The value creation logic and the internationalisation of internet firms

2016 ◽  
Vol 26 (3) ◽  
pp. 349-370 ◽  
Author(s):  
Denitsa Blagoeva Hazarbassanova
Keyword(s):  
Value Creation ◽  
Research Question ◽  
International Strategy ◽  
Service Firms ◽  
Content Type ◽  
Digital Service ◽  
Internet Firms ◽  
Value Propositions ◽  
Value Creation Process ◽  
Practical Implications

Purpose The purpose of the research is to put to a test the belief that the idiosyncratic internationalisation process of Internet firms is homogeneous. The research question is thus, “How does the value creation logic of Internet firms influence their internationalisation process?”. Design/methodology/approach The authors answer this question using three cases illustrating the internationalisation process of three pure play digital service firms, each falling into one value creation logic. Findings Each case company had a different approach to internationalisation, explained by a different theory. The firms differed in what their motivation was to internationalise, how they dealt with their liability of foreignness and how they learnt to internationalise. The differences were consistent with the specificities of their value creation. The contribution of this paper is to take the first steps towards linking the way firms create value with their internationalisation. What theory best explains the internationalization of IFs seems contingent on what firms do. Practical implications The message to practitioners is that international strategy not only can but also needs to be different across firms. It needs to be tailored to the concrete way a firm endeavours to generate and capture value. “One strategy fits most” is unlikely to succeed, because different value propositions demand different approaches to realising them. Originality/value In extant literature, IFs have been treated as one group, albeit distinct from “offline” firms. This paper proposes that the value creation process of IFs causes them to differ from each other, just as much as they differ from traditional firms.

Mobile device use at festivals: opportunities for value creation

2016 ◽  
Vol 7 (3) ◽  
pp. 201-218 ◽  
Author(s):  
Christine M. Van Winkle ◽  
Amanda Cairns ◽  
Kelly J. MacKay ◽  
Elizabeth A. Halpenny
Keyword(s):  
Mobile Device ◽  
Value Creation ◽  
Design Methodology ◽  
Research Question ◽  
Structured Interviews ◽  
Content Type ◽  
Comprehensive Examination ◽  
Human Capability ◽  
Device Use ◽  
Practical Implications

Purpose The purpose of this paper is to understand mobile device (MD) use in a festival context. Festivals offer a range of opportunities and activities to use a MD making this context ideal for understanding digital experiences during leisure. The guiding research question asked how do festival attendees use MDs at festivals. The Typology of Human Capability (THC) provided a framework to enhance the understanding of digital experiences at festivals. Design/methodology/approach This research involved six festival case studies where semi-structured interviews were conducted with attendees on-site. Interview questions focused on how festival attendees used MDs during the festival. Data were analyzed using directed content analysis guided by the THC. Findings On-site interviews with 168 attendees revealed that data support the THC dimensions and constructs (sensing, linking, organizing and performing). This typology advances the understanding of the range of digital customer experiences currently available at festivals. Research limitations/implications The addition of context to the THC is recommended to enhance its utility in application. As a limited number of festivals were included, the specific findings may not apply to all festivals but the implications are relevant to a range of festivals. Practical implications Operational definitions of the THC constructs within the festival setting were identified and provide opportunities for developing digital experience offerings. Originality/value This study provided the first comprehensive examination of MD use in festival contexts and in so doing offered data in support of Korn and Pine’s (2011) THC. The findings reveal opportunities for modifying the THC to increase its applicability in a range of settings.

scholarly journals Beyond reciprocal: the role of platforms in diffusing data value across multiple stakeholders

2019 ◽  
Vol 30 (4) ◽  
pp. 507-518 ◽  
Author(s):  
Edward C. Malthouse ◽  
Alexander Buoye ◽  
Nathaniel Line ◽  
Dahlia El-Manstrly ◽  
Tarik Dogru ◽  
...  
Keyword(s):  
Value Creation ◽  
Future Research ◽  
Multiple Stakeholders ◽  
Content Type ◽  
Data Value ◽  
Data Ecosystem ◽  
Hospitality Managers ◽  
Value Creation Process ◽  
Practical Implications

Purpose The purpose of this paper is to assess the role of platforms in diffusing data value across multiple stakeholders. Design/methodology/approach Seminal theoretical and managerial work has been critically examined in order to justify the need for improving/extending the contemporary understanding of the data value creation process. Findings The results suggest that existing frameworks and conceptualizations of reciprocal data value provide incomplete understanding of the role of platforms in data value diffusion. Research limitations/implications This paper provides service researchers with a better understanding of the role of platforms in data value diffusion. Future research can develop and validate new frameworks that reflect the proposed extended/improved view of data value creation. Practical implications Service and hospitality managers will be able to more effectively manage the role of platforms in data value diffusion. Specifically, this paper proposes that, in order for data to become a source of competitive advantage, there must be a symbiotic relationship among all the stakeholders of the data ecosystem. Originality/value The authors discuss how data creates value for different stakeholders in the hospitality industry.

