Wicked problems and value co-destruction in service ecosystems: navigating the tension between public and private value

PurposeThis study explores the phenomenon of service value co-destruction within public service ecosystems (PSEs), focusing on the causes of value co-destruction and the inherent tension between public and private value creation/destruction.Design/methodology/approachQualitative data was collected through 36 semi-structured interviews with diverse stakeholders within the ecosystem of electricity services in Pakistan, including electricity suppliers, users and connected agencies involved in electricity generation, transmission, regulation, monitoring and coordination tasks.FindingsThe study identified various causes of service value co-destruction in PSEs, involving multiple actors responsible for value co-destruction. The research revealed the co-existence and intersection of public and private values within PSEs, highlighting the complex dynamics between value creation and destruction resulting in value imbalance and value erosion.Research limitations/implicationsValue co-destruction is a plausible outcome of dynamic interactions among various stakeholders in public service delivery, and it can have significant consequences on service quality and public value. Multiple stakeholders, in the governance network, can actively contribute to the co-destruction of service value.Practical implicationsPractitioners should consider the broader ecosystem where not only service providers but also service users and other connected actors, such as public, private and nonprofit organizations, collectively contribute to either co-creating or co-destroying service value.Originality/valueGrounded in PSL perspective, the findings deepen our understanding of the complexities surrounding public service delivery in PSEs. It provides a fresh perspective on how various actors collectively shape the value of these services.