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Taking a system view on customer value creation
Mid Sweden University, Faculty of Science, Technology and Media, Department of Quality Technology and Management, Mechanical Engineering and Mathematics. (Kvalitetsteknik)
2016 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

In Quality Management and Total Quality Management (TQM) customer focus and customer value creation is of importance and in organisations it is of high priority. Quality Management has had an internal focus when it comes to customer value creation but in the 21st century there is a need for an outward orientation and to go beyond the organisational borders. Also an increasing interest in social, societal and environmental issues can be seen, for instance by customers, organisations, quality awards and within the quality area. An area that considers these issues is the societal entrepreneurial sector.

 

The purpose of this thesis has been to contribute to the knowledge and understanding about customer value creation from a system view. Additionally the purpose has been to contribute to the development of Quality Management. In order to fulfil the purpose, case studies have been performed. Cases within the societal entrepreneurial area have been studied and seven studies have been performed. Data have been collected through interviews, direct observations, participating observations and documents. All data have been collected empirically except in one study where a literature case study was used. The data were analysed through tools such as process mapping, attribute value mapping and rich picture process maps combined with analytical methods for case study research. The research journey started out from TQM and an internal perspective on customer value creation. As the studies went on, the system borders became wider as other areas important to customer value creation were identified: the customer value creating system went from an internal perspective to include an external perspective. 

 

The findings contribute to earlier research findings and give a comprehensive and simplified picture of a complex phenomenon and an opportunity to understand customer value creation from a system view. This thesis provides an overall map of the customer value creating system. Additionally it contributes to the development of Quality Management by expanding the view on customer value creation to include both an internal and an external oriented perspective. It also contributes by suggesting a fifth step in the quality management movement ´System Quality Management´ that considers social, societal and environmental factors through continuous improvement before, during and after value creation for customers. Further it contributes with a developed view on customers and the concept of customer value creation.

 

The overall map provided includes three areas.

  1. Growth and development of societal entrepreneurial initiatives. The result shows important components for the creation of societal value based on the growth and development of societal entrepreneurial initiatives. Included are the processes, input and output important for societal value creation from unidentified needs until societal value can be delivered, management process and support process fields.

  2.  Customer value creation in the customer sphere.  Customer value has been found to be created beyond the use or purchase of a product or service. Value has also been found to be created for those that are not in direct contact with an initiative or its product or service. Customer value has been found to spread into society like ripples in a complex system of value creation. And Value Ripple Logic has been developed to describe this phenomenon.

  3. Management role in customer value creation. The management’s role in value creation has been found to be of importance in the creation of customer value in an indirect way through interaction with the surroundings and the initiative.  Factors and behaviours have been found which are connected to the leaders and their essential management processes along with their input and output.

     

The findings presented in this thesis have considerable potential for development. Further studies need to be done within the area concerning how customer value is created and to achieve an even more comprehensive picture of the customer value creating system and the suggested fifth step. The results presented in this thesis are a contribution to the knowledge and understanding about customer value creation from a system view and the development of the Quality Management.

Place, publisher, year, edition, pages
Östersund: Mid Sweden University , 2016. , 118 p.
Series
Mid Sweden University doctoral thesis, ISSN 1652-893X ; 247
Keyword [en]
customer value; customer value creation; societal value; system view; Total Quality Management (TQM); Quality Management; Societal entrepreneurship; social entrepreneurship; Value Ripple Logic (VRL)
National Category
Other Engineering and Technologies
Identifiers
URN: urn:nbn:se:miun:diva-27573ISBN: 978-91-88025-68-5 (print)OAI: oai:DiVA.org:miun-27573DiVA: diva2:925432
Public defence
2016-06-02, Q221, Akademigatan 1, Östersund, 10:00 (Swedish)
Opponent
Supervisors
Note

Vid tidpunkten för disputationen var följande delarbeten opublicerade: delarbete 6 accepterat för publicering och delarbete 7 inskickat.

At the time of the doctoral defence the following papers were unpublished: paper 6 accepted for publication and  paper 7 submitted.

