The phenomenon of value creation is witnessing a shift towards value co-creation, particularly in collaborative relationship. This study explores and prioritizes drivers enabling value co-creation from the perspectives of client and service provider in the context of IT-services outsourcing. An extensive literature review and subsequent pilot study suggest six probable value drivers that are further, statistically validated and prioritized. The unit of analysis is front-line professionals, working with either party. A web-based survey was administered to collect data from 256 respondents, drawn using judgemental sampling. Strategic Intent and Service Actualization are found to be significant and common value drivers for both parties (client and service provider), though with different priorities. The other significant value drivers are found to be Collective Capabilities for client and Intrapreneurship for service provider (these value drivers are not common to the client and service provider). This study reiterates and crystallizes the understanding of value co-creation process in the context of IT-services outsourcing. The identified drivers would enable practitioners to understand and to reconcile the drivers for client(s) and service provider(s) in order to realize the respective value outcome. The commonality of two value drivers; strategic intent and service actualization for both clients and service providers indicates the opportunity for co-creation of value.
AarikkaS. L.JaakkolaE. (2012). Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process. Industrial Marketing Management, 41(1), 15–26.
2.
AlparP.SahariaA. (1995). Outsourcing information systems functions: An organizational economics perspective. Journal of Organizational Computing, 5(3), 197–217.
3.
AngS.StraubD. (1998). Production and transaction economies and IS outsourcing: A Study of the U.S. bank industry. MIS Quarterly, 22(4), 535–552.
4.
AntoncicB.HisrichR. D. (2003). Clarifying the intrapreneurship concept. Journal of Small Business and Enterprise Development, 10(1), 7–24.
5.
BeverlandM.LockshinL. (2003). A longitudinal study of customers’ desired value change in business-to-business markets. Industrial Marketing Management, 32(8), 653–666.
6.
ChebiyyamM.PadhiS. S.GuptaN.KapilK. (2016). An empirical investigation of the antecedents of value co-creation in B2B IT services outsourcing. Business Process Management Journal, 22(3), 484–506.
7.
ChristopherM.RyalsL. (1999). Supply chain strategy: Its impact on shareholder value. International Journal of Logistics Management, 10(1), 1–10.
8.
CovaB.SalleR. (2008). Marketing solutions in accordance with the SD logic: Co-creating value with customer network actors. Industrial Marketing Management, 37(3), 270–277.
9.
CuganesanS. (2005). Intellectual capital-in-action and value creation: A case study of knowledge transformations in an innovation project. Journal of Intellectual Capital, 6(3), 357–373.
10.
DiRomauldoA.GurbaxaniV. (1998). Strategic intent for IT outsourcing. Sloan Management Review, 39(4), 67–80.
11.
DobrzykowskiD. D.Tran.O.TarafdarM. (2010). Value co-creation and resource based perspectives for strategic sourcing. Strategic Outsourcing: An International Journal, 3(2), 106–127.
12.
EnzM. G.LambertD. M. (2012). Using cross-functional, cross-firm teams to co-create value: The role of financial measures. Industrial Marketing Management, 41(3), 495–507.
13.
ErtimurB.VenkateshA. (2012). Opportunism in co-production: Implications for value co-creation. Australasian Marketing Journal, 18(4), 256–263.
14.
EthirajS. K.KaleP.KrishnanM. S.SinghJ. V. (2005). Where do capabilities come from and how do they matter? A study in the software services industry. Strategic Management Journal, 26(1), 25–45.
15.
EvansS.JukesS. (2000). Improving co-development through process alignment. International Journal of Operations and Production Management, 20(8), 979–988.
16.
FlynnB. B.SchroederR. G.SakakibaraS. (1994). A framework for quality management research and an associated measurement instrument. Journal of Operations Management, 11(4), 339–366.
17.
GonzalezR.GascoJ.LlopisJ. (2005). Information systems outsourcing success factors: A review and some results. Information Management and Computer Security, 13(5), 399–418.
18.
GottschalkP.Solli-SætherH. (2006). Maturity model for IT outsourcing relationships. Industrial Management and Data Systems, 106(2), 200–212.
19.
GrönroosC. (1997). Keynote paper from marketing mix to relationship marketing-towards a paradigm shift in marketing. Management Decision, 35(4), 322–339.
20.
GrönroosC. (2006). On defining marketing: Finding a new roadmap for marketing. Marketing Theory, 6(4), 395–417.
21.
