AbstractsBusiness Management & Administration

This thesis is exploring the phenomena of value co-creation in service innovation. The Open Services Innovation framework recently defined by Henry Chesbrough is explored and discussed together with theory on user involvement and co-creation in service innovation. The overall objective of this study is to contribute to a better understanding of large, established firms’ approaches to value co-creation processes. Through the literature review study propositions has been established regarding the role of open innovation in service, how open innovation if influencing the innovation process, use of service platforms and the role of tacit knowledge in firm’s competitive advantage together with user involvement. By use of a case study of IBM the key concept of using jams as a co-creation tool in service innovation is discussed linking this to the study propositions. The main findings in this study indicate that co-creation can play a crucial role in value creation for established firms. Furthermore, that in order to be truly successful tool must be facilitated and processes are needed in order to capture the value that is created. Tacit knowledge plays a substantial role in value co-creation, thus the managerial implication of this study is that managers have to be aware of such type of knowledge.