The Overview Model: towards a (consumer) value theory of innovation

An overview model, linking the grounded theory concepts into one overview construct. The Chapter 7 draft is available as pdf (9.5Mb; here). Innovation in this thesis is defined as "something new (novelty, a value meaning) which adds value" (consistent with Schumpeter 1934, Drucker 1999, 2007, Porter 1999, Vargo and Lusch 2008). To create value, innovators need to understand what value is to consumers and how value works (the processes and practices of value) for the benefit of consumers. Thus value is addressed always and only from the consumer perspective. All references to value are to consumer value, rather than shareholder value. The top diagram shows the value structure from simple beginnings.

Key aspects of (Consumer) Value:

• Value structure analysed through several dimensions: as three value conversations (individual, social and telco); three phases (pre purchase, post purchase, and consequences of value); and value interactions (between value meaning, value practices and context).
  
  
• Valuing continues pre and post purchase (iterative, dynamic).


• Value meanings, Value practices (12 each) interact and reconstruct one another (dynamic, constructionist, complex, paradoxical).


• Social, Individual and telco practices (socially constructed, experiential).


• Value stored as attitude (significantly emotional), so valuing largely not based on rational goals (Woodruff 1997) and decisions.


• Model is not generalisable, since interpretive (grounded theory; derived from consumer experience).


• Loss of value stronger driver to action than value (problem solving).


• Model is too complex but close to and grounded in consumer experience with 3G mobile phones. Need several layers to explain model.


• Model combines and compared to elements of innovation models; Bass (1969) individual, social practices, Bijker (1995) problem solving, Rogers (2003) linear adoption, Christensen (1997) adoption dynamics, Ryan and Gross (1943) knowledge intensive and social. Value Model built to examine, and analyse Kim and Mauborgne's (2005) Value Innovation; which hypothesises adoption when leap in value.


• Model value meanings tested against consumer value literature; fruit drinks (Zeithaml 1988), auto business to business (Flint, Woodruff and Gardial 2002), value typologies (Richins 1995, Holbrook 1996, Woodruff 1997)
  

This chapter has presented a value model of innovation, developed from the grounded theory practices in this thesis. The model is complex but offers a dynamic, subjective, contextual, and interpretive view of how consumers (at least in a 3G mobile phone context) understand value in a new technology. In the next chapter, I conclude and consider limitations, recommendations and further work to extend and improve the value model.

Comments welcome...!







Layer 1: Value structure:

Three value conversations (individual, social and telco)

Three value phases (pre purchase, post purchase, consequences of value)



Layer 2: Value Practices:

Pre: Post: Consequences:

Social: Individual: Telco:






Layer 3: Value Meanings:

Pre: Post: Underlying