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Master thesis (in progress) Business Administration, Specialization: Strategy & Organization Supervisor: Prof. Dr. T. Elfring Joost de Boer Student number 1517597 § 1.1 OBJECTIVE AND RESEARCH QUESTION Given the novelty of the concept, recent co-‐creation research has primarily focused on explorative research and theory building. The first conceptual models on co-‐creating value that were built, presented potential strategies for successful user involvement and exploring the benefits of co-‐creation for both customers and organizations (Kristensson, Johansson et al. 2008; Payne, Storbacka et al. 2008). Several types of customer collaboration were identified (Pisano and Verganti 2008) as well as researches that focused on the question whether co-‐creation should be considered a ‘limited subset of digital media’, or as ‘something that extends more generally and inclusively across the entire economy and culture’ (Potts, Hartley et al. 2008). However, little research has been combining marketing and innovation processes, neither has there been made consequent use of paradigms in both fields of interest such as the Service Dominant Logic and open innovation. As a result, there is a gap in co-‐creation literature in describing how co-‐creation can best be used in the different phases of value creation processes. Bendapudi & Leone (2003) made attempts to show that the timing of customer involvement is important, and Nambisan & Nambisan (2009) elaborate that different types of co-‐creation have different levels of impact. However, this does not include the question of what types of co-creation can best be used during the specific phases of the value creation process. In addition, there is lack of research describing which parties -‐ inside and outside the organization -‐ are involved in the different phases of the (co-‐created) value creation process. Thereby, co-‐creation requires cooperation with outside as well as with inside parties. Few is known about how this cooperation works, and what possible problems occur when for instance marketing and innovation departments start cooperating intensively with each other. Considering these gaps in co-‐creation literature, this research departs from the following research question: “How is co-‐creation used in the innovation and marketing New Product Development-‐processes of service-‐based organizations?” In addition, several sub questions have been formulated to underpin the research question: 1. What is considered as the ‘co-‐creation of value’? 2. How are different types of co-‐creation used for different purposes in the process? a) For what purposes is co-‐creation used in organizational processes? b) What types of co-‐creation are there? 3. Which parties are involved in co-‐creation? a) Who are involved from the inside of the organization? b) Who are involved from outside the organization? 4. What are the encountered problems for co-‐creation in these processes? 7
Master thesis (in progress) Business Administration, Specialization: Strategy & Organization Supervisor: Prof. Dr. T. Elfring Joost de Boer Student number 1517597 This research starts with a review of the available co-‐creation literature, and is subsequently extended with empirical research on co-‐creation. Both theoretical and empirical results will be combined to provide an answer to the research question, as shown by the proposed conceptual model in figure 1.1. Figure 1.1 | Proposed conceptual model Co-creation Marketing and innovation processes New Product Development Process Successful products and services § 1.2 THEORETICAL AND PRACTICAL RELEVANCE This research has the objective to make contributions to both theory and practice. This section therefore discusses the theoretical and practical relevance of this research. § 1.2.1 | Theoretical relevance Co-‐creation is a concept that can be used by both product-‐based as by service-‐based organizations. But over the past few decades, marketing theory and practice have evolved from a ‘goods’ dominant-‐logic towards a more ‘service’ dominant-‐logic. Vargo & Lusch (Lusch, Vargo et al. 2007) mark that from the 1980’s ‘a dominant logic begins to unify disparate literature streams in major areas such as customer and marketing orientation, services marketing, relationship marketing, quality management, value and supply chain management, resource management and network analysis’ (Vargo and Lusch 2004). Similarly, in innovation theory has quite recently had contributions on the field of lead-‐user innovation (von Hippel 1986; von Hippel 2005), open innovation (Chesbrough 2003; Chesbrough 2006) and new product development (Phillips, Neailey et al. 1999; Grönlund, Sjödin et al. 2010). These concepts have one thing in common: they open up innovation processes and emphasize the importance of cooperation and sharing, thereby deviating from traditional ‘closed’ innovation theories who prescribe that innovation is something that is done from within. Although these innovation and marketing theories have much in common, there have been done no attempts yet to challenge the strategies that traditional innovation and marketing departments use. This research zooms in on the process of new product development, thereby aiming to identify the moments that organizations involve their customers by using co-‐creation. Although previous research has identified several types of co-creation and opportunities for the use of co-‐creation in general, no combined research has been done yet describing what type of co-‐creation is used in what type of the new product development process. In addition, 8
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