Available from: 2016-05-02 Created: 2016-05-02 Last updated: 2016-05-02Bibliographically approved
List of papers
1. Soci(et)al entrepreneurship from a Quality Management perspective
Open this publication in new window or tab >>Soci(et)al entrepreneurship from a Quality Management perspective
2011 (English)In: ICSB world conference: Back to the future, Changes in perspectives of global entrepreneurship and innovation, Stockholm, 2011Conference paper, (Refereed)
Abstract [en]

The purpose of this paper was to visualize and describe a general social/societal entrepreneurship process and to describe essential parts within the processes with the aim of contributing to the understanding of the features of the phenomenon. By studying the area from a Quality Management view and with a focus on processes this study shows a proposed visualization of the soci(et)al entrepreneurship development processes. The visualization shows processes, activities, output, input, and the value to the customer within soci(et)al entrepreneurship. The process starts with various unidentified needs and ends in the soci(et)al values. The study focused on literature that was found through databases, previous knowledge within the area and from other scientists. The results were confirmed in literature that describes social or societal entrepreneurship cases. This is an attempt to contribute to the understanding of soci(et)al entrepreneurship and help practitioners to understand their work and develop within the field.

Place, publisher, year, edition, pages
Stockholm: , 2011
National Category
Reliability and Maintenance
Identifiers
urn:nbn:se:miun:diva-14735 (URN)978-0-9819028-3-8 (ISBN)
Conference
56th annual ICSB world conference
Available from: 2011-12-01 Created: 2011-11-14 Last updated: 2016-05-02Bibliographically approved
2. A process towards societal value within a community-based regional development project
Open this publication in new window or tab >>A process towards societal value within a community-based regional development project
2012 (English)In: Quality Innovation Prosperity, ISSN 1335-1745, Vol. 16, no 2, 71-83 p.Article in journal (Refereed) Published
Abstract [en]

Processes, activities and tasks of a community-based area development project are described. The main process has been used three times and a model is presented.  An earlier developed process map has been verified. The description of the project can help other communities to plan development projects. The illustration can be valuable for entrepreneurs who are planning a societal value initiative and for decision-makers and stakeholders who can contribute to, are concerned with, or may be affected by societal entrepreneurship. Observation, participating studies, dokumentations and an interview with the project leader has been carried out. Data have been analyzed and compared with the previously developed process map to achieve a deeper understanding of the processes within societal entrepreneurship. The purpose was to study and describe the processes of a community-based area development project and to compare it with a previously developed process map and to verify the process map.

Place, publisher, year, edition, pages
Kosice, Slovakia: Public Knowledge Project, 2012
Keyword
Societal entrepreneurship, social entrepreneurship, societal value, process, process map.
National Category
Reliability and Maintenance
Identifiers
urn:nbn:se:miun:diva-18208 (URN)10.12776/qip.v16i2.70 (DOI)2-s2.0-84875876664 (Scopus ID)
Projects
SESPA Samhällsentreprenörskap gränsöverskridande kraft för regional och lokal utveckling i glesa miljöer
Available from: 2013-01-09 Created: 2013-01-09 Last updated: 2016-10-17Bibliographically approved
3. Creation of value to the society: a process map of the societal entrepreneurship area
Open this publication in new window or tab >>Creation of value to the society: a process map of the societal entrepreneurship area
2015 (English)In: Total Quality Management and Business Excellence, ISSN 1478-3371, E-ISSN 1478-3371, Vol. 26, no 4, 385-399 p.Article in journal (Refereed) Published
Abstract [en]

Both science and those active within the societal entrepreneurship area need further knowledge and understanding about the phenomenon. By identifying and mapping out processes within societal entrepreneurship, opportunities to create knowledge and understanding are created. The purpose of this study has been to empirically study processes within societal entrepreneurship initiatives and compare them with a theoretical process map. The purpose has also been to confirm and develop this map. Three cases of societal entrepreneurship have been studied. Several data sources have been used to find activities and tasks within the initiatives. These have then been analysed using the process map. The empirical studies have confirmed and developed the theoretical process map that shows how societal value is crated within societal entrepreneurship. A process map of the societal entrepreneurship area that seems to cover general principles is presented.

