ABSTRACT
This entry provides an overview of the concept of value cocreation to shed light on ethical issues in business research and practice that have important implications for public policy. Contrary to traditional business models, the concept of value cocreation shifts attention away from firm-centered views on value in markets and suggests that value is ultimately created through the interaction among multiple stakeholders within dynamic systems of social and economic exchange. This approach broadens the scope of value creation to highlight the phenomenological views on value and how the interaction among multiple stakeholders, including firms, customers and citizens, as well as government and nongovernment entities, influence, and are influenced by, both positive (e.g., movement toward sustainability) and negative outcomes (e.g., impact of smoking). This collaborative view of value creation has significant implications for the roles and responsibilities of managers, customers, citizens, and public policy makers alike.
