How do different organizational functions contribute to customer value proposition development

Different organizational functions contribute unique insights into customer value proposition development (CVPD). However, current research has predominantly focused on exploring how firms can co-create value propositions with external stakeholders, such as customers and broader network actors, while paying less attention to the contributions of internal stakeholders. To address this gap, this study explores how different organizational functions drive or hinder CVPD. By adopting a critical realist approach and qualitative research design, we draw empirical insights from interviews with 24 senior managers across marketing, sales, R&D, and product management functions in a wide range of firms in different industries. Our findings reveal the unique contributions and expertise that marketing, sales, R&D, and product management bring to CVPD. In addition, we also shed light on the perceived frictions that each function might cause in the cross-functional collaboration, thus hindering effective CVPD. Overall, this study advances contemporary value proposition research by offering a functional-level analysis and demonstrating that CVPD is not solely a top-down organizational or strategic activity but also a bottom-up and cross-functional process where the contributions of different functions are needed to create a customer value proposition that resonates with customers and other stakeholders. • Different organizational functions contribute unique insights into customer value proposition development (CVPD). • Prior research has explored CVPD with external stakeholders, but paid less attention to CVPD with internal stakeholders. • We draw empirical insights from interviews with 24 senior managers in marketing, sales, R&D, and product management. • Findings reveal the unique contributions and frictions different functions make in cross-functional CVPD. • CVPD is not only a top-down organizational strategy but also a bottom-up, collaborative, and cross-functional process.