An Empirical Examination of Cumulative Capabilities in Value Co-Creation with Customers

The purpose of this paper is to extend the cumulative theory by examining the interaction mechanisms of capabilities in the setting of value co-creation with customers. Based on large-scale survey data collected in the middle of China and coupled with multi-method, this study makes contributions in the following three aspects. First, the enhancement of certain traditional capabilities (flexibility and delivery capabilities) can amplify certain new capabilities, i.e. service capability and customerization capability, when properly involving customers in value co-creation system. Second, this study finds flexibility plays a basic role to amplify other capabilities in the new strategy. The findings of this study help extend the cumulative theory to the scenario of value co-creation with customers. The results of this research help guide companies to take both internally and externally focused views of capabilities development to excel in coming competition.