UNLOCKING INNOVATION POTENTIALS: THE ROLE OF VALUE CO-CREATION AND ABSORPTION CAPACITY

Abstract

In today's rapidly changing world, there is a growing demand for organizations to innovate and establish initiative-driven resources. The current study is a cross-sectional study grounded in epistemological positivism, involving a sample of 200 participants drawn from the service industry, specifically hotels and restaurants in Quetta City. Sampling techniques included both stratified and cluster sampling. Data were analyzed using SPSS version 27 and Hayes Process Macro Model, which encompassed correlation, multiple regression, and reliability testing. Results showed a positive and significant correlation among all variables. Moreover, the analysis demonstrated that absorption capacity significantly moderates the relationship between value co-creation and innovation capabilities, confirming the hypotheses and proposed model. These findings emphasize the importance of fostering innovation capabilities, promoting value co-creation, and developing absorption capacity practices within organizations, thus highlighting avenues for future research.