Presented at the International Conference on Exploring Service Science 1.5 in Porto (Portugal), Feb 5th 2015. According to modern service science theory, value is jointly generated by several partners forming a service system. In this work, we focus on a simple two-party system consisting of a service provider and its customer. The value created by this service system hinges on the contribution of both parties. That is, it also depends on the collaboration of the customer, which is a key characteristic of services in traditional definitions. Providers, however, lack knowledge on how to identify and measure the influence factors for value cocreation, such as customer contribution. Being aware of customer contribution, providers could design and manage value propositions purposefully. In this work, we provide a first version of a framework of influence factors for value co-creation in service systems, which may serve providers as a guideline for identifying different types of customer contribution.

1. KIT – University of the State of Baden-Württemberg and
National Laboratory of the Helmholtz Association
KARLSRUHE SERVICE RESEARCH INSTITUTE (KSRI)
www.kit.edu
www.ksri.kit.edu
Towards a Framework of Influence Factors for
Value Co-Creation in Service Systems
International Conference on Exploring Service Science 1.5. in Porto
Peter Hottum, Axel Kieninger and Peter Brinkhoff | 5th Feb 2015
These slides are based on the IESS 1.5
proceedings paper of the same name and
published online under the Creative Commons:
http://creativecommons.org/licenses/by-sa/3.0/

2. Karlsruhe Service Research Institute
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2
Provider Consumer
Services are more and more provided in partnerships…
The current notion of service is characterized by the value co-creation that occurs
continuously between two ore more partners.
Value Co-creationPartner Partner
Shift from
one-way and one-time transactions
to bilateral continuous relationships
between value partners
Based on: Hottum & Howahl (2011)
Partner
Partner
Out of these bilateral relations
further service systems are arising
05/02/2015 Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum

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Services are more and more provided in partnerships, but…
In business practice, service contracts are often designed for service quality, and not for
co-creation aspects or customer satisfaction.
Providers are faced with the problem, that they are not able to estimate the evoked
customer satisfaction, because it depends heavily on the customer involvement.
It is therefore difficult for a provider to articulate value propositions to its customers, that
will meet their requirements and abilities.
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
We need to establish […] a framework for
understanding how service systems operate
and interact before we can develop a
normative service science for what decision
makers of service systems should do.
Vargo, Maglio and Akaka (2008)

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Topics
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
1
2
3
Introduction and Motivation
Research discussion
Deriving a co-creation framework
4 Reflection of the approach in the light of service science
05/02/2015
5 Conclusion and Outlook

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There are discrepancies between service science (theory) and
daily service business
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
In service science, the concept of value co-creation3 in service systems1 is widely accepted.
How can a framework of influence factors for value co-creation
in service systems be derived?
In real world… In Service Science…
Service providers and customers define
frameworks and safeguards for future
service interactions in contracts
Service providers and customers build a
service system1
These contracts often are based on
provider’s value proposition towards the
customer2
Service providers and customers are acting
as partners
In those contracts a certain service quality
and further conditions for the provision are
stipulated
Providers and customers commonly create
(co-create) value3
Sources: 1Spohrer et al. (2007), 2Kwan & Hottum (2014), 3Vargo & Lusch (2004)

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The essential influences on co-creation can be derived from
service science
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
IP
Influence of the provider
and his network
IC
Influence of the customer
and his network
Influence
categories
Sources: 1Spohrer et al. (2007), 2 Von Bertalanffy (1972).
Service
Encounter
CustomerService
provider
In Service Science an “organization (service provider) beneficially performs for and with
another (service client)”.1
A service system has a “systems exchanging matter with environment, as every ‘living’
system does”.2
SE
Influence of the
Service Environment

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The essential influences on co-creation can be derived from
service science
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
IP
Influence of the provider
and his network
IC
Influence of the customer
and his network
Because provider and customer are seen as equal partners from a service system
perspective1, the describing attributes should be comparable.
While providers operate increasingly interlinked with other partners2, especially end-
customers are not always part of further economic systems. Whereas B2B customers
are always involved in further ecosystems, end-customers may act on their own.
Influence
categories
Sources: 1Payne et al. (2007), 2 Kwan & Hottum (2014).
SE
Influence of the
Service Environment( )

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The essential influences on co-creation can be derived from
service science
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
IP
Influence of the provider
and his network
IC
Influence of the customer
(and his network)
I T I T
Information
Service
Technology
Information
Service
Technology
The exchange of information forms the basis of value co-creation. Therefore, we define
information as influence factors for IP and IC.
Since the exchange of information increasingly depends on information and
telecommunication technology (ICT) we introduce ‘Service Technology’ (as the
underlying infrastructure) as factors, accordingly.
Influence
categories
Influence
factors
SE
Influence of the
Service Environment

