Value Co-creation, Dynamic Capabilities and Customer Retention in Industrial Markets

The paper analyses how value co-creation processes can influence the generation of dynamic capabilities and the retention of industrial customers. The authors explore its influence with the support of Social Exchange Theory, Resource-Based View and Service-Dominant Logic. The methodology applied was qualitative research, based on 29 semi-structured in depth interviews with owners, managing directors, and technical managers with previous experience in co-creation processes. The research was performed in four different European countries and is focused on the mobile crane industry. The findings confirm that co-creation processes promote the generation of dynamic capabilities linked to adaptation, knowledge, innovation and relationship management. In addition, the closer contact with customers and the availability of their expertise favour the development of solutions that better meet their needs, bridging the cognitive gap which often exists between partners. Regarding customer retention, the results show that there is a correlation between the co-creation processes and the customers’ predisposition to buy and cross selling. Although value co-creation is a topical subject, research in industrial marketing literature analysing the effects of co-creation processes has been scarce up to now. This paper aims to contribute to the debate by analysing how the co-creation of value can influence the generation of dynamic capabilities in companies and how it affects the retention of industrial customers. Through an eclectic approach, based on social exchange theory and the resource-based view as well as service-dominant logic, the researchers can address the dual challenge associated with the main research question: on the one hand encouraging cooperation and on the other managing relations to seek mutual benefit.