Value co-creation behaviour and loyalty among cooperative members: the role of trust, membership length, cooperative literacy and brand experience

In recent years, value co-creation has gained significant attention in research. It is widely recognised as important for the growth and sustainability of consumer cooperatives. However, most studies focus on its dimensions and antecedents, while less is known about its effects on behavioural outcomes. Applying Service Dominant (S-D) Logic theory supported by Social Exchange and Experiential Learning theories, this research attempts to examine the value co-creation behaviour (member participation and member citizenship behaviours) and its effect on members’ loyalty towards consumer cooperatives in Sarawak. While previous research has explored the connection between value co-creation behavior and loyalty, there has been limited investigation into the role of trust as a mediator and factors such as length of membership, cooperative literacy, and cooperative brand experience as moderators. A quantitative design was used with purposive sampling. A total of 400 questionnaires were distributed, and the minimum sample size was 194 based on G*Power 4.0.9.6. Data were collected using self-administered and online questionnaires. PLS-SEM was applied to test the proposed relationships, including mediation and moderation effects. The results show that member participation and citizenship behaviour have a significant direct effect on loyalty. Both behaviours also positively influence trust, while trust significantly improves loyalty. In addition, trust acts as a mediator between value co-creation behaviours and loyalty. Contrary to prior empirical findings, the study shows that membership length, cooperative literacy, and cooperative brand experience do not significantly moderate the relationship between value co-creation behaviours and loyalty. This study explains that loyalty is developed through value co-creation, member participation and citizenship behaviour, while trust helps strengthen this relationship. Although the moderating variables were not supported, they still gave a better understanding of loyalty development. The findings also show that value co-creation is important for building loyalty and contextual factors can influence relationships between members and organisations in consumer cooperatives and other service sectors. The study also highlights its limitations and suggests ideas for future research.