Interactional Service Innovation with Social Media Users

The pervasive availability of social media is changing user interaction in service innovation. However, we lack information on how to leverage interactional service innovation with social media. This paper draws from an analytical framework constructed according to mixed qualitative research, deriving a model and functions of its agents in social media innovation. The findings indicate that organizations interact with the social media and reduce diseconomies of scope; however, they also codestroy value. Hence, we explain how companies leverage sustainable innovation with social media users in the co‐production and co‐creation of value. We conclude the findings and results with the theoretical propositions, and the conclusion follows an outline of the contributions, future research, and managerial implications.