Customer Interaction with a Technology And Value Co-creation: A service-dominant logic approach www.chessitn.eu

1. Introduction
§ Wearable technology: things that can be worn, such as
clothes and glasses that contain computer technology or have
the ability to connect to the Internet (Cambridge Dictionaries,
2016).
§ Primary motivator for purchasing wearables = HEALTH
§ Customer adoption rate for health and wellness wearables
doubled to 49% this year from 22% in 2014 (PwC, 2016).
Customer Interaction with a Technology
and Value Co-Creation: A Service-
Dominant Logic Approach
Cecilia Lee, ESR 13
UCD Michael Smurfit Graduate Business School
Supervisors: Prof. Susi Geiger, Dr. Geertje Schuitema
This project has received funding from the European Union's Horizon 2020 research and innovation programme under the
Marie Sklodowska-Curie grant agreement No 676201
22% 18%
33%
16%
Customer Drop-Out Rate After 6 Months of Purchase
Research Aims
§ To examine how actors’ interaction in each system – micro,
meso, and macro – influences one another to co-create value.
§ To understand customer value and assess whether the
interaction between customer and technology shapes customer
perceived value.
Akaka, M.A. And Vargo, S.L. (2014). Technology as an operant resource in service (eco)systems. Information System E-Business Management, 12, 367-384.
Arthur, W.B. (2009). The nature of technology: What it is and how it evolves. NY, New York: Free Press.
Orlikowski, W.J. (1992). The duality of technology: Rethinking the concept of technology in organisation. Organization Science, 3(3), 398-427.
Orlikowski, W.J. (2000). Using technology and constituting structures: A practice lens for studying technology in organisations. Organization Science, 11(4), 404-428.
Piwek, L.Ellis, D.A., Andrews, S. and Joinson, A. (2016). The rise of consumer health wearables: Promises and barries [Electronic Version’ PLoS Med, 13(2).
PwC (2016). The wearable life 2.0: Connected living in a wearable world, Customer Intelligence Series. Retrieved from http://www.pwc.com/us/en/industry/entertainment-media/publications/consumer-intelligence-series/wearables.html
Why Customers Stop Using Wearables?
Lack of Customer Value
§ No significant tangible impact on improving customers’ health
or general well-being.
Poor Customer Experience
§ Lack of seamless integration into customers daily life, such as
difficulties with synching their wearables with their mobile
phone (Piwek, Ellis, Andrews, and Joinson, 2016).
Research Question
How do customers interact with technology and other actors in
service ecosystems to co-create value?
Theoretical Background
In Orlikowski’s structurational model of technology, the scope of
technology is confined to material artefacts. With a shift in dominant
logic of marketing from goods-centered to service-centered (SD-logic),
the scope of technology should be expanded to the application of
knowledge or processes to create value. Akaka and Vargo (2014) re-
conceptualise technology as “a set ot practices and processes, as well
as symbols that contribute to value creation or fulfill a human need.”
Furthermore, they use SD-logic service ecosystems as a theoretical
lens to analyse the role of technology for value co-creation and service
innovation. SD-logic service ecosystem approach does not support
Orlikowski’s view on reification and institutionalisation of technology
after its deployment. Instead, the service ecosystems approach claims
that norms that guide the use of technology is connected to technology
in a ‘unique’ way.
Theoretical Contributions
Orlikowski’s (1992, 2000) structurational model of technology was
challenged by Aurther (2009) and most recently Akaka and Vargo
(2014) as offering a limited view of technology, as Orlikowski restricts
the scope of technology to ‘material artefact’. In Aurther (2009)’s
analysis, technology is both material artefacts and process. Based on
Aurther’s (2009) view, this research aims to develop the conceptual
framework that examines the interaction between customer and
technology for value creation and how this micro-level interaction
influences and is influenced by actions and structures at meso- and
macro-levels.
MICRO-LEVEL:
Customer-Technology
Interaction
MESO-LEVEL:
Customer, Technology,
and Technology Provider
MACRO-LEVEL:
Multi-actors in social
system
Institutions
Agency