Moderated effect of value co-creation on project performance

Abstract

Purpose Value co-creation amongst project stakeholders is often necessary for situations where the expertises or resources required are beyond a single stakeholder. Certain project delivery models (PDMs) with strong emphasis on relationships and trust are especially suited to value co-creation approach by encouraging collaborations amongst stakeholders and innovations. However, anecdotal evidence suggests that value co-creation impacts positively on particular types of projects but not on others. The purpose of this paper is to investigate the effect of value co-creation on project performance (PP) and how the effect is moderated by requirements uncertainty (RU). Design/methodology/approach Based on the data from a cross-sectional survey of 120 Chilean construction project managers, the study validated a conceptual framework on the moderated effects of value co-creation process. Findings Value co-creation process underpinned through relational engagement, collaboration and innovativeness positively impacts on PP, and project’s RU moderates this relationship. Practical implications The findings empirically show that collaborative PDMs are best suited to projects where requirements are uncertain. Identifying the most suitable delivery model for a given context can reduce the project’s risk of failure and help maximise project value. When RU is low, the co-creating value is less critical to PP; whereas, when RU is high, choosing a collaborative PDM is fundamental to superior PP. Originality/value This study provides much-needed evidence on the effects of value co-creation process on PP. Additionally, it contributes to the literature by conceptualising and validating the moderated impact on PP by RU.