage: The Case of Financial Firms.

Purpose – The purpose of this paper is to deploy an alternative way, drawing upon research in service innovation, to predict service delivery innovation from the extents of market and technology orientations and innovative competence. Design/methodology/approach – Five hypotheses were proposed. A two-part questionnaire was developed. One part of the questionnaire was completed by the sales manager and the other part by the marketing manager of select companies. The questionnaires were distributed to 533 information technology companies in Taiwan. Of the 533 questionnaires returned, 160 questionnaires were deemed usable. This study uses the partial least square analysis to test the hypotheses. Findings – Proactive market orientation and technology orientation affect exploratory and exploitative innovative competences; but, only exploitative innovation competence affects service delivery innovation. Practical implications – The findings indicate that managers need to understand the market trends and the tec...

Hung-Tai Tsou

Papers

Service Delivery Innovation Antecedents and Impact on Firm Performance

Co-production and its effects on service innovation

Performance effects of IT capability, service process innovation, and the mediating role of customer service

Information Technology Adoption for Service Innovation Practices and Competitive Advantage: The Case of Financial Firms.

Market and technology orientations for service delivery innovation: the link of innovative competence