Exploring the effects of service ecosystem on IT SMEs performance in emerging economies: A moderated mediation approach

Abstract

Service-dominant logic viewpoints can be used to construct a model of value co-creation in the service ecosystem by focusing on service provider-beneficiary dyads and inter-dyad interactions. However, the presence of institutional voids can hamper firm performance, even with an improved service ecosystem and value co-creation. This study aimed to investigate the relationship between the service ecosystem of IT small and medium enterprises of Bangladesh and their firm performance through the mediation of value co-creation and moderated mediation of institutional void. This study indicated that the service ecosystem positively impacts firm performance and value co-creation. Additionally, the findings indicated that co-creation within the service ecosystem leads to improved firm performance. However, the study also found that institutional void can have a significant moderating effect. This research makes a valuable contribution to the literature on service ecosystem and firm performance by examining the role of value co-creation as a mediator.