Value Co-Creation between Public Service Organizations and the Private Sector: An Organizational Capabilities Perspective

Jonathan Rösler,Tobias Söll,Louise Hancock,Thomas Friedli

doi:10.3390/admsci11020055

Jonathan Rösler, Tobias Söll + Show 2 more

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https://doi.org/10.3390/admsci11020055

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Journal: Administrative Sciences	Publication Date: May 26, 2021
Citations: 13	License type: CC BY 4.0

Affiliation: University of St. Gallen

Abstract

Theoretically based on public service logic (PSL), this paper explores the barriers and capabilities surrounding public sector value co-creation with private sector organizations in the context of digital transformation. Specifically, value co-creation efforts at a large public transport and rail infrastructure provider are examined from multiple perspectives using an exploratory case study approach. Based on qualitative interview data, six barriers that hinder value co-creation in public service ecosystems and five corresponding organizational capabilities required to overcome them are identified. The study contributes to the field of public management research by shedding light on the concept of value co-creation in public-private sector digitalization collaborations.

Highlights

Söll, Louise Hancock, and ThomasCost and budgetary pressures, rising citizen expectations, social and environmental challenges, as well as digital transformation are phenomena driving innovation in the public sector (Andersson and Mattsson 2015; Kaul 1997; Lember 2018; Mulgan and Albury 2003; Pollitt and Hupe 2011; Scott-Kemmis 2009)
Inspired by the private sector, in which companies have started the expansion of their service innovation and delivery activities across organizational boundaries, value co-creation is a concept of increasing interest to academics, policymakers, and practitioners in public administration (Vargo et al 2015; Horne and Shirley 2009; OECD 2011)
Research in the public sector primarily pertains to the involvement of the end customer in the collaboration process, rather than to public sector organizations operating in a stakeholder structure of private sector and government actors

Summary

Introduction

Louise Hancock, and ThomasCost and budgetary pressures, rising citizen expectations, social and environmental challenges, as well as digital transformation are phenomena driving innovation in the public sector (Andersson and Mattsson 2015; Kaul 1997; Lember 2018; Mulgan and Albury 2003; Pollitt and Hupe 2011; Scott-Kemmis 2009). Inspired by the private sector, in which companies have started the expansion of their service innovation and delivery activities across organizational boundaries, value co-creation is a concept of increasing interest to academics, policymakers, and practitioners in public administration (Vargo et al 2015; Horne and Shirley 2009; OECD 2011). In addition to the interviews, a document analysis was conducted by analyzing public company reports and websites but partly internal materials, such as project reports. Interview recordings and associated text documents were evaluated via the qualitative content analysis. This method enabled an interpretive approach to data analysis, while at the same time creating a deeper understanding of the individual aspects (Mayring 1991)

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