The Value Co-creation Through Joint Failure Recovery: B2B Settings

Abstract

The co-creation of value through joint recovery management has attracted increasing interest in the business-to-business (B2B) service context. However, the underlying process of joint recovery management is less understood. Through the qualitative interviews with suppliers and customers firms and applying the conceptual thinking of service-dominant (S-D) logic and service logic, this research explores the joint recovery practice through which the value is co-created in the context of B2B markets. The analysis reveals value emerges from interaction and their resource contributions to six main activities of joint recovery management, including the prevention, identification, notification, analysis, the resolution of failure and the implementation of the mutually selected solution. Interestingly, the findings indicate that the supplier supports the value creation process through recovery activities and by performing different roles, while the customer can engage in recovery management activities by their resource contribution to the recovery activities, which results in the co-creation of monetary and non-monetary values. The current study serves as a tool for scholars and managers who wish to enhance the value co-creation process through joint recovery management activities in B2B settings.