A1 Refereed original research article in a scientific journal
Interactive value formation in inter-organizational relationships: Dynamic interchange between value co-creation, no-creation, and co-destruction
Authors: Hannu Makkonen, Rami Olkkonen
Publisher: Sage Publications
Publishing place: London
Publication year: 2017
Journal: Marketing Theory
Journal acronym: MT
Article number: 7
Volume: 17
Issue: 4
First page : 517
Last page: 535
Number of pages: 19
ISSN: 1470-5931
eISSN: 1741-301X
DOI: https://doi.org/10.1177/1470593117699661(external)
Web address : http://journals.sagepub.com/doi/full/10.1177/1470593117699661(external)
The article builds a framework for interactive value formation (IVF) in interorganizational relationships. The framework describes IVF as interplay between resource integration and a multilevel service system, which manifests in interaction episodes accumulating into a relationship. The interplay generates outcomes in which the actors are better off (co-creation), worse off (co-destruction), or indifferent (no-creation) to value gained. The framework is demonstrated in an empirical case of a cultural sponsorship relationship where the co-destructive and no-creative interaction episodes dominated co-creative instances, finally accumulating into a relationship outcome of value no-creation for both parties. The framework and the launched novel conceptualization of value no-creation contribute to the research on service systems, resource integration for value, and failure in value co-creation. The research on failure in value co-creation, that is, value co-destruction, is scant. This article further elaborates this research stream and bridges to the research on co-creation.