Value co-creation for innovation process in small business community

Handyanto Widjojo, Avanti Fontana, Gita Gayatri, Agus W. Soehadi

Research output: Contribution to journalArticlepeer-review


Purpose –This paper explores the interaction of multi-actors to co-create value and its influence toward innovation process in small business community. This study offers a research model that is derived from a fundamental premise of Service-Dominant Logic (SDL)concept and supported by Consumer Culture Theory (CCT). Design/methodology/approach – Quantitative approach was applied through self-administered survey using purposive sampling method. The research model and hypothesis was analyzed by using Structural Equation Modeling. Findings-Educating among members in the small business community shows significant influences to dynamic interaction and value co-creation. Enriching negatively influences value co-creation. Dynamic interaction did not influence value co-creation, but dynamic interaction and value co-creation drives innovation process significantly. Practical implication – Small business should educate each other to develop positive connectivity with other members to exchange and integrate collective resources. This situation could be beneficial to build synergy that drives innovation process as a survival and development strategy in challenging business environment. Originality/value – The previous study on value co-creation is dominantly performed in established companies using qualitative approach. This research offers a new perspective from small business community in emerging market by applying quantitative approach. This article gives contribution to the collaboration of service-dominant logic and consumer culture theory. The research model will be beneficial to developan alternative marketing and business model as well as to drive the growth and the contribution of micro, small, and medium entreprises on society, environment, and economy.

Original languageEnglish
Pages (from-to)1-20
Number of pages20
Issue number1
Publication statusPublished - 1 Mar 2019


  • Consumer Culture Theory
  • Innovation process
  • Service-Dominant Logic
  • Small business community
  • Value co-creation


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