Influence of value co-creation and SOSI on business results: the moderating role of the activity sector

Abstract

Purpose In response to recent research calls on the connection between innovation and sustainability, this study aims to incorporate sustainability-oriented service innovation (SOSI) as a variable to expand the research field in the service sector. The objective is to analyze value co-creation with external stakeholders as an antecedent and business results as a consequent of SOSI and evaluate the moderating role of the activity sector. Design/methodology/approach Using a structured electronic questionnaire with items measured on a seven-point Likert scale, 450 responses were collected from managers of Spanish hotel and retail establishments. The data were then analyzed by using partial least squares structural equation modeling and multigroup analysis to validate the measures and to test the proposed model. Findings The results suggest that value co-creation with business partners and customers is a driver of SOSI, which, in turn, plays an important role in business results in the service sector. Furthermore, according to the findings, no significant differences exist between hotels and retail establishments in terms of the relationship between value co-creation with customers and SOSI. However, the relationships between value co-creation with business partners and SOSI, and the latter with business results, are stronger in the case of hotels, suggesting the need for sector-specific strategies. Originality/value This research contributes to progress in the conceptualization of SOSI and provides empirical evidence that a SOSI-oriented company culture can strengthen relationships with stakeholders and improve business results, offering a useful guide for managers working in the service sector.