Scale development and validation for DART model of value co-creation process on innovation strategy

Abstract

Purpose – The purpose of this paper is to validate scale measurements of dialogue, access, risk assessment and transparency (DART) constructs, as the process of value-co-creation, and then understand its effect on innovation strategy. Further, the paper explores the influence of innovation strategy on the market performance. Design/methodology/approach – The model links four dimensions of DART as building blocks of value co-creation, to the innovation strategy. Further, the model links innovation strategy to the market performance. In total, five hypotheses are postulated. Testing was conducted through structural equation modeling using PLS-SEM, utilizing data from 249 managers of telecommunication companies in Malaysia. Findings – The result of the analysis revealed dialogue, risk assessment and transparency having a significant positive relationship with innovation strategy. These results signified the importance of value co-creation to formulate an innovation strategy of the firms. The finding of the research shows that innovation strategy has a strong effect on market performance as well. Practical implications – Implementing value co-creation process facilitates companies in formulating an innovation strategy that enhances market performance significantly. Originality/value – The paper validated scale measurement of DART model which adds substantial knowledge and concepts in the areas of value co-creation process. It describes the first empirical research study on the practice of value co-creation and innovation strategy in developing country focusing on telecommunication industry. Further, the model examines the effect of DART dimensions on innovation strategy result in market performance enhancement.

Ski Tourism and Web Marketing Strategies: The Case of Ski Resorts in France and Spain

“…Traditionally, it was the seller who was systematically thinking of different ways of creating value for their customers. However, more recently, some authors [90][91][92], have emphasized that value can also emerge from the reciprocal interaction between sellers and buyers through a process of value co-creation; in this sense, one author claims that "value co-creation applies the initiatives of firms' innovation with the consumers, rather than for the consumers" [93] (p. 25).…”

Conceptual Framework for the Strategic Management: A Literature Review—Descriptive

“…Companies now focus more on exploitation of external resources such as customers, rather than internal efficiency, to gain new competitive advantages. People's ideas are fed by brands, and this exercise provides the opportunity to cocreate products in collaboration with customers [55,56]. e adequacy of the strategies can be defined from various approaches, each of which reflects different indicators; these indicators are based on the profit impact of market strategy (PIMS) structure in order to define the strategic potential (Table 4).…”

Co-creation in conventional and collaborative businesses

“…Activities related to the DART co-creation building blocks (figure 1) constitute a systematic process that can transform consumer efforts into exclusive competitive advantages (Taghizadeh, Jayaraman, Ismail & Rahman, 2016). Understanding these dimensions or building blocks makes it possible to evaluate a company's institutional readiness for co-creation of value and reflect on the use of internal structures and policies suitable for a co-creation environment (Albinsson, Perera & Sautter, 2016).…”

“…The first building block, Dialogue, is about replacing traditional one-way communication with processes that promote a two-way flow of information, encourage greater interaction and enable the consumer to take an active role in creating experience (Callegaro & Brasil, 2012) in a relationship of mutual equality in the search for solutions to problems. According to Taghizadeh et al (2016), this interaction is not only about stating the company's views or predisposition to listen to the consumer; rather, "it requires deep involvement, animated interactivity, empathic understanding and a will on both parts to act, especially when they are in disagreement" (Prahalad & Ramaswamy, 2002, p. 10). Therefore, dialogue promotes not only knowledge sharing but also, above all, understanding and a good relationship between a company and consumers.…”