Facilitating Value Co-Creation: Gaining a Competitive Advantage Through Differentiation

Anne Veith, Albert Assaf, Alexander Josiassen

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review


As a result of the current business environment, rise of technology, increasing globalization, etc., companies are therefore focusing on finding ways to differentiate themselves. Differentiation is therefore essential and co-creation is a core differentiation base. Vargo and Lusch (2004, 2006, 2008) introduced a new dominant logic in the marketing literature, the Service-Dominant Logic (S-D Logic), in which service, interactions, and enhanced experiences help create value, and this potential for value is what attracts consumers. Therefore organizations must be customer-centric in order to facilitate unique, positive experiences. As the name indicates, both organizations and consumers (should) obtain value when co-creating, which is why both parties are willing to increase their degree of involvement, e.g. spending more resources, sharing tacit knowledge, etc., because a high degree of involvement will also lead to a high rewards. According to postmodern consumerism theory, consumers are intrinsically motivated to participate (Arnould et al., 2006; Borghini & Caru, 2008; Etgar, 2008; Fisher & Smith, 2011), but may also be extrinsic motivated by, for instance, appraisal and 'autonomy' (Etgar, 2008). Therefore, for instance, being part of the process is a key incentive for consumers. Postmodern consumers' search for unique experiences calls for individualization, personalization, etc. Although Prahalad & Ramaswamy (2004), Karpen et al. (2008), and Karpen et al. (2011) have presented S-D Logic as a middle range theory it is still difficult for organizations to operationalize their co-creation efforts. This paper argues that postmodern consumerism can be used to guide the operationalization of the co-creation process by identifying the key facilitators of co-creation for the postmodern consumer. Through an exploratory qualitative study, 9 facilitators for B2C value co-creation were uncovered. The study was set in the creative industries. The 9 facilitators are a combination of the main facilitators found in the literature review and the ones found through the empirical research. The 9 facilitators are individuated offering; accessibility; engage and enable; incentives segmentation; change acceptance, sharing, and learning; manageable implementation for organizations; project-based organization; C2C interactions; keep control. Each facilitator is detailed in the paper and implications for practice are discussed.
Original languageEnglish
Title of host publicationProceedings of the International Conference on Management, Leadership and Governance
EditorsVincent Ribiere, Lugkana Worasinchai
Place of PublicationReading
PublisherAcademic Conferences and Publishing International
Publication date2013
ISBN (Print)9781909507005
ISBN (Electronic)9781909507012
Publication statusPublished - 2013
EventThe 1st International Conference on Management, Leadership and Governance (ICMLG 2013) - The Institute for Knowledge and Innovation Southeast Asia (IKI-SEA), Bangkok University, Bangkok, Thailand
Duration: 7 Feb 20138 Feb 2013
Conference number: 1


ConferenceThe 1st International Conference on Management, Leadership and Governance (ICMLG 2013)
LocationThe Institute for Knowledge and Innovation Southeast Asia (IKI-SEA), Bangkok University
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