Matrik: Jurnal Manajemen, Strategi Bisnis dan Kewirausahaan Vol. 17, No. 1, Februari 2023 48 P-ISSN: 1978-2853 E-ISSN: 2302-8890 Determining Value Co-Creation Behaviour toward Customer Loyalty and Customer Retention on the SRC’s Business Platform Muhammad Baehaqi 1) , Ragil Setyo Cahyono 2) . Sulis Riptiono 3) University of Putra Bangsa, Indonesia 1) University of International Business and Economics, Beijing 2) University of Putra Bangsa, Indonesia 3) Email: karyailmiah.baehaqi@gmail.com DOI : https://doi.org/10.24843/MATRIK:JMBK.2023.v17.i01.p04 ABSTRACT Customer retention is the maintenance of long-term customer-company relationships through customer satisfaction thereby creating loyalty. Value co-creation is proven to have a significant role in creating customer loyalty, so that customer loyalty becomes actual retention for the company. The role of shared value creation should be considered in customer relationship mechanisms. This study aims to produce an analysis of the role of value co-creation behavior on customer retention. This focus is novelty in research, because no confirmation was found in previous studies that produced a relationship between the two. Customer loyalty is the variable that mediates the relationship between value creation behavior and customer retention. This research produces findings regarding the positive influence of customer involvement through value co-creation behavior on retention as a long-term customer relationship mechanism with the company. Keywords: Value Coreation Behaviour; Customer Loyalty; Customer Retention. INTRODUCTION The role of customers in the industrial world has changed from isolated to connected, from unaware to informed, and from passive to active (Prahalad & Ramaswamy, 2004a). This reveals the development of customer behaviour that demands involvement with a larger of roles of customers. Several studies (Spena et al., 2012; Vivek et al., 2012) have confirmed changes in the role of customers as a consequence of information disclosure and the development of relationship models for technological support. Customers have access to information, dialogue, experimentation, global views, community and activism that lead to changes in the mechanism of relationships and roles towards the environment and companies (Prahalad & Ramaswamy, 2004a), Verhoef et al., 2010). Customers have changed from requesters of value to actors who create value (Baehaqi, 2018). Companies cannot act independently without customer intervention. The activities of designing products, developing production processes, compiling marketing messages, and controlling sales channels cannot be separated from the role of the customer (Prahalad & Ramaswamy, 2004a; Grönroos, 2012; Kotler et al., 2017). The development of customer behaviour has an impact on the company's treatment of customers. This study will focus on two approaches in responding to changes in customer behaviour. First, the customer engagement approach through value co-creation (Prahalad & Ramaswamy, 2004; Verhoef et al., 2010; Vivek et al., 2012) which emphasizes customer value collaboration, experience building, and resource collaboration in the service chain MATRIK: JURNAL MANAJEMEN, STRATEGI BISNIS DAN KEWIRAUSAHAAN Homepage: https://ojs.unud.ac.id/index.php/jmbk/index Vol. 17 No. 1, Februari (2023), 48-60 SINTA 2