Adopting a service logic in manufacturing: Conceptual foundation and metrics for mutual value creation

Purpose – The purpose of this paper is to create a framework for measuring mutually created value in business relationships in the manufacturing sector, which also enables suppliers and customers to share this value between themselves.Design/methodology/approach – The starting point is that manufacturing firms adopt a service perspective or logic for their entire business. The framework created includes a conceptual foundation for understanding the process of mutual value creation as well as theoretical basis and metrics for calculating mutually created value, joint productivity gains (JPGs) and value sharing. The framework for mutual value creation is created conceptually. The theoretical basis for the metrics used for the calculations and the development of the metrics are empirically grounded in a longitudinal case study.Findings – By matching supplier and customer practices and thereby aligning corresponding processes, resources and competencies, suppliers can support their customers' business more ef...

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