Service co-creation in destination exporting - does decision-making logic foster the service co-creation process in designing new services?

Abstract

Entrepreneurs make various business decisions that encompass both casual day-to-day decisions and long-term strategic decisions. Currently, decision-making environments are more dynamic, especially in the tourism sector, and core decision-makers have to make informed decisions while adapting to the dynamic environment. In the tourism industry, entrepreneurs can enjoy better competitive advantage if they co-create their offerings in tandem with their clients. Service co-creation is a strategic decision taken by the entrepreneur, which is affected by the decision-making process they adopt. This study explores the interrelations between effectuation, causation, service co-creation and customer satisfaction. Data collected by interviewer-administered structured-questionnaire approach from 100 owners of tour operators using non-probability judgemental and snowball sampling method were analysed using PLS-SEM. The findings of the study portray that causation has no relation to service co-creation. The study also covers that effectuation strongly correlates with service co-creation, which has a strong positive relationship with customer satisfaction.