Digital Value Resonance and Customer Participation: Key Drivers of Marketing Performance and Distinctive Management Competencies
DOI:
https://doi.org/10.61255/jeemba.v4i6.2014Keywords:
Customer Participation, Digital Value Resonance, Distinctive Management Competencies, Marketing PerformanceAbstract
Purpose – This study examines the association between customer participation and perceived marketing performance among Indonesian MSMEs through distinctive management competencies and the moderating role of digital value resonance, drawing on Service-Dominant Logic (S-DL).
Design/methodology/approach – Survey data from 175 Indonesian MSME owners/managers, obtained through purposive online sampling, were analyzed using PLS-SEM in SmartPLS. Moderated mediation and sensitivity analyses were conducted with 5,000 bootstrap resamples.
Finding/Results – Customer participation is positively associated with management competencies. Its relationship with perceived marketing performance is negative at low digital value resonance, insignificant at the mean (β = −0.068), and positive but insignificant at high levels. Management competencies show a positive indirect association (β = 0.427 at the mean), which weakens as digital value resonance increases (index = −0.129, 95% CI [−0.263, −0.027]). Digital value resonance strengthens the participation–performance association (β = 0.196) but weakens the competencies–performance association (β = −0.186). Partial discriminant validity warrants caution.
Originality/Value – The study extends S-DL by identifying contrasting, conditional roles of digital value resonance across participation and competency pathways. Given its cross-sectional, single-source design, the findings indicate associations rather than causal effects.
Abstract views: 20
,
PDF downloads: 8
Downloads
References
Adeoye, I., Adesuyi, I. O., Kolawole, J., & Ilesanmi, D. O. (2022). Digital Marketing Strategies and Customer Purchase Decision Among SME’s in Oyo State, Nigeria. Elizade University International Journal of Management, 1(1). https://doi.org/10.57000/euijm/2022.0101.03-dm
Ajmal, M. M., Jan, A., Khan, M., Hussain, M., & Salameh, A. A. (2023). Exploring the barriers and motivators of value co-creation through a theoretical lens of service-dominant logic. Journal of Business & Industrial Marketing.
Amadasun, D. E. O., & Mutezo, A. T. (2022). Effect of Market-Driven Strategies on the Competitive Growth of SMEs in Lesotho. Journal of Innovation and Entrepreneurship, 11(1). https://doi.org/10.1186/s13731-022-00217-4
Apasrawirote, D., Yawised, K., & Muneesawang, P. (2022). Digital Marketing Capability: The mystery of Business Capabilities. Marketing Intelligence & Planning, 40(4), 477-496. https://doi.org/10.1108/mip-11-2021-0399
Bagherzadeh, R., Rawal, M., Wei, S., & Torres, J. L. S. (2020). The journey from customer participation in service failure to co-creation in service recovery. Journal of Retailing and Consumer Services, 54, 102058.
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the academy of marketing science, 16, 74-94.
Blinda, K., Schnittka, O., Sattler, H., & Gräve, J.-F. (2019). Implementing Effective Customer Participation for Hedonic and Utilitarian Services. Journal of Services Marketing, 33(3), 316-330. https://doi.org/10.1108/jsm-07-2018-0196
Blut, M., Heirati, N., & Schoefer, K. (2020). The dark side of customer participation: when customer participation in service co-development leads to role stress. Journal of Service Research, 23(2), 156-173.
Boaventura, P. S. M., & Brito, E. P. Z. (2018). Leveraging Highly Relational Service Performance Through the Participation of Empowered Customer. Revista Brasileira de Marketing, 17(3), 314-328. https://doi.org/10.5585/remark.v17i3.3483
Bürkel, J., & Zimmermann, A. (2021). Service-dominant design: a digital ideation method. Architecting the Digital Transformation: Digital Business, Technology, Decision Support, Management, 143-162.
