Impact of Co-Creation on Innovation Capability and Firm Performance: A Structural Equation Modeling

Traditional firms used to design products, evaluate marketing messages and control product distribution channels with no costumer interface. with the advancements in interaction technologies, however, users can easily make impacts on firms; the interaction between costumers and firms is now in peak condition in comparison to the past and is no longer controlled by firms. customers are playing two roles simultaneously today: value creators and consumers at the same time. unlike the traditional customer who had no roles over product and services innovation, costumers today have reached the influential position to be innovators and co-creators. in other words, they are no longer sole buyers, users or loyal advocates of a product. we examine the role of co-creation on the influences of innovation capability and firm performance. we develop hypotheses and test them using researcher survey data. the results suggest that implement of co-creation partially mediate the effect of process innovation capability. we discuss the implications of these findings for research and practice on the depict and implement of unique value co-creation model.

Impact of Co-Creation on Innovation Capability and Firm Performance: A Structural Equation Modeling

Traditional firms used to design products, evaluate marketing messages and control product distribution channels with no costumer interface. With the advancements in interaction technologies, however, users can easily make impacts on firms; the interaction between costumers and firms is now in peak condition in comparison to the past and is no longer controlled by firms. Customers are playing two roles simultaneously today: value creators and consumers at the same time. Unlike the traditional customer who had no roles over product and services innovation, costumers today have reached the influential position to be innovators and co-creators. In other words, they are no longer sole buyers, users or loyal advocates of a product. We examine the role of co-creation on the influences of innovation capability and firm performance. We develop hypotheses and test them using researcher survey data. The results suggest that implement of co-creation partially mediate the effect of process innovation capability. We discuss the implications of these findings for research and practice on the depict and implement of unique value co-creation model.