Impact of Interactive and Supportive Service Innovation in Customer Retention through the Interplay of Value Creation and Participation

  • Tayyba Fatima Research Assistant, Department of Management Sciences, COMSATS University Islamabad
  • Dr. Tahir Mumtaz Awan Assistant Professor of Marketing, Department of Management Sciences, COMSATS University Islamaba
  • Dr. Muhammad Kamran Assistant Professor , Warsaw University of Business, Warsaw, Poland
  • Dr. Akmal Shahzad Assistant Professor , Management Sciences Department Barrani Institute of Knowledge Administration and Technology, Rawalpindi
Keywords: Service Innovation, customer retention, value creation, S-D logic


This study aimed to understand the customer retention process through customer value creation in the service industry bringing service innovation. The moderating role of customer participation was analyzed. The hypothesized relationships were tested on 548 responses collected through an online survey at one point in time through the structural equation modeling technique. Smart PLS3 was used for analysis and the result of the study indicated that customer retention is significantly influenced by service innovation through the customer value creation process and customer participation moderates the relationship. The results of this study were time-bound and only one service was considered. Other services e.g. banking, hospitality, and traveling can also be applied to generalize the model.