Co-creation in Radical Service Innovation: A Systematic Analysis of Microlevel Processes

This empirical paper presents the results of a detailed case-study investigation of co-creation in radical service innovation. The rationale for the paper is that detailed interventions must be tracked to offer a realistic account of how co-creation occurs. This provides a strong empirical contribution to the emerging body of scholars developing the co-creation paradigm, predominantly characterized by conceptual advances in service-dominant logic. Our focus is on radical service innovation, which is disruptive in the sector. The overall aim of the paper is to unravel the nature of microlevel processes of co-creation in radical service innovation. The study adopts sequential analysis to examine co-creation. Patterns of sequences of actions and interactions associated with 40 incremental developments, involving multiple actors, are investigated. These co-created innovative developments underpin the emergence of a radical telematics-based motor insurance service. The findings suggest that the co-creation path is not simple or uni-faceted, and the paper unravels the nature of complex patterns of activities and interactions, Our in-depth systematic analysis illuminates a combination approach with two main patterns of sequences: one dominated by ad-hoc and enduring independent innovation activities by network actors and one dominated by lead-firm innovation and interaction activity. The findings advance knowledge of the way co-creation occurs in radical service innovation. The study results suggest that managerial attention be placed to, first, finding ways to induce independent innovative behavior from network partners and, second, to the development of interaction mechanisms to foster sharing and visualization of such innovation advances.