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Purpose A common thread in the modern marketing theories, such as service‐dominant logic and viable systems approach, is the notion value co‐creation: the locus of value creation is no longer perceived to reside within firm boundaries but value is considered to be co‐created among various actors within the networked market. The evolution of value creation, from value creation by the manufacturing firm to value co‐creation in a network, necessitates a corresponding change in the concepts used to depict value creation. The purpose of this paper is to investigate business models as a broader conceptualization of value co‐creation that captures this change. Design/methodology/approach The topic is approached by a combination of literature review and interactive research, including interactions with managers from 12 international companies. Findings Business models are defined as configurations of 12 interrelated elements, covering market, offering, operational, and management viewpoints. The effectiveness of a business model in value co‐creation is defined by the internal configurational fit between all business model elements and the external configurational fit between provider's and customers' business models. Research limitations/implications The paper contributes to the understanding on value co‐creation by providing a conceptualization of the business model construct depicting value co‐creation in a network. Of the 12 companies providing the empirical data, ten are within business‐to‐business which limits the applicability to business in general. Further, the paper indicates that within a single firm multiple parallel business models are in use. Practical implications A firm can radically improve value co‐creation by designing business models that have a high degree of internal and external configurational fit. Originality/value The originality and value of this paper lies in its analysis and discussion of co‐creation of value within a business model.
Nenonen et al. (Sat,) studied this question.