Small business challenges in developing value partner relationships

Research output: Contribution to conferenceConference articleScientific

Abstract

In service research, the widely adopted theoretical argumentation has been based on the transition from Goods-dominant logic (G-D logic) towards Service-dominant logic (S-D logic). However, the growing debate on S-D logic still lacks empirical evidence concerning complex transformation processes of business relations. The objective was to explore challenges a small firm faces during the transformation process from product provider to value partner, especially the focus was on the changing customer relationship and collaborative process of defining the value proposition. The research methodology used in this studywas qualitative case study. The selected cases consisted of six business relationships (one provider and six customers) in different development phases. Empirical research data was gathered by in-depth interviews of key persons in the companies. The analysis tool we utilized a framework that combines strategic and value proposition perspectives, relationship connectors and the transitions from G-D logic towards S-D logic as built-in different trajectories. The identified challenges of an SME were related to: the different value expectations of customers; defining new value proposition (provider)and re-building operational bonds and communication practices with new key persons. The previous and current cooperation and trust played a crucial role - and called for re-negotiation. Findings - The need for customer understanding increases and the interface between companies broadens as a company moves up the development steps. During the transformation process a company needs to build up certain capabilities and also to modify the value proposition process accordingly. The effect of the history of the relationship in the development seems twofold: it builds trust and increases understanding but it may also hinder development if a customer has a strong view of the provider's role in customer's business processes.
Original languageEnglish
Publication statusPublished - 2015
EventThe 2015 Naples Forum on Service - Naples, Italy
Duration: 9 Jun 201512 Jun 2015

Conference

ConferenceThe 2015 Naples Forum on Service
CountryItaly
CityNaples
Period9/06/1512/06/15

Fingerprint

Small business
Value proposition
Service-dominant logic
Transformation process
Logic
Business process
Small and medium-sized enterprises
Empirical evidence
In-depth interviews
Small firms
Empirical research
Renegotiation
Collaborative process
Business relationships
Argumentation
Trajectory
Customer relationship
Communication

Keywords

  • transformation
  • relationship connectors
  • provider-customer relationships
  • S-D logic

Cite this

Valjakka, T., & Lappalainen, I. (2015). Small business challenges in developing value partner relationships. Paper presented at The 2015 Naples Forum on Service, Naples, Italy.
Valjakka, Tiina ; Lappalainen, Inka. / Small business challenges in developing value partner relationships. Paper presented at The 2015 Naples Forum on Service, Naples, Italy.
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abstract = "In service research, the widely adopted theoretical argumentation has been based on the transition from Goods-dominant logic (G-D logic) towards Service-dominant logic (S-D logic). However, the growing debate on S-D logic still lacks empirical evidence concerning complex transformation processes of business relations. The objective was to explore challenges a small firm faces during the transformation process from product provider to value partner, especially the focus was on the changing customer relationship and collaborative process of defining the value proposition. The research methodology used in this studywas qualitative case study. The selected cases consisted of six business relationships (one provider and six customers) in different development phases. Empirical research data was gathered by in-depth interviews of key persons in the companies. The analysis tool we utilized a framework that combines strategic and value proposition perspectives, relationship connectors and the transitions from G-D logic towards S-D logic as built-in different trajectories. The identified challenges of an SME were related to: the different value expectations of customers; defining new value proposition (provider)and re-building operational bonds and communication practices with new key persons. The previous and current cooperation and trust played a crucial role - and called for re-negotiation. Findings - The need for customer understanding increases and the interface between companies broadens as a company moves up the development steps. During the transformation process a company needs to build up certain capabilities and also to modify the value proposition process accordingly. The effect of the history of the relationship in the development seems twofold: it builds trust and increases understanding but it may also hinder development if a customer has a strong view of the provider's role in customer's business processes.",
keywords = "transformation, relationship connectors, provider-customer relationships, S-D logic",
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Valjakka, T & Lappalainen, I 2015, 'Small business challenges in developing value partner relationships' Paper presented at The 2015 Naples Forum on Service, Naples, Italy, 9/06/15 - 12/06/15, .

Small business challenges in developing value partner relationships. / Valjakka, Tiina; Lappalainen, Inka.

2015. Paper presented at The 2015 Naples Forum on Service, Naples, Italy.

Research output: Contribution to conferenceConference articleScientific

TY - CONF

T1 - Small business challenges in developing value partner relationships

AU - Valjakka, Tiina

AU - Lappalainen, Inka

N1 - Title in program: Small firm challenges in developing value partner relationships Project: 101030

PY - 2015

Y1 - 2015

N2 - In service research, the widely adopted theoretical argumentation has been based on the transition from Goods-dominant logic (G-D logic) towards Service-dominant logic (S-D logic). However, the growing debate on S-D logic still lacks empirical evidence concerning complex transformation processes of business relations. The objective was to explore challenges a small firm faces during the transformation process from product provider to value partner, especially the focus was on the changing customer relationship and collaborative process of defining the value proposition. The research methodology used in this studywas qualitative case study. The selected cases consisted of six business relationships (one provider and six customers) in different development phases. Empirical research data was gathered by in-depth interviews of key persons in the companies. The analysis tool we utilized a framework that combines strategic and value proposition perspectives, relationship connectors and the transitions from G-D logic towards S-D logic as built-in different trajectories. The identified challenges of an SME were related to: the different value expectations of customers; defining new value proposition (provider)and re-building operational bonds and communication practices with new key persons. The previous and current cooperation and trust played a crucial role - and called for re-negotiation. Findings - The need for customer understanding increases and the interface between companies broadens as a company moves up the development steps. During the transformation process a company needs to build up certain capabilities and also to modify the value proposition process accordingly. The effect of the history of the relationship in the development seems twofold: it builds trust and increases understanding but it may also hinder development if a customer has a strong view of the provider's role in customer's business processes.

AB - In service research, the widely adopted theoretical argumentation has been based on the transition from Goods-dominant logic (G-D logic) towards Service-dominant logic (S-D logic). However, the growing debate on S-D logic still lacks empirical evidence concerning complex transformation processes of business relations. The objective was to explore challenges a small firm faces during the transformation process from product provider to value partner, especially the focus was on the changing customer relationship and collaborative process of defining the value proposition. The research methodology used in this studywas qualitative case study. The selected cases consisted of six business relationships (one provider and six customers) in different development phases. Empirical research data was gathered by in-depth interviews of key persons in the companies. The analysis tool we utilized a framework that combines strategic and value proposition perspectives, relationship connectors and the transitions from G-D logic towards S-D logic as built-in different trajectories. The identified challenges of an SME were related to: the different value expectations of customers; defining new value proposition (provider)and re-building operational bonds and communication practices with new key persons. The previous and current cooperation and trust played a crucial role - and called for re-negotiation. Findings - The need for customer understanding increases and the interface between companies broadens as a company moves up the development steps. During the transformation process a company needs to build up certain capabilities and also to modify the value proposition process accordingly. The effect of the history of the relationship in the development seems twofold: it builds trust and increases understanding but it may also hinder development if a customer has a strong view of the provider's role in customer's business processes.

KW - transformation

KW - relationship connectors

KW - provider-customer relationships

KW - S-D logic

M3 - Conference article

ER -

Valjakka T, Lappalainen I. Small business challenges in developing value partner relationships. 2015. Paper presented at The 2015 Naples Forum on Service, Naples, Italy.