Infrastructure Innovation to Attain Service Value Sustainability: Viewpoint of Resource Management

Infrastructure Innovation to Attain Service Value Sustainability: Viewpoint of Resource Management

H. M. Belal (Japan Advanced Institute of Science and Technology, Nomi, Japan), Kunio Shirahada (Japan Advanced Institute of Science and Technology, Nomi, Japan) and Michitaka Kosaka (Japan Advanced Institute of Science and Technology, Nomi, Japan)
DOI: 10.4018/ijssmet.2014040102
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Abstract

This paper proposes a resource integration (RI) model to achieve infrastructure innovation in terms of organizational knowledge creation processes that guarantee sustainable dealings that are service oriented. Innovative infrastructures accomplished by beneficial changes in business platforms to create customer values have been attracting a great deal of attention. Therefore, a method of recognizing growth in infrastructures is needed. Collaboration with suitable partners, while integrating resources, is one of the core tools to improve organizational knowledge creation processes, thereby achieving infrastructure innovation that is able to offer contemporary services. However, there have been few studies on infrastructure innovation from the viewpoint of knowledge creation followed by modes of corporate collaboration. Two case studies, viz., Nike-Apple and Telenor-Grameen Group Corporation are presented in our study. Results demonstrated our mentioned concept. This research contributes to creating strategic corporate policies for organizations to succeed in the global business market by ensuring value sustainability.
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1. Introduction

Innovation is a concern in creating values that play a significant role in making organizations sustainable in the business market. Services are the driving forces that create values for customers according to current business trends. Value drives consumer as loyalty one by satisfaction (Kainth & Verma, 2013). Services have become a common thread for gaining competitive advantages and corporate profitability by creating value in-terms of organizational knowledge creation process (Belal, et al., 2013). Typical manufacturing or pure service organizations cannot sustain competition in business by only offering pure goods or services differently. Companies need to move up the value chain and compete on the basis of delivered values (Porter & Ketels, 2003; Elche & González, 2008) through proposing more “fuller market packages or ‘bundles’ of customer-focused combinations of goods, services, support, self-service, and knowledge” (Vandermerwe & Rada, 1988, p. 314). They need to maintain services that are usually offered by manufacturers as a way of protecting their products rather than creating long-term values. Therefore, it is currently debatable whether services with core offerings as maintenance tools for products can create short-term customer values but the perpetual sustainability of values with customers is essential even though it still remains a challenge. Research on service value sustainability (SVS) aimed at corporate long-term success and adapted with current global business environment is vital from this perspective.

The service concept has been defined and explained by many researchers. Vargo and Lusch (2004) clarified that a “service is the application of specialized competences for the benefit of another entity or the entity itself” (p. 2) and they proposed Service Dominant Logic (SDL) (Vargo et al., 2008). Booms and Bitner’s (1981) focus was on physical evidence, participants, and processes, which are the three essential components of service. One can obtain a clear perspective of trade and industry phenomena from these statements by engaging value and also obtain a clear perspective of the service environment and other tangible aspects of services that facilitate or communicate the nature of services (Booms & Bitner, 1981; Fisk et al., 2008). This also provides a message that all parties are involved in the fabrication of services (Booms & Bitner, 1981; Lovelock, 1983) and service experiences that are exchanged between customers and service providers create a win-win relationship that improves mutual satisfaction and co-creates values (Vargo et al., 2008; Spohrer & Maglio, 2010).

However, scrutinizing SVS that can perpetually retain values for all parties is still an open question in the service research field. There have been few studies that have targeted service; tripartite service value co-creation (Shirahada & Fisk, 2011) and environmental (Grove et al., 1996), service concept and the definition of service and services (Lovelock, 1984; Vargo & Lusch, 2004; Lovelock & Wirtz, 2005), corporate strategies (Shrivastava, 1995), service field in service systems (Kosaka & Shirahada, 2013), transformative service research (Anderson et al., 2011), Service eco-system perspective (Wieland et al., 2012).There have also been few studies on infrastructure innovation based on what RI means for SVS.

The aim of this study is to analyze insights into corporate integration, which works as an exclusive method of changing infrastructures and constructing business platforms to create organizational knowledge as well as continuous customer values. Our research has expanded the belief of infrastructure innovation and it has simultaneously revamped the concept of SVS through fashioning a model of RI.

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