Explaining value cocreation in social networking services

Alexander Eck from the University of St.Gallen will present ongoing research co-authored with Benjamin Spottke (principal researcher) and Jochen Wulf into Explaining value cocreation in social networking services: towards a process model of resource integration. Read the summary below.

Consumers and providers of popular social networking services (SNS) cocreate considerable value, as Facebook’s 1.2bn daily active users and over US-$ 12bn generated profit in 2016 showcase. Beyond raw numbers, value cocreation becomes apparent in the continuously changing structure and behavior of popular SNS – the Facebook experience in 2007 was considerably different from that of 2017. According to the service-dominant logic, value is cocreated when various actors contribute their respective resources in a collaborative integration effort. Despite the popularity of this concept, the exact processes of resource integration which lead to cocreated value remain conspicuously abstract. Furthermore, extant models remain linear and do not specifically account for change induced by repeated resource integration. We present an ongoing research project that aims to explain how consumers and providers cocreate value in SNS, focusing on resource integration which induces iterative changes. This research is rooted in an examination of Facebook and YouTube, in which we analyze how and why distinct features change over time and how both consumers and providers make use of them to cocreate value. Through gradual generalization of selected episodes of change we aim to distill archetypical processes for value cocreation through resource integration.