The co-production of equipment-based services: An interpersonal approach

SummaryIn outcome-based equipment provision services, the service provider often relies on the client’s operand and operant resources to deliver service outcomes. Successful service co-production is accomplished through the cooperation between individual employees, especially those who span the boundaries of the provider and the client organisations. This article investigated the effects of interpersonal relationships on service performance. Through a two-year period field work with two outcome-based maintenance, repair and overhaul (MRO) contracts, we collected abundant qualitative data using in-depth interviews and observation. Data analysis proceeded through discourse analysis and a theory-in-use methodology. Our study revealed that managers are heavily dependent on interpersonal relationships to promote cooperation in service delivery. The role of legal contracts seems insignificant. Furthermore, we noted that, with the development of interpersonal relationships, the cooperation can moved from reciprocal to communal. That is, at the early stage of relationship, relationship parties cooperate reciprocally by exchanging favours. When their relationship becomes more mature, both would treat each other as an integral part of the team and work towards collective goals. To that end, service co-production would then be greatly enhanced.