IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v262y2023ics0925527323001342.html
   My bibliography  Save this article

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

Author

Listed:
  • Cheng, Ru
  • Tao, Lei
  • Wang, Qiang
  • Zhao, Xiande

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.

Suggested Citation

  • Cheng, Ru & Tao, Lei & Wang, Qiang & Zhao, Xiande, 2023. "The impact of value co-creation orientation on radical service innovation: Exploring a serial mediation mechanism," International Journal of Production Economics, Elsevier, vol. 262(C).
    • Handle: RePEc:eee:proeco:v:262:y:2023:i:c:s0925527323001342
    DOI: 10.1016/j.ijpe.2023.108902
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323001342
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2023.108902?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yong Jin Kim & Seokwoo Song & V. Sambamurthy & Young Lyoul Lee, 2012. "Entrepreneurship, knowledge integration capability, and firm performance: An empirical study," Information Systems Frontiers, Springer, vol. 14(5), pages 1047-1060, December.
    2. Cossío-Silva, Francisco-José & Revilla-Camacho, María-Ángeles & Vega-Vázquez, Manuela & Palacios-Florencio, Beatriz, 2016. "Value co-creation and customer loyalty," Journal of Business Research, Elsevier, vol. 69(5), pages 1621-1625.
    3. Vargo, Stephen L. & Lusch, Robert F., 2017. "Service-dominant logic 2025," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 46-67.
    4. Zhang, Min & Zhao, Xiande & Voss, Chris & Zhu, Guilong, 2016. "Innovating through services, co-creation and supplier integration: Cases from China," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 289-300.
    5. Hsiao, Chan & Lee, Yi-Hsuan & Chen, Wan-Jun, 2015. "The effect of servant leadership on customer value co-creation: A cross-level analysis of key mediating roles," Tourism Management, Elsevier, vol. 49(C), pages 45-57.
    6. Guo, Jingjing & Zhou, Shasha & Chen, Jin & Chen, Qi, 2021. "How information technology capability and knowledge integration capability interact to affect business model design:A polynomial regression with response surface analysis," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    7. Chae, Bongsug (Kevin), 2012. "An evolutionary framework for service innovation: Insights of complexity theory for service science," International Journal of Production Economics, Elsevier, vol. 135(2), pages 813-822.
    8. Cantner, Uwe & Joel, Kristin & Schmidt, Tobias, 2011. "The effects of knowledge management on innovative success – An empirical analysis of German firms," Research Policy, Elsevier, vol. 40(10), pages 1453-1462.
    9. Nicolai J. Foss & Keld Laursen & Torben Pedersen, 2011. "Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices," Organization Science, INFORMS, vol. 22(4), pages 980-999, August.
    10. Rosa Maria Dangelico & Devashish Pujari & Pierpaolo Pontrandolfo, 2017. "Green Product Innovation in Manufacturing Firms: A Sustainability‐Oriented Dynamic Capability Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 490-506, May.
    11. Helfat, Constance E. & Raubitschek, Ruth S., 2018. "Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems," Research Policy, Elsevier, vol. 47(8), pages 1391-1399.
    12. Ikujiro Nonaka & Georg von Krogh, 2009. "Perspective---Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory," Organization Science, INFORMS, vol. 20(3), pages 635-652, June.
    13. Souto, Jaime E., 2015. "Business model innovation and business concept innovation as the context of incremental innovation and radical innovation," Tourism Management, Elsevier, vol. 51(C), pages 142-155.
    14. Gianmario Verona & Davide Ravasi, 2003. "Unbundling dynamic capabilities: an exploratory study of continuous product innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(3), pages 577-606, June.
    15. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    16. Nudurupati, Sai Sudhakar & Bhattacharya, Arijit & Lascelles, David & Caton, Nicholas, 2015. "Strategic sourcing with multi-stakeholders through value co-creation: An evidence from global health care company," International Journal of Production Economics, Elsevier, vol. 166(C), pages 248-257.
    17. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    18. Wang, Qiang & Zhao, Xiande & Voss, Chris, 2016. "Customer orientation and innovation: A comparative study of manufacturing and service firms," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 221-230.
    19. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2010. "Relational mechanisms, formal contracts, and local knowledge acquisition by international subsidiaries," Strategic Management Journal, Wiley Blackwell, vol. 31(4), pages 349-370, April.
