The bright side and dark side of co-production: a dyadic analysis

Purpose Much research has emphasized the importance of service employees as boundary spanners that interact with customers by co-production. Service employees frequently engage in emotional labor in response to co-production requirements. The purpose of this paper is to present a conceptual framework that explores the links between co-production, emotional labor, employee satisfaction, value co-creation, co-production intensity, and their effects on customer satisfaction. Design/methodology/approach This study involved collecting and analyzing 322 questionnaires from the dyads of service employees and customers of the financial service industry in Taiwan. The hypothesized relationships in the model were tested by using a structural equation model. Findings The results of this study indicate that co-production influences deep acting, surface acting, value co-creation, and co-production intensity. Deep acting and surface acting have different effects on employee satisfaction and customer satisfaction. Meanwhile, employee satisfaction and value co-creation increase customer satisfaction, whereas co-production intensity decreases customer satisfaction. Originality/value The findings provide interesting theoretical insights and valuable managerial implications regarding the positive and negative aspects of co-production and encourage service employees to perform deep acting while minimizing surface acting.