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Collaboration reasoning or social heuristics? Value proposition validity in omnium-gatherum business models

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  • To, Chester Kin-man
  • Yee, Rachel W.Y.
  • Mok, P.Y.
  • Chau, K.P.
  • Wong, Man Chong
  • Cheung, N.M.

Abstract

Central to the value co-creation business model is mutualistic interaction, through which business value producers propose offers and affirm the final meaning of offering values with customer experience. The model treats each upstream offering of value production merely as a part of value proposition (Grönroos, 2011; Vargo, 2008). Thus, the interaction becomes a locus, key source of value co-creation. Contemporary literature on interactive marketing and service research contain a myriad of theories clarifying the relevance and prominence of the interaction. However, there are still limited discussions regarding how business actors may propose a new potential value, and how the actors can judge the validity of the value co-creation in multi-actor business environments. This study provides a literature review on two main judgment paradigms used as a means to validate new value proposition and co-creation. The two paradigms are as follows: (1) collaborative rationality that evaluates rationales behind business actors' interactions for value co-creation; (2) social heuristics that concerns group-based satisficing decisions and judgments on a specific value proposition. Social heuristics use social information that does not necessarily stem from a formal, accurate analysis. To corroborate the theoretical implications of the two paradigms, the study analyzes a set of field case value validation processes for a novel product life cycle management information platform. The case study findings illustrate implications for collaborative business modeling and verification on new service-dominant value creation. Finally, the case study presents a prescriptive framework for smarter multi-actor value propositions and co-creation procedures.

Suggested Citation

  • To, Chester Kin-man & Yee, Rachel W.Y. & Mok, P.Y. & Chau, K.P. & Wong, Man Chong & Cheung, N.M., 2018. "Collaboration reasoning or social heuristics? Value proposition validity in omnium-gatherum business models," Journal of Business Research, Elsevier, vol. 88(C), pages 550-559.
  • Handle: RePEc:eee:jbrese:v:88:y:2018:i:c:p:550-559
    DOI: 10.1016/j.jbusres.2018.01.062
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    References listed on IDEAS

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    2. To, Chester K.M. & Chau, K.P. & Kan, Chi Wai, 2020. "The logic of innovative value proposition: A schema for characterizing and predicting business model evolution," Journal of Business Research, Elsevier, vol. 112(C), pages 502-520.
    3. Kang, Weiyao & Shao, Bingjia, 2023. "The impact of voice assistants’ intelligent attributes on consumer well-being: Findings from PLS-SEM and fsQCA," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    4. Lucia-Palacios, Laura & Pérez-López, Raúl, 2021. "Effects of Home Voice Assistants' Autonomy on Instrusiveness and Usefulness: Direct, Indirect, and Moderating Effects of Interactivity," Journal of Interactive Marketing, Elsevier, vol. 56(C), pages 41-54.
    5. Loureiro, Sandra Maria Correia & Romero, Jaime & Bilro, Ricardo Godinho, 2020. "Stakeholder engagement in co-creation processes for innovation: A systematic literature review and case study," Journal of Business Research, Elsevier, vol. 119(C), pages 388-409.

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