In this theory-building research, we develop a set of propositions to examine the existence, the essential workings, and the conditions for value created and borne by business network co-production. We use transaction cost economics and informedness theory to explain why business network co-production exists; how informedness enhances value; and why customers, a network orchestrator and open standards add value to co-production. We use multiple observations from the public transport industry to validate the theoretical perspectives we develop. Triggered by liberalization and enabled by smart cards, this industry is going through a digital transformation from segmented travel to providing networked travel, where service vendors co-produce customer travel services to produce multimodal customer-oriented services.

Additional Metadata
Keywords Business networks, Co-production, Customer satisfaction, Economic and social effects, Economics, Informedness, Mass transportation, Network co-production, Property rights, Public transportation, Sales, Smart cards, Strategic planning, Strategy, Theory development, Transaction cost, Transaction costs
ISBN 978-0-7695-3869-3
Persistent URL,
Series ERIM Article Series (EAS)
Journal System Sciences (HICSS)
Conference 43rd Annual Hawaii International Conference on System Sciences, HICSS-43
Kauffman, R.J, Li, T, & van Heck, H.W.G.M. (2010). A theory of informedness and business network co-production. In System Sciences (HICSS). doi:10.1109/HICSS.2010.39