Process of value co-creation and its impact on innovation strategy in service companies

Abstract

Purpose: This article analyzes the factors that influence on the capacity of service firms companies to adapt to changing environment. It analyzes how the critical dimensions of the innovation process influence the gap generated by the difference between the current level of innovation of the company and the level developed by competitors. Design/methodology/approach: Companies were selected from the database Duns and Bradstreet 2000. A sample of companies in Spain in a relatively homogeneous geographic, cultural, legal and political space was chosen. The questionnaire was sent to a total of 200 companies, most of them being large and medium enterprises. Findings and Originality/value: The results show that customer involvement in the innovation process is greater in service firms that have greater innovation gap and are more proactive. Formalization and decentralization present low innovation gap. Limitations: This study is focused on Spanish companies. This work presents the characteristics of a cross-sectional study. Practical implications: In order to better adapt to the environment, firms need to present a greater fit between results on innovation and customer expectations. Therefore, it is very important to accurately detect user needs throughout the innovation process. Originality/value: Our results provide guidance in decisions that are deliberate and which may affect the degree of proactivity of innovation in services. We have advanced in the implications of customer participation in business results. Keywords: Innovation gap, customer participation, decentralization, formalization, service firms.

Keywords

• Innovation gap, customer participation, decentralization, formalization, service firms