Knowledge Co-Creation in Marketing Channel

Value co-creation is an important theoretical and managerial concept in suppliercustomerrelationships (Vargo and Lusch, 2004). The essence of the concept is that whensuppliers and customers become partners, their joint contributions generate highermutual benefits than can be achieved by one partner alone (Dyer and Singh, 1998). Thisresearch aims to examine knowledge as a domain of value co-creation becauseknowledge is the fundamental source of competitive advantage (Grant 1996; Vargo andLusch, 2004). We argue that suppliers and customers can and should collaborate togenerate new and useful knowledge.Knowledge co-creation (KCC) refers to the creation of new ideas and practices throughinteractions between two partners (Nonaka and Takeuchi, 1995). KCC results frompartners’ mutual learning and joint contributions. KCC is distinct from internalknowledge creation, which involves only units within one firm. KCC is also distinct fromknowledge acquisition, which refers to transfer of existing knowledge from one firm toanother. KCC requires both partners to leverage their competencies and complementeach other with their own knowledge and resources. Partners’ joint participation inknowledge-related activities, such as knowledge transfer, decoding, combination,assimilation and integration, leads to KCC.This research addresses three questions with regard to KCC. First, how to identify theright partners for KCC? Building on matching theory, we argue that a good matchbetween partners determines the outcome of their collaboration. KCC requires thepursuit of partners who possess similar characteristics on some dimensions and differentqualities on other dimensions (Mitsuhashi and Greve, 2009). Second, how can partnerscollaborate effectively to generate new knowledge? Drawing from governance theory, weexamine interfirm governance mechanisms in supplier-customer collaboration (Heide1994). We suggest that both contracts and norms affect the transfer, integration andcreation of knowledge (Dyer and Singh, 1998). Third, this research adopts a longitudinalapproach to examining the effect of KCC on firm performance.This research adopts a dyadic design and collects both primary and secondary data. Datafrom 300 matched supplier-customer dyads will be collected in three phases. The three-phasedesign allows us to test the likely causal relationship in the conceptual framework.This research will contribute to value co-creation literature by examining the emergingphenomenon of KCC. The findings will provide firms with feasible strategies to harnessKCC by identifying the right partners and designing the governance mechanisms.