Understanding the Effects of Technology Advancement (Internet of Things) on Value Co-creation and Firm Performance

Value co-creation is a study on consumer-firm interactions, where consumers can be actively involved with firms in designing, developing, marketing, distributing, and (or) selling of products to personalize their service experiences. In contrast, value co-destruction exists due to imbalance involvement between consumers and firm in co-creating of value as a result of misuse of resources. Previous studies have shown value co-creation will increase firm performance, whereas value co-destruction will reduce the performance. In the meantime, a recent technological advancement with the introduction of IoT has started to influence the process of value co-creation, co-destruction, and firm performance. This paper is discussing on the concept of IoT that can positively increase value co-creation, and reduce the negative effect of value co-destruction on firm performance, explained from the RBV perspective and S-D logic.