Managing co-creation in innovative business models: the case of sharing economy

  • Cecilia Grieco
  • Corrado Cerruti
Keywords: sharing economy, co-creation, business model innovation, D.A.R.T. model, sharing economy platform

Abstract

Purpose of the paper: The purpose of the paper is to analyze how co-creation is managed within the innovative business models of sharing economy platforms. 

Methodology: Case studies analysis has been performed on three sharing economy platforms. Platforms have been selected according to the extent to which innovation driven by co-creative processes was evincible in the value proposition, in the profit formula or in the key processes and resources. The cases have been analyzed through the D.A.R.T. model that defines the four places of co-creation (dialogue, access, risk, transparency). 

Findings: The analysis shows that there is a link between the type of innovation and the dimension of co-creation. In particular: Dialogue is relevant when cocreation refers to the innovation of the value proposition; Access is more stressed when co-creation drives the innovation in the key resources and processes; Risk comes to be underlined in the platform where co-creation involves the definition of the profit formula. Transparency is a common element across all of the analyzed cases. 

Research limits: Shortcomings concern the selection of the theoretical framework, the exclusion of platforms other than C2C and the focus on secondary data. 

Practical implications: The analysis allows to understand the dimensions of co-creation that emerge as being particularly relevant in sharing economy platforms where the innovation of the business model is based on the involvement of customers. 

Originality of the paper: This work provides a joint analysis of BMI and co-creation as emerging in sharing economy platforms, proposing an integrated interpretation of these phenomena.

References

AFUAH A. (2004), Business models: A strategic management approach, McGraw-Hill, New York, NY.

ALBINSSON P.A., PERERA B.Y., SAUTTER P.T. (2016), “DART Scale Development: Diagnosing a Firm’s Readiness for Strategic Value Co-Creation”, Journal of Marketing Theory and Practice, vol. 24, n. 1, pp. 42-58.

ALLEN D., BERG C. (2014), “The sharing economy: how over-regulation could destroy an economic revolution”, Instiute of Public Affairs, Australia. Online zugänglich unter: https://ipa. org. au/portal/uploads/Sharing_Economy_December_2014.pdf.

AMIT R., ZOTT C. (2001), “Value Creation in E-Business”, Strategic Management Journal, vol. 22, n. 6/7, pp. 493-520.

BELK R. (2007), “Why not share rather than own?”, The Annals of the American Academy of Political and Social Science, vol. 611, n. 1, pp. 126-140.

BELK R. (2014), “You are what you can access: Sharing and collaborative consumption online”, Journal of Business Research, vol. 67, n. 8, pp. 1595-1600.

BOONS F., LÜDEKE-FREUND F. (2013), “Business models for sustainable innovation: state-of-the-art and steps towards a research agenda”, Journal of Cleaner Production, vol. 45, pp. 9-19.

BOTSMAN R., ROGERS R. (2011), What's mine is yours: how collaborative consumption is changing the way we live, Collins, London.

CAVALCANTE S., KESTING P., ULHØI J. (2011), “Business model dynamics and innovation: (re) establishing the missing linkages”, Management Decision, vol. 49, n. 8, pp. 1327-1342.

CHESBROUGH H.W. (2010), “Business model innovation: opportunities and barriers”, Long Range Planning, vol. 43 n. 2/3, pp. 354-363.

CHESBROUGH H.W., ROSENBLOOM R.S. (2002), “The role of business model in capturing value from innovation: evidence from Xerox Corporation’s Technology Spin-off Companies”, Industrial and Corporate Change, vol. 11, n. 3, pp. 529-555.

CHRISTIANSEN J.K., VARNES C.J., GASPARIN M., STORM‐NIELSEN D., VINTHER E.J. (2010), “Living Twice: How a Product Goes through Multiple Life Cycles”, Journal of Product Innovation Management, vol. 27, n. 6, pp. 797-827.

COHEN B., KIETZMAN J. (2014), “Ride On! Mobility Business Models for the Sharing Economy”, Organization and Environment, vol. 27, n. 3, pp. 279-296.

CUSUMANO M.A. (2015), “How Traditional Firms Must Compete in the Sharing Economy”, Communication of the ACM, vol. 58, n. 1, pp. 32-34.

DAUNORIENĖ A., DRAKŠAITĖ A., SNIEŠKA V., VALODKIENĖ G. (2015), “Evaluating sustainability of sharing economy business models”, Procedia-Social and Behavioral Sciences, vol. 213, pp. 836-841.

DEMIL B., LECOCQ X. (2010), “Business Model Evolution: In Search of Dynamic Consistency”, Long Range Planning, vol. 43, n. 2-3, pp. 227-246.

DYAL-CHAND R. (2015), “Regulating Sharing: The Sharing Economy as an Alternative Capitalist System”, Tulane Law Review, vol. 90, n. 2, pp. 241-309.

ERT E., FLEISCHER A., MAGEN N. (2016), “Trust and reputation in the sharing economy: The role of personal photos in Airbnb”, Tourism Management, n. 55, pp. 62-73.

HERTLER K., TASSO N. (2015), Dare to Share: User Value Co-creation in the Sharing Economy. http://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=5470865&fileOId=5470883.

JOHNSON M.W., CHRISTENSEN C.M., KAGERMANN H. (2008), “Reinventing Your Business Model”, Harvard Business Review, vol. 86, n. 12, pp. 50-59.

