Hermeneutical Analysis of Value Propositions in Organizations

Document Type : Research Paper

Authors

1 Associate Prof., Department of Leadership and Human Capital, College of Management, University of Tehran, Tehran, Iran.

2 PhD Candidate, Department of Leadership and Human Capital, College of Management, University of Tehran, Tehran, Iran.

10.22059/jibm.2023.358214.4567

Abstract

Objective
A Value Proposition is a clear, persuasive, and valid expression of the experience that a customer can receive from services or products and is associated with the idea of what specifically a business can offer to its customers and why the customer chooses a particular company and its products or services, preferring them to competing products or services and being willing to pay for them. However, the historical development of this phrase has not been considered, and over time, its meaning has evolved. In addition, translation as a tool for the linguistic transmission of concepts, especially in different cultural contexts, has always made it difficult to achieve the meaning and concept desired by the original author. This is because translation is the translator’s understanding of the original author's understanding and expression, and based on it, they choose the words they want. Therefore, it is necessary to choose the words that provide the most understanding of the original author. For this reason, the present study seeks to analyze the semantic expression of the Value Proposition.
 
Methodology
To analyze and review the term "Value Proposition," a hermeneutic approach has been used. Documentary methods and library studies have also been used to collect information.
 
Findings
Based on the findings of the research, the term "Value Proposition" has a two-way nature that is created in interaction with the customer; therefore, it requires participation and acknowledgment from them. This is even though the translation of the offered value is not included in the proposition, and this linguistic format presents the determination of values to the customer unilaterally and does not fit with the co-creation of value and the participation of the customer at the beginning. Therefore, it will not evoke a proposition that can actively be true or false on the part of the customer.
 
 
Conclusion
Since the value of a product or service will only be meaningful if it fulfills the customer's real need by hearing the live voice of the customer, the authors recommend the use of "value propositions" instead of "offered value." They believe that in a value proposition, it is possible to check the truth or falsity, or in other words, to measure the approval or disapproval of the value of the service or product by the customer or the receiver of the service. In this way, the customer can play an active role. The term "value propositions" is composed of two words, "propositions" and "value," and the truth and falsity of the goods or services and the value provided can be agreed upon in the interaction of two parties, which will also result in their mutual commitment to each other.

Keywords

Main Subjects

References

 
Abdollahi, R. & Amiri, M. & Nargesian, A. (2022). Conceptualizing of Employees’ Value Propositions: A Systematic Literature Review. Journal of Human Resource Studies, 12(4), 1-22. (in Persian)
Amiry, M. (2003). Theories and Hypothesizing in Management Science, Metodology of Sicial Science and Humanities, 9(37), 36. magiran.com/p243078. (in Persian)
Bakhshayesh Ardestani, A. (2008). Hermeneutics: An Approach For Explanation Of Concepts, Political Quarterly, 37(3), 55. magiran.com/p481013. (in Persian)
Ballantyne, D., Frow, P., Varey, R. J., & Payne, A. (2011). Value propositions as communication practice: Taking a wider view. Industrial Marketing Management, 40(2), 202–210.
Barnes, C., Blake, H., & Pinder, D. (2009). Creating and delivering your value proposition: Managing customer experience for profit. Kogan Page Publishers.
Burrell, G., & Morgan, G. (2019). Sociological paradigms and organisational analysis : elements of the sociology of corporate life (2nd ed.). Routledge.
Efron, S. E., & Ravid, R. (2019). Writing the literature review: A practical guide. (1th ed.). The Guilford Press.
França, A., & Ferreira, J. (2016). Resources and capabilities through the lens of value (co-) creation: a literature review. International Journal of Innovation Science, 8(3), 230–253.
Frow, P., & Payne, A. (2011). A stakeholder perspective of the value proposition concept. European Journal of Marketing, 45(1–2), 223–240. https://doi.org/10.1108/03090561111095676
Galvagno, M., & Dalli, D. (2014). Theory of value co-creation: a systematic literature review. Managing service quality, 24(6), 643-683.
Kambil, A., Ginsberg, A. & Bloch, M. (1996). Re-Inventing Value Propositions. http://archive.nyu.edu/handle/2451/14205
Karman, A. (2020). Understanding sustainable human resource management–organizational value linkages: The strength of the SHRM system. Human Systems Management, 39(1), 51–68.
Khandan, A, A. (2020). Practical Logic. Tehran: Samt. (in Persian)
Khansari, M. (2007). Formal Logic. Tehran: Agah. (in Persian)
Khatami, M. (2016). Lectures on the philosophy of values. Tehran: Elm publication.
(in Persian)
Merriam-Webster. (n.d.). Proposition Definition of Proposition by Merriam-Webster. Retrieved October 28, 2021, from https://www.merriam-webster.com/dictionary/proposition
Moin, M. (2002). Mo'in Encyclopedic Dictionary (1). Tehran: Adena. (in Persian)
Moradi, B. & Jazani, N. & Alam Tabriz, A. & Hadizadeh, A. (2016). Strategic Value-Driven Approach toward Brand in Iranian Agile Companies, Journal of Strategic Management Studies, 7(26), 101-125. (in Persian)
Motahhari, M. (2006). Understanding Islamic Sciences. Tehran: Sadra. (in Persian)
Mousavi, S.M. & Amiri Aghdaie, S.F. (2020). Identifying the Constructive Elements of “Value Proposition” and their Impact on Customers’ Satisfaction using Sentiment Analysis based on Text Mining. Journal of Business Management, 12(4), 1092-1116. (in Persian)
Nabavi, L. (1991). Methodology of Deductive Science, Modarres Journal, 1(2), 27-39.
(in Persian)
Nazari, M. & Mehrjoo, E. (2022). Value Co-creation Model in Interior Design Industry. Journal of Business Management, 14(1), 4-36. (in Persian)
Payne, A., Frow, P. & Eggert, A. (2017). The customer value proposition: evolution, development, and application in marketing. Journal of the Academy of Marketing Science, 45(4), 467–489. https://doi.org/10.1007/s11747-017-0523-z
Payne, A., Frow, P., Steinhoff, L. & Eggert, A. (2020). Toward a comprehensive framework of value proposition development: From strategy to implementation. Industrial Marketing Management, 87, 244-255.
Ramirez, R. (1999). Value co‐production: intellectual origins and implications for practice and research. Strategic Management Journal, 20(1), 49–65.
Sales, T. P., Guarino, N., Guizzardi, G., & Mylopoulos, J. (2017a). Towards an Ontological Analysis of Value Propositions. 11-Th International Workshop on Value Modeling and Business Ontologies, The Luxembourg Institute of Science and Technology (LIST).
Sales, T. P., Guarino, N., Guizzardi, G., & Mylopoulos, J. (2017b). An ontological analysis of value propositions. 11-Th International Workshop on Value Modeling and Business Ontologies, The Luxembourg Institute of Science and Technology (LIST), 184–193.
Scott, W. R. (1992). Organizations : rational, natural, and open systems. 414.
Simon, H. A. (1944). Decision-Making and Administrative Organization. Public Administration Review, 4(1), 16. https://doi.org/10.2307/972435
Töytäri, P., Rajala, R., Nilsson-Ollandt, L., & Keränen, J. (2017). A Value Proposition Development Framework For Industrial Service. Proceedings of the 50th Hawaii International Conference on System Sciences.
Ulrich, D., & Brockbank, W. (2005). HR Value Proposition (Hardcover). In Harvard Business School Press Books.
Journal of Business Management
Volume 16, Issue 3
2024
Pages 575-595

Files

Share

How to cite

Statistics