Privacy and Value Co-creation for IT-Enabled Service Systems: Cui Bono?

Authors:
  • ECEllen Chan
    Ellen Chan
  • RHRobert R. Harmon
    Robert R. Harmon
  • HDHaluk Demirkan
    Haluk Demirkan

Abstract
Almost all IT enabled service systems such as Google, Face book, Apple, Microsoft, Skype are facing criticisms on their use of customer data and their failure to protect customer privacy. These service companies rely on customers to participate actively in the co-creation of value by providing personal information, data and preferences. Such important resources and assets, if mishandled by companies, can cause harm to customers. Misuse and poor privacy protection for customer information can create ethical, legal, and business consequences, diminish trust and inhibit relationship building between customers and service providers, and affect future value co-creation. This paper identifies the different facets of privacy, explores the intersection of privacy and co-creation of value, and offers suggestions for future research regarding how businesses and customers can benefit from the service while ensuring privacy is protected.

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