Impact of service co-creation on performance of firms: the mediating role of market oriented strategies

Firms carrying co-creative business architecture reap substantial benefits by differentiating from competitors and getting competitive advantage in the market place. Paper investigates service co-creation architecture and its role in the sustainable competitive advantage of the firms. The study focuses on the service innovation process and develops a model of service co-creation – market orientation – competitive advantage-based firm performance measure. Using survey data of 119 financial ventures based in Mexico, we found that market capability in terms of market orientation mediates the service co-creational – performance relationship, while innovation orientation of the firm moderates the firm co-creational capabilities. Moreover, market orientation strengthens the consumer, business and knowledge integration effect on firm performance. Overall, this paper aims to contribute to the strategic planning of the service firms by guiding their resource allocation to ensure sustainable growth.