Relational attributes in value co-creation: A dyadic case study of a manufacturer and customer

Ajaegbu, Amara Cynthia and Uren, Victoria S and Schroeder, Andreas (2017) Relational attributes in value co-creation: A dyadic case study of a manufacturer and customer. In: British Academy of Management 2017, 2017-09-05 - 2017-09-07, Warwick University.

Abstract

Low profitability in manufacturing is increasing the move towards servitisation strategy. Manufacturers are embracing integrated solutions, of product and service, to increase profitability and co-create value with their customers. A core considerations in servitisation is digitalisation that enables these value co-creation of solutions and interaction with customers. However, little studies shows what factors enable value co-creation within the business relationship and how this facilitates profitability in this complex solutions. This paper uses a dyadic case study of a European heavy truck manufacturer and its customer, to examine interactions, exchange, and relational attributes that influence value co-creation in an integrated solution context. The paper applies Cannon and Perreault (1999) framework of relational attributes to analyse the data from both provider’s and customer’s perspectives and examines the impact of these attributes on value co-creation. Five senior managers were interviewed from the truck manufacturing company and two senior managers from one customer organisation. The research uses a dyadic case study to evaluate the framework and the following were identified: A focus on information exchange identified level of access and information asymmetry as a barrier to value co-creation. Operational linkages are a critical basis for long term strategic relationships. Commitment bonds enable partners to overcome uncertainties in the development of integrated solutions. Cooperative norms are needed to ensure a continuous interaction, beyond the initial stages. Service adaptation needs to develop alongside the maturity of the relationship. The findings demonstrate these relational attributes, when used appropriately, increase value co-creation and improve profitability, but can also be seen as a barrier when information is withheld. The paper adds to knowledge in servitisation, service interactions and how they enable value co-creation. Adopting a dyadic approach enhances understanding of service collaboration, and its effect on a business relationship.