Strategic Value Co-creation Model in Banking Industry of Iran

Abstract Value Co-creation as a concept has attracted many scholars' and managers' attention. This paper aims to develop a comprehensive model for value co-creation in banking industry in Iran. Identifying the dimensions and factors of organizational value co-creation and customer value co-creation is also in the second priority. These are followed by some guidelines and recommendations for value co-creation in the industry.Since value co-creation can result in customers' loyalty, lower levels of customers churn or attraction costs and competitiveness, studying this concept is considered to be of great importance. In order to meet the goals, qualitative research methodology was taken through multiple case-study strategy. Documents and news feed related to 3 sampled Iranian banks and their corporate customers (chosen by applying snowball purposive sampling) were investigated. The observations were documented as well. In the next step, deep interviews were done with experts in order to reach theoretical saturation. Data analysis was done through content analysis. The results are indicative of the fact that strategic value co-creation is a three-level construct with two factors including organization value co-creation (encompassing Marketing Ability, Services Development Ability, Inter-relational Ability, IT Ability, Organizing ability, Culture Formation Ability and HRM Ability) and customer value co-creation ability (encompassing  Contribution to Services Development, Transactional Ability, Feedback Giving, Loyalty and Responsible Behavior). The innovative comprehensive view of this research to the capabilities and features of both sides (Organizations and their customers) extends the theoretical borders in the realm of service dominance logic and value co-creation.