How Service Innovation Contributes to Co-Create Value in Service Networks

The purpose of this paper is to investigate how service innovations (in a living lab context) contribute to co-create value in a service network. Exploratory research is developed using a qualitative approach and case study on mobility services in Bologna. Our findings reveal that the involved entities are able to recombine their existing resources and design a new value proposition based on the ICT solution. Theoretical and empirical research suggests that collaboration and participation in decision making are critical to service system reconfiguration. The study shows the importance of including insights from Service Science Management and Engineering and Design (SSMED) in the management of network theory. Moreover, the research paves the way for new perspectives on analysis of local governance issues based on value co-creation processes in the ICT service solution context. Using this perspective, service innovations in the overall management of public services view a city as a Smart Local Service System (SLSS), whose competitiveness depends on its ability to access and share common resources to create mutual value.