A Conceptual Model of Value Co-Creation Risk (New)

Stephen S. Tax, University of Victoria
Uzay Damali, University of Victoria
Dave McCutcheon, University of Victoria
Enrico Secchi, University College Dublin, Ireland

The service management literature has used the terms “co-production” and “value co-creation” to describe the role of customers’ inputs into the service process.  Generally, there is a view that a customer’s expanded role in the process leads to greater efficiency for the service provider (in that the customer assumes more of the work) and greater customer satisfaction (due to the customer’s sense of increased autonomy and control).

Most of the value co-creation research has focused on such potential benefits, with little consideration being given to the possible risks of increasing the customer’s role.  This paper is intended to address the call by Parhalad and Ramaswamy (2004) and Ostrom et al (2015) to consider the risks that may be inherent in value co-creation.  We develop a model designed to capture the uncertainties created by increasing the customer’s role in the service encounter and to array the risks arising from these uncertainties.  We also propose risk mitigation alternatives that can be developed to address the projected “value co-creation risks.”

 

Paper in progress