Building Dynamic Capability for Social Media-Enabled Value Co-Creation for Innovation in SMEs

Despite the acknowledged importance of customer integration in value co-creation, the shift to a customer-centric strategy requires an aligned culture and capabilities models to deliver genuine and superior customer value. This research aims to contribute to an increased understanding of the dynamic capabilities required by SMEs in the transition to customer-centric business models enabled by social media. Social media affordances enable customer integration in the process of new value creation generating different innovation outcomes. The paper develops a contingency framework for dynamic capabilities to support the e-transition process for value creation and examines how the e-transitions occur, and the dynamic capabilities developed by SMEs to support different forms of co-creation in the context of social media. We adopt an inductive multiple-case study approach to explore social media value co-creation practices from eight case companies. The analysis reveals that some organisational culture capabilities and e-marketing capabilities underpin SMEs' ability to e-transition towards value co-creation for innovation while secondary dynamic capabilities can selectively support different forms of value co-creation. This innovative approach provides researchers and organisations with in-depth insights into co-creation dynamic capabilities and practices for greater innovation.