Keyword
process, process map, social entrepreneurship, societal entrepreneurship, societal value
National Category
Reliability and Maintenance
Identifiers
urn:nbn:se:miun:diva-20183 (URN)10.1080/14783363.2013.835897 (DOI)000351162700012 ()2-s2.0-84938551266 (Scopus ID)
Note

Published online 15 Oct 2013.

Available from: 2013-11-11 Created: 2013-11-11 Last updated: 2016-05-02Bibliographically approved
4. Towards Capturing and Visualizing Value Creation: Exploring and Elaborating Attribute-Value Mapping
Open this publication in new window or tab >>Towards Capturing and Visualizing Value Creation: Exploring and Elaborating Attribute-Value Mapping
2013 (English)Conference paper, (Refereed)
Abstract [en]

Purpose –The focus of all quality initiatives is value creation and the understanding of customer value. With that said, it is surprising how non-visual, and noticeably blunt, the current tools for capturing and visualizing customer value sometimes appear in practice. The purpose of this paper is hence to explore and elaborate the ability of capturing and visualizing value creation, setting out from a new marketing tool referred to as attribute-value mapping.

Methodology/Approach – In order to fulfill the purpose of this paper, the attribute-value mapping tool has been applied, explored and elaborated as part of case studies within the area of societal entrepreneurship. The data have been collected as part of an annual course in societal entrepreneurship at Mid Sweden University.

Findings – The paper illustrates how the attribute-value mapping tool can be elaborated and used to capture and visualize value creation in practice. It also highlights perceived benefits of the attribute-value mapping tool and possibilities for further applications and development of the tool.

Value – The paper introduces and provides a practical example of a new tool for capturing and understanding customer value creation, and the attributes driving that value creation, in the quality management context. It is hoped to enable a more fruitful and accurate understanding and development of customer value within quality management, reaching from the entire organization to new product and new service development, various continuous improvement projects or the establishment of quality measurement systems.

 Keywords Customer value, value creation, societal entrepreneurship, social entrepreneurship, attribute-value mapping, quality management.

Keyword
Customer value, value creation, societal entrepreneurship, social entrepreneurship, attribute-value mapping, quality management.
National Category
Engineering and Technology
Identifiers
urn:nbn:se:miun:diva-20164 (URN)
Conference
16th QMOD-ICQSS conference, Portoroz, Slovenia, 2013 (September 4-6)
Available from: 2013-11-07 Created: 2013-11-07 Last updated: 2016-12-02Bibliographically approved
5. Factors and leadership behaviours in successful societal entrepreneurships that contribute to customer value
Open this publication in new window or tab >>Factors and leadership behaviours in successful societal entrepreneurships that contribute to customer value
2014 (English)In: 17th QMOD-ICQSS Conference on Quality and Service Science in Prague, Czech Republic: Entering the Experience Economy –from product quality to experience quality / [ed] Su Mi Dahlgaard - Park & Jens J. Dahlgaard,, Prague: Lund University Library Press , 2014Conference paper (Refereed)
Abstract [en]

Purpose: The purpose of this paper is to study successful leaders in societal entrepreneurships from a Quality Management perspective. The underlying purpose is to identify factors and leadership behaviours that contribute to the successful creation of customer value.Methodology: The research started with a literature review focusing on leadership within Quality Management. Two successful societal entrepreneurs were then studied to identify factors and behaviours that contribute to value creation. The identified factors and behaviours were then compared with each other.Findings: The results presented in this paper describe the leadership behaviours and factors of successful societal entrepreneurs that have been showed to create customer value. The results show that leaders need to focus on factors and behaviours connected to their co-workers, their organizations, their surroundings and their customers; but they also have to be aware of how they are and act to be able to successfully create customer value.Value of paper: By learning from societal entrepreneurs and their leadership behaviours, leaders within Quality Management could learn to increase customer value and be more adaptable to future demands.