    20. David G. Sirmon & Michael A. Hitt, 2009. "Contingencies within dynamic managerial capabilities: interdependent effects of resource investment and deployment on firm performance," Strategic Management Journal, Wiley Blackwell, vol. 30(13), pages 1375-1394, December.
    21. Kumar Rakesh Ranjan & Stuart Read, 2016. "Value co-creation: concept and measurement," Journal of the Academy of Marketing Science, Springer, vol. 44(3), pages 290-315, May.
    22. Lütjen, Heiner & Schultz, Carsten & Tietze, Frank & Urmetzer, Florian, 2019. "Managing ecosystems for service innovation: A dynamic capability view," Journal of Business Research, Elsevier, vol. 104(C), pages 506-519.
    23. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    24. Snyder, Hannah & Witell, Lars & Gustafsson, Anders & Fombelle, Paul & Kristensson, Per, 2016. "Identifying categories of service innovation: A review and synthesis of the literature," Journal of Business Research, Elsevier, vol. 69(7), pages 2401-2408.
    25. Defeng Yang & Wei Jiang & Weihong Zhao, 2019. "Proactive environmental strategy, innovation capability, and stakeholder integration capability: A mediation analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1534-1547, December.
    26. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    27. Van den Broeke, Maud & Paparoidamis, Nicholas, 2021. "Engaging in or escaping co-creation? An analytical model," International Journal of Production Economics, Elsevier, vol. 231(C).
    28. Johansson, A. Elisabeth & Raddats, Chris & Witell, Lars, 2019. "The role of customer knowledge development for incremental and radical service innovation in servitized manufacturers," Journal of Business Research, Elsevier, vol. 98(C), pages 328-338.
    29. Yang, Rui & Tang, Wansheng & Dou, Mengdi & Zhang, Jianxiong, 2021. "Pricing and investing in co-creation with customers for a duopoly," International Journal of Production Economics, Elsevier, vol. 237(C).
    30. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    31. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    32. Zhang, Xiang & Chen, Rongqiu, 2008. "Examining the mechanism of the value co-creation with customers," International Journal of Production Economics, Elsevier, vol. 116(2), pages 242-250, December.
    33. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    34. Escrig-Tena, Ana B. & Segarra-Ciprés, Mercedes & García-Juan, Beatriz, 2021. "Incremental and radical product innovation capabilities in a quality management context: Exploring the moderating effects of control mechanisms," International Journal of Production Economics, Elsevier, vol. 232(C).
    35. Trong Tuan Luu, 2019. "CSR and Customer Value Co-creation Behavior: The Moderation Mechanisms of Servant Leadership and Relationship Marketing Orientation," Journal of Business Ethics, Springer, vol. 155(2), pages 379-398, March.
    36. Zhang, Xiang & Ye, Chen & Chen, Rongqiu & Wang, Zhaohua, 2011. "Multi-focused strategy in value co-creation with customers: Examining cumulative development pattern with new capabilities," International Journal of Production Economics, Elsevier, vol. 132(1), pages 122-130, July.
    37. Kevin Zheng Zhou & Caroline Bingxin Li, 2012. "How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1090-1102, September.
    38. Constance E. Helfat & Miguel A. Campo-Rembado, 2016. "Integrative Capabilities, Vertical Integration, and Innovation Over Successive Technology Lifecycles," Organization Science, INFORMS, vol. 27(2), pages 249-264, April.
    39. Siaw, Christopher Agyapong & Sarpong, David, 2021. "Dynamic exchange capabilities for value co-creation in ecosystems," Journal of Business Research, Elsevier, vol. 134(C), pages 493-506.
    40. Jugend, Daniel & Jabbour, Charbel Jose Chiappeta & Alves Scaliza, Janaina A. & Rocha, Robson Sø & Junior, José Alcides Gobbo & Latan, Hengky & Salgado, Manoel Henrique, 2018. "Relationships among open innovation, innovative performance, government support and firm size: Comparing Brazilian firms embracing different levels of radicalism in innovation," Technovation, Elsevier, vol. 74, pages 54-65.
    41. Wang, Ming-Chao & Chen, Pei-Chen & Fang, Shih-Chieh, 2018. "A critical view of knowledge networks and innovation performance: The mediation role of firms' knowledge integration capability," Journal of Business Research, Elsevier, vol. 88(C), pages 222-233.
