The objective of this paper is to achieve a better understanding of the role of ethical values in forming and directing a strategy for service excellence, service innovation, and value-in-context. The paper argues that sustainability and corporate social responsibility are the key drivers of value resonance and service excellence. A case-study approach is used in the context of retail service providers, and the main case is the furniture company IKEA. Key values of our case are identified, analysed, and compared with values in other companies. The findings suggest that the innovation management of these firms has been characterised by: (1) business platforms (such as physical and web-based experience rooms) that facilitate their customers' service experiences; (2) service brand and marketing communication based on values resonance among the norms and ethical values of customers, the company, and the wider society; and (3) sharing of corporate values among leaders and employees to provide energy and direction for excellence and sustainable business development. A new framework known as 'The business model of service excellence and innovation - known as the service excellence and innovation (SEIB) model' is developed. The new framework focuses on how to create and manage resource configurations that enable, support, and direct customers in value co-creation and service exchange.
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