Employee entrepreneurial behaviour in SME service development : a qualitative study on effectuation

Abstract

Customer-employee interaction is crucial for organisations’ financial performance and profitability. Co-creation by employees and customers enhances new service development. This study focuses on understanding employees’ entrepreneurial behaviour by examining co-creation by employees and customers through effectuation and service-dominant logic. First, we understand employee effectual co-creation in the service context; second, we contribute to service-dominant logic by more accurately explaining the opportunities employees can enable customer service co-creation. In this qualitative study of one organisation from service industry, focus group discussions with the management and the employees are employed, and analysed by using the Gioia method. Results contribute to the management of organisational renewal and suggest improvements to service-related entrepreneurial behaviour. By understanding opportunities to support employees’ creative inputs in organisations may enable incremental renewal and service development. This method creates opportunities for new innovations, customer and employee satisfaction, and flourishing organisations.