Front-end value co-creation in housing development projects

As a result of local governance, municipalities and housing developers work together to define housing development projects and to co-create value propositions. The purpose of this study is to explore how value propositions are co-created during the front-end of housing development projects and how this affects housing developers' ability to drive change and innovation. The value co-creation process is explored through interviews, documents and observations in a case study of an urban development programme in Sweden. The findings illustrate how emerging conflicts and the process of resolving them are central drivers for value co-creation between these actors. However, conflicts that are not managed and resolved constructively can lead to the co-destruction of value. In this study we illustrate how value co-creation processes that precede procurement limit the flexibility of housing developers and determine the scope for value that can be realised.