Value-In-Context with Service Innovation in the Digital Age: A Service-Dominant Logic Perspective

Abstract

The increasingly complex service context with the convergence of physical products, digitalization, and service offerings presents a major challenge for IS research on service innovation. This article addresses the resulting need for research on an adequate understanding of the perceived value of innovative digital services. It continues previous work that makes the first move in this regard—conceptualizing this value as the sum of direct value-in-context (S-D logic), and indirect and option value-in-context (both newly introduced). This article closes two research gaps. First, the option and indirect value-in-context components are clarified by developing propositions that link both to S-D logic’s main concepts of service innovation. Second, the value-in-context anatomy is empirically validated with two conjoint analyses. It can be shown that both newly introduced components of value-in-context indeed are decisive factors for customers’ perceptions of value with innovative digital services—implicating their conceptual separation.