Why top managements must change their fundamental assumptions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Denning
Keyword(s):  
Value Creation ◽  
Customer Value ◽  
Design Methodology ◽  
Content Type ◽  
Business People ◽  
A Value ◽  
Current Context ◽  
Purpose Of Business ◽  
Value Creation Process ◽  
Practical Implications

Purpose Despite today’s profusion of customer-centric rhetoric, most business people still believe that the primary purpose of business is profits. But the most resilient and sustainably successful firms consistently select one primary purpose: enrich the lives of their customers. 10; Design\methodology\approach The article maps how the most valuable and fastest growing firms are paving the way for an era of customer-driven capitalism. Findings In the current digital age, an obsession with delivering value to customers is proving to be the key driving force for success. Practical\implications The goal of customer-value primacy is not a threat to other stakeholders. Originality\value Customer-driven leadership is a hallmark of successful management in the current context. Top management must institute and continuously support a value creation process that works backwards from the future. 10;

Enhancing service firm performance through customer involvement capability and innovativeness

2018 ◽  
Vol 41 (11) ◽  
pp. 1271-1289 ◽  
Author(s):  
Thomas Anning-Dorson ◽  
Robert Ebo Hinson ◽  
Mohammed Amidu ◽  
Michael Boadi Nyamekye
Keyword(s):  
Firm Performance ◽  
Customer Participation ◽  
Service Firms ◽  
Firm Level ◽  
Content Type ◽  
Customer Involvement ◽  
Confirmatory Factor ◽  
Relational Assets ◽  
Value Creation Process ◽  
Practical Implications

PurposeBecause of the paucity of empirical research on firm-level capabilities of firms for effective customer involvement, the purpose of this study is to evaluate service firms’ capacity to coopt customers to enhance the innovativeness and firm performance relationship. This study conceptualizes involvement capabilities of service firms as a strategic driver that exploits their internal firm assets, which in turn facilitates the positive relationship between innovativeness and firm performance.Design/methodology/approachData were collected from 344 managers of service firms across different sub-sectors in an emerging economy. The study first confirmed the constructs through confirmatory factor analysis before analyzing hypothesized relationships. Regression models were specified with robust standard errors to test the hypothesized relationships.FindingsThe study found that involvement capability of service firms helps them to exploit their relational assets and create and manage strong customer participation. Additionally, it was found that involvement capabilities enable service firms to capitalize on the competencies of customers, which in turn improves the outcomes of their innovativeness. The results showed that the interaction between involvement capability and innovativeness enhances firm performance significantly.Practical implicationsService firms can enhance customer participation in the value creation process by increasing their involvement capabilities. The increase in such capabilities will enhance the innovativeness of service firms, thereby improving their financial and non-financial performance.Originality/valueThis study offers guidance on how a firm’s innovativeness and customer involvement work together within the service operation to enhance firm performance.

B2B e‐marketplaces: a typology by functionality

2007 ◽  
Vol 37 (1) ◽  
pp. 4-18 ◽  
Author(s):  
Kenneth J. Petersen ◽  
Jeffrey A. Ogden ◽  
Phillip L. Carter
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Service Needs ◽  
Community Based ◽  
Content Type ◽  
Value Propositions ◽  
Depth Interviews ◽  
Practical Implications ◽  
Careful Assessment ◽  
Roll Out

PurposeThe purpose of this article is to develop a typology of e‐marketplace functionality and then link the typology to the associated value creation potential of differing types of e‐marketplaces.Design/methodology/approachIn‐depth interviews with the executives of 50 e‐marketplaces, a web/mail‐based survey of another 350 e‐marketplaces and interviews with several e‐marketplace customers were conducted.FindingsB2B e‐marketplaces offer a variety of different value propositions. Leading e‐marketplaces have a well‐developed strategy for reaching a particular segment of the buying community, based on service needs. Developing e‐marketplaces do not demonstrate the same focus. On one hand, only a few e‐marketplaces had developed the same winning constellations of services, while on the other hand, most were planning a roll‐out of a wide variety of services that would carry them far beyond a focused strategy. The success of this approach seems problematic.Practical implicationsThe prudent customer of an e‐marketplace should weigh their requirements against the functionality found across the broad set of e‐marketplaces as well as against the constellations of functionality (and value creation potential) developed in this research. Only after a careful assessment of needs, can companies make rational decisions about how to effectively use e‐marketplaces.Originality/valueThis research employs a strong research method to create a unique typology of e‐marketplace functionality. This research also links the typology of e‐marketplace functionality to its value creating potential.

scholarly journals Value creation logics and internationalization of service firms

2014 ◽  
Vol 31 (6) ◽  
pp. 557-575 ◽  
Author(s):  
Peter D. Ørberg Jensen ◽  
Bent Petersen
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Theoretical Study ◽  
Service Firms ◽  
Content Type ◽  
Firm Internationalization ◽  
Internationalization Strategy ◽  
Foreign Operation ◽  
Business And Management ◽  
Practical Implications

