Designing an information technology-enabled framework in the retail service ecosystem

Designing an information technology-enabled framework in the retail service ecosystem

Despite the significant importance of service innovation in a value-centered retail environment, less is explored regarding its conceptualization through firms' information technology (IT) based strategic capabilities to promote the value formation process in a retail service ecosystem. To address this gap, this study aims to develop an integrated framework based on the concepts of service-dominant logic and resource advantage theory. By conducting 24 in-depth interviews (12 with employees and 12 with customers) across various non-fuel retail stores commonly referred to as tuck shops, this study highlights the significant role of firms' strategic IT-enabled capabilities in enhancing service process innovation and customer service. These IT capabilities, combined with service process innovation and customer service, not only create opportunities for value co-creation through resource exchange (value-in-exchange) but also enable customers to create value through individual service consumption (value-in-use). The findings further suggest co-creation experience within the retail ecosystem is shaped by customers' emotional involvement, role projection, and escapism, which collectively determine their value-in-experience. Finally, the proposed framework offers valuable implications for practitioners, emphasizing the need to design more integrative IT-enabled platforms to achieve improved customer value outcomes.