Problematizing value co-creation theory: a refinement of the theory and its assumptions

Abstract Since its inception, the concept of value co-creation introduced by Prahalad and Ramaswamy has received increasing attention in academic discourse. Over the past decade, management studies have seen a notable rise in publications focused on value co-creation. Although scholars have extensively reviewed the existing literature, there has been comparatively little effort to explicitly articulate and critically assess the foundational assumptions underpinning value co-creation theory. These assumptions often go unchallenged, despite revealing tautological understandings of value—for instance, defining value as solely determined by the beneficiary’s experience. Moreover, the theory lacks conceptual clarity regarding the modus, locus and context of value creation. Drawing on the problematizing review approach proposed by Alvesson and Sandberg (2020), this study uncovers and challenges the core assumptions of value co-creation theory, identifies their limitations, and proposes alternative foundations to guide the development of a revised theoretical framework. We conclude by presenting a conceptual model that synthesizes our main insights and offering directions for future research.