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Toward a Theory of Market Culture: an Investigation of Value Co-Creation and the (Re)Contextualization of a Global Market Culture

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Toward a Theory of Market Culture: an Investigation of Value Co-Creation and the (Re)Contextualization of a Global Market Culture TOWARD A THEORY OF MARKET CULTURE: AN INVESTIGATION OF VALUE CO-CREATION AND THE (RE)CONTEXTUALIZATION OF A GLOBAL MARKET CULTURE A DISSERTATION SUBMITTED TO THE GRADUATE DIVISION OF THE UNIVERSITY OF HAWAI‘I OF MĀNOA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN INTERNATIONAL MANAGEMENT May 2012 By Melissa Archpru Akaka Dissertation Committee: Stephen L. Vargo, Chairperson Jennifer D. Chandler Hope Jensen Schau Xin Zhao Shuqiang Zhang Keywords: Value Co-creation, Contextualization, Market Culture, Service-dominant Logic, Consumer Culture Theory ii Copyright by Melissa Archpru Akaka May 2012 iii ACKNOWLEDGEMENTS The completion of this dissertation was made possible with the help of those who have nurtured and cared for my beloved babies, including this one. Words cannot adequately express my appreciation for my husband, Gerard Akaka, and my parents, Helen and Suchart Archpru, for their unconditional love and patience throughout this process. I am forever indebted to them and the “village” of family and friends who have dedicated countless hours toward helping raise my girls, Emalee and Simonne. I sincerely hope to repay their kindness and generosity some day. I am also especially grateful for the members of my dissertation committee, who were instrumental in the development and completion of this project. In particular, I would like to thank Dr. Stephen L. Vargo for mentoring and encouraging me to pursue my passion for studying markets and marketing. In addition, I would like to extend my deepest appreciation to Drs. Jennifer D. Chandler, Hope Jensen Schau, Shuqiang Zhang and Xin Zhao for their continued support and guidance. Finally, I am incredibly thankful for all the surfers who have inspired and participated in this research. They continue to teach me what “real” value is and how it is collaboratively created. iv ABSTRACT In this dissertation, the consideration of markets as cultures, or market culture, is proposed as a theoretical framework, based on value co-creation, for studying markets and marketing. Central to this view, is the idea that value is always jointly created (co- created) in markets because it is proposed by one or more actors (e.g., firms), but derived and determined by different actors (e.g., customers), in a particular context. In three interrelated essays, a conceptual framework for studying market cultures is proposed and empirically investigated. This framework suggests that as firms, customers and other stakeholders enact practices (routine actions) to (co-)create value for themselves and for others, they draw on and contribute to common resources, social norms and meanings, which recursively constitute the cultural contexts through which value is derived. The first essay proposes a framework for conceptualizing markets as cultures by integrating two streams of marketing research that center on jointly created value – service-dominant (S-D) logic and consumer culture theory (CCT) – and drawing on practice theory, as it has been developed in marketing and sociology. The second essay explores the (re)contextualization, or social construction, of a global market culture, surfing, as changes in practices guide and are guided by changes in structure – resources, norms and meanings – across time and space (i.e., globalization). The third essay applies the model of cultural context as a value co-creation approach to identifying unique markets, by studying the differences between surfing and a recently (re)contextualized market, stand-up paddle boarding (SUP). This research contributes to the development of market(ing) theory and practice by integrating and extending S-D logic and CCT and providing insight to the cultural aspects of value co-creation and market (re)formation. v TABLE OF CONTENTS ACKNOWLEDGEMENTS ............................................................................................ iv ABSTRACT....................................................................................................................... v LIST OF TABLES .........................................................................................................viii LIST OF FIGURES ......................................................................................................... ix INTRODUCTION ............................................................................................................ 1 Markets as Cultures................................................................................................................... 4 The (Re)Contextualization of Market Culture: A Practice Perspective ................................ 11 Overview of the Essays............................................................................................................ 13 Essay 1 – Markets as Cultures: The Co-creation of Value in Cultural Context.................... 14 Essay 2 – The (Re)Contextualization of a Global Market Culture ....................................... 18 Essay 3 – From Segmentation to (Re)Contextualization: A Value Co-creation Approach for Identifying Markets ............................................................................................................... 22 Developing a Theory of Market Culture ............................................................................... 26 ESSAY 1........................................................................................................................... 30 Introduction.............................................................................................................................. 31 Value Co-creation as a Foundation for Market Theory ...................................................... 35 From “Production vs. Consumption” to “Resource Integration” .......................................... 36 Systems of Value Co-creation............................................................................................... 37 Phenomenological and Contextual Value ............................................................................. 39 From Social to Cultural Context: Components of Culture in Markets.............................. 41 Lived Culture......................................................................................................................... 42 Social Resources.................................................................................................................... 44 Meaningful Ways of Life ...................................................................................................... 46 Symbolic and Material Resources......................................................................................... 47 Toward a Theory of Market Culture..................................................................................... 50 Value Co-creation Practices .................................................................................................. 53 Contextualization................................................................................................................... 56 How Value Co-creation Drives (Re)Contextualization......................................................... 61 Research Propositions for Advancing a Theory of Market Culture................................... 66 Value-in-Cultural-Context..................................................................................................... 67 (Re)Contextualization of Market Culture.............................................................................. 69 Implications and Conclusion................................................................................................... 74 ESSAY 2........................................................................................................................... 76 Introduction.............................................................................................................................. 77 From Subcultures of Consumption to Global Market Cultures ......................................... 80 Theoretical Background: Structuration Theory................................................................... 85 Multiplicity of Structure........................................................................................................ 90 Multiplicity of Practices ........................................................................................................ 95 Data and Method ..................................................................................................................... 99 A Historical Approach for Studying (Re)contextualization of Surfing............................... 101 Organizing Practices and Shaping Structure...................................................................... 106 Phase 1: Practice Decontextualization (1778-1896)............................................................ 112 Phase 2: Market Contextualization (1897-1966)................................................................. 130 Phase 3: Market Recontextualization (1966-2011) ............................................................. 157 vi Discussion ............................................................................................................................... 182 Conclusion .............................................................................................................................. 186 ESSAY 3......................................................................................................................... 189 Introduction...........................................................................................................................
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