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Managing the co-creation of value

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Abstract

Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation; and utilize field-based research to illustrate practical application of the framework. This process-based framework provides a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights into managing the process of value co-creation.

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Acknowledgment

We wish to thank Dr. Oskar Korkman for his contribution to the research process, and three anonymous reviewers and the Special Issue Co-editors for their insights and helpful comments on previous versions of this article.

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Authors and Affiliations

  1. Australian School of Business, University of New South Wales, UNSW, Sydney, 2052, Australia

    Adrian F. Payne

  2. Nyenrode Business Universiteit, Straatweg 25, P.O. Box 130, 3620 AC, Breukelen, The Netherlands

    Kaj Storbacka

  3. Discipline of Marketing, Faculty of Economics and Business, The University of Sydney, NSW, Sydney, 2006, Australia

    Pennie Frow

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  1. Adrian F. Payne
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  2. Kaj Storbacka
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Correspondence to Adrian F. Payne.

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Payne, A.F., Storbacka, K. & Frow, P. Managing the co-creation of value. J. of the Acad. Mark. Sci. 36, 83–96 (2008). https://doi.org/10.1007/s11747-007-0070-0

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