The impact of value co-creation orientation on radical service innovation: Exploring a serial mediation mechanism

Abstract

By integrating the dynamic capability perspective and service-dominant logic (SDL), this study empirically investigates the distinct roles of internal and external knowledge integration capabilities in the relationship between value co-creation orientation and radical service innovation. Based on survey data from a sample of 200 service innovation projects from IT and Internet-related industries in China, this study uses structural equation modeling (SEM) and a bootstrapping approach to test the hypothesized relationships in the conceptual model. The results show that external knowledge integration capability mediates the relationship between value co-creation orientation and radical service innovation. In addition, internal and external knowledge integration capability jointly play a serial mediating role between value co-creation orientation and radical service innovation. These findings contribute to the growing literature on value co-creation in radical service innovation, and offer service managers meaningful implications that reveal how to convert multiple sources of knowledge resources into superior radical service innovation.