Customers are increasingly becoming active participants and co-creators of value in the mobile Internet era. With this trend, employees are encouraged to engage in active dialogue with customers, effectively manage customer diversity and co-create personalized experiences. Such changes challenge the leadership. The relevant literature reveals that the significance to leadership of shared vision has attracted attention and become widely acceptable. However, there is a large gap in the literature regarding how to model the building of shared vision in service business.
Our study represents a first attempt to shed light on how vision co- creation between leaders and employees can affect the leadership in corporate transformation. Based on comparisons of the leadership literature regarding product-oriented and service-oriented companies, we hypothesised about vision co-creation with employees. Then, we conducted an in-depth case study in a leading software company in China and interviews in four multinational IT companies in Japan. This study suggests that vision co-creation with employees is imperative for leaders in today’s service-dominant business. In the co-creation process, six relevant working states of employees are defined: non-engagement, expectation, satisfaction, engagement, loyalty and creativity. As a firm creates a new vision, or makes the existing corporate vision into a shared vision, it goes through these phases. We propose specific implications of the issues and focus on each phase to address the concerns.
This research makes a contribution by addressing concerns that many companies are over-managed and under-led. Traditional management systems, such as management rules, PDCA, performance appraisals and incentive systems, are still indispensable but are not enough to lead employees to work in the high-tier state. The co-creation process makes the new vision come alive so that it can be imagined, experienced, pursued and worked hard for.
In the final chapter, we provide suggestions for future research. The position-centred, one-person leadership described in the previous literature leaves the substantial talents of employees largely untapped.
Table of Contents
Chapter 1: Introduction
1.1 Background
1.1.1 The increasing IT service market in the global economy
1.1.2 Service-oriented corporate transformation as a competitive strategy
1.1.3 Challenges for leaders in corporate transformation
1.2 Research objectives
1.3 Research questions
1.4 Research Methodology
1.5 Originality and significance of the research
1.6 Structure of the chapters
Chapter 2: Theoretical Review of Service Science and Leadership
2.1 Introduction
2.2 Emerging theories in service science
2.2.1 Service-dominant logic
2.2.2 Service field
2.2.3 Value co-creation with customers
2.3 General leadership theories
2.3.1 Definitions of leadership
2.3.2 Traditional leadership theories
2.3.3 Transactional and transformational leadership
2.3.5 The role of shared vision in leadership building
2.4 The contrast of leadership in goods- and service-dominant Logic
2.5 Summary and proposition: vision co-creation leadership for value co-creation business
Chapter 3: Case Study Design
3.1 Introduction
3.2 Two groups of companies for case studies
3.2.1 Chinese companies as fast-developing cases
3.2.2 Japanese multinational companies as well-developed cases
3.3 Attributes of the companies
3.4 Interview methods
3.5 Data collection and Analytic strategy
Chapter 4: Case Analysis and Discussion
4.1 Introduction
4.2 Chinese cases from Kingdee
4.2.1 Company A
4.2.2 Company B
4.3 Japanese Case Company – Company J
4.3.1 Profile of the company
4.3.2 The problems of building the shared vision
4.3.3 The actions taken to resolve these problems
4.3.4 The results
4.3.5 The process of building shared vision at a large department level
4.4 Summary
Chapter 5: Conclusions
5.1 Introduction
5.2 Answers to research questions
5.3 Theoretical implications
5.4 Practical implications
5.6 Suggestions for future research
Research Objectives and Themes
This study explores how the co-creation of a shared vision between leaders and employees influences leadership during the process of service-oriented corporate transformation, aiming to develop a model that helps leaders reconsider their focus and behavior in service-dominant business environments.
- Evolution of leadership theories from goods-dominant to service-dominant logic.
- Mechanisms of vision co-creation between leaders and employees.
- Challenges and solutions for leaders in transforming organizational culture.
- The impact of shared vision on employee self-motivation, commitment, and creativity.
