Impact of Interactive and supportive service innovation in customer retention: an interplay of value creation and participation

  • Tayyba Fatima COMSATS University Islamabad, Pakistan
  • Dr. Tahir Mumtaz Awan COMSATS University Islamabad, Pakistan
  • Dr. Muhammad Kamran Warsaw University of Business, Warsaw, Poland
Keywords: Service Innovation, Interactive Service Innovation, Supportive service innovation S-D logic, Value Creation


This study aimed to understand the customer retention process through customer value creation in service industry brining service innovation. Further the moderating role of customer participation was analyzed. ”Hypotheses were tested on 548 responses collected through online survey in one point in time by applying the Structural Equation Modeling (Ghasemaghaei & Calic) technique. Smart pls3 was used to analyze the result.” The result of study indicate that customer retention is significantly influenced by service innovation through customer value creation process and customer participation moderate the relationship. The result of this study was time bound and only one service was considered. Other services i.e., Banking, Hospitality and traveling also need to apply this model. The underlaying mechanism of customer retention through customer value creation and moderating role of customer participation is explained by this study.