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While service-dominant logic proposes that all "Goods are a distributionmechanism for service provision" (FP3), there is a need to understand when andwhy a firm would utilise direct or indirect (goods) service provision, and theinteractions between them, to co-create value with the customer. Threelongitudinal case studies in B2B equipment-based 'complex service' systems wereanalysed to gain an understanding of customers' co-creation activities toachieve outcomes. We found the nature of value, degree of contextual varietyand the firm's legacy viability to be viability threats. To counter this, thefirm uses (a) Direct Service Provision for Scalability and Replicability, (b)Indirect Service Provision for variety absorption and co-creating emotionalvalue and customer experience and (c) designing direct and indirect provisionfor Scalability and Absorptive Resources of the customer. The co-creation ofcomplex multidimensional value could be delivered through different valuepropositions of the firm. The research proposes a value-centric way ofunderstanding the interactions between direct and indirect service provision inthe design of the firm's value proposition and proposes a viable systemsapproach towards reorganising the firm. The study provides a way for managersto understand the effectiveness (rather than efficiency) of the firm inco-creating value as a major issue in the design of complex socio-technicalsystems. Goods are often designed within the domain of engineering and productdesign, often placing human activity as a supporting role to the equipment.Through an SDLogic lens, this study considers the design of both equipment andhuman activity on an equal footing for value co-creation with the customer, andit yielded interesting results on when direct provisioning (goods) should beredesigned, considering all activities equally.

Value, Variety and Viability: Designing For Co-creation in a Complex System of Direct and Indirect (goods) Service Value Proposition