Designing business models for value co-creation: A case study of local firms in Vietnam

Firms gain competitive advantage by engaging customers and value network partners in co-creation activities. Business models that integrate value co-creation in a network are recognized as an essential prerequisite for any firm to develop a competitive advantage. However, there has been scant attention given to business models designed for value co-creation in emerging markets. This research adopts a qualitative case study of two firms in the agricultural sector in Vietnam. The findings reveal that a firm can develop a competitive advantage in emerging markets by achieving internal and external configurational fit in the design of business models for value co-creation. The fit is addressed by developing human relations across the dimensions of ‘employee’ and ‘partner’. Human relations, driven by the integration of a family-like culture, are fundamental for a firm to engage customers and its partners in the value co-creation process in emerging markets. Employee dimension enables internal configurational fit between all business model elements. Partner dimension enables the external configurational fit between the firm’ and its partners’ business model. This study contributes theoretically to the literature on value co-creation and business models by providing an extension of the business model framework designed for value co-creation in emerging markets.