Place, publisher, year, edition, pages
Prague: Lund University Library Press, 2014
Keyword
Quality Management, societal entrepreneurs, leadership and customer value
National Category
Reliability and Maintenance
Identifiers
urn:nbn:se:miun:diva-23395 (URN)978-91-7623-086-2 (ISBN)
Conference
17th QMOD-ICQSS Conference, Prague, Czech Republic
Available from: 2014-11-07 Created: 2014-11-07 Last updated: 2016-05-02Bibliographically approved
6. Management and customer value creation – learning from successful societal entrepreneurs
Open this publication in new window or tab >>Management and customer value creation – learning from successful societal entrepreneurs
2016 (English)In: International Journal of Quality and Service Sciences, ISSN 1756-669X, E-ISSN 1756-6703Article in journal (Refereed) Accepted
Abstract [en]

Purpose – The purpose of this paper is to study management processes within successful Societal Entrepreneurship in order to further understand the role of management in customer value creation.

Design/methodology/approach - management in three successful societal entrepreneurship initiatives that deliver societal value have been studied. Data have been collected through interviews, direct observation, participant observation and documentation. Management tasks, activities and behaviours have been identified and analysed to identify management processes and their input, output, main focus, drivers and relationship. The role of management in societal value creation has been analysed from a system view.

Findings - The result presents essential management processes important for societal customer value creation, their input, output and main focus. Some management processes are inter-related and are sometimes part of another management process.  The management seem driven by ‘need’, ‘opportunity’, ‘interest’, and ‘demand’ when creating societal customer value. From a system perspective, management have an indirect role in societal customer value creation and are important for possibilities to create societal customer value. Both the initiative and the surroundings have been found to be of importance to the management’s scope for contributing to societal customer value creation.

Originality/value – Studying successful societal entrepreneurial management and its role in customer value creation provides the possibility to understand and learn from management, its processes and role in societal customer value creation and how to successfully provide customer value to society and work with societal, environmental and sustainability issues.

Article Classification: Case study

Keyword
Societal; Social; customer value; management; value creation; Quality Management (QM)
National Category
Other Engineering and Technologies
Identifiers
urn:nbn:se:miun:diva-27569 (URN)
Available from: 2016-05-02 Created: 2016-05-02 Last updated: 2017-02-14Bibliographically approved
7. Value Ripple Logic - Customer Value Creation from a System View
Open this publication in new window or tab >>Value Ripple Logic - Customer Value Creation from a System View
(English)Article in journal (Refereed) Submitted
Abstract [en]

Purpose

The purpose of this paper is to contribute to reflective practices and models to support the understanding and creation of customer value from a system view.

Approach

Case studies have been performed and data have been mainly collected through interviews and documents but also through archival records, direct observations and participating observations. Collected data was studied from a system view by making rich picture maps inspired by soft systems methodology (Jackson, 2003; Checkland and Scholes, 1990). Maps were made for each societal entrepreneurial initiative studied. The findings were then compared with the concept of Service Logic and a development out of the Service Logic concept resulted in the Value Ripple Logic (VRL).

Findings

The findings shows the Value Ripple Logic and an explanation of the concept. It includes a lexicon, a method to map and analyse customer value creation, an empirical example of customer value creation in a societal entrepreneurial initiative and a metaphor that describes customer value creation from a system view.

Value

VRL captures and illustrates customer value creation beyond a classical provider-customer relation and creates possibilities for understanding and analysing customer value creation from a system view. Which makes it possible to better understand the social, societal and environmental impact of an organization or initiative from a larger perspective.

Article Classification

Case study

Keyword
Total Quality Management, system view, customer value, sustainable value, Service Logic, Value Ripple Logic (VRL)
National Category
Other Engineering and Technologies
Identifiers
urn:nbn:se:miun:diva-27571 (URN)
Available from: 2016-05-02 Created: 2016-05-02 Last updated: 2016-12-02Bibliographically approved

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