Developing Co-creation-driven Innovation: the role of Customer Experience Orientation and Organizational Agility

Abstract

This paper explores the concept of the ‘co-creation-driven innovation’ as part of the service dominant (S-D) logic concept in the digital ICT industry. The platform service becomes critical in order to collaborate and innovate based on organizational agility and customer experience. Co-creation-driven innovation is considered as part of the service dominant development, where a dynamic organization model and customer experience feedback are required in the shaping of business model innovations within the digital ecosystem. The study was performed with a sample size of 175 respondents representing Indonesian telecommunication firms. Smart PLS was used as the statistical tool for analyses. Findings demonstrate that customer experience orientation and organizational agility has a direct impact on digital co-creation and business model innovation. Simultaneous testing of hypotheses shows that customer experience orientation has an indirect influence on business model innovation through co-creation strategy. However, organizational agility does not have any indirect impacts. The study has some limitations in terms of the time period and sample size, therefore suggestions for future studies are included in the paper