Carlson, J., Rahman, M., Voola, R., & De Vries, N. (2018). Customer engagement behaviours in social media: capturing innovation opportunities. Journal of Services Marketing.
Carlson, J., Wyllie, J., Rahman, M. M., & Voola, R. (2019). Enhancing brand relationship performance through customer participation and value creation in social media brand communities. Journal of Retailing and Consumer Services, 50. https://doi.org/10.1016/j.jretconser.2018.07.008
Chang, W., & Taylor, S. A. (2016). The effectiveness of customer participation in new product development: A meta-analysis. Journal of marketing, 80(1), 47-64.
Chang, Y., Wang, X., & Arnett, D. B. (2018). Enhancing firm performance: The role of brand orientation in business-to-business marketing. Industrial Marketing Management, 72, 17-25.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.
Cheng, Y.-Y., Tung, W.-F., Yang, M.-H., & Chiang, C.-T. (2019). Linking relationship equity to brand resonance in a social networking brand community. Electronic Commerce Research and Applications, 35, 100849.
Cheung, M. F. Y., & To, W. M. (2016). A Customer-Dominant Logic on Service Recovery and Customer Satisfaction. Management Decision, 54(10), 2524-2543. https://doi.org/10.1108/md-03-2016-0165
Diamantopoulos, A., & Winklhofer, H. M. (2001). Index construction with formative indicators: An alternative to scale development. Journal of Marketing Research, 38(2), 269–277. https://doi.org/10.1509/jmkr.38.2.269.18845
Dong, B., Sivakumar, K., Evans, K. R., & Zou, S. (2015). Effect of customer participation on service outcomes: The moderating role of participation readiness. Journal of service research, 18(2), 160-176.
Dong, J. Q., & Wu, W. (2015). Business value of social media technologies: Evidence from online user innovation communities. The journal of strategic information systems, 24(2), 113-127.
Ercsey, I. (2017). The Role of Customers’ Involvement in Value Co-Creation Behaviour Is Value Co-Creation the Source of Competitive Advantage? Journal of Competitiveness, 9(3), 51-66. https://doi.org/10.7441/joc.2017.03.04
Farida, N., & Prabawani, B. (2021). Building innovation capabilities on collaboration and market orientation for improving marketing performance of wood furniture craft. Humanities and Social Sciences Letters, 9(4), 439-451.
Fornell, C., & Larcker, D. F. (1981a). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing research, 18(1), 39-50.
Fornell, C., & Larcker, D. F. (1981b). Structural equation models with unobservable variables and measurement error: Algebra and statistics. In: Sage Publications Sage CA: Los Angeles, CA.
Gallarza, M., Gil-Saura, I., & Arteaga-Moreno, F. (2023). Bridging service dominant logic and the concept of customer value through higher order indexes: Insights from hospitality experiences. European Journal of Tourism Research, 35, 3510-3510.
Gao, J., Siddik, A. B., Abbas, S. K., Hamayun, M., Masukujjaman, M., & Alam, S. S. (2023). Impact of E-Commerce and Digital Marketing Adoption on the Financial and Sustainability Performance of MSMEs During the COVID-19 Pandemic: An Empirical Study. Sustainability, 15(2), 1594. https://doi.org/10.3390/su15021594
Grönroos, C., & Gummerus, J. (2014). The Service Revolution and Its Marketing Implications: Service Logic vs Service-Dominant Logic. Managing Service Quality, 24(3), 206-229. https://doi.org/10.1108/msq-03-2014-0042
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. (2010). Multivariate data analysis (7th editio). Harlow: Pearson Education Limited.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139-152.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019a). Multivariate data analysis (8th ed.). Cengage Learning.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019b). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hayes, A. F. (2015). An index and test of linear moderated mediation. Multivariate Behavioral Research, 50(1), 1–22. https://doi.org/10.1080/00273171.2014.962683
Heng, L., Ferdinand, A. T., Afifah, N., & Ramadania, R. (2020). Service innovation capability for enhