Transformative service networks: cocreated value as well-being

Abstract

Fundamental to emerging theories of value cocreation is a developing awareness that value emerges in networks. Service networks form to address issues for those in need, and value is conceived differently by the various constituents in the network. To represent this reality, a core service interaction, the reason for the construction of the network, is evaluated based upon a typology of value-creating interaction styles. Next, the potential impact on transformative value cocreation of various relationships in a service network is explored. To illustrate value cocreation from a network perspective, this paper develops research propositions assessing cocreated value in a health service network. Network factors regarding the structural and relationship properties of networks that advance the theory of value cocreation are proposed. Finally, suggestions for managers include ways to engage service network entities to enhance communication to foster a balanced, mutualistic relationship that optimizes cocreated value. Organizations need to better identify and activate customers' support networks in order to facilitate enhanced collaboration and communication.

Keywords:

• value cocreation
• service network
• service logic
• well-being
• transformative service research

Acknowledgements

The authors would like to gratefully acknowledge the helpful comments from Dan Brass, participants of the 2012 AMHCR Conference, as well as from Leslie H. Vincent, Cheryl Burke Jarvis, and Lawrence O. Hamer.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. We see clear differences among patient-centered, disease-focused, and value-centered perspectives. A focus on patients may lead to seeing patients as consumers, which may distract from a focus on well-being. A disease-focused approach treats the disease, not the whole person, and thus has historically been associated with a detached, objective assessment of patients that is devoid of considering individual characteristics and empathy. A value-centered approach, when value is defined as health, quality of life, and well-being, is one that is increasingly being seen as preferable to addressing a wider variety of goals.

2. Service coproduction involves behavioral cooperation between and among entities engaged in a particular service encounter, which then has the potential to cocreate value. Value that emerges from a service interaction may be different for various entities: health and well-being for the patient, job satisfaction and remuneration for providers, revenues and profits for health care organizations and insurers, etc. See Table 1 for construct definitions, sources, and potential measures.