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The purpose of this paper is to explore the mental models of top executive team members in a selected retail bank. The focus is on how each executive team member makes sense of the market situation and changes with regard to customers and customer-bank interactions in the current situation where earlier bank practices are at risk of becoming obsolete.

All members in the executive team were interviewed individually in August 2014 on how they reason about challenges in the service business. The study uses an abductive research approach.

The mental models were largely dominated by internal bank issues, and adjusting the services to changing customer preferences was considered a main challenge. The research analysis showed that the executive team members identified the same business challenges, but their interpretations of the meanings and implications of the challenges were different. Mental models tend to be hidden and stable and are seldom explicitly elaborated. There was a distinct spread in mental models in terms of content. Limited focus was on customers as the starting point for business development and renewal.

The study was conducted in the retail banking setting, which is currently affected by many changes. The study, however, was limited to executive members in one bank.

The foremost implications of this study relate to sensitising executive members and teams to their mental models and exposing different core challenges related to customers and customer relationships in the retail banking sector.

The value of the study is it sheds light on top executives’ prospective sensemaking of current business challenges by addressing individual mental models. The study represents a novel approach in the strategic service management literature.

Recent technological and digital developments have opened new avenues for customer data utilization in insurance services. One form of this data transformation is automated chatbots that provide convenient access to data leveraged through a discussion-like interface. The purpose of this paper is to uncover how insurance chatbots support customers’ value creation.

Three complementary theoretical perspectives – artificial intelligence, service logic, and reverse use of customer data – are briefly discussed and integrated into a conceptual framework. The suggested framework is further shown through illustrative case examples that characterize different ways of supporting customers’ value creation.

Chatbots represent a new type of interaction through which companies can influence customers’ value creation by providing them with additional resources. Based on the proposed conceptual framework and the illustrative case examples, four metaphors are identified that characterize how insurance chatbots can support customers’ value creation.

The study is conceptual in nature, and the case examples are used for illustrative purposes. No representative data from those users who will eventually determine whether chatbots are of value was used.

Using the suggested framework, which is aligned with provider service logic, insurance companies can consider what kind of a role they wish to play in customers’ value-creating processes.

Automated chatbots provide convenient access to data leveraged through a discussion-like interface. This study is among the earliest to address their value-creating potential in insurance.

Improving capability to generate value for customers is seen as a way to create a new competitive edge, but developing the related organisational capabilities involves facing several obstacles that stem from the producer‐orientation of the retail‐banking business. This paper aims to focus on defining and describing those obstacles.

An in‐depth, qualitative single case study of a European retail bank was conducted.

A retail bank can find it challenging, first, to understand the deepest meaning and character of customer value and, second, to harness the organisational attributes to deliver that value. The main barriers lie in the strong producer‐oriented way of doing business, a lack of employee commitment, a strong product and sales orientation, a restrictive network, difficulties in seeing the profitability aspect of a new mindset, lack of conceptualisation and proper segmentation, and finally, silo‐style bank organisations.

The research is focused on the retail‐banking industry, while the findings are transferable to other retail finance businesses.

Enhancing value creation may provide a competitive edge, but developing that edge means facing several obstacles, which may jeopardise the calculated positive return on investment. For management, understanding the value of the banking service in the customer's own context is critical.

Developing customer experience and value‐in‐use has been suggested as a good starting point for customer orientation. However, research on its implications for organisations and potential obstacles to implementation remains scarce. This paper offers a detailed view on the organisational development necessary to generate value‐in‐use in a retail‐banking context.

The purpose of this study is to test citizens’ attitudes on political involvement in energy policy-making that has generally seen to be dominated by experts and business interests and been relatively closed to citizen involvement. The study asks whether citizens are willing to participate politically more through political consumerism (i.e., consumption choices) or through representative democracy and if citizens are willing to assign decision-making to the experts representing public administration and business, as stealth democracy asserts.

Methodologically, the study is based on postal surveys conducted in 2007 and 2016 among a random sample representing Finns who were 18-75 years of age.

Political consumerism and stealth democracy were not considered as alternative and detached modes for electoral participation but rather as complementary. However, adherence to stealth democracy was a reaction of people who feel powerlessness in the face of the regime, while the supporters of political consumerism had a higher trust in their ability to influence.

The study is the first one which empirically compares citizens’ support for these three modes of involvement, and it generates new knowledge for the scholars and decision-makers when planning citizen role in (energy) policy-making.

Higher education institutions (HEIs) have multiple roles including teaching, research and more recently projects for the benefit of local communities. From a management and leadership perspective, the formation and implementation of strategic plans and the collaboration with stakeholders have traditionally been based on formal agreements based on existing operational organizations and structures. Their strategic plans and collaborations with stakeholders are now evolving to become more organic and collaborative. They have become essential participants of the innovation and learning ecosystems and knowledge intensive communities as shown here in the case of Finland and Australia. New businesses and regions, especially in Europe and non-European Union countries such as Australia, are encouraged to identify and develop their own competitive advantages by analyzing their strengths and strategic potential growth areas.

This so-called Smart Specialization (RIS3) strategy brings HEIs together with the local authorities, business companies and civil society to co-operate in order to prioritize research and development (R&D) investment in the region. The need for Smart Specialization also challenges HEIs to rethink their visions and renew the present siloed and closed-ended practices.

This chapter examines and compares the management and leadership of the HEIs as actions are undertaken to effectively lead the Finnish and Australian HEIs toward their visions. These case studies demonstrate approaches which influence good institutional governance and management. It describes how LAB-ammattikorkeakoulu (LAB University of Applied Sciences) in Finland, and Royal Melbourne Institute of Technology in Australia have implemented a RIS3 strategy, notably in health and well-being and agricultural (R&D) projects. These enhance the scope of accountability and participation of stakeholders. The chapter provides practice-based evidence to policy makers in higher education regarding HEIs’ responsible contribution to society.