The mediating role of value co-creation between service innovation and Gen Z repurchase intention: evidence from a developing country

Abstract

Purpose-Generation Z has emerged as a pivotal consumer segment with substantial purchasing power and increasing market influence, projected to become the largest consumer group in the near future. The impact of service innovation on Generation Z customers' repurchase intention is examined in the study, with value co-creation as a mediating factor. Design/methodology/approach-Data were collected through an official questionnaire, yielding 1,393 valid responses from Generation Z participants in Vietnam with diverse locations, gender and educational backgrounds. The analysis was conducted using partial least squares structural equation modeling (PLS-SEM) SmartPLS 4 software. Findings-The results confirm that value co-creation mediates the relationship between service innovation and repurchase intention, highlighting its critical role in enhancing the effect of service innovation on Generation Z consumer loyalty. Originality/value-This study addresses a gap in the literature by exploring how service innovation can be leveraged to foster repurchase intention among Generation Z consumers. It provides theoretical and practical insights into promoting loyalty through supportive service innovation and value co-creation in the context of an emerging economy.