Value co-creation in education : A case study of Interspectral

Abstract: Technical SMEs develop products in isolation from customers in order to have shorter time to market. However, this approach may result in a mismatch between customer needs and the product value. This research paper investigates value co-creating activities which technical SMEs can undertake with their customers to improve the value of the product and their relationship with the customers. The research paper is a case study of a Swedish technical SME, Interspectral, and their software product for the education market. The study uses a qualitative approach through semi-structured interviews with teachers in Sweden and Australia. A four-step process is used to first understand what value the product brings customers (students and teachers), the current resource integration activities and co-production activities done by customers and finally what value co-creating activities are perceived as important for customers to grow the relationship with the company. The results show that the dialogue between the customer and the firm is most important for customers during value co-creation and facilitates information access and control. Furthermore, specific co-production activities and resource integrating activities are outlined. The implication of the study is that nonmarket actors’ value co-creation should be assessed by considering the constraints placed by the service ecosystem.