ABSTRACT
This chapter explores the impact of social media for organizations in terms of value co-creation and identifies how firms can use social media as a platform for facilitating value co-creation. It also explores the concept of value and value creation. The chapter discusses how social media can act as an engagement platform to co-create value. The relational characteristics that stress the interactive and co-creational nature of value are located in the productive exchange connections between the customer and the supplier. Effective value co-creation requires some form of engagement platform that enables actors to share their resources and adapt their processes to each other. Variations in social media networks are linked to identity, conversations, sharing, presence, relationships, reputation, and groups that define the specifics of their user experience. The social media sites create new virtual contacts and strong ties within communities of interest forming social networks connecting on common views or activities.
