A Public Value Co-Creation Framework for Local Governance reform

Thesis Abstract

The study addresses the persistent fragmentation between citizen aspirations and public service delivery in local governance, which undermines legitimacy and efficiency in municipal outcomes. It argues that traditional top-down reform models fail to harness community resources and preferences, leading to suboptimal value realization for residents. The aim is to develop and validate a Public Value Co-Creation Framework (PVCCF) that explicates mechanisms by which local governments and citizens jointly create public value, and to assess its impact on service quality, responsiveness, and citizen trust. Specific objectives are (1) to identify antecedents and drivers of public value co-creation at the local government level; (2) to formulate a theoretical PVCCF grounded in stakeholder theory, public value governance, and collaborative advantage; (3) to operationalize co-creation processes into measurable constructs and indicators; (4) to test the framework’s relationships using empirical data; and (5) to derive policy and managerial recommendations that enhance inclusive participation and accountability in local reform initiatives. A mixed-methods design is employed. The qualitative strand uses semi-structured interviews with 40 local government officials, 25 NGO partners, and 60 citizen participants across three metropolitan municipalities to capture perspectives on co-creation mechanisms, governance arrangements, and perceived value outcomes. The quantitative strand surveys 1,200 residents and 120 frontline service staff to measure constructs such as perceived public value, citizen engagement, trust in local government, service quality, and co-creation capability. The research adopts a pragmatic paradigm to balance theory development with practical applicability. Instrument validity and reliability are ensured through pilot testing, Cronbach’s alpha analyses, and confirmatory factor analysis. Data collection instruments include interview guides, a structured survey instrument with Likert-scale items, and document analysis of policy frameworks and participatory minutes. Data analysis integrates thematic analysis of interview transcripts, followed by structural equation modeling (SEM) to test the PVCCF’s hypothesized paths, and hierarchical linear modeling (HLM) to account for nested data across municipalities. Regression-based mediation analysis will examine whether citizen engagement and trust mediate the effect of co-creation practices on service quality outcomes. Key expected findings include evidence that proactive co-creation practices—such as participatory budgeting, co-design workshops, and digital citizen dashboards—significantly enhance perceived public value, service responsiveness, and social equity. The PVCCF is anticipated to demonstrate that governance arrangements (clear roles, transparent processes, and shared accountability) and resource complementarities (community organizations and public agencies aligning capabilities) jointly amplify value realization. The study also anticipates differential effects across municipalities with varying levels of digital infrastructure, social capital, and prior reform exposure, necessitating context-sensitive guidance. This research contributes to knowledge by operationalizing a theoretically grounded framework that integrates stakeholder theory, public value governance, and collaborative advantage into a coherent model for local reform. It advances measurement by delivering validated scales for co-creation readiness, public value realization, and governance quality, and it refines understanding of mechanisms linking citizen participation to outcomes in municipal settings. The practical contributions include a diagnostic tool for local governments to assess co-creation capacity, a set of evidence-based reform interventions tailored to different urban contexts, and policy recommendations for scaling inclusive governance practices. The study concludes that Public Value Co-Creation Frameworks, when embedded within explicit governance structures, enable sustainable improvements in service delivery, trust, and citizen satisfaction. It recommends embedding co-design platforms in municipal policy cycles, investing in participatory data systems, building cross-sector partnerships, and establishing transparent accountability regimes. It also suggests further research to explore longitudinal effects of co-creation on fiscal resilience and to adapt the PVCCF to rural and peri-urban governance contexts.