Conceptualising the framework for effectiveness of customer value co-creation in service innovation

The involvement of customers as co-creators in new service innovation is increasingly being suggested as a successful strategy to improve the success rate of new services. Value-in-use is a central theme for the service-dominant logic because the customer is always a co-creator of value. Co-creation involves customer engagement in the creation of offerings through ideation, design and development. The objective of this paper is to develop the framework for successful development and implementation of customer value co-creation process in service innovation. Based on literature review, three phases of value co-creation have been developed. First, motivation for customer value co-creation is one of the important aspects to consider by a service firm. Extrinsic and intrinsic motivations play a key role for customer motivation to participate. Second, customers' role in value creation process have greater been developed. Customer experience during interaction becomes central to the value creation process. Customer participation in value creation process is divided into two parts: participation behaviour and citizenship behaviour. Third, criteria for superior value co-creation process have been developed. This research brings the framework that motivation for value co-creation creates positive impact on value co-creation process, which in turn leads to generate positive value co-creation experience.