University of Hertfordshire

  • Ariya Nithikulsak
  • Marian Garcia
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Original languageEnglish
Publication statusIn preparation - 1 Aug 2022

Abstract

Customer integration in value co-creation processes has increasingly become the top priority for businesses to improve innovation performance. Firms are shifting their focus from product-centric to customer-centric business models to align customer value with firm value enabled by social media technologies. However, SMEs often struggle to effectively utilise their limited resources to support such an e-transition model towards value co-creation for greater innovation. While extant research points to different firm-level capabilities to support value co-creation, little attention has been paid to the extent to which SMEs need to efficiently utilise available resources, reconfigure internal competences and integrate external competences to support an e-transition model towards value co-creation. Specifically, understanding of the key firm-level capabilities required to support different types of value co-creation at different stages of innovation in a single study remains limited. By drawing on S-D logic and dynamic capability approaches, this research aims to develop frameworks that conceptualise key firm-level capabilities to support an e-transition model, specifically in the four types of value co-creation. The study explores how SMEs need to develop organisational culture, organisational structure, and e-marketing capabilities to facilitate customer integration at multiple stages of innovation processes. The research focuses on four types of value co-creation, namely co-ideation, co-production, co-process, and co-experience, representing all the stages in the innovation funnel. Through an inductive case study approach, our findings provide evidence that different sets of firm-level capabilities are required to support different types of value co-creation activities. Some of the capabilities are found to be required at all stages of innovation processes, while others are only required, in addition, to support customer integration at specific stages of innovation. The research discusses avenues for future research and practical implications, underlying the importance of S-D logic and dynamic capability, to guide SMEs to utilise resources effectively and efficiently and develop capabilities in the best possible way to integrate customers in activities and generate innovation outcomes.

ID: 28063605