IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v147y2014ipap53-61.html
   My bibliography  Save this article

Service purchasing and value creation: Towards systemic purchases

Author

Listed:
  • Hallikas, Jukka
  • Immonen, Mika
  • Pynnönen, Mikko
  • Mikkonen, Karri

Abstract

The aim of this paper is to clarify the problematic issues of the procurement of service bundles and their value potential for business customers. Creating customer value is an essential aspect of service provision given the need to find new strategic options with value potential in supply chains and networks. In the paper we review the results of a recent survey on value creation in service bundles. We address two research questions concerning the characteristics of value creation in service purchasing, and the correlation between procurement strategies and the creation of value for customers. In order to find answers we carried out a survey among customers of the case company. From the responses we identified various customer segments. In order to explore the buying behavior of the different customer groups we conducted analyses of statistical variance between the clusters. According to the results, there was significant variation in almost all the selected variables. In the following we focus on the study design and the results, and discuss the findings.

Suggested Citation

  • Hallikas, Jukka & Immonen, Mika & Pynnönen, Mikko & Mikkonen, Karri, 2014. "Service purchasing and value creation: Towards systemic purchases," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 53-61.
  • Handle: RePEc:eee:proeco:v:147:y:2014:i:pa:p:53-61
    DOI: 10.1016/j.ijpe.2012.10.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527312004240
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2012.10.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Calabrese, Armando, 2012. "Service productivity and service quality: A necessary trade-off?," International Journal of Production Economics, Elsevier, vol. 135(2), pages 800-812.
    2. Mikkonen, Karri, 2011. "Exploring the creation of systemic value for the customer in Advanced Multi-Play," Telecommunications Policy, Elsevier, vol. 35(2), pages 185-201, March.
    3. Nordin, Fredrik, 2008. "Linkages between service sourcing decisions and competitive advantage: A review, propositions, and illustrating cases," International Journal of Production Economics, Elsevier, vol. 114(1), pages 40-55, July.
    4. Andrew Lancastre & Luis Filipe Lages, 2004. "The relationship between buyer and a B2B e-marketplace: cooperation determinants in an electronic market context," Nova SBE Working Paper Series wp443, Universidade Nova de Lisboa, Nova School of Business and Economics.
    5. Flie[ss], Sabine & Kleinaltenkamp, Michael, 2004. "Blueprinting the service company: Managing service processes efficiently," Journal of Business Research, Elsevier, vol. 57(4), pages 392-404, April.
    6. Quélin, Bertrand & Duhamel, François, 2003. "Bringing Together Strategic Outsourcing and Corporate Strategy:: Outsourcing Motives and Risks," European Management Journal, Elsevier, vol. 21(5), pages 647-661, October.
    7. Vargo, Stephen L. & Maglio, Paul P. & Akaka, Melissa Archpru, 2008. "On value and value co-creation: A service systems and service logic perspective," European Management Journal, Elsevier, vol. 26(3), pages 145-152, June.
    8. Buzacott, John A., 2000. "Service system structure," International Journal of Production Economics, Elsevier, vol. 68(1), pages 15-27, October.
    9. Yee, Rachel W.Y. & Yeung, Andy C.L. & Edwin Cheng, T.C., 2010. "An empirical study of employee loyalty, service quality and firm performance in the service industry," International Journal of Production Economics, Elsevier, vol. 124(1), pages 109-120, March.
    10. Wolfgang Ulaga & Stefan Worm & David Zitzlsperger, 2009. "Understanding the Additional Value Created by Customer Solutions and How it is Contingent upon Solution Complexity," Post-Print hal-00491960, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deborah Goldring, 2017. "Constructing brand value proposition statements: a systematic literature review," Journal of Marketing Analytics, Palgrave Macmillan, vol. 5(2), pages 57-67, June.
    2. Nina Tura & Lea Hannola & Mikko Pynnönen, 2017. "Agile Methods for Boosting the Commercialization Process of New Technology," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 1-23, June.
    3. Zhang, Min & Zhao, Xiande & Voss, Chris & Zhu, Guilong, 2016. "Innovating through services, co-creation and supplier integration: Cases from China," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 289-300.
    4. Xu, Xun & Zeng, Shuo & He, Yuanjie, 2021. "The impact of information disclosure on consumer purchase behavior on sharing economy platform Airbnb," International Journal of Production Economics, Elsevier, vol. 231(C).
    5. Chen, Kaui-Hwang & Wang, Chun-Hsien & Huang, Shi-Zheng & Shen, George C., 2016. "Service innovation and new product performance: The influence of market-linking capabilities and market turbulence," International Journal of Production Economics, Elsevier, vol. 172(C), pages 54-64.
