Introduction

§  Wearable technology: things that can be worn, such as clothes and glasses that contain computer technology or have the ability to connect to the Internet (Cambridge Dictionaries, 2016).

§  Primary motivator for purchasing wearables = HEALTH

§  Customer adoption rate for health and wellness wearables doubled to 49% this year from 22% in 2014 (PwC, 2016).

Customer Interaction with a Technology and Value Co-Creation: A Service-Dominant Logic Approach

Cecilia Lee, ESR 13 UCD Michael Smurfit Graduate Business School Supervisors: Prof. Susi Geiger, Dr. Geertje Schuitema

This project has received funding from the European Union's Horizon 2020 research and innovation programme under the Marie Sklodowska-Curie grant agreement No 676201

22% 18%

33% 16%

Customer Drop-Out Rate After 6 Months of Purchase

Research Aims §  To examine how actors’ interaction in each system – micro,

meso, and macro – influences one another to co-create value. §  To understand customer value and assess whether the

interaction between customer and technology shapes customer perceived value.

Akaka, M.A. And Vargo, S.L. (2014). Technology as an operant resource in service (eco)systems. Information System E-Business Management, 12, 367-384. Arthur, W.B. (2009). The nature of technology: What it is and how it evolves. NY, New York: Free Press. Orlikowski, W.J. (1992). The duality of technology: Rethinking the concept of technology in organisation. Organization Science, 3(3), 398-427. Orlikowski, W.J. (2000). Using technology and constituting structures: A practice lens for studying technology in organisations. Organization Science, 11(4), 404-428. Piwek, L.Ellis, D.A., Andrews, S. and Joinson, A. (2016). The rise of consumer health wearables: Promises and barries [Electronic Version’ PLoS Med, 13(2). PwC (2016). The wearable life 2.0: Connected living in a wearable world, Customer Intelligence Series. Retrieved from http://www.pwc.com/us/en/industry/entertainment-media/publications/consumer-intelligence-series/wearables.html

Why Customers Stop Using Wearables? Lack of Customer Value §  No significant tangible impact on improving customers’ health

or general well-being. Poor Customer Experience §  Lack of seamless integration into customers daily life, such as

difficulties with synching their wearables with their mobile phone (Piwek, Ellis, Andrews, and Joinson, 2016).

Research Question How do customers interact with technology and other actors in service ecosystems to co-create value?

Theoretical Background In Orlikowski’s structurational model of technology, the scope of technology is confined to material artefacts. With a shift in dominant logic of marketing from goods-centered to service-centered (SD-logic), the scope of technology should be expanded to the application of knowledge or processes to create value. Akaka and Vargo (2014) re-conceptualise technology as “a set ot practices and processes, as well as symbols that contribute to value creation or fulfill a human need.” Furthermore, they use SD-logic service ecosystems as a theoretical lens to analyse the role of technology for value co-creation and service innovation. SD-logic service ecosystem approach does not support Orlikowski’s view on reification and institutionalisation of technology after its deployment. Instead, the service ecosystems approach claims that norms that guide the use of technology is connected to technology in a ‘unique’ way.

Theoretical Contributions Orlikowski’s (1992, 2000) structurational model of technology was challenged by Aurther (2009) and most recently Akaka and Vargo (2014) as offering a limited view of technology, as Orlikowski restricts the scope of technology to ‘material artefact’. In Aurther (2009)’s analysis, technology is both material artefacts and process. Based on Aurther’s (2009) view, this research aims to develop the conceptual framework that examines the interaction between customer and technology for value creation and how this micro-level interaction influences and is influenced by actions and structures at meso- and macro-levels.

MICRO-LEVEL: Customer-Technology

Interaction

MESO-LEVEL: Customer, Technology,

and Technology Provider

MACRO-LEVEL:

Multi-actors in social system

Institutions

Agency