KATHAN W., MATZLER K., VEIDER V. (2016), “The sharing economy: Your business model's friend or foe?”, Business Horizons, vol. 59, n. 6, pp. 663-672.

KOSINTCEVA A. (2016), Business models of sharing economy companies, Doctoral dissertation, Norwegian School of Economics. https://brage.bibsys.no/xmlui/bitstream/handle/11250/2403861/masterthesis.pdf?sequence=1&isAllowed=y.

LAGO A., SIEBER S. (2016), “The Keys of the Collaborative Business Model”, IESE Insight, vol. 30, n. 3, pp. 15-23.

LINDER J., CANTRELL S. (2000), “Changing Business Models: Surveying the Landscape”, Accenture, pp. 1-15.

LINDGARDT Z., REEVES M., STALK G., DEIMLER M.S. (2013), “Business Model Innovation: When the game gets tough, change the game”, Own the future: 50 ways to win from The Boston Consulting Group, pp. 291-298.

MAGRETTA J. (2002), “Why business models matter”, Harvard Business Review, vol. 80, n. 5, pp. 3-8.

MASON J. (2002), Qualitative Researching, 2nd edition, Sage, London.

MATZLER K., VEIDER V., KATHAN W. (2015), “Adapting to the sharing economy”, MIT Sloan Management Review, vol. 56, n. 2, pp. 71.

MEYER M.H. (2007), The fast path to corporate growth, leveraging knowledge and technologies to new market applications, Oxford University Press, NY.

NENONEN S., STORBACKA K. (2010), “Business model design: conceptualizing networked value co-creation”, International Journal of Quality and Service Sciences, vol. 2, n. 1, pp. 43-59.

OLSON M.J., KEMP S.J. (2015), “Sharing economy. An In-Depth Look At Its Evolution & Trajectory Across Industries”, Piper Jaffray, Investment Research.

OSTERWALDER A., PIGNEUR Y., (2010), Business Model Generation. A Handbook for Visionaries, Game Changers, and ChallengersJohn Wiley & Sons, Inc, Hoboken, NJ.

PATTON M.Q. (2002), Qualitative Research and Evaluation Methods, 3rd edition, CA: Sage, Thousand Oaks.

POSEN H.A. (2015), “Ridesharing in the Sharing Economy: Should Regulators Impose Über Regulations on Uber?”, Iowa Law Review, vol. 101, pp. 405-433.

PRAHALAD C.K., RAMASWAMY V. (2000), “Co-opting customer competence”, Harvard Business Review, vol. 78, n. 1, pp. 79-90.

PRAHALAD C.K., RAMASWAMY V. (2004), “Co-creating unique value with customers”, Strategy and Leadership, vol. 32, n. 3, pp. 4-9.

PRAHALAD C.K., RAMASWAMY V. (2002), “The Co-creation connection”, Strategy and Competition, vol. 27, pp.1-12.

PRICEWATERHOUSECOOPERS [PwC] (2015), The Sharing Economy, http://www.pwc.com/us/en/industry/entertainment-media/publications/consumer-intelligenceseries/assets/pwc-cis-sharing-economy.pdf.

PROBST L., FRIDERES L., PEDERSEN B., LIDÉ S. (2015), Collaborative Economy. Collaborative production and the maker economy, European Commission, Directorate-General Growth, Brussels.

ROMERO D., MOLINA A. (2011), “Collaborative networked organisations and customer communities: value co-creation and co-innovation in the networking era”, Production Planning and Control: The Management of Operations, vol. 22, n. 5/6, pp. 447-472.

STORBACKA K., FROW P., NENONEN S., PAYNE A. (2012), “Designing business models for value co-creation”, in Special Issue-Toward a Better Understanding of the Role of Value in Markets and Marketing (pp. 51-78), Emerald Group Publishing Limited.

TEECE D. (2010), “Business Models, Business Strategy and Innovation”, Long range planning, vol. 43, n. 2-3, pp. 172-194.

TRIMI S., BERBEGAL-MIRABENT J. (2012), “Business model innovation in entrepreneurship”, International Entrepreneurship and Management Journal, vol. 8, n. 4, pp. 449-465.

TUSSYADIAH I.P. (2016), Strategic self-presentation in the sharing economy: Implications for host branding. In Information and Communication Technologies in Tourism 2016 (pp. 695-708), Springer International Publishing, New York.

WAGNER T., KUHNDT M., LAGOMARSINO J., MATTAR H. (2015), Listening to Sharing Economy Initiatives. Report of a global survey. http://www.scp-centre.org/wp-content/uploads/2016/05/Listening_to_Sharing_Economy_Initiatives.pdf

WEBER T.A. (2014), “Intermediation in a Sharing Economy: Insurance, Moral Hazard, and Rent Extraction”, Journal of Management Information Systems, vol. 31, n. 3, pp. 35-71.

WEF (2013), Young Global Leaders Sharing Economy Dialogue Position Paper World Economic Forum (WEF), http://www3.weforum.org/docs/WEF_YGL_CircularEconomyInnovation_PositionPaper_2013.pdf.

YIN R. (2003), Case Study Research, Sage Publications, 3rd Edition, Newbury Park, CA.

YIN R. (1990), Case study research: design and methods. Applied Social Research Methods Series, vol. 5, Sage Publications, Beverly Hills, California, USA.

ZOTT C., AMIT R. (2008), “The Fit between Product Market Strategy and Business Model: Implications for Firm Performance”, Strategic Management Journal, vol. 29, n. 1, pp. 1-26.
Published
2018-10-30