Territory, firms and value co-creation synergies

Purpose Recent literature on the implications of applying service-dominant (S-D) logic to conceptualise value-creation processes views territory only as an operand resource (a resource upon which an act is performed). This study aims to show that territory is both an operand and operant resource (a resource that acts on other resources) and to examine how this conceptualisation may extend knowledge about co-creation processes between a firm and its territory. Design/methodology/approach The study develops a conceptual contribution, drawing on previous research and combining managerial thinking with architectural-urban planning thinking, using illustrative examples. Findings This study shows that the territory actively participates in value co-creation through interactions with other actors (e.g. firms, inhabitants and tourists). The territory is not only an output of human actions but also a process through which its essence and traits emerge over time. It can infinitely inspire firms with ideas, provided they are able to listen to it and recognise its value co-creator nature. Research limitations/implications Contrary to the traditional firm location theory, this study highlights that a territory's attractiveness is related to its potential, active contribution to value co-creation. The study's arguments provide a contribution to the current debate about territorial servitisation but should be refined through empirical analyses. Practical implications The paper provides suggestions on platform-designing methods - supported by technologies - to enable the territory to engage in value co-creation. Originality/value While some studies have applied the S-D logic to territories, this study is the first to recognise that the territory has an active role in value co-creation.