An Analytical Framework for Value Co-Production in Services

Although services are often defined as co-productive of value, the concept of value is often difficult to measure. Yet measuring value is not necessarily a prerequisite for service process improvement. In this paper, we propose a general framework for the modeling and analysis of services with co-production. The framework identifies three major process stages: (i) the production stage, which involves co-production, (ii) the output sharing stage, and (iii) the consumption stage. Value realization and distribution depends on all three stages. Using our framework, we argue that process improvement efforts may often shift away from value measurement to focus on more actionable levers such as the co-production process, the rules of operation, and sharing rules. Furthermore, we use our framework to discuss a broader perspective on value measurement, the application of the gap quality model to co-productive process management, the distinction between products and services, and the impact of information and communication technologies on service processes.