Value co-creation is the desired outcome in a service interaction. Also known as value proposition based interaction mechanisms, value co-creation interactions are intuitively the promises and contracts that entities agree to, because they believe following through will realize value co-creation for both entities.
Spohrer asks: “When two service systems interact, how likely is it that there exists a value proposition that, if realized, can co-create value for both of them?”
and continues: “The answer is far more often than one might think. … Ricardo was able to show that under a wide range of circumstances, one nation could have superior competencies in all areas, and there still could be an improvement for both parties through exchange. Furthermore, since experience or learning curves exist in most activities, the longer one engaged in exchange the more benefit both parties could potentially achieve! Even when value propositions with realizable potential exist, many times interactions between two service systems will not result in value co-creation outcomes.”
Formalizing the notion value co-creation interactions is a challenge for service science and an active area of business research. A formal definition of accepting value proposition is discussed in.
- On Formalization of the Concept of Value Proposition (Authors: Marek Winkler Vladimír Dosoudil Published In: Journal of Service Science (INFORMS) Publication Date: 2011)
- Service Science (Spohrer) (Authors: Jim Spohrer Laura C. Anderson Norman J. Pass Tryg Ager Daniel Gruhl Published In: Journal of Grid Computing Publication Date: 2008)
- Service science and service-dominant logic (Authors: Jim Spohrer Laura C. Anderson Norman J. Pass Tryg Ager Published In: Otago Forum 2 –m Academic Papers Publication Date: 2008)
- Toward a Science of Service Systems (Authors: Jim Spohrer Paul P. Maglio Published In: Handbook of Service Science Publication Date: 2010)
- Typology of Service Innovation from Service-Dominant Logic Perspective (Authors: Kichan Nam Nam Hee Lee Published In: Journal of Universal Computer Science Publication Date: 2010)
- Value Merchants: Demonstrate and Documenting Superior Value in Business Markets (Authors: James C. Anderson Nirmalya Kumar James A. Narus Publication Date: 2007)