Understanding Public Service Innovation as Resource Integration and Creation of Value Propositions

Abstract This paper departs from research on Public Service Logic (PSL) to advance a framework of public service innovation (PSI) by incorporating the notions of resource integration and value proposition. The framework consists of three resource integration processes, referred to as value creation, value co‐creation and value facilitation, through which users and employees detect problems and suggest solutions that contribute to service innovation by creating new, or by developing existing, value propositions. To test and illustrate the framework, a study of six service innovation groups in primary care was drawn on. Four aggregates of service innovation ideas were identified in the study: access, patient experience, physical environment and organization of work. In line with the framework, the findings suggest that users and employees contribute to PSI by drawing on their knowledge and experience of conducting resource integration, and by detecting problems and suggesting solutions to these problems.