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Existing research lacks a comprehensive understanding of the individual factors that may transform an “ordinary” customer into an active participator in the service innovation process and/or the situational factors that determine a customer's participation in any stage of the service innovation process. The purpose of this paper is to fill these research gaps by developing and validating a conceptual framework on CPSIB in the Indian hotel industry by using smartphones to access SNS apps.

A cross-sectional survey design method was used in this study to collect representative samples with greater response rates. The target population included in this study were hotel guests of all of the star category hotels in New Delhi who had earlier experiences of staying in star category hotels. Structured questionnaire was formulated, which was later pre-tested to confirm its reliability and validity. Out of 400 questionnaires, 348 usable responses were obtained.

This research examines CPSIB in the Indian hotel industry using SNS smartphone apps. It confirms that user innovativeness and perceived trust in the service provider determine customers' participative service innovation behavior, which further results in positive adoption intention via SNS smartphone apps.

This research provides valuable insights into the hotel industry, specifically in the context of India. However, it has a few limitations that must be taken into account when generalizing its results.

First, investigating the key antecedents and consequences of CPSIB has important implications for marketing practitioners. Moreover, it was observed that hotel guests with higher innovativeness and trust in the service provider would show positive participative service innovation behavior toward innovating new services along with the hotel service providers, which may result in a positive adoption intention toward the newly developed services. Second, hoteliers should integrate hotel guests into hotel service innovation via the use of SNS smartphone apps.

This research conceptualizes that user innovativeness is a driving factor for CPSIB that may further generate a positive adoption intention toward newly developed services.

To the best of the authors’ knowledge, only a very few studies have tested the interrelationships between individual factors and customer participation behavior in the mobile technology-mediated service ecosystem simultaneously. Furthermore, research examining the individual and situational factors influencing CPSIB and adoption intention towards newly developed services using SNS smartphone apps is still in a nascent stage.

This study examines the impact of customer involvement (CI), technology strategy, firm internationalization and servitization on product and service innovation performance (SIP) in hybrid offerings. In addition, it investigates the moderating role of digitization and co-creation in the relationship mentioned above.

A research framework was developed through the lens of service-dominant (S-D) logic theory, and the proposed research hypotheses were empirically tested. Primary data were collected via the survey method, and structural equation modeling was used to analyze the data.

Findings of this study suggest that the S-D logic theory effectively explains CI and servitization in hybrid offerings. Furthermore, digitization is a crucial driver of SIP. Additionally, this paper finds that co-creation moderates between servitization and innovation performance of hybrid offerings.

Besides theoretical contributions, this study presents valuable insights to manage service networks during servitization.

First, this work proposes a comprehensive framework of hybrid offerings' driving factors (i.e. CI, firm internationalization, technology strategy and servitization) and their impact on product and SIP. Second, it tests the moderating effects of digitalization and co-creation in the context of hybrid offerings.