Abstract
Service value is successfully created when customers enjoy the benefits of services provided through the channels of a service system. This paper is focused on the process of value creation in the service industry by focusing on the shift of service value created in actual service enterprises. The proposed model for describing this shift visualizes the shift of service value, composed of the "place for service providing/usage", "the level of user needs", and the "degree of customer involvement in service co-creation". Recent advances of service theory and dynamic knowledge creation theory are used aiming to apply the model to understanding the value creation in actual service businesses and to use the new insights for promoting value creation in service organizations characterized by active customer interaction. In two cases (hotel Ritz-Carlton Osaka and the traditional Japanese inn Tawara-ya), the service creation model is confirmed through interviews with top executives and managers of the respective services.
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