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The essential influences on co-creation can be derived from
service science
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
IP
Influence of the provider
and his network
IC
Influence of the customer
(and his network)
P R C RI T I T
Information
Personnel
Resources
Service
Technology
Information
Cooperation
Resources
Service
Technology
Further influence factors could be obtained from the initial service system components
“people, technology, other internal and external service systems, and shared
information”.1
Materials of the partners and physical aspects of further service systems are added as
‘resources’. As further supporting service systems on the customer’s side are not
mandatory, the provider’s factor ‘personnel’ is contrasted with the customer’s
‘cooperation’.
Influence
categories
Influence
factors
Source: 1Spohrer et al. (2007) .
SE
Influence of the
Service Environment

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The essential influences on co-creation can be derived from
service science
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
Influence
categories
Influence
factors
IP
Influence of the provider
and his network
IC
Influence of the customer
(and his network)
SE
Influence of the
Service Environment
P R C R LI T I T E Rl
Information
Personnel
Resources
Service
Technology
Information
Cooperation
Resources
Service
Technology
Environment
Layout
Relationship
“Service encounter environments are purposeful environments […], spatial layout and
functionality of the physical surroundings are particularly important”.1 Besides
emphasizing ‘environment’ itself, also ‘layout’ as an additional influence factor was
added to the framework.
To complete - the involvement of the customer by the provider and their ‘relationship’ is
important for the value co-creation.2
Sources: 1Bitner (1992), 2Habryn et al. (2010).

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Reflecting the framework of influence factors for value co-
creation in the light of service science
Influence of the Provider (IP)
(I) Information
(P) Personnel
(R) Resources
(T) Infrastructure Technology
Influence of the Customer (IC)
(I) Information
(C) Cooperation
(R) Resources
(T) Infrastructure Technology
In. of the Service Environment (SE)
(E) Environment
(L) Layout
(Rl) Relationship
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
Literature I P R T I C R T E L Rl
Grönroos (1984) x x
Parasuraman et al. (1988) x x x
Woodside et al. (1989) x x x
Bolton & Drew (1991) x
Danaher & Mattsson (1994) x x x x
Liljander & Strandvik (1995) x x x x
Dabholkar et al. (1996) x x x x
De Ruyter et al. (1997) x x x x x
Lusch et al. (1992) x x x
Brady & Cronin (2001) x x x x
Grönroos & Ojasalo (2004) x x x x
Johnston & Jones (2004) x x x
Füller & Matzler (2008) x x x
Lee (2011) x x x x x
Yi & Gong (2013) x x x x x
Xu & Huang (2013) x x x x x
Jaakkola & Alexander (2014) x x x x x x x
provider customer
analysis based on 18 studies between 1984-2014 using on the review approach by Webster & Watson (2002)
service
environment

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Reflecting the framework of influence factors for value co-
creation in the light of service science
Influence of the Provider (IP)
(I) Information
(P) Personnel
(R) Resources
(T) Infrastructure Technology
Influence of the Customer (IC)
(I) Information
(C) Cooperation
(R) Resources
(T) Infrastructure Technology
In. of the Service Environment (SE)
(E) Environment
(L) Layout
(Rl) Relationship
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
Literature I P R T I C R T E L Rl
Grönroos (1984) x x
Parasuraman et al. (1988) x x x
Woodside et al. (1989) x x x
Bolton & Drew (1991) x
Danaher & Mattsson (1994) x x x x
Liljander & Strandvik (1995) x x x x
Dabholkar et al. (1996) x x x x
De Ruyter et al. (1997) x x x x x
Lusch et al. (1992) x x x
Brady & Cronin (2001) x x x x
Grönroos & Ojasalo (2004) x x x x
Johnston & Jones (2004) x x x
Füller & Matzler (2008) x x x
Lee (2011) x x x x x
Yi & Gong (2013) x x x x x
Xu & Huang (2013) x x x x x
Jaakkola & Alexander (2014) x x x x x x x
service
environmentprovider customer
analysis based on 18 studies between 1984-2014 using on the review approach by Webster & Watson (2002)

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Conclusion and Outlook
By using insights from service science theory and a literature review, a framework of
influence factors for value co-creation could be derived and reflected.
The basic structure of the framework with the influence categories and the identified
influence factors are generally applicable to service settings with customer contribution.
For providers, however, the understanding of those influencing factors, especially of
customers’ abilities and willingness to contribute to value co-creation, are essential to
formulate value propositions, which meet customers’ requirements.
The framework could help service practitioners as well as service researchers to identify
leading aspects of value co-creation for their specific case.
Framework of Influence Factors for Value Co-Creation in Service Systems
Peter Hottum
05/02/2015
Thank you for
your attention!
Peter Hottum
Karlsruhe Institute of Technology (KIT)
Karlsruhe Service Research Institute (KSRI)
Englerstr. 11, D-76131 Karlsruhe, GERMANY
Phone: +49 (0) 721 608 – 45771
Fax: +49 (0) 721 608 – 45655
Email: peter.hottum@kit.edu