Alignment of supplier and customer value co-creation practices in the mining services sector

Abstract

In order to remain competitive in a world of increasing knowledge and information ubiquity, service providers have found the need to move from marketing theories grounded in transactional good-dominant logic toward service-dominant logic as first proposed by Vargo & Lusch (2004). Through this transition, service providers have established the ability to differentiate individual customer value propositions for the cocreation of customer value. In order to identify opportunities for value co-creation, service providers have in turn recognised the need for dynamic capabilities and integrated operant resources for the adaption of value propositions to meet the individual needs of customers. The following research takes the form of a qualitative exploratory study in order to allow for the analysis of favourable co-creation attributes, as well as the degree of alignment between the service provider and customers in routine value co-creation activities. Through the study it is proposed that value creation for the customer depends not only on the ability of customer facing teams to align their propositions to the needs of customers, but also on the ability of the service provider to create internal alignment between support functions and customer facing teams in the organisation. Through this internal alignment it is proposed that greater potential value can be created within the provider sphere, in turn allowing for greater realization of value with the customer.