Understanding The Spill-Over Effect Of Value Co-Creation In Buyer-Supplier Interactions: A Strategic View

Purpose This study aims to explore how the co-created value arising from integrated solutions results in both, intended and spill-over effects. Design/methodology/approach The research uses a qualitative multi-level field study, with data from 12 respondents in 1 supplier firm and 29 respondents from 10 buying firms. Findings The resulting propositions suggest that co-created value developed through exploitative and emerging strategies, each may lead to both higher intended and spill-over effects. However, it appears that exploitative strategies are more effective in returning intended effects, whereas emerging strategies lead to higher spill-over effects. Research limitations/implications The results are exploratory, obtained from a limited number of buyer companies. Concerns of external validity were traded off against opportunities to gain insights into a poorly understood phenomenon. Originality/value The paper contributes to the existing value co-creation literature by offering insights from integrated solutions, associated with the development of buyer and seller relationships. The resulting propositions suggest that co-created value developed through both exploitative and emerging strategies may each lead to both higher intended and spill-over effects. However, it appears that exploitative strategies are more effective in returning intended effects, whereas emerging strategies lead to higher spill-over effects.