An Activity System Model of the Value Creation in the Service Context

Authors: Hanna Komulainen; Hannu Makkonen

Abstract
The purpose of the study is to examine and model how customer companies in interaction with suppliers and other network actors create value in service production setting. Both the value creation and service production are conceptualized as processes that are related to customer, supplier and other network actors and the reciprocal interaction between them. The empirical setting organised to acquire data is a qualitative real-life experiment that consists of three field experiments. On the basis of the study we state that the content of the value creation process comprise of the use of the service in the customer‘s activities in a way that it produces more benefits than sacrifices and perceiving this difference. In this sense value is created by the customer only. The customer-supplier interaction in the service production and the customer‘s activity systems forms the context for the value creation.
Keywords: Value creation, Service production, Mobile Advertising, Activity System Model

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Conference: Glasgow, Scotland (2011)