Impact of value co-creation on logistics customers’ loyalty

Abstract

PurposeThis paper aims to examine the influence of value co-creation by external and internal stakeholders of logistics service organizations on both customer loyalty as well as superior service solutions. The mediating role of superior service solutions between the value co-creation strategies of organizations and customer loyalty is also investigated in a marketing channel environment.Design/methodology/approachSurvey data of small and medium enterprises’ executives (n = 330) are analysed using exploratory factor analysis and structural equation modelling to investigate the impact of six hypothesized relationships through value co-creation.FindingsThis study indicates that coordinated efforts to create value by external and internal stakeholders to achieve superior service solutions have a strong impact on creating loyalty among customers.Research limitations/implicationsThe effectiveness of this research has been validated in a number of ways including interviewing four of the stakeholders of a case organization that implemented the model. This study offers understanding of the roles of value co-creation, to a key to organizational success in marketing channels.Originality/valueThis paper elucidates the impact of value co-creation on the business performance of logistics service organizations. With empirical evidence, the paper contributes to fill the knowledge gaps on how the process of value co-creation by different stakeholders influences customer loyalty in a service context. The mediating role of superior service solution between value co-creation by different stakeholders and business customer loyalty is also examined, adding to its significance.