Influence of Customer Participation on Value Co-Creation Mediated by Brand Performance A Perspective of Service-Dominant Logic (SDL) Theory

Abstract

This study aims to examine the influence of customer participation on value co-creation mediated by brand performance in the context of the Alfagift digital retail application. A quantitative approach was employed using a survey of 150 respondents in Yogyakarta who are active users of Alfagift. Data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The results reveal that customer participation has a significant positive effect on both value co-creation and brand performance. Moreover, brand performance positively affects value co-creation and significantly mediates the relationship between customer participation and value co-creation. Theoretically, this study reinforces the Service-Dominant Logic (SDL) framework, while practically it encourages digital retailers to actively engage customers in service processes. The novelty of this research lies in testing a mediation model within mobile retail ecosystems in emerging markets like Indonesia, which has received limited attention in previous studies.