Can I Do It? Can You Do It? Roles of Self-Efficacy and Other-Efficacy of Customers and Employees

Engaging customer participation (CP) in service production and delivery to cocreate value is gaining credence in both academic writing as well as marketplace practices. However, recent research shows that CP could be a double-edged sword; it could improve service quality to customers and strengthen the relational bond between customers and employees, yet, it could also pose problems for service employees (e.g., increase job stress). CP also could be a challenging endeavor for customers who not only need to have the knowledge, but also the ability, to perform their roles in specific service contexts. CP as a taxing situation for both customers and employees would therefore suggest that appraisals of both parties’ capabilities may affect their participation behaviors and emotional experience. This study examines the roles of both self-efficacy (SE) and other-efficacy (OE) (perceived capabilities of the partner)
in the relationship between CP and enjoyment of participation for both customers and employees in the context of professional financial services. Social cognitive and role theories provide the foundations to support how (1) SE moderates the effect of CP on the enjoyment of participation and (2) the synergic effect of SE and OE affects the enjoyment of participation differentially for customers and employees. Empirical results from 223 pairs of customers and service employees of financial services suggest that efficacy perceptions determine the magnitude of CP effects. The match and mismatch of SE and OE also moderates the effect of CP on participation enjoyment, albeit differently for customers versus employees. Significant implications on managing customer-employee collaboration in service participation derived from the results are discussed.