Value-based differentiation is regarded as a key to providing business solutions. However, there is relatively little research that focuses on the value creation process between providers and customer firms. This paper explores the value creation process by offering solutions, and identifies the conditions effective for the process. A longitudinal case study of Seven-Eleven Japan and NRI (Nomura Research Institute) was employed as an instrumental case study, using retail solutions as a research site. The results showed that the influencing conditions of effective solution offerings are regarded as a relational and reciprocal process. The authors found that value is offered to customers through developed knowledge gained from relational exchanges between suppliers and customer firms, while, in addition, suppliers also gain “relationship value” through safeguarding its own technological investment. Indirect effects are also found when a dyadic relationship has created customer value through a long-term relationship.
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