Members’ Participation in Service Co-Creation:
The Mediating Effect of Satisfaction towards Loyalty

DOI 10.14707/ajbr.180047

Yusman Yacob
Faculty of Business Management, Universiti Teknologi MARA (UiTM, Malaysia

Jati Kasuma Ali
Faculty of Business Management, Universiti Teknologi MARA (UiTM), Malaysia

Joseph Wee-Siong Hii
Faculty of Business, Raffles University Iskandar, Malaysia

Xin Jean Lim
Faculty of Economics and Management, Universiti Putra Malaysia, Malaysia

Abstract

Although there are a number of studies related to value co-creation behaviour in service marketing literatures, there are still gaps to support the relational aspects of co-creation in marketing concepts. Thus, a mediational model that links members‟ participation to service loyalty via member satisfaction is proposed. The present study adopted Service Dominant (S-D) Logic and Social Exchange Theory as an underpinning basis to develop the research framework of this study. A total of 395 questionnaires were collected via purposive sampling approach. The result from variance-based structural equation modelling indicates that members‟ satisfaction significantly mediates the relationship between members‟ participation on loyalty. This study contributes to the research and management practice on the importance of members‟ participation by delving into its effect on satisfaction and loyalty in credit cooperatives in Sarawak and developing economy.

Keywords: Members‟ Participation; Value Co-creation; Satisfaction; Loyalty; Cooperative

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