Value-Constellation Innovation by Firms Participating in Government-funded Technology Development

ABSTRACT This study examined service firms participating in technology development programs sponsored by the government. Our objective was to identify means by which these firms can enhance service value, with particular focus on value constellations. We used a qualitative approach to investigate four case studies of firms in Taiwan. We found that value-constellation innovation combines multiple types of value creation (i.e., value chains, value shops, and value networks) through application of information-and-communication technology. Analysis from the perspective of service-dominant logic promotes understanding of the development of network relationships among firms in the relevant value constellations and government agencies which are investing in information-and-communication technology. We also highlight three areas that deserve further attention: reconfiguring value systems, leveraging technology, and redefining government roles in value constellations.