Customer Engagement in Service Innovation Performance of the Wellness Industry - Based on the fsQCA Method

This study uses complexity theory to explain and better understand the causal patterns of factors that stimulate customer engagement in service innovation performance of the wellness industry in a digital technology environment. To this end, it identifies digital technology and knowledge management as essential factors in service innovation from a customer perspective and proposes a conceptual model and three research propositions. To test the propositions, it employs fsQCA on a sample of 404 experienced customers in the wellness industry. Findings indicate that six configurations of customer perceived value and environmental conditions can explain the high quality of service innovation performance. This study contributes to the literature by offering new insights into the relationships among predictors of service innovation performance from a customer engagement perspective. And advancing the theoretical ground of how customer perceived value and environmental conditions (i.e., knowledge management, digital technology) combine to explain high-quality service innovation performance better. The findings support that the environment for customer engagement in service innovation needs to be more interactive to target customers’ perceived value and improve service innovation performance in the wellness industry.