This study aims to examine the development of service ecosystems literature and its four premises as follows: the characterization of service ecosystems as loosely coupled…
Abstract
Purpose
This study aims to examine the development of service ecosystems literature and its four premises as follows: the characterization of service ecosystems as loosely coupled systems, the existence of shared institutional arrangements among actors, the occurrence of resource-integrating interactions among actors and value co-creation as the stated purpose of service ecosystems.
Design/methodology/approach
With a systematic literature review, the paper identifies and analyzes 98 articles on service ecosystems. An examination and a cross-check of the central elements of the articles reveal gaps and limitations in the analysis of service ecosystems. These results lead to the formulation of four propositions and suggestions for further research.
Findings
The four premises of service ecosystems are constrained by overly optimistic perceptions that prevent theoretical advancements. These premises overlook possible tight coupling; power asymmetries; divergent interpretations of institutions and institutional arrangements; divergent interpretations of actors’ resource-integrating actions, intentions and abilities; and the co-destruction of value. Four propositions are formulated to address these challenges.
Research limitations/implications
The shortcomings reflect the systematic literature review, which only covers a specific area of the extant knowledge base, namely, English-language articles published in peer-reviewed international journals.
Originality/value
This study extensively and critically investigates the premises of service ecosystems for the first time, proposing a more holistic, dynamic and realistic understanding of them. In so doing, it paves the way for renewed conceptualizations of service ecosystems.
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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…
Abstract
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.
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Benoît Roux and Loïc Plé
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…
Abstract
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.
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Researchers and practitioners usually consider that integrating customers in firms’ business models comes with positive consequences. However, customer integration may also…
Abstract
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.
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Loïc Plé and Rubén Chumpitaz Cáceres
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
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.
Practical implications
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.
Originality/value
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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Jaques Angot and Loïc Plé
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…
Abstract
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. Limitations and advantages of this transposition are also detailed.
Research limitations/implications
A lack of prior research on how firms can confront poverty in TOP countries is emphasized. Further studies are needed to help firms adapt to the new economic conditions in TOP countries.
Practical implications
Practitioners can use the recommendations herein to adapt their business models and address dramatic economic and social changes in the developed countries in which they function.
Originality/value
Considering the differences between developed and developing countries, firms should promote a BOP mind-set, rather than struggling to transpose full BOP business models to TOP settings.
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The purpose of this research is to explore the combining of marketing and organizational literature. This paper seeks to evaluate the relationships between multichannel…
Abstract
Purpose
The purpose of this research is to explore the combining of marketing and organizational literature. This paper seeks to evaluate the relationships between multichannel coordination and customer participation, as seen through the lens of potential customer opportunism. It aims at showing the impact of this opportunism on the organizational design of multiple channels structures.
Design/methodology/approach
The research reports on an exploratory case study in a French retail bank. A total of 25 in‐depth interviews were conducted, and the use of other sources enabled data triangulation.
Findings
The results show first that an increase in the number of distribution channels is liable to favor customer opportunistic behavior. To counter this, the bank mainly relies on impersonal coordination modes. An emerging result highlights the role of the customer as a “perceptual filter” between the different channels of employees.
Research limitations/implications
Customer opportunism is studied via channels employees perceptions. An investigation using a customer survey may help to better understand this construct, e.g. to identify its antecedents, and to measure it precisely. Moreover, further qualitative and/or quantitative studies with larger sample sizes are needed to try and generalize these results.
Practical implications
It is recommended not to forget that customers can facilitate or hinder multichannel coordination. Retail banks have the power to use them conveniently, provided that they are fully conscious of the scope of the “partial employee” role played by the customer.
Originality/value
This paper broadens understanding of how multichannel distribution structures are coordinated, and in a way belies traditional organizational design literature. The emerging result gives birth to the concept of “reversed interactive marketing”, which has interesting theoretical and practical repercussions.