Service Innovation and Value Creation in Local Journalism During Times of Crisis

Abstract

ABSTRACT Journalism innovation, according to service innovation theory, is about providing new journalistic services that create value for audiences, society, and the news organisation itself. This study explores how local news media responded to the Coronavirus crisis in terms of service innovation. Based on interviews with editors and top management representatives at two local newspaper groups in Norway (N = 20), we show how local newspapers developed new digital services in response to audiences’ need for guidance, overview, and a sense of togetherness, and how the media operations generated revenues in the process. Theoretically, the study identifies two key innovation dynamics in local journalism during a crisis: A social-economic value creation dynamic which captures how local newspapers appropriate their business model to accommodate new service offerings and balance social and economic value creation considerations; and a service system-audience experience dynamic which captures how innovation in journalistic offerings are linked to concurrent innovations in journalistic production processes. This research enhances the understanding of journalism innovation as a value-creating phenomenon and the factors that stimulate such value creation during crises.