Co-creating value: A service provider and customer perspective : A case study of cyber security services in the electric utility sector

Abstract: Purpose – This study aims to investigate the challenges faced by service providers in developing value propositions for cyber security services, as well as the challenges encountered by customers when purchasing these services. Thereby, bridging the gap regarding value proposition development for cyber security services in a business-to-business context.  Method – An exploratory single case study was conducted in the electric utility sector. In total, 19 interviews with respondents from 11 different organizations were conducted through exploratory-, semi-structured-, and validatory phases. The respondents mainly constituted security managers operating in the electric utility sector and employees at the case company, where the results from the semi-structured interviews were analyzed through a thematic analysis.  Findings – The result of this study concludes in a framework consisting of three sections, Challenges, Strategies, and Actions. Ten challenges categorized into three spheres; customer, joint, and provider were found. In addition, eight strategies mitigating the challenges were found and categorized into three themes: Relationship management, Proactive measures, and Capability coordination. Each strategy includes several practical actions derived from the codes of the corresponding strategy that should be incorporated to mitigate the challenges associated with it.   Theoretical and practical contribution – This study contributes to the existing literature by examining how value is identified and created, both from the customer and provider perspective in a business-to-business context. Moreover, this study applies general-level challenges and strategies to the electric utility sector, verifying their relevance. The challenges and strategies that apply to this study are introduced in a framework for value co-creation guiding managers and customers in the value proposition development and purchase of cyber security services.  Limitations of the study – The research is limited to a single case study specific in the context of the electric utility sector. Hence, this calls for future research which could investigate the applicability of the results in other societal functions and critical infrastructure sectors.