- Methodological insights from case studies in the Chinese software and Japanese IT sectors.
Excerpt from the Book
From Procedure to Thinking
In goods-dominant logic procedures are designed for maximum process control, efficiency, and profit maximization; this usually results in product standardization, even when that is not responsive to the market. In contrast, service-dominant logic is focused on the interaction of the providers and the recipients as they co-create value through collaborative processes (Lusch, Vargo & Malter, 2006). In other words, manufacturers get competitive advantages by controlling the manufacturing procedure and get the best and standard product quality, while service companies have to use people’s thinking competence. Finely tuned bureaucracies with carefully defined policies, procedures, and job descriptions are no match for the knowledge era (Drucker, 2006). Only if the creative abilities of the employees are unleashed can they expect to respond effectively to market challenges. Goods-dominant companies used the dexterity of their employees’ hands to grow, but service companies need to build upon the dexterity of their minds (Savage, 1990).
Google, for example, does not have a top-down culture in which people must seek approval for everything they do. There is an incredible amount of freedom for employees to do what they think is right and to spend time on their own interests. This would be a challenging mode for most goods-dominant companies, but it is suitable for Google, a company that must innovate continually. “If people have been working at a company too long they’re inculcated in a development process that is relatively predictable,” Google’s executive chairman Eric Schmidt said, “Real innovation is hard to do when you have a process culture with Six Sigma. Risk management is around the process, keeping it the same.”
Summary of Chapters
Chapter 1: Introduction: Introduces the shift toward service-dominant business models and the need for new leadership paradigms to foster shared visions with employees.
Chapter 2: Theoretical Review of Service Science and Leadership: Reviews literature on service-dominant logic and traditional leadership, proposing a framework for vision co-creation.
Chapter 3: Case Study Design: Outlines the qualitative methodology using case studies from Kingdee (China) and Japanese multinational companies.
Chapter 4: Case Analysis and Discussion: Analyzes the implementation of the vision co-creation process within the specific companies investigated.
Chapter 5: Conclusions: Synthesizes the findings regarding the effectiveness of vision co-creation and provides theoretical and practical implications for future management.
Keywords
Service-dominant logic, Vision co-creation, Shared vision, Leadership, Corporate transformation, Employee engagement, Self-motivation, Knowledge economy, Service science, Innovation, Collaboration, Organizational culture, Management 3.0, Value co-creation, Personal power.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on the transition from traditional product-oriented leadership to a new pattern of "vision co-creation" essential for service-oriented corporate transformation.
What are the primary themes discussed?
Key themes include the shift from goods-dominant to service-dominant logic, the importance of fostering a peer-based organizational climate, and the role of shared vision in motivating employees.
What is the main research objective?
The objective is to identify fundamental changes in leadership required for service-oriented transformation and to build a "vision co-creation-based leadership model" for more effective management.
Which scientific methods are utilized?
The study employs a qualitative research methodology, specifically multiple case studies involving in-depth interviews with executives from Chinese and Japanese IT/software companies.
What does the main body cover?
It provides a theoretical review of service science, details the research design, performs a comparative analysis of case companies, and discusses the practical challenges and solutions in building a shared vision.
Which keywords characterize this work?
The work is characterized by terms such as Service-dominant logic, Vision co-creation, Shared vision, Leadership, and Corporate transformation.
How does "Beerbust" contribute to the company's transformation?
The "Beerbust" activity creates a relaxed, informal setting that fosters emotional connections and empathy among employees, which is vital for building a shared vision beyond formal working procedures.
What is the significance of the "Ba" concept mentioned in the study?
Based on Japanese culture, "Ba" serves as a specific context for knowledge sharing and creation, providing the energy and space necessary to enhance the vision co-creation process.
- Quote paper
- Yong Nie (Author), 2014, Transforming Leadership for Service Business, Munich, GRIN Verlag, https://www.grin.com/document/369698
