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

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TLDR
This study is apparently the first to have introduced the notion of value co‐destruction into the conceptual framework of S‐D logic, showing that value can be co‐destroyed through the interactions between different systems, resulting in value destruction‐through‐misuse.
Abstract
– 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.

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Dissertation

‘Friction’ in cross-cultural service interactions: narratives from guests and service-providers of a five star luxury hotel

Jason Cheok
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Journal ArticleDOI

Pathologies and Paradoxes of Co-Creation: A Contribution to the Discussion about Corporate Social Responsibility in Building a Competitive Advantage in the Age of Industry 4.0

Anna Adamik, +1 more
- 11 Sep 2019 - 
Abstract: Research problem: Revolution Industry 4.0. forces companies to face specific competence-related, technological, organizational and even ethical challenges. The use of innovative “tools” associated with that revolution not only brings new technological challenges, opportunities to build new competitive advantages, new areas of activity, and new types of business benefits but also doubts, questions, or even pathologies and paradoxes. Sometimes, entities that do not fully understand the essence of the new concepts, methods, or techniques use them incorrectly or abuse them for private goals and expose themselves to criticism—sometimes even social condemnation. These are examples of the lack of Corporate Social Responsibility (CSR) of these organizations. This situation also has reached co-creation. In theory, it is a very positive concept, aimed at building competitiveness, or various types of competitive advantages of companies by creating value for clients with their participation. In economic practice, unfortunately, it is not always successful. Purpose: The main purpose of this paper is to identify and characterize the key paradoxes and areas of potential pathologies of creating competitive advantage based on co-creation without CSR in the case of companies operating in the age of Industry 4.0. Originality/value of the paper: A theoretical study based on the extensive literature review describing paradoxes, ethical and CSR problems of co-creation in organizations creating competitive advantage in the age of the Fourth Industrial Revolution and a qualitative methodology of research. This study attempts to systematize paradoxes of co-creation and the areas and industries in which the related pathologies of co-creation occur particularly often and distinctively in economic practice. The empirical studies were conducted as a review of case studies of companies that use the concept of co-creation in an irregular way (paradoxical or with pathologies). This study identified and characterized the key 31 paradoxes and pathologies of creating competitive advantage based on co-creation in the case of 14 companies operating in the age of Industry 4.0. Implications: The identification of main dilemmas, paradoxes and pathologies of co-creation; signaling the role of governance and CSR in processes of the valuable use of co-creation in the age of Industry 4.0. Based on the observations described in the paper, it is worth recommending that when becoming involved in co-creation, one should observe ethical standards and assumptions of CSR, and require the same from partners and other parties involved. Otherwise, the risk is that instead of co-creation, the result achieved will be exactly the opposite to that intended, which is co-destruction, and condemnation instead of glory. This is why it is worth considering the paradoxes that are key to co-creation and approaching solutions in a conscious way.
Journal ArticleDOI

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Proceedings ArticleDOI

Conceptualizing the Value Co-Destruction Process for Service Systems: Literature Review and Synthesis

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References
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Evolving to a New Dominant Logic for Marketing

TL;DR: The authors argue that service provision rather than goods is fundamental to economic exchange and argue that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision is fundamental for economic exchange.
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TL;DR: This article highlights and clarifies the salient issues associated with S-D logic and updates the original foundational premises (FPs) and adds an FP.
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Managing the co-creation of value

TL;DR: In this paper, the authors explore the nature of value co-creation in the context of service-dominant (S-D) logic and develop a conceptual framework for understanding and managing value cocreation.
Journal ArticleDOI

On value and value co-creation: A service systems and service logic perspective

TL;DR: The authors argue that value is fundamentally derived and determined in use -the integration and application of resources in a specific context, rather than in exchange, embedded in firm output and captured by price.
Book

Open Business Models: How to Thrive in the New Innovation Landscape

TL;DR: Chesbrough's Open Business Models as mentioned in this paper provides a diagnostic instrument to assess a company's current business model, and explains how to overcome common barriers to creating a more open model.
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