    42. Xie, Xuemei & Wang, Hongwei & García, Javier Sendra, 2021. "How does customer involvement in service innovation motivate service innovation performance? The roles of relationship learning and knowledge absorptive capacity," Journal of Business Research, Elsevier, vol. 136(C), pages 630-643.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Forés, Beatriz & Camisón, César, 2016. "Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?," Journal of Business Research, Elsevier, vol. 69(2), pages 831-848.
    2. Dominik M. Wielgos & Christian Homburg & Christina Kuehnl, 2021. "Digital business capability: its impact on firm and customer performance," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 762-789, July.
    3. Mahavarpour, Nasrin & Marvi, Reza & Foroudi, Pantea, 2023. "A Brief History of Service Innovation: The evolution of past, present, and future of service innovation," Journal of Business Research, Elsevier, vol. 160(C).
    4. Philipp Nitzsche & Bernd W. Wirtz & Vincent Göttel, 2016. "Innovation Success In The Context Of Inbound Open Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-38, February.
    5. Zhunxin Huang & Zengrui Xiao, 2023. "Dynamic Capabilities, Environmental Management Capabilities, Stakeholder Pressure and Eco-Innovation of Chinese Manufacturing Firms: A Moderated Mediation Model," Sustainability, MDPI, vol. 15(9), pages 1-22, May.
    6. Bindu Singh & M.K. Rao, 2016. "Examining the Effects of Intellectual Capital on Dynamic Capabilities in Emerging Economy Context: Knowledge Management Processes as a Mediator," Emerging Economy Studies, International Management Institute, vol. 2(1), pages 110-128, May.
    7. Kazadi, Kande & Lievens, Annouk & Mahr, Dominik, 2016. "Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders," Journal of Business Research, Elsevier, vol. 69(2), pages 525-540.
    8. Lu Qiu & Xiaowen Jie & Yanan Wang & Minjuan Zhao, 2020. "Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 146-165, January.
    9. Khalid, Saba & Bhatti, Khalid, 2015. "Entrepreneurial competence in managing partnerships and partnership knowledge exchange: Impact on performance differences in export expansion stages," Journal of World Business, Elsevier, vol. 50(3), pages 598-608.
    10. Shen, Rui & Guo, Hai & Ma, Hongjia, 2023. "How do entrepreneurs' cross-cultural experiences contribute to entrepreneurial ecosystem performance?," Journal of World Business, Elsevier, vol. 58(2).
    11. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).
    12. Sohvi Heaton & David Teece & Eugene Agronin, 2023. "Dynamic capabilities and governance: An empirical investigation of financial performance of the higher education sector," Strategic Management Journal, Wiley Blackwell, vol. 44(2), pages 520-548, February.
    13. Ritu Singh & Parikshit Charan & Manojit Chattopadhyay, 2019. "Dynamic capabilities and responsiveness: moderating effect of organization structures and environmental dynamism," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 301-319, December.
    14. Ying Guo, 2023. "External Knowledge Acquisition and Green Innovation in Chinese Firms: Unveiling the Impact of Green Dynamic Capabilities," SAGE Open, , vol. 13(3), pages 21582440231, July.
    15. Marchand, André & Hennig-Thurau, Thorsten & Flemming, Jan, 2021. "Social media resources and capabilities as strategic determinants of social media performance," International Journal of Research in Marketing, Elsevier, vol. 38(3), pages 549-571.
    16. Monferrer, Diego & Moliner, Miguel Ángel & Irún, Beatriz & Estrada, Marta, 2021. "Network market and entrepreneurial orientations as facilitators of international performance in born globals. The mediating role of ambidextrous dynamic capabilities," Journal of Business Research, Elsevier, vol. 137(C), pages 430-443.
    17. Thomas Anning-Dorson, 2016. "Organisational Culture And Leadership As Mediators Of Service Innovation And Firm Competitiveness: A Study Of An Emerging Economy," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-29, October.
    18. Eriksson, Taina, 2014. "Processes, antecedents and outcomes of dynamic capabilities," Scandinavian Journal of Management, Elsevier, vol. 30(1), pages 65-82.
    19. Jean, Ruey-Jer “Bryan” & Sinkovics, Rudolf R. & Kim, Daekwan & Lew, Yong Kyu, 2015. "Drivers and performance implications of international key account management capability," International Business Review, Elsevier, vol. 24(4), pages 543-555.
    20. Uzhegova, Maria & Torkkeli, Lasse & Saarenketo, Sami, 2019. "Corporate Social Responsibility in SMEs: Implications on Competitive PerformanceDate submitted: October 12, 2017Revised version accepted after double blind review: December 15, 2018," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 30(2-3), pages 232-267.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:262:y:2023:i:c:s0925527323001342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.