Purpose – While mainstream theories in international business and management are foundedeither explicitly or implicitly on studies of manufacturing firms, prior attempts to develop theoryon the internationalization of service firms are sparse and have yet to establish solid andcomprehensive frameworks. The thrust of this study is that value creation logics, a constructoriginally developed by Stabell and Fjeldstad (1998) can assist us in better understanding why and how service firms internationalize. The authors extend this construct and propose that the internationalization of service firms must be based on a thorough understanding of the fundamental nature of these firms. Design/methodology/approach – Theoretical study. Findings – The authors put forward propositions concerning the pace of internationalization and the default foreign operation modes in service firms. Research limitations/implications – The use of value creation logics can be a useful complement to the conventional approaches to the study of service firms’ internationalization. However, the fact that most firms encompass more than one value creation logic complicates the use of firm databases and industry statistics. Practical implications – The authors suggest that managers in service firms should consider primarily the nature of the value creation logic(s) in their firms when deciding and designing an internationalization strategy. Originality/value – The study presents a novel theoretical approach and a set of propositions on service firm internationalization founded on the specific characteristics of the service activities.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

Employee emotional displays in the extended service encounter

2019 ◽  
Vol 31 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Magnus Soderlund ◽  
Hanna Berg
Keyword(s):  
Marketing Communications ◽  
Emotional Expressions ◽  
Service Firms ◽  
Still Images ◽  
Content Type ◽  
Emotional Displays ◽  
Service Setting ◽  
Low Levels ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine the impact of happiness expressed by service firm employees when they are depicted in marketing communications materials, such as printed ads and videos. Design/methodology/approach Two experiments were conducted in a fitness service setting, in which employee display of happiness was manipulated (low vs high). Findings Both experiments showed that expressions of high levels of happiness produced a more positive attitude toward the service employee than expressions of low levels of happiness. Moreover, the impact of the expression of happiness on the evaluation of the employee was mediated by several variables, which suggests that the influence of depicted employees’ emotional expressions can take several routes. Practical implications The results imply that service firms should not only be mindful about which specific employee they select for appearing in marketing communications materials, they should also pay attention to the emotional displays of selected employees. Originality/value The present study contributes to previous research by assessing a set of potential mediators to explain why displays of happiness influence consumers, and by examining these effects in a marketing communications setting in which the customer is exposed to still images or video-based representations of the employee. The present study also focuses explicitly on happiness rather than on smiles.

Is property management viewed as a value-added service?

2019 ◽  
Vol 37 (2) ◽  
pp. 262-274 ◽  
Author(s):  
Dustin C. Read ◽  
Andrew Carswell
Keyword(s):  
Real Estate ◽  
Value Creation ◽  
Value Added ◽  
Professional Service ◽  
Property Management ◽  
Individual Property ◽  
Content Type ◽  
Creation Process ◽  
A Value ◽  
Value Creation Process

PurposeThe purpose of this paper is to examine the perspectives of real estate executives to assess the extent to which property management is viewed as a commodity or as a value-added professional service contributing positively to investment performance and property value maximization.Design/methodology/approachThe qualitative analysis draws on the result of 93 semi-structured interviews conducted with executives employed by some of the largest real estate investment management and service firms across the USA.FindingsThe findings suggest that significant perceptual cleavages exist in the real estate industry, with some executives believing property managers are incredibly important to the value creation process and others believing they play a much more modest role.Practical implicationsThe results highlight the need for the property management industry as whole to continue its efforts to gain recognition as a value-added professional service and for individual property management companies to actively take steps to differentiate themselves from competitors if they hope to avoid commodification and fee compression.Originality/valueThe study is the first to the authors’ knowledge to examine real estate executives’ perspectives about the roles property managers play in the value creation process, as well as their views about whether property managers have the skills and autonomy required to make value accretive decisions.

Thomas Stewart: what leaders need to know about the new design revolution in services

2017 ◽  
Vol 45 (3) ◽  
pp. 16-22
Author(s):  
Brian Leavy
Keyword(s):  
Design Methodology ◽  
Service Design ◽  
Design Strategy ◽  
Harvard Business Review ◽  
Service Firms ◽  
Content Type ◽  
Innovation Activities ◽  
Customer Delight ◽  
Modern Manufacturing ◽  
Practical Implications

Purpose With the growing importance of services in the overall economy, it is surprising that the notion of service firms investing in systematic and dedicated innovation activities has taken so long to materialize. This is now set to change as service firms undertake the kind of research, design and development disciplines which for more than a century have been mainstays of modern manufacturing. Design/methodology/approach S&L interviews the well-known former editor of Harvard Business Review Thomas A. Stewart and his co-author, former BloombergBusinessweek.com editor Patricia O’Connell, in their latest book, Woo, Wow and Win: Service Design, Strategy and the Art of Customer Delight (Harper Business, 2016). They believe we are on the cusp of a “design revolution” in services. Findings The central thesis of their book is that services “should be designed with as much care as products are” and they include service “delivery” in that premise. Practical implications Service design principles offer powerful new ways to address the three basic strategy questions: What do we sell? To whom? And how do we win? Originality/value Service design helps you understand how to configure a set of activities, behaviors and touchpoints–a journey–that allows you to serve that customer well.

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