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Ethical Customer Value Creation: Drivers and Barriers

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  • Grace Lin
  • Jerry Lin

Abstract

There is a long-standing discussion on the positive interactions between enterprise value creation and business competitiveness. The corporate value can be seen as being created from three major sources within the cycle – from employees, from processes, and from customers or investors through reinvestment. To achieve competitive advantages, a firm must create more value than its competitors in the industry. Emphasizing that, firms should explore the positive drivers of customer value creation, allowing for a true value creation that will lead to increments in competitiveness. In reality, however, there are also barriers that hinder customer value creation. Targeting the above issues that have not yet been explored or analyzed, we have collected related literature at the first stage. Based on these presumable assumptions, this paper then conducts an empirical study by surveying and analyzing the relevance given by the investigated leading machinery measuring equipment firms in Taiwan, regarding the concerns as drivers and barriers in relation to customer value creation. This paper especially aims to answer several key questions: What drivers revolving around employees and processes can facilitate the organization to create more value for its customers? Conversely, what barriers block the organization from creating value for customers in examining the same dimensions? Does value creation direct an organization’s profitability and competitiveness? Our questionnaire survey results show that the most recognized and agreed drivers of customer value creation in consideration of employees are “distinctive skillsâ€\x9D, “personal experienceâ€\x9D, “learning and trainingâ€\x9D, and “team workâ€\x9D; and, in regard to the firm’s processes, the key drivers are “innovation and evolutionâ€\x9D, “R&D capabilityâ€\x9D, and “capability for differentiationâ€\x9D. Conversely, the most recognized and agreed barriers to customer value creation in relation to employees are a “distrustful environmentâ€\x9D and “inadequate knowledgeâ€\x9D; and, in terms of processes, they are “short of core technologyâ€\x9D, “poor resource supportâ€\x9D, and “bad services and attitudesâ€\x9D. Furthermore, our in-depth interview outcomes reveal that “capital sufficiencyâ€\x9D and “mergers and acquisitionsâ€\x9D are in practice considered to be other important customer value creation drivers; in contrast, “cultural and structural barriersâ€\x9D and “short of mechanisms to measure customer value creation effectivelyâ€\x9D are viewed as additional critical barriers to customer value creation. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Grace Lin & Jerry Lin, 2006. "Ethical Customer Value Creation: Drivers and Barriers," Journal of Business Ethics, Springer, vol. 67(1), pages 93-105, August.
    • Handle: RePEc:kap:jbuset:v:67:y:2006:i:1:p:93-105
    DOI: 10.1007/s10551-006-9009-5
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    References listed on IDEAS

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    1. Andreas Eggert & Wolfgang Ulaga, 2002. "Customer perceived value: a substitute for satisfaction in business markets?," Post-Print hal-00484980, HAL.
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    1. Denis Cormier & Walter Aerts & Marie‐Josée Ledoux & Michel Magnan, 2010. "Web‐Based Disclosure About Value Creation Processes: A Monitoring Perspective," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 320-347, September.
    2. Raf Orens & Walter Aerts & Denis Cormier, 2010. "Web‐Based Non‐Financial Disclosure and Cost of Finance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(9‐10), pages 1057-1093, November.
    3. Sahi, Gurjeet Kaur & Devi, Rita & Gupta, Mahesh C. & Cheng, T.C.E., 2022. "Assessing co-creation based competitive advantage through consumers’ need for differentiation," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    4. Hanuman Sharma, 2021. "Effectiveness of Online Marketing Tools: A Case Study," Paradigm, , vol. 25(1), pages 77-86, June.

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