Abstract
AbstractService‐dominant logic viewpoints can be used to construct a model of value co‐creation in the service ecosystem by focusing on service provider‐beneficiary dyads and inter‐dyad interactions. However, the presence of institutional voids can hamper firm performance, even with an improved service ecosystem and value co‐creation. This study aimed to investigate the relationship between the service ecosystem of IT small and medium enterprises of Bangladesh and their firm performance through the mediation of value co‐creation and moderated mediation of institutional void. This study indicated that the service ecosystem positively impacts firm performance and value co‐creation. Additionally, the findings indicated that co‐creation within the service ecosystem leads to improved firm performance. However, the study also found that institutional void can have a significant moderating effect. This research makes a valuable contribution to the literature on service ecosystem and firm performance by examining the role of value co‐creation as a mediator.
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