Dialogic co-creation and service innovation performance in high-tech companies

This study aims to investigate how customer co-creation affects the performance of service innovation through the operant resources. This study uses survey methodology to examine a research model with six hypotheses. Data from 149 high-tech firms are analyzed using structural equation modeling. The dialogic co-creation affects customer relationship strength (relational resource), valuation of knowledge (informational resource), and capability of customization (organizational resource), facilitating service innovation. Findings offer novel insights into how service innovation co-creation takes place within a dialogic context leading to organizational changes. The results clarify the influences of operant resources on service innovation and indicate that companies should emphasize dialogic communication with customer in developing service innovation. Managers have to understand that co-creation is an effective approach in business to stretch business boundaries, and that customers are the crucial external party that co-creates. According to the mutual influences of co-creation, businesses not only can exploit knowledge from customers but also strengthen the relationship bond with them. For the investment programs on service innovation of businesses, managers should allocate budget to relation-specific investments and knowledge acquisition with customers. This research model, guided by the R-A theory and S-D logic, might serve as a template for scholars exploring issues of service innovation. Findings of this study identify important implications that benefit service innovation research in several ways.