The objective of this thesis is to identify the organisational capability for value co-creation.  The study draws on literature to inform the notion of value and organisational capability.  A conceptual framework is then developed that describes the organisational capability for value co-creation.  The framework constructs are validated and refined through the generation of a diagnostic survey tool that is tested through two case studies.\ud
Service-dominant Logic (SDL) proposes service as the central purpose of economic exchange and in doing so provides a theoretical understanding of how organisations collectively create value through service interactions (Vargo and Lusch, 2004).  Adopting SDL as a strategic business logic requires organisations to develop and nurture capabilities that facilitate and enhance the co-creation of value (Karpen et. al., 2008).\ud
The research contributes to theory by defining and operationalising the organisational capability for value co-creation.  This is done firstly by deriving the Dimensions of Capability from the literature on organisational capability and then secondly by demonstrating how these dimensions need to be configured within a business-to-business (B2B) organisation to promote the co-creation of value.  This configuration is presented in a framework called the OC4VC.\ud
A contribution to practice is made through the creation of a diagnostic tool known as C-CAT™ (Co-creation Capability Assessment Tool).  The application of the tool within the two case study organisations was used to demonstrate its validity and usability in a B2B context.  Following the study the tool was incorporated into the EPSRC’s Knowledge Transfer Box (KT-Box) research programme.\ud
The study encounters a number of limitations which bound the impact and generalisability of the findings.  The B2B context of the two case organisations bounds the generalisability of the findings.  Although this is an exploratory study the limited sample size constrains the level of quantitative validation possible.  These limitations have been recognised and a number of areas for further research are identified.  The key areas suggested for further work focus on the need for further work on capacity, other operating environments and further quantitative validation