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Value creation in the market ecosystem: A Service-Dominant logic perspective

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  • Georgia Katsifaraki

Abstract

A conceptual platform for value creation in market ecosystems is proposed in this study, which extends the Value-based Strategy view and models market interactions under the Service-Dominant logic. The platform helps addressing a number of emerging questions, such as: (i) how stakeholders offering concrete value propositions interact with stakeholders bearing unique value dispositions in a Service-Dominant prevailing market setting, i.e. a service ecosystem, and (ii) how firms position themselves favorably toward rivals through exploiting emerging Service-Dominant market insights. We posit that the firm’s co-creation capacity and the customer’s willingness to co-create are fundamental towards helping firms differentiate themselves from competition. On that basis, we identify four value co-creation strategies which can lead to competitive advantage. To demonstrate the applicability of our platform, we then develop a set of games and emphasize on its business relevance through a case study. The macro insights gained from the value co-creation phenomenon in a market transaction within a service ecosystem are highlighted throughout.

Suggested Citation

  • Georgia Katsifaraki, 2018. "Value creation in the market ecosystem: A Service-Dominant logic perspective," University of Cyprus Working Papers in Economics 14-2018, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:14-2018
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