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Effects of co-creation on organizational performance of small and medium manufacturers

Author

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  • Kim, Dong W.
  • Trimi, Silvana
  • Hong, Soon G.
  • Lim, Seongbae

Abstract

Co-creation, the joint effort of diverse stakeholders of an organization to enhance the value creation process, is a key in developing shared goals. However, the recent trend of an increasing number and size of mammoth buyers has put the smaller manufacturing suppliers in subordinate roles and relegated their goal to survival. This study, by examining the effect of co-creation on the performance of small and medium manufacturers (SMMs) that supply parts or components to large corporate buyers, found that co-creation does have a significant positive impact on organizational performance through their enhanced strategic advantage. Thus, co-creation is not only important to just large organizations, but even more so to SMMs, as it elevates them from a win-lose relationship to a collaborative partnership with their large buyers. This study makes both theoretical and practical contributions as it is one of the first empirical studies that analyzed the impact of co-creation on SMMs' performance.

Suggested Citation

  • Kim, Dong W. & Trimi, Silvana & Hong, Soon G. & Lim, Seongbae, 2020. "Effects of co-creation on organizational performance of small and medium manufacturers," Journal of Business Research, Elsevier, vol. 109(C), pages 574-584.
    • Handle: RePEc:eee:jbrese:v:109:y:2020:i:c:p:574-584
    DOI: 10.1016/j.jbusres.2019.03.055
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    6. Naveed Ahmad & Miklas Scholz & Zia Ullah & Muhammad Zulqarnain Arshad & Raja Irfan Sabir & Waris Ali Khan, 2021. "The Nexus of CSR and Co-Creation: A Roadmap towards Consumer Loyalty," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    7. Bodas Freitas, Isabel Maria & Gonçalves, Ricardo & Sousa, Rui, 2023. "Governance of new product design: The influence of national institutions," Journal of Business Research, Elsevier, vol. 165(C).
    8. Huidong Sun & Mustafa Raza Rabbani & Naveed Ahmad & Muhammad Safdar Sial & Guping Cheng & Malik Zia-Ud-Din & Qinghua Fu, 2020. "CSR, Co-Creation and Green Consumer Loyalty: Are Green Banking Initiatives Important? A Moderated Mediation Approach from an Emerging Economy," Sustainability, MDPI, vol. 12(24), pages 1-22, December.
    9. Cui, Xingwen & Xie, Qinghong & Zhu, Jing & Shareef, Mahmud Akhter & Goraya, M. Awais Shakir & Akram, Muhammad Shakaib, 2022. "Understanding the omnichannel customer journey: The effect of online and offline channel interactivity on consumer value co-creation behavior," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    10. Wang, Qingtao & Li, Julie Juan & Yang, Defeng, 2022. "Unequal participation in joint new product development: The roles of information opportunism concern and contract binding force," Journal of Business Research, Elsevier, vol. 145(C), pages 21-34.
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    12. Appiah, Gloria & Bonsu, Samuel K. & Sarpong, David, 2021. "The unpowered customer: Co-creation as tactics of the weak," Journal of Business Research, Elsevier, vol. 133(C), pages 317-326.

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