IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v67y2006i1p93-105.html
   My bibliography  Save this article

Ethical Customer Value Creation: Drivers and Barriers

Author

Listed:
  • Grace Lin
  • Jerry Lin

Abstract

There is a long-standing discussion on the positive interactions between enterprise value creation and business competitiveness. The corporate value can be seen as being created from three major sources within the cycle – from employees, from processes, and from customers or investors through reinvestment. To achieve competitive advantages, a firm must create more value than its competitors in the industry. Emphasizing that, firms should explore the positive drivers of customer value creation, allowing for a true value creation that will lead to increments in competitiveness. In reality, however, there are also barriers that hinder customer value creation. Targeting the above issues that have not yet been explored or analyzed, we have collected related literature at the first stage. Based on these presumable assumptions, this paper then conducts an empirical study by surveying and analyzing the relevance given by the investigated leading machinery measuring equipment firms in Taiwan, regarding the concerns as drivers and barriers in relation to customer value creation. This paper especially aims to answer several key questions: What drivers revolving around employees and processes can facilitate the organization to create more value for its customers? Conversely, what barriers block the organization from creating value for customers in examining the same dimensions? Does value creation direct an organization’s profitability and competitiveness? Our questionnaire survey results show that the most recognized and agreed drivers of customer value creation in consideration of employees are “distinctive skillsâ€\x9D, “personal experienceâ€\x9D, “learning and trainingâ€\x9D, and “team workâ€\x9D; and, in regard to the firm’s processes, the key drivers are “innovation and evolutionâ€\x9D, “R&D capabilityâ€\x9D, and “capability for differentiationâ€\x9D. Conversely, the most recognized and agreed barriers to customer value creation in relation to employees are a “distrustful environmentâ€\x9D and “inadequate knowledgeâ€\x9D; and, in terms of processes, they are “short of core technologyâ€\x9D, “poor resource supportâ€\x9D, and “bad services and attitudesâ€\x9D. Furthermore, our in-depth interview outcomes reveal that “capital sufficiencyâ€\x9D and “mergers and acquisitionsâ€\x9D are in practice considered to be other important customer value creation drivers; in contrast, “cultural and structural barriersâ€\x9D and “short of mechanisms to measure customer value creation effectivelyâ€\x9D are viewed as additional critical barriers to customer value creation. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Grace Lin & Jerry Lin, 2006. "Ethical Customer Value Creation: Drivers and Barriers," Journal of Business Ethics, Springer, vol. 67(1), pages 93-105, August.
    • Handle: RePEc:kap:jbuset:v:67:y:2006:i:1:p:93-105
    DOI: 10.1007/s10551-006-9009-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-006-9009-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-006-9009-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andreas Eggert & Wolfgang Ulaga, 2002. "Customer perceived value: a substitute for satisfaction in business markets?," Post-Print hal-00484980, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Denis Cormier & Walter Aerts & Marie‐Josée Ledoux & Michel Magnan, 2010. "Web‐Based Disclosure About Value Creation Processes: A Monitoring Perspective," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 320-347, September.
    2. Raf Orens & Walter Aerts & Denis Cormier, 2010. "Web‐Based Non‐Financial Disclosure and Cost of Finance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 37(9‐10), pages 1057-1093, November.
    3. Sahi, Gurjeet Kaur & Devi, Rita & Gupta, Mahesh C. & Cheng, T.C.E., 2022. "Assessing co-creation based competitive advantage through consumers’ need for differentiation," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    4. Hanuman Sharma, 2021. "Effectiveness of Online Marketing Tools: A Case Study," Paradigm, , vol. 25(1), pages 77-86, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yuhan Ge & Qing Yuan & Yaxi Wang & Keunsoo Park, 2021. "The Structural Relationship among Perceived Service Quality, Perceived Value, and Customer Satisfaction-Focused on Starbucks Reserve Coffee Shops in Shanghai, China," Sustainability, MDPI, vol. 13(15), pages 1-19, August.
