Projects are value creation mechanisms for organizations. In this paper, we build on service-dominant logic theory to theorize how value is perceived and co-created by service providers and clients in professional service projects. From two studies, we found that for service providers to create their value, particularly non-monetary value (e.g., enhanced reputation), client values (e.g., solving a business problem)must first be generated. The results further highlight the importance of reciprocal interactions between service providers and their clients in co-creating value for both parties. Service providers' professional knowledge and competence and their clients' levels of professional knowledge and motivation to interact are critical to enable effective interactions. However, the influence of service providers' professional ethics and clients' trust in professionals on project value co-creation is more complex than theoretically predicted. This paper advances the project value creation literature by providing a more holistic view of what value means for different stakeholders, how it is created, and by whom.
- Professional service projects
- Professional–client interactions
- Service-dominant logic
- Value co-creation
ASJC Scopus subject areas
- Business and International Management
- Management of Technology and Innovation