Measuring the constructs and mechanism of the value Co-creation system with customers

Involving customers to co-create value is an important strategy for businesses competing to satisfy personalized customer demands and to gain competitive advantages. However, the research of co-creation value with customer is still in an early stage. In a search for this new competitive strategy, the literature on value co-creation largely overlooked constructs development and the interaction mechanism among the constructs. Using empirical data collected in the middle of China, this study provides an empirical examination into the mechanism of the three constructs in a co-creation system and makes the contribution in the following three aspects. First, this study developed and assessed three constructs in a value co-creation system based on the empirical data. The measures satisfy key measurement criteria including unidimensionality, convergent validity, discriminant validity, and reliability. Second, the results of this study evidence that the emphasis of co-creation with customers may not only positively impact on customerization capabilities, but also directly impact on service capability. These capabilities are significantly different from those generated from traditionally isolated value creation system. Third, the study finds the relationship between the customerization capabilities and service capabilities. Customerization capability significantly impacts on firm's service capabilities.