The critical aspects of co‐creating and co‐capturing sustainable value in service business models

Abstract

Numerous researchers and practitioners emphasize the potential to create value through sustainable business models (SBMs). However, little attention has been paid to how sustainable value is proposed, created, delivered, and captured in the organization, and how customers perceive sustainable value in service. The aim of this paper is to explore this research gap empirically through a case study of sustainable value (co‐)creation through SBMs of sustainable service innovations as experienced among two hotels' managers, employees and customers. The contributions of the study relate to the development of SBMs in service, where the value processes happen simultaneously and where the element value perception has to be added to the extant SBM literature, which is closely related to the creation and delivery of physical goods as in product‐oriented industries. The study also contributes through the dual perspective (providers and customers) on sustainable value proposition, value creation and value capture. The findings reveal different key aspects in creating and capturing sustainable value through SBMs and sustainable service innovation. The managerial implications for creating and implementing SBM in service stress the need for employee engagement, customer involvement and targeted and personal communication educating internal and external sustainability ambassadors.