The Theory of Value in Business

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Value is used in a central thought in economic theory (Haksever et al., 2004). The key for the value is an ‘exchange’ between two units such as “benefits and sacrifices” (Möller, 2006), “consumer surplus," value for money or optimize used value, but minimize exchange value (sacrifices in terms of price) (Bowman & Ambrosini, 2010). Normann & Ramirez (1993) use the terms co-produce to define the participation of customers in value co-creation that realized value is not created at supplier level, but between customer interactions. Several authors describe value in terms monetary business value whereas others include non-monetary benefits such as market competitiveness, competencies, and social rewards (Walter, Ritter, & Gemünden, 2001) or could be the combination of both business value. Haksever et al. (2004) describe tangible or intangible value may derive from business activities, policies, and regular action of the firm as the power of the product, service, or activity to fulfill a requirement or deliver a profit to a person or legal entity. Those values may positively influence the “quality of life, knowledge, prestige, safety, physical and financial security, as well as providing nutrition, shelter, transportation, income, etc.” (Haksever et al., 2004, pg. 292). These values are meant for stakeholders of the firms such as its customers, suppliers, owners and other firm’s alliances (Bowman & Ambrosini, 2010). Therefore, the role of firm and customers are different, it is a sequence of activities performed by the firm (Vargo et al., 2008). In marketing perspective, Prabhaker (2000) defines a value as a construct that originate from any one of five independent sources including market conditions, product specification, proce... ... middle of paper ... ...value for new product or system development (Rauniar, 2005). As such, there are many researches related to co-creation with customers regarding customer satisfaction (Vega-Vazquez et al., 2013), customer behavior (Yi & Gong, 2013), co-creation mechanism (X. Zhang & Chen, 2008), collaborative network firm (Romero & Molina, 2011) and multi-focus strategy (X. Zhang, Ye, Chen, & Wang, 2011). Although, the prior works listed contribute to value co-creation, however, this research focus on Prahalad & Ramaswamy (2004) proposition by applying the Dialogue, Accessibility, Risk and benefit; and Trust element or in short DART concept as shown in Figure XX. This research is interested in looking how the DART element is affecting each other and is permitting knowledge sharing between firm and customers. The following section discusses the four elements of the DART concept.

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