Value co-destruction in complex public service networks: Exploring the dynamics of value creation and destruction

Abstract

While existing literature on public service logic has predominantly focused on the positive outcome of value co-creation, this study delves into the often-neglected aspect of value co-destruction that can arise in complex service networks. Taking the electricity network in Pakistan as a case, the study investigates the intricate mechanisms of public service delivery and explores the challenges faced by networked organisations. Through a comprehensive analysis of user experiences and insights from networked organisations, the study identifies co-destruction of service value across three dimensions: value-in-production, value-in-delivery, and value-in-usage. The study conceptualises the complexities and interconnection of value creation and value destruction within a framework of four categories of value co-destruction: value contestation, value disproportion, value degradation, and value dilution. The findings elucidate the multifaceted challenges and systemic inefficiencies that contribute to the erosion of service value experienced by end-users. Points for practitioners: Practitioners should adopt a holistic approach to value management, recognising that value co-destruction can occur alongside value co-creation. Consensus-building and collaborative decision-making foster stakeholder alignment, ensuring decisions reflect diverse needs for a more responsive, sustainable system that addresses public and private value. Awareness campaigns and community partnerships can effectively deter unethical practices like theft, corruption, and energy misuse, thereby enhancing public value.