Purpose
The purpose of this paper is to develop a conceptual framework for a value creation business (VCB) model. It seeks to unlock two essential research questions: “what constitutes value”, and “how do firms create value for customers?” in the context of the firm‐customer dyad.
Design/methodology/approach
The paper is conceptual and is premised on a review of the extant literature on value and value creation. It addresses the limitations pertaining to the dominance of the value‐in‐use perspective. It also addresses the call for a paradigm shift toward customer‐centric marketing and operant resource‐based dominant logic. Building on the review, the paper identifies essential components of value in value creation processes.
Findings
The VCB model is developed by integrating three perspectives of value including creating value for customers, value‐in‐offering, and value‐in‐use, capturing a contingency approach to theory building. The model enlightens how value creation architecture (the strategic space of value creation processes) and value creation engineering (the capability space of value creation processes) engage in creating value outcomes for both the firm and the customer.
Practical implications
The VCB model constitutes guidelines useful for practitioners in crafting value‐based business processes and provides a base for academic researchers to further research on value and value creation.
Originality/value
The paper advances the literature on value by conceptualising value as consisting of the value offering and customer equity (the firm viewpoint), and customer value and brand equity (the customer viewpoint). The paper also highlights that value creation processes are initiated with the crafting of value creation architecture, followed by developing value creation engineering, and completed with value outcomes.
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