Co-Creation in Provider Side for Developing Innovative Services

Purpose: Co-creation of business value has attracted research attention in recent years. However, few of them studied this subject from the provider side. Due to intensive competition in the markets to present new services that meet consumers’ needs, this study aims to answer the question of how value co-creation activities on social media platforms enable the new technology-based firms to create innovative services. Design/Methodology: An online questionnaire distributed to a list of NTBFs that are officially registered and use Facebook and Instagram for customer relationship. 230 completed forms analysed by PLS-SEM using SmartPLS 3 software in order to estimate the measurement and structural model parameters as well as to test the research hypotheses. Findings: Findings revealed that value co-creation facilitates building innovative services on social media platforms. It is shown that such a relationship is moderated by social co-creation activities that take place over social media. Originality/Value: most of studies in the subject of co-creation focused on the customer side and few researches studied provider side. These findings underscore the importance of using social media as a critical tool to co-create value with users to develop innovative services. This knowledge is useful for practitioners and business owners to make better decision on if and how to use social media for becoming more innovative and competitive.