ABSTRACT
The outcomes of co-creation fall into two types: for relationship and for new service development (NSD). Firms can use co-creation for either one of these outcomes, or for both of them. Two forms of co-creation are identifiable at a high level of organizational practice: informal (co-creation performed 'on the job', related to hidden innovation) and formal (co-creation mediated by the use of tools, formal channels, having a structure, and regulated in some way). Firms are characterized by competences for co-creation—chief of which are user involvement and integration. Other competences include assimilation and disclosure. Outcomes of co-creation are visible in eight sites of the firm, and those sites also constitute institutional/organizational conditions for it. Organizational culture and funding arrangements are the most important environmental catalysts for co-creation in a firm. It is also demonstrated that organizations can structure co-creation experiences that have the potential to produce the two outcomes of co-creation (i.e., customer relationship outcome and NSD-input outcome).