    2. Mujahid Mohiuddin Babu & Panuel Rozario Prince, 2011. "Factors Influencing the Overall Customer Satisfaction of the Wireless Internet Service Users: An Empirical Study in Bangladesh," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 2(6), pages 14-24, September.
    3. Pam Lee & Chulmo Koo & Namho Chung, 2019. "The Threats of North Korea’s Missile and Visitors’ International Conference Choice Behavior," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    4. Yoo, Jungmin & Park, Minjung, 2016. "The effects of e-mass customization on consumer perceived value, satisfaction, and loyalty toward luxury brands," Journal of Business Research, Elsevier, vol. 69(12), pages 5775-5784.
    5. Jaime Baby Moreno & Juan Fernando Uribe Arango, 2015. "Análisis Competitivo por parte de los talleres de servicio automotriz, mediante el uso del valor percibido por el cliente," Revista Ad-Minister, Universidad EAFIT, June.
    6. Bachev, Hrabrin & Ivanov, Bojidar & Mitova, Dilyana & Boevski, Ivan & Marinov, Petar & Sarov, Angel & Zvetkova, Daniela & Kostenarov, Krasimir & Vanev, Dimitar, 2021. "Емпирично Изследване На Управлението На Услугите На Агроекосистемите В България [An empirical study of the management of agro-ecosystem services in Bulgaria]," MPRA Paper 105696, University Library of Munich, Germany.
    7. LIN Cheng-Ta Lin & CHUANG Shuang-Shii, 2018. "The Importance Of Brand Image On Consumer Purchase Attitude: A Case Study Of E-Commerce In Taiwan," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(3), pages 91-104, December.
    8. Linder, Christian & Seidenstricker, Sven, 2018. "How does a component from a supplier with high reputation for product innovation improve the perception of a final offering? A process perspective," European Management Journal, Elsevier, vol. 36(2), pages 288-299.
    9. Brodie, Roderick J. & Whittome, James R.M. & Brush, Gregory J., 2009. "Investigating the service brand: A customer value perspective," Journal of Business Research, Elsevier, vol. 62(3), pages 345-355, March.
    10. Suchismita Satapathy & Saroj Patel & Amitabha Biswas & Pravudatta Mishra, 2012. "Interpretive structural modeling for E-electricity utility service," Service Business, Springer;Pan-Pacific Business Association, vol. 6(3), pages 349-367, September.
    11. Le Hau & Pham Thuy, 2012. "Impact of service personal values on service value and customer loyalty: a cross-service industry study," Service Business, Springer;Pan-Pacific Business Association, vol. 6(2), pages 137-155, June.
    12. Christian Linder & Sven Seidenstricker, 2017. "Does The Supplier Affects Consumers’ Product Performance Expectations? An Analysis About The Innovativeness Perception," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-27, January.
    13. Ersin Eskiler & Remzi Altunışık, 2021. "The Moderating Effect of Involvement in the Relationship Between Customer Behavioral Intentions and Its Antecedents," SAGE Open, , vol. 11(2), pages 21582440211, May.
    14. Ozgur Yayla & Arif Aytekin & Fatih Uslu & Gozde Seval Ergun & Huseyin Keles & Yigit Guven, 2023. "How Does the Experience Quality of Recreational Activities Organized within the Scope of Public Health Affect Perceived Value, Satisfaction and Behavioral Intentions of Individuals?," IJERPH, MDPI, vol. 20(6), pages 1-16, March.
    15. Lloyd, Alison E. & Yip, Leslie S.C. & Luk, Sherriff T.K., 2011. "An examination of the differences in retail service evaluation between domestic and tourist shoppers in Hong Kong," Tourism Management, Elsevier, vol. 32(3), pages 520-533.
    16. Frooghi; R.; Afshan; S.; Waseem; S. N.;, 2016. "The Integration of Loyalty, Satisfaction, and Relationship Commitment Models to Predict Customer Retention in Pakistani Telecom sector," South Asian Journal of Management Sciences (SAJMS), Iqra University, Iqra University, vol. 10(2), pages 56-79, Fall.
    17. Susan Geertshuis & Otto Krickl, 2013. "Value Judgements and Continuing Education," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 2(1), pages 123-141.
    18. Surajo Musa Yakubu & Asmadi Mohamed Naim & Rosemaliza Ab Rashid, 2020. "Empirical Study on Corporate image, Customer Perceived Value and Customers’ Acceptance of Islamic Micro finance in Kano State Nigeria: The Moderating Effect of Religiosity," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(1), pages 78-84, March.
    19. Feng Xu & Xuejiao Lin & Shuaishuai Li & Wenxia Niu, 2018. "Is Southern Xinjiang Really Unsafe?," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    20. Stępień Beata, 2017. "In Search of Apprehending Customers’ Value Perception," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 53(1), pages 99-117, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:67:y:2006:i:1:p:93-105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.