Name: Surbhi Dhir & Mandeep Kaur
Country: India

Year: 2026
Volume: Volume-13, Issue-1 (January-June)
Page Number: 183-190
DOI: https://doi.org/10.5281/zenodo.20021503

ABSTRACT
This study investigates the mediating role of bank image in the relationship between value co-creation and reputation within the banking sector. Value co-creation, involving collaborative efforts between banks and customers to generate mutual value, has emerged as a critical driver of competitive advantage in service-oriented industries. However, its indirect impact on reputation through perceptual mechanisms like bank image remains underexplored. Data from 512 banking customers were analysed using structural equation modeling (SEM). The total effect of VCC (value co-creation) on bank reputation was significant (β= 0.674 with p value = 0.015). The direct effect of VCC on bank reputation was significant (β = 0.424, p
value = 0.021). The indirect effect through bank image was also significant (path coefficient = 0.25, p value = 0.009), confirming a moderately strong partial mediation. Findings reveal that bank image serves as a vital link, translating VCC initiatives into reputational gains. Banks should prioritize customer co-creation strategies alongside image management to
amplify marketplace recognition. Theoretically, this extends mediation models in banking; practically, it urges integrated VCC-image-reputation frameworks. Limitations include crosssectional design, warranting longitudinal studies.

Keywords: Value co-creation, bank image, reputation, partial mediation