Cocreation: exploring the indirect effects in low-contact settings

The paper measures the extent to which co-creation activity between a firm and small community groups can positively but indirectly affect other customers in low contact settings. A theoretical framework encompassing elements of service dominant logic and generalized exchange theory was used within a mixed-methods study. A case study is followed by a multi-level study using hierarchical linear modelling to investigate a public transport company who invite communities to take ownership of their local railway stations. The study measures the extent to which community ownership provides benefits to other rail passengers. The study shows that as communities became more involved in improving the stations there were affective and conative benefits received directly by the community and firm but also indirectly by other passengers who had little or no involvement. The potential for value co-creation to have wider, indirect benefits should be explored further in contexts where communities of users exists, either in collaboration with the firm or as a stand-alone community The study suggests that firms can benefit by ceding control to customers and other actors through the provision of access to their facilities and that this can benefit a range of stakeholders. Current research on cocreation often focuses on highly customized, high contact and high credence professional services. The study shows how co-creation within lower contact and standardised service setting not only benefits actors directly involved but can also have a ripple effect outside of the firm-customer dyad