Value Creation Networks, Knowledge Co-creation, and the Foundation of Dynamic Capabilities – Insights from an Organizational Learning Perspective

Abstract

In our paper we discuss how firms are affected by newly evolving service-driven market conditions. We especially focus on understanding how the need to establish a more service-oriented business logic affects organizational learning processes. Our research is based on the service-dominant logic concept, the dynamic capabilities approach, and the 4I model of organizational learning. We extend the 4I model of organizational learning by adding a value creation network perspective as well as three specific service-related capabilities (adapting, absorbing, and collaborating). In doing so, we show how a service-dominant business logic and service related capabilities can serve as an additional microfoundation of dynamic capabilities. The purpose of our conceptual paper is to provide a holistic perspective on the highly complex relation between service-related changes in the business logic, value creation network-based learning, and the development of dynamic capabilities. Our insights are reflected by three sets of propositions we develop. The paper enhances existing knowledge by introducing a solid, theory-based framework that builds a groundwork for future empirical research.