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Value co-creation: concept and measurement

  • Original Empirical Research
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Abstract

The surge in academic and practical interest in the topic of value co-creation (VCC) highlights an equivocal understanding of its conceptual boundaries and empirical constituents. Our search of the diverse scholarly literature on VCC identified 149 papers, from which we extract the two primary conceptual VCC dimensions of co-production and value-in-use. Though the combination of these two distinct dimensions is theoretically necessary to describe VCC, 79% of the studies in our dataset consider only one or the other. Such underlying theoretical ambiguity may explain conflicting results in earlier studies and motivates our effort to offer four contributions to the literature. First, we conduct a rigorous review, integrating existing work to expose the theoretical core of VCC. Second, we utilize the results from our review to isolate the two main theoretical dimensions of VCC and expose the three conceptual elements which underlie each dimension. Third, we apply our theoretical findings to derive empirical measurement constructs for each dimension. Fourth, we refine, analyze, and test the resulting measurement index in an investigation into consumer satisfaction.

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Notes

  1. To identify the model, we used reflective measures that captured a specific aspect of the latent construct. Such an approach is suggested only to identify formative models, which are underidentified, and need to be either placed in a bigger overall model, or be related with at least two reflective measures (e.g., Bollen 1989; Diamantopoulos and Winklhofer 2001; Jarvis et al. 2003; Reinartz et al. 2004).

  2. A general description of VCC was finalized through an iterative process from evidence gathered for VCC from extant research. The information collated under each dimension was reviewed iteratively to create a coherent definition. In the second stage, these descriptions were brought together to form a coherent description of VCC. The task was performed by each author independently and then together to arrive at a final description. The authors can provide these vignettes upon request.

  3. The authors can provide the details of the analysis to the readers of JAMS upon request.

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Acknowledgments

We are thankful to the editor, G. Tomas M. Hult and the two anonymous reviewers of JAMS. Thanks is also extended to reviewers and session-participants of the AMS annual conference, 2013 for their inputs on the preliminary version of this article. Our sincere appreciation for the reviews and insights offered by M. Jha, Nicholas Dew, Praveen S., Saras Sarasvathy, Shainesh G., and S. Bharadhwaj. The first author would also like to thank the endless help by his doctoral colleagues, Bipin, Rupanwita, Shailen, and Vinay.

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  1. IIM Tiruchirapalli, NIT Campus Post, Thanjavore Main Road, Tiruchirapalli, 620024, Tamil Nadu, India

    Kumar Rakesh Ranjan

  2. Atkinson Graduate School of Management, Willamette University, 900 State Street, Salem, OR, 97301, USA

    Stuart Read

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  1. Kumar Rakesh Ranjan
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Correspondence to Kumar Rakesh Ranjan.

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This article is based on the first author’s dissertation.

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Ranjan, K.R., Read, S. Value co-creation: concept and measurement. J. of the Acad. Mark. Sci. 44, 290–315 (2016). https://doi.org/10.1007/s11747-014-0397-2

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