Loïc Plé

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

– 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.

Studying customers’ resource integration by service employees in interactional value co-creation

Purpose Noting that resource integration is a pivotal dimension of value co-creation in Service-Dominant logic, this paper aims to explore how service employees engaged in co-creation processes with customers integrate the latter’s resources. Design/methodology/approach To address the limitations of previous research on customer resources and their integration by service employees, this study turns to the concept of customer participation to identify the nature of customers’ resources. A conceptual framework of their integration by service employees underpins nine key propositions. This foundation leads to the development of theoretical contributions, managerial implications and avenues for research. Findings Customers can use 12 types of resources in value co-creation. Contrasting with earlier findings, the conceptual framework reveals that service employees may not only integrate these customers’ resources but also either misintegrate or not integrate them. Non-integration and misintegration may be intentional or accidental. Accordingly, value co-creation or co-destruction may result from interactions. Research limitations/implications This conceptual and exploratory text requires complementary theoretical and empirical investigations. It also does not adopt an ecosystems view of co-creation. Practical implications Knowing the different steps of resource integration and what influences them should increase the chances of value co-creation and limit the risks of value co-destruction. Originality/value Scant research has examined the nature of customer resources and how service employees integrate them. This paper also is the first to distinguish among resource integration, misintegration and non-integration.

Serving poor people in rich countries: the bottom-of-the-pyramid business model solution

Purpose – The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries. This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries. Design/methodology/approach – This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models. These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources. Findings – The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries. Limitat...

Customers as creative resources: their influence on firm freedom

Purpose – Researchers and practitioners usually consider that integrating customers in firms’ business models comes with positive consequences. However, customer integration may also detrimentally influence firms by limiting their strategic and operational latitude, which, in this context, refers to the degree of freedom companies possess over their strategic and operational decisions and actions. Being aware of that would enable companies to limit this potentially harmful influence. Design/methodology/approach – This is a conceptual paper that relies on recent business cases. It is suggested that the negative influence of customers on firms’ latitude occurs through the three dimensions of their business model, namely, resources and competences, value propositions (i.e. the firm’s offer) and the organization. Findings – By influencing the use of resources and competences, the design and evolution of the value proposition or the functioning of the organization, customers may constrain firms’ strategic and operational moves and thus have detrimental effects on their performance and evolution. Three ways to counterbalance this potentially negative influence are proposed. Research limitations/implications – A lack of prior research on the negative side effects of customer integration in firms’ business models is emphasized. Further studies are needed to help firms take these into consideration. Practical implications – Being aware of the potential drawbacks associated with using customers as resources, firms are invited to balance the level of their strategic and operational latitude with the importance that they grant to their customers. Originality/value – This paper introduces the concept of strategic and operational latitude. It is also one of the few to highlight the negative consequences of customer integration in firms’ business models.

The Dynamics Between Value Co-creation and Value Co-destruction in Business Service Networks

Understanding value creation processes between actors in business-to-business (B2B) settings is crucial (Lindgreen and Wynstra 2005). To that end, service-dominant logic (SDL) proposes that value co-creation is derived from interactions between service systems (e.g. customers, distributors, suppliers, etc.) (Vargo et al. 2008; Lusch and Vargo 2006). These interactions may occur and be studied not only at the dyadic but also at the network level (Cova and Salle 2008; Vargo et al. 2008). At the same time, research has mainly focused on value co-creation, and left aside the possibility of value co-destruction, or the potential dynamics between value co-creation and value co-destruction (Ple and Chumpitaz-Caceres 2010). However, Zhu and Zolkiewski’s (2015) show that a domino effect is evident in the chain of upstream service provider to service recipients and their downstream customers in a business-to-business service setting. This chain of interaction shows the complexity of multiparty relationships (Andersson-Cederholm and Gyimothy 2010). It also indicates that value co-creation and value co-destruction may be contingent in the service network but does not explain how value co-creation and co-destruction processes may be intertwined in a B2B service network, while such knowledge is needed (Cova et al. 2011; Payne et al. 2008; Echeverri and Skalen, 2011; Lindgreen et al. 2012). This empirical study aims to contribute to this gap by investigating how the nature of interacting actors, their activities, and the mobilization of their resources in a network influence the dynamics between value co-creation and value co-destruction in B2B service networks. In order to gain a holistic understanding of the phenomenon, a case study has been used to collect qualitative data from suppliers–distributors–customers triads. Preliminary findings will be presented in the conference.

Business cooperatives: when does sharing become a drawback?

Purpose Cooperatives are relatively understudied compared with investor-owned companies, yet their economic impact makes them important to consider. This study is to focus on business cooperatives that gather firms or entrepreneurs that share the same social and economic motivations and need to ally to grow. The positive and negative consequences of membership on the members’ business models are detailed. Insights to address and prevent the detrimental influences of membership on members’ business model are provided. Design/methodology/approach This conceptual study relies on several business cases to suggest that cooperative membership comes with positive and detrimental consequences for the three dimensions of members’ business models: their organization, resources and competences and value propositions (i.e. members’ offers). Findings Because organization, resources and competences, and value propositions are affected by membership in a cooperative, business members’ control over their own business models may diminish. This can offer positive consequences but may also be too constraining and harmful in the long term. Research limitations/implications Only scant research has investigated the influence of cooperatives on members’ business models. Further studies could help firms and entrepreneurs maximize the advantages of their membership in cooperatives while limiting the detrimental consequences over time. Practical implications If they are aware of the potential drawbacks of business cooperative membership, members can implement proactive efforts to avoid losing control of their business models. Originality/value Prior literature mainly concentrates on how cooperatives work and develop. No prior study seems to have investigated the consequences of cooperatives’ membership on members’ business models.