THE FUTURE OF COMPETITION: CO-CREATING UNIQUE VALUE WITH CUSTOMERSC.K. Prahalad & Venkat RamaswamyThe authors - C.K. Prahlad and Venkat Ramaswamy, are known for their non-traditional approach and that has made possible to bring out this path breaking book. Unlearning age old management practices and understanding the changes that is sweeping the business world and giving a framework to the still evolving concept of co-creation of value where customer is at the centre stage is indeed a tough task. And authors have accomplished that with aplomb.Our industrial system is generating more goods and services than before but customer satisfaction remains low in spite of having overwhelming choices, profit level of companies is shrinking though many more decision making tools are at its disposal. What is going wrong and how to set this right? Companies are grappling with these issues and trying to fathom these problems. With the emerging technologies, customers are well informed, well connected with their peer groups and very active in their domain. Now customers have started playing dominant role in the value chain through co-creation of experience which enhances the value.The book can be divided into three distinct parts covering twelve chapters, highlighting future of competition and the role to be played by consumers, markets and companies. First six chapters develop the framework of consumers' role in the changing scenario. Early chapters give a brief account of the change that is taking place; how autonomy of companies in creating product value and satisfying consumers, is slowly and surely giving way to consumer-centric approach? How consumer and firm interact and co-create value, and how the cocreation experience becomes the very basis of value? The authors develop the co-creation experience framework in the subsequent chapters very cogently and lucidly. It goes like this, the co-creation experience depends highly on individuals. Each person's uniqueness affects co-creation process as well as co-creation experience. Dialogue, access, risk assessment and transparency (DART) are the building blocks of value co-creation process and companies use this to engage customer effectively as collaborator. In the domain of competition, co-creation experience plays the most important role in decision making. This process further gains momentum in the later chapters of first part as co-creation experience is shaped by dimensions such as choice of channels, options made available, quality of transaction and price-experience relationship. This experience will vary from consumer to consumer due to the different traits of individual. To ensure that the transaction between the consumer and the firm produces positive co-creation experience, the presence of an appropriate environment is imperative, authors develop this concept very carefully. This environments accommodate the heterogeneity of consumer and facilitate a variety of co-creation experience. In the present day world, emerging technology acts as an experience enabler, facilitating innovation in experience environment. With intense competition, sky high consumer expectation; consumer looks for uniqueness which is possible only through personalized co-creation experience. …

The Future of Competition: Co-Creating Unique Value with Customers

Traditional companies used to design products, evaluate marketing messages, and control product distribution channels with a low level of customer contribution. Nonetheless, with the advancements in communication and information technologies, the interaction between customers and company is much higher compared to the past, and it is no longer solely controlled by the companies; thus, users can now impact companies by simultaneously playing two roles as value creators and as consumers. The present study develops a conceptual framework for value co-creation in small- and medium-sized tourism agencies. The sample consisted of 23 purposefully selected employees and managers of small- and medium-sized tourism agencies. Data were extracted from semi-structured interviews and analyzed with open and axial coding. For validity, an eight-person panel of experts was asked to review the framework and to apply corrective comments. The reliability was tested using a re-test method, which confirmed the reliability of the coding with a re-test reliability of 79%. Based on the findings, the proposed framework contains eight components including value inception, value conception, value risk, resource planning, platform, actors, co-creation process, co-created value, and learning process, whose components were identified and encoded.

/pdf/a-conceptual-framework-for-value-co-creation-in-service-4yttyvgler.pdf

A Conceptual Framework for Value Co-Creation in Service Enterprises (Case of Tourism Agencies)

The emergence of social media platforms as the main representatives of Web 3.0 applications significantly impacts the co-creation activities among enterprises, customers, and other stakeholders, and has enabled firms to benefit from creativity and ideas of their users and customers for developing and rendering innovative services. This study aims to investigate how the co-creation activities of users on social media platforms have an effect on the enterprises’ innovative services. For this purpose, the authors surveyed customers of innovative services who used social media platforms to meet their needs from the enterprises that innovatively offer such services. An online questionnaire was designed and distributed among the sample of customers, and 505 completed questionnaires were analyzed following the PLS-SEM approach. The findings revealed that customer citizenship behavior and customer participation behavior on social media platforms positively affect the rendering of innovative services. Findings also highlighted that an increase in social co-creation activities, as moderator, positively affects customer citizenship behavior on service innovativeness, and negatively affects customer participation behavior on service innovativeness. The findings of this research could be useful for entrepreneurs and managers of the enterprises that offer innovative services to efficiently use social media tools to benefit from the customers’ co-creation activities and to perform more competitively and sustainably in a hostile business environment.

https://www.mdpi.com/2071-1050/12/17/6926/pdf

Investigating the Role of Customer Co-Creation Behavior on Social Media Platforms in Rendering Innovative Services

The influence of sustainability on students' perceived image and trust towards university

In this manuscript, the authors aim to explore firstly the association between entrepreneurial mindset and co-creation experience, secondly the association between co-creation experience and entrepreneurial intentions, and thirdly the association between entrepreneurial mindset and entrepreneurial intentions within the sustainability context. In this paper, the authors present the results of the pilot study. Primary data were collected from 500 university students from China, Georgia, Poland, Romania, and Sri Lanka by using a convenient sampling technique, and a literature review was the primary method of the concept development. The authors selected the above-mentioned countries to collect primary data by using a convenient sampling technique based on accessibility; they also visited all analysed countries in order to conduct the pilot survey personally. Descriptive statistics and the Spearman’s rank correlation coefficient were applied as primary statistical methods. The findings reveal that there is a very strong association between co-creation experience and entrepreneurial intentions, a very weak negative association between entrepreneurial mindset and co-creation experience, and, surprisingly, a weak association between entrepreneurial mindset and entrepreneurial intentions. The added value of the conducted pilot research involves filling in a gap regarding the relationship between experience and the subjective norm. In the presented pilot research, co-creation experience was compared with not only entrepreneurial mindset but with entrepreneurial intentions as well. An additional value of this exploratory research is compiling an international comparison. The main contribution of this pilot study is examining the symbiotic mutualism between co-creation and entrepreneurship. Among many platforms of associations, the following can be differentiated: creativity, innovativeness, openness, engagement, awareness, motivation, trust (level of social capital), and recognizing the significance of social and sustainable development objectives. Due to the small sample size, the results cannot be generalised. Results refer only to the respondents. However, the findings of the pilot study are the basis for further research studies on symbiotic mutualism between entrepreneurship and co-creation.

The Symbiotic Mutualism between Co-Creation and Entrepreneurship

Among many solutions that can boost company innovativeness, co-creation is mentioned in the literature as one of them. This paper reports the findings of a pilot study conducted in China, Georgia, Poland, Romania, and Sri Lanka. The aim of the article is to find differences and similarities among respondents from different countries considering their attitude towards the process of co-creation. To gather primary data, a field survey method was adopted with a structured questionnaire. The target group of the survey consisted of university students, aged between 22 to 23 years old, who, by virtue of their psycho-physical characteristics, are more eager to share their experience and engage in various activities. A questionnaire-based survey was conducted from June to December 2016 among 500 university students. Despite the limited experience of respondents in co-creation, replies indicate their willingness, openness, and positive attitude towards co-creation.

Kelaniyage Shihan Dilruk Fernando

Papers

Co-Creation as an Innovative Way to Develop an Enterprise—Cross-Country Analysis

The Symbiotic Mutualism between Co-Creation and Entrepreneurship

The Use of Mobile Technologies for Shopping During the Pre-Covid-19 Pandemic Versus Covid-19 Pandemic Time; A Gender-Based Quantitative Study