Service Process Innovation and the Role of Added Value in Buyer-Seller Relationships

Purpose – This paper seeks to utilize Cannon and Perreault’s relationship connectors to explore how value co-creation occurs in the context of a B2B environment. It explains where and how added value emerges from the work processes in an outsourcing relationship.

Design/methodology – The paper uses data that have been collected through 12 interviews with managers and employees at a wholesaler of electronic consumer equipment and a leading FM service provider.

Findings – The results indicate that significant benefits due to process innovation, here PDF-invoicing, has been the more intensive information flow and exchange, and the increased cooperation and commitment between the seller-buyer pair and their customers. The analysis of the data related to the buyer side reveals that added value is mainly driven by collaborative work and results in improving information flow and exchange, development of relationships, and in establishing a strategic partnership. This is mainly due to the fact that it can be costly to include users when changing service processes without a deep understanding of technology and customer needs.

Originality/value – The paper provide issues to help organizations manage the value creation process. The study shows that a sales company is not restricted to making value propositions when outsourcing non core business tasks to a service provider, but can actively influence and direct customers in their fulfillment of value creation.