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.