    6. Garrido-Vega, Pedro & Ortega Jimenez, Cesar H. & de los Ríos, José Luis Díez Pérez & Morita, Michiya, 2015. "Implementation of technology and production strategy practices: Relationship levels in different industries," International Journal of Production Economics, Elsevier, vol. 161(C), pages 201-216.
    7. Akter, Shahriar & Wamba, Samuel Fosso & D’Ambra, John, 2019. "Enabling a transformative service system by modeling quality dynamics," International Journal of Production Economics, Elsevier, vol. 207(C), pages 210-226.
    8. Mikko Pynnönen & Jukka Hallikas & Paavo Ritala & Karri Mikkonen, 2014. "Analyzing systemic customer value in scalable business services," The Service Industries Journal, Taylor & Francis Journals, vol. 34(14), pages 1154-1166, October.
    9. Hallikas, Jukka & Lintukangas, Katrina, 2016. "Purchasing and supply: An investigation of risk management performance," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 487-494.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mikko Pynnönen & Jukka Hallikas & Paavo Ritala & Karri Mikkonen, 2014. "Analyzing systemic customer value in scalable business services," The Service Industries Journal, Taylor & Francis Journals, vol. 34(14), pages 1154-1166, October.
    2. Mikkonen, Karri & Niskanen, Hanna & Pynnönen, Mikko & Hallikas, Jukka, 2015. "The presence of emotional factors: An empirical exploration of bundle purchasing process," Telecommunications Policy, Elsevier, vol. 39(8), pages 642-657.
    3. Akter, Shahriar & Wamba, Samuel Fosso & D’Ambra, John, 2019. "Enabling a transformative service system by modeling quality dynamics," International Journal of Production Economics, Elsevier, vol. 207(C), pages 210-226.
    4. Mackelprang, Alan W. & Jayaram, Jayanth & Xu, Kefeng, 2012. "The influence of types of training on service system performance in mass service and service shop operations," International Journal of Production Economics, Elsevier, vol. 138(1), pages 183-194.
    5. Stuart Read & Stefan Michel & Jan H. Schumann & Kumar Rakesh Ranjan, 2019. "Pricing co-created value: an integrative framework and research agenda," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 155-183, December.
    6. Saarijärvi, Hannu & Mitronen, Lasse & Yrjölä, Mika, 2014. "From selling to supporting – Leveraging mobile services in the context of food retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 21(1), pages 26-36.
    7. Jochen Wulf, 2020. "Development of an AHP hierarchy for managing omnichannel capabilities: a design science research approach," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 39-68, April.
    8. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    9. Meijerink, Jeroen & Bondarouk, Tanya, 2018. "Uncovering configurations of HRM service provider intellectual capital and worker human capital for creating high HRM service value using fsQCA," Journal of Business Research, Elsevier, vol. 82(C), pages 31-45.
    10. Kertcher, Zack & Venkatraman, Rohan & Coslor, Erica, 2020. "Pleasingly parallel: Early cross-disciplinary work for innovation diffusion across boundaries in grid computing," Journal of Business Research, Elsevier, vol. 116(C), pages 581-594.
    11. Nina Tura & Lea Hannola & Mikko Pynnönen, 2017. "Agile Methods for Boosting the Commercialization Process of New Technology," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 1-23, June.
    12. Prabal Chakraborty & Moumita Poddar, 2020. "Role of Multiple Stakeholders in Value Co-creation and Effects on Medical Tourism," Jindal Journal of Business Research, , vol. 9(1), pages 18-26, June.
    13. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    14. Hui Zhang & Jin-Biao Yi & Qian Wang, 2021. "Research on the Collaborative Evolution of Blockchain Industry Ecosystems in Terms of Value Co-Creation," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    15. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    16. Seppo Kuula & Harri Haapasalo & Arto Tolonen, 2018. "Cost-efficient co-creation of knowledge intensive business services," Service Business, Springer;Pan-Pacific Business Association, vol. 12(4), pages 779-808, December.
    17. Marcelo Royo-Vela & Jonathan Cuevas Lizama, 2022. "Creating Shared Value: Exploration in an Entrepreneurial Ecosystem," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    18. Högström, Claes & Tronvoll, Bård, 2012. "The enactment of socially embedded service systems: Fear and resourcing in the London Borough of Sutton," European Management Journal, Elsevier, vol. 30(5), pages 427-437.
    19. Anis Assad Neto & Jessyca Sampaio & Silvana Pereira Detro & Fernando Deschamps & Eduardo Alves Portela Santos & Eduardo de Freitas Rocha Loures, 2021. "Reconciling process flexibility and standardization: a case study in the automotive industry," Operations Management Research, Springer, vol. 14(3), pages 507-524, December.
    20. Stefan Henningsson & Christian Øhrgaard, 2016. "IT Consultants in Acquisition IT Integration," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 58(3), pages 193-212, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:147:y:2014:i:pa:p:53-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.