Together forever? How customer co-creation affects the adoption of digital service innovations over

Capturing product/service improvement ideas from social media based on lead user theory

Together forever? How customer co-creation affects the adoption of digital service innovations over time

Sven HeidenreichSlawka JordanowTobias KraemerMartin Obschonka

kHUB post date: September 2024
Originally published: March 7, 2024 (PDMA JPIM • Vol 41, Issue 5 • September 2023)
Read time: 72 minutes

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This study delves into the intricate relationship between customers' willingness to co-create (WCC) and the required level of co-creation (LCC) for effective service innovation adoption. In response to recent findings suggesting a “co-creation sweet spot,” beyond which additional co-creation activities have detrimental effects, this research aims to provide both theoretical and empirical insights into this phenomenon. Unlike previous investigations focusing on either the willingness to co-create or the level of co-creation at a particular point in time and overlooking potential interactions, our study considers their interactions over time, acknowledging that revenue for most digital services is generated through ongoing customer usage. Utilizing longitudinal data from 352 participants across four waves and employing structural equation modeling, our analysis reveals a nuanced pattern. Customers' willingness to co-create predominantly shapes usage intention in the pre-adoption stage, while the level of co-creation becomes a critical driver for continuous usage in the post-adoption stages. Further analysis using response surface analysis with polynomial regression confirms a specific matching logic: customers with low (high) willingness to co-create expect a low (high) level of co-creation from a service innovation. From a theoretical perspective, our findings contribute to bridging the research gap concerning an optimal co-creation level, offering insights into psychological processes underlying the co-creation sweet spot. Furthermore, we also shed light on temporal aspects of the interplay between willingness to co-create and the level of co-creation, offering a more holistic perspective on their joint influence on adoption behavior. From a managerial perspective, our study challenges the traditional assumption that more co-creation naturally leads to better outcomes. It emphasizes the significance of tailoring the level of co-creation in digital service innovations based on customers' intrinsic willingness. This strategic customization aligns with the evolving landscape of digital service innovation, offering practical insights for managers striving to optimize their co-creation strategies.

Practitioner Points

  • Companies need to conduct in-depth market research to identify the different levels of willingness to co-create among potential customers. They should specifically target segments with a high willingness to co-create, as these individuals are more likely to adopt innovations early and influence others through positive recommendations. Tailoring initial service offerings to these segments, possibly through exclusive access or incentives, can effectively leverage their enthusiasm for broader service adoption.

  • Managers are advised to develop marketing strategies and service designs that are aligned with the specific co-creation willingness levels of their customer segments. For customers with a high willingness to co-create, managers should highlight co-creation aspects and offer more advanced options. Conversely, for those less inclined to co-create, it's important to simplify the co-creation process and emphasize ease of use through targeted marketing efforts, such as tutorials or demonstrations, to motivate their participation.

  • Service providers must continuously refine their service offerings and co-creation opportunities based on customer feedback and engagement data throughout the adoption process. Initially, offerings should be designed to match customers' willingness to co-create. As customers progress in their journey and become more engaged, service providers should introduce more complex co-creation features to sustain interest and deepen customer involvement. This strategy ensures ongoing engagement and maximizes the likelihood of continuous service usage.

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