Value co-creation as a determinant of success in public transport services A study of the Swiss Federal Railway operator (SBB)

Purpose - This paper seeks to utilise Prahalad's five activities of co-creation (customer engagement, self-service, customer involvement, problem-solving, and co-design) to explore how value co-creation occurs in the context of a public-transport service provider. Design/methodology/approach - The paper is based on a single qualitative case study of the Swiss federal railway operator (SBB). Findings - The findings enrich understanding of value co-creation by showing that the case firm is not merely a value facilitator, but has increasingly become a value co-creator through the five co-creation activities noted above. Organisations should take a comprehensive view of value co-creation if they are to exploit its full strategic potential. Research limitations/implications - The study is a single case study with a focus on the supplier perspective. Practical implications - Public-transport operators should facilitate the active participation of customers in designing and implementing their processes and systems. Rather than relying on knowledge about the customers, customer-relationship management should be based on knowledge of the customers (that is, the knowledge that customers possess). Originality/value - The paper provides a comprehensive framework to help organisations manage the value co-creation process. The study shows that a public-transport service provider is not restricted to making value propositions, but can actively influence and assist customers in their fulfilment of value-co-creation.