GrönroosC. (2011). Value co-creation in service logic: A critical Analysis. Marketing Theory, 11(3), 279–301.
22.
GroverV.CheonM. J.TengJ. T. (1996). The effect of service quality and partnership on the outsourcing of information systems functions. Journal of Management Information Systems, 12(4), 89–116.
23.
HadayaP.CassiviL. (2012). Joint collaborative planning as a governance mechanism to strengthen the chain of IT value co-creation. The Journal of Strategic Information Systems, 21(3), 182–200.
24.
HakanssonH.FordD. (2002). How should companies interact in business networks? Journal of Business Research, 55(2), 133–139.
25.
HanH.S.LeeJ.N.SeoY. W. (2008). Analyzing the impact of a firm’s capability on outsourcing success: A process perspective. Information & Management, 45(1), 31–42.
26.
HanK.OhW.ImK. S.ChangR. M.OhH.PinsonneaultA. (2012). Value co-creation and wealth spill-over in open innovation alliances. MIS Quarterly, 36(1), 291–325.
27.
HarwoodT. G.GarryT. (2006). Relationship marketing: Why bother? Handbook of Business Strategy, 7(1), 107–111.
28.
HenkelJ.BaldwinC. Y. (2009). Modularity for value appropriation: Drawing the boundaries of intellectual property. Boston, MA: Harvard Business School.
29.
HirvonenP.HelanderN. (2001). Towards joint value creation processes in professional services. The TQM Magazine, 13(4), 281–291.
30.
HolcombT. R.HittM. A. (2007). Toward a model of strategic outsourcing. Journal of Operations Management, 25(2), 464–481.
31.
IppolitoA.ZoccoliP. (2010). How knowledge and technology relate in creating value: An Italian case of technology outsourcing. Strategic Outsourcing: An International Journal, 3(2), 72–88.
32.
KernT.WillcocksL. (2000). Exploring information technology outsourcing relationships: Theory and practice. The Journal of Strategic Information Systems, 9(3), 21–350.
33.
KishoreR.RaoH. R.NamK.RajagopalanS.ChaudhuryA. (2003). A relationship perspective on IT outsourcing. Communications of the ACM, 46(12), 86–92.
LavieD. (2007). Alliance portfolios and firm performance: A study of value creation and appropriation in the US software industry. Strategic Management Journal, 28(12), 1187–1212.
36.
LeavyB. (2012). Collaborative innovation as the new imperative—design thinking, value co-creation and the power of ‘pull’. Strategy and Leadership, 40(2), 25–34.
37.
LeeJ. N.KimY. G. (1999). Effect of partnership quality on IS outsourcing success: Conceptual framework and empirical validation. Journal of Management Information Systems, 15(4), 29–61.
38.
MalhotraM. K.GroverV. (1998). An assessment of survey research in POM: From constructs to theory. Journal of Operations Management, 16(17), 407–425.
39.
MatthyssensP.VandenbemptK.BreghmanL. (2006). Value innovation in business markets: Breaking the industry recipe. Industrial Marketing Management, 35(6), 751–761.
40.
MeleC. (2011). Conflicts and value co-creation in project networks. Industrial Marketing Management, 40(8), 1377–1385.
41.
MirandaS. M.KavanC. B. (2005). Moments of governance in IS outsourcing: Conceptualizing effects of contracts on value capture and creation. Journal of Information Technology, 20(3), 152–169.
42.
MöllerK. (2006). Role of competences in creating customer value: A value-creation logic approach. Industrial Marketing Management, 35(8), 913–924.
43.
MöllerK.HalinenA. (2000). Relationship marketing theory: Its roots and direction. Journal of Marketing Management, 16(3), 29–54.
44.
MöllerK. K.TörrönenP. (2003). Business suppliers’ value creation potential: A capability-based analysis.Industrial Marketing Management, 32(2), 109–118.
45.
MuthusamyS. K.WhiteM. A. (2006). Does power sharing matter? The role of power and influence in alliance performance. Journal of Business Research, 59(7), 811–819.
46.
NarasimhanR.Jayaram.J. (1998). Causal linkages in supply chain management: An exploratory study of North American manufacturing firms. Decision Sciences, 29(3), 579–605.
47.
NgI. CL.NudurupatiS.WilliamsJ. (2011). Redefining organizational capability for value co-creation in complex engineering service systems. In NgI. CL.ParryG.WildP.MacFarlaneD.TaskerP. (eds), Complex engineering service systems: Concepts & research. London: Springer.
48.
NgoL. V.O’CassA. (2013). Innovation and business success: The mediating role of customer participation. Journal of Business Research, 66(8), 1134–1142.
49.
NgwenyamaO. K.BrysonN. (1999). Making the information systems outsourcing decision: A transaction cost approach to analyzing outsourcing decision problems. European Journal of Operational Research, 115(2), 351–367.
50.
OrdaniniA.PasiniP. (2008). Service co-production and value co-creation: The case for a service-oriented architecture (SOA). European Management Journal, 26(5), 289–297.
51.
PayneA. F.StorbackaK.FrowP. (2008). Managing the co-creation of value. Journal of the Academy of Marketing Science, 36(1), 83–96.
52.
PloetnerO.EhretM. (2006). From relationships to partnerships: New forms of cooperation between buyer and seller. Industrial Marketing Management, 35(1), 4–9.
53.
PrahaladC. K.RamaswamyV. (2004). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5–14.
54.
RajamaniN.ManiD.MehtaS.ChebiyyamM. C. (2010). Quality satisfaction and value in outsourcing: Role of relationship dynamics and proactive management. Paper presented at the 31st International Conference on Information Systems, Paper 80.
55.
RamírezR. (1999). Value co-production: Intellectual origins and implications for practice and research. Strategic Management Journal, 20(1), 49–65.
56.
RanganathanC.BalajiS. (2007). Critical capabilities for offshore outsourcing of information systems. MIS Quarterly Executive, 6(3), 147–164.
57.
ReichB. H.GeminoA.SauerC. (2012). Knowledge management and project-based knowledge in it projects: A model and preliminary empirical results. International Journal of Project Management, 30(6), 663–674.
58.
RoseiraC.BritoC. (2009). Value co-creation with suppliers (Working Paper No. 342). Universidade do Porto, Faculdade de Economia do Porto. Retrieved from http://www.fep.up.pt/investigacao/workingpapers/09.11.03_wp342.pdf
59.
SarkerS.SarkerS.SahaymA.Bjørn-AndersenN. (2012). Exploring value cocreation in relationships between an ERP vendor and its partners: A revelatory case study. MIS Quarterly, 36(1), 317–338.
60.
SrivastavaV.SinghT. (2010). Value creation through relationship closeness. Journal of Strategic Marketing, 18(1), 3–17.
61.
SrivastavaV.SinghT. (2013). Exploring determinants of closeness in manufacturer-supplier relationships: A study of select Indian manufacturing firms. Journal of Relationship Marketing, 12(1), 1–21.
62.
StuckyS. U.CefkinM.RankinY.ShawB.ThomasJ. (2011). Dynamics of value co-creation in complex IT-service engagements. Information Systems and e-Business Management, 9(2), 267–281.
63.
VargoS. L. (2009). Toward a transcending conceptualization of relationship: A service-dominant logic perspective. Journal of Business and Industrial Marketing, 24(5–6), 373–379.
64.
VargoS. L.LuschR. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17.
65.
VargoS. L.MaglioP. P.AkakaM. A. (2008). On value and value co-creation: A service systems and service logic perspective. European Management Journal, 26(3), 145–152.
66.
VossM. (2012). Impact of customer integration on project portfolio management and its success: Developing a conceptual framework. International Journal of Project Management, 30(5), 567–581.
67.
WagnerS. M.EggertA.LindemannE. (2010). Creating and appropriating value in collaborative relationships. Journal of Business Research, 63(8), 840–848.
68.
WalkerG.WeberD. (1984). A transaction cost approach to make-or-buy decisions. Administrative Science Quarterly, 29(9), 373–391.
69.
WalterA.RitterT. (2003). The influence of adaptations, trust, and commitment on value-creating functions of customer relationships. Journal of Business and Industrial Marketing, 18(4–5), 353–365.
70.
WalterA.RitterT.GemündenH. G. (2001). Value creation in buyer-seller relationships: Theoretical considerations and empirical results from a supplier’s perspective. Industrial Marketing Management, 30(4), 365–377.
71.
WoodruffR. B.FlintD. J. (2006). Marketing’s service-dominant logic and customer value. In The service-dominant logic of marketing: Dialog, debate, and directions (pp. 183–195). New York, NY: Routledge.
72.
ZhangX.ChenR. (2008). Examining the mechanism of the value co-creation with customers. International Journal of Production Economics, 116(2), 242–250.
