Scale development and validation for DART model of value co-creation process on innovation strategy

Abstract

Purpose– The purpose of this paper is to validate scale measurements of dialogue, access, risk assessment and transparency (DART) constructs, as the process of value-co-creation, and then understand its effect on innovation strategy. Further, the paper explores the influence of innovation strategy on the market performance.Design/methodology/approach– The model links four dimensions of DART as building blocks of value co-creation, to the innovation strategy. Further, the model links innovation strategy to the market performance. In total, five hypotheses are postulated. Testing was conducted through structural equation modeling using PLS-SEM, utilizing data from 249 managers of telecommunication companies in Malaysia.Findings– The result of the analysis revealed dialogue, risk assessment and transparency having a significant positive relationship with innovation strategy. These results signified the importance of value co-creation to formulate an innovation strategy of the firms. The finding of the research shows that innovation strategy has a strong effect on market performance as well.Practical implications– Implementing value co-creation process facilitates companies in formulating an innovation strategy that enhances market performance significantly.Originality/value– The paper validated scale measurement of DART model which adds substantial knowledge and concepts in the areas of value co-creation process. It describes the first empirical research study on the practice of value co-creation and innovation strategy in developing country focusing on telecommunication industry. Further, the model examines the effect of DART dimensions on innovation strategy result in market performance enhancement.