Intra-Firm Value Co-Creation: Role of High-Performance Work Practices

Abstract

Organizations, who intend to abide by their desire to engage in value co-creation with their customers, need to introspect and focus on knowledge sharing and inter-functional coordination as core drivers and enablers of the firm’s desired behaviors. These behaviors encourage employees, departments, and other stakeholders to take collective responsibility in creating value internally, thus enabling an internal value co-creation orientation. In this regard, high-performance work practices such as recruitment and selection, training and development, performance appraisal, compensation and rewards, work design and teamwork; theoretically hold the HRM key to ensure firms’ desired behaviors. Moreover, the benefit of adopting this new orientation within the firm’s behavioral paradigm is to create capabilities that lead to the creation of an intra-firm value co-creating system.