Abstract
Businesses have recently shifted their attention to service innovation as a new economic justification for addressing environmental sustainability issues. Sustainable innovations may help businesses embrace solutions in new ways and can help firms grow and improve existing business models in ways that decrease social and environmental consequences while also adding new advantages and features. Businesses that adopt environmental sustainability in innovative processes can positively increase their opportunities to be innovative leaders in related fields. This acts as a link to win business competition around innovative approaches to environmental sustainability. In this context, the study aims to contribute to the role of environmental sustainability, value co-creation, and service innovation in service industries with an S-D logic perspective. From an S-D logic viewpoint, the study also investigates the extent to which service innovation and value co-creation may contribute to environmental sustainability.
TopIntroduction
Environmental sustainability which is becoming a major concern for businesses and policy makers (Murshed et al., 2021) includes monitoring the state of the physical world, controlling the direct and indirect effects of large-scale companies such as agriculture, transportation, service, and manufacturing, and influencing people's consumption and behavior choices (Woodruf and Mankoff, 2008). The capacity to retain valuable features in the physical environment is referred to as environmental sustainability (Sutton, 2004). Sustainable marketing, on the other hand, entails addressing present consumer and corporate requirements while also conserving or strengthening future generations' ability to meet their own (Kotler and Armstrong, 2010). As market behavior shifts from a Good-Dominant (G-D) logic to a Service-Dominant (S-D) logic (Vargo and Lusch, 2004), customers actively seek participation at every stage of the service system and create value by interacting with businesses. Today's environmentally conscious clients want service firms involved in environmental sustainability to not only meet their environmental responsibilities but also to promote environmental awareness as part of the value creation process. This demonstrates the need of allowing several stakeholders in the service system to engage in the value generation process. As a result, for long-term economic success, businesses must effectively manage their operations' environmental impact as well as stay up with the digital age.
Key Terms in this Chapter
Value Co-Creation: It is the process in which information flow is provided and value is created in a transparent environment in the interactive process between actors.
Environmental Sustainability: That emphasizes the need to prevent the waste of resources of future generations while meeting current needs.
S-D Logic: It is the approach that expresses the creation of value in the joint interaction between the business and the customer.
G-D Logic: It refers to the processes in which the value is only consumed by the customers and focused on the produced product.
Service Innovation: It is a concept in which service improvements are included in the process of innovation, which is not just about invention.