The article builds a framework for interactive value formation (IVF) in interorganizational relationships. The framework describes IVF as interplay between resource integration and a multilevel service system, which manifests in interaction episodes accumulating into a relationship. The interplay generates outcomes in which the actors are better off (co-creation), worse off (co-destruction), or indifferent (no-creation) to value gained. The framework is demonstrated in an empirical case of a cultural sponsorship relationship where the co-destructive and no-creative interaction episodes dominated co-creative instances, finally accumulating into a relationship outcome of value no-creation for both parties. The framework and the launched novel conceptualization of value no-creation contribute to the research on service systems, resource integration for value, and failure in value co-creation. The research on failure in value co-creation, that is, value co-destruction, is scant. This article further elaborates this research stream and bridges to the research on co-creation.
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