Effects of Customer Value Co-Creation Behaviors and Organizational Routines on Customer Satisfaction

Organisational routines have been called “grammar of action” and are a core topic in organisational behaviour research. Tracing their roots back to the 1950s, routines have been seen as a source of organisational stability and change. Initially conceptualised by R. R. Nelson and Sidney Winter in 1982, organisational routines have been described as “a pattern of behaviour that is followed repeatedly but is subject to change if conditions change”. On the other hand, value co-creation, a fundamental construct within service-dominant logic, gives us an axiom stating that “value co-creation is coordinated through actor-generated institutions and institutional arrangements”. These institutional arrangements are nothing but organizational routines.
This study looks at research gaps at the intersection of these two fields of management research. There are several implications, and the following are some of the questions to which interdisciplinary answers need to be found. Do organisations “really” change routines (if so, what impact does it have on customer satisfaction) based on customer feedback or knowing customer’s value co-creation behaviours? In what ways can value co-creation behaviours influence changes in organisational routines? In what ways can organizations utilize the flexibility in organizational routines for getting optimal customer satisfaction? How should an organisation decide which organizational routines to keep within organisational boundaries and which ones to outsource to the customer (or other stakeholders)? How does change in practices (practice theoretical lens) affect organisational routines?
As such, this research provides insights into how value co-creation behaviours of customers affect organisational routines and vice versa. The researcher links these two constructs with customer satisfaction. Using mixed methods research and triangulation of qualitative and quantitative data the study derives customer (value co-creation) behaviours from a dataset on organisational routines. The results of this study provide practical and actionable insights for organisations to understand customers’ behaviours from the lens of organizational routines, to keep promises made to their customers by looking inwards and making changes in various organisational routines, and, in turn, increase customer satisfaction.