The opportunity and challenge of trust and decision-making uncertainty

Abstract

Purpose Value has been conceptualized as the result of co-creation involving service firms and customers. Currently, however, little is known about why and how customers engage in value co-creation with a service firm. Thus, the purpose of this paper is to explore the role of co-production in value co-creation in the context of banking services from the customers’ viewpoint. The literature has consistently examined the linear effects of trust and decision-making uncertainty on co-production. The study extends this research stream by considering the negative quadratic effects of trust and decision-making uncertainty on co-production. Therefore, this study not only examines the linear and negative quadratic effects of trust and decision-making uncertainty on co-production within a single, simultaneous model but also tests the effect of co-production on value co-creation. Moreover, this study includes and explores the moderating effects of service innovativeness and service effort on co-production in determining value co-creation. Design/methodology/approach The hierarchical moderated regression was used to test the hypotheses. Findings The findings support the positive linear effects and negative quadratic effects among trust, decision-making uncertainty and co-production. Meanwhile, the results indicate that co-production positively affect value co-creation. Service innovativeness and service effort enhance the effect of co-production on value co-creation. Originality/value This study shows the presence of the opportunity of trust and decision-making uncertainty, which confirms the existing literature, and the challenge of trust and decision-making uncertainty, which extends the literature. This study is the first one to shed light on the negative quadratic effects of trust and decision-making uncertainty on co-production. This study also offers insights into value co-creation and thus enhances the current understanding of value phenomena. Academics and practitioners would greatly benefit from a comprehensive understanding of co-production and the associated value co-creation for the parties involved.

CSR, Co-Creation and Green Consumer Loyalty: Are Green Banking Initiatives Important? A Moderated Mediation Approach from an Emerging Economy

“…Careful behavior occurs when consumers perceive themselves as part of the banking staff who are responsible for sharing valuable information and feedback in order to contribute to the co-creation process [83]. In terms of the value of building partnerships between consumers and banks, consumers need to collaborate, follow rules and policies, and receive guidance from banks about how to collaborate in the co-creation process with a bank [84]. To conclude, we argue that this partnership provides an opportunity to build a relationship that helps to build trust and reduces the chance for consumers to end the relationship with the bank.…”

Influence of customer participation from the employee perspective

“…Researchers have identified resources that customers can provide through their work participation, including information, tacit knowledge and customer competencies (Grönroos and Ravald, 2011; Karatepe et al , 2019). The information that customers supply can show their preferences for and capabilities with services or products and signify their sensitivities to risk-taking, which results in resource integration for FLEs (Gallan et al , 2013; Kelley et al , 1990; Wu, 2020).…”

Distance with Customers Effects on Green Product Innovation in SMEs: A Way Through Green Value Co-creation

“…Research in this aspect was supplemented by focusing on the specific type of innovation (namely GPI) and unit of analysis (namely GVCC). Previous research on the relation of social proximity and value cocreation are inconsistent (Wu et al, 2020;Zhang, Gupta, et al 2020). The conclusion is unclear.…”