Value co-creation through digital technology in developing economies : reflections from Indonesian agri-food E-commerce chain

Abstract

Value co-creation (VCC) has supported the expansion of research in marketing by embracing service innovation within the digital-driven era. However, a small number of studies provide a comprehensive examination of VCC through digital technology from the perspective of multiple local market actors at developing economies at the bottom of the pyramid (BOP) market. This research explores the role of digital commerce in VCC with the empirical focus on the Indonesian horticulture industry, moving towards e-commerce for marketing innovation. This research aims to: (1) explore VCC manifestation within the local BOP market, (2) discover the role of e-commerce in the exchange process of co-creation at the local BOP market, (3) explore the dimensions of VCC of engagement amongst the local e-commerce supply chain actors of BOP, and (4) investigate the causes and effects of customer engagement to VCC of using e-commerce in this marketplace. This research adopted a mixed-method approach of qualitative semi-structured interviews and a quantitative survey. VCC identified as occurring in a newly emerging e-commerce marketing channel via the interaction amongst channel members. Inclusive, collaborative, and empowerment ideology contribute to market scripting scenario by local entrepreneurs who identify as ‘socio-entrepreneurs’. This research argues that the exchange logic underpinning this new transformative business approach of digitally enabled VCC in local BOP markets is akin to a ‘social justice logic’. For consumers, digital technologies create online ‘consumption communities’ where information is exchanged concerning product provenance and food preparation opportunities supporting online purchases and innovation in value chain ‘pull’ strategies. The research indicates that customer VCC behaviour was influenced by the significant effects of customer-related VCC resources of social expertise and openness, customer motivation, and its effects on value-in-use, willingness-to-engage, positive emotions, and behavioural intentions. Finally, the results highlight the moderating role of customer age and the length of engagement in VCC processes on these relationships.