A relational model of value creation

  • Abstract In this dissertation, I explain how organisational and personal practices transcending the usual business context are consequential to the value creation process. Adopting the perspective that value creation is socially constructed, I show how shareholders and stakeholders draw on shared values and meta-economic resources to co-create value in a dynamic ecosystem. My model demonstrates that practices and interactions in non-traditional business spaces are central rather than peripheral to the value creation process. Through a two-part research study consisting of a historical case analysis and interview-based field work with elements of grounded theorising, I develop an explanatory model of non-profit competition using the salient case of a German cooperative banking group. My practice- and process-based model of relational value creation shows how deliberate and emergent frontline strategy in non-business spaces creates value, thereby broadening the narrow neoclassical focus on product and service ecosystems. Organisational and personal practices often go against the principles of profit maximisation, reproduce shared values, and occur outside business settings. They are consequential to product and service value propositions because they govern personal relationships and interactions among shareholders and stakeholders. In the case of cooperative banks, value creation involves establishing a local ecosystem, building personal relationships, enhancing trust and knowledge within these relationships, and fostering reciprocal behaviour which ultimately leads to value capture (i.e., the exchange and use of products and services). This enhances the holistic understanding of strategy by stressing emergent strategizing in non-business spaces. Moreover, it illustrates a relational notion of competition beyond product-driven innovation and growth.

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Author:Gerhard Kosinowski
Subtitle (English):how values-based practices in non-business spaces create value in the cooperative banking industry
Place of publication:Vallendar
Referee:Jane Lê, Christina Günther
Document Type:Doctoral Thesis
Date of Publication (online):2022/10/11
Date of first Publication:2022/10/11
Publishing Institution:WHU - Otto Beisheim School of Management
Granting Institution:WHU - Otto Beisheim School of Management
Date of final exam:2022/09/14
Release Date:2022/10/11
Tag:Genossenschaftlicher Bankensektor; Non-profit-Bereich; Wertschöpfung
Cooperative banking industry; Non-profit management; Value creation
Page Number:222
Institutes:WHU Management Group / Chair of Strategic Management
Licence (German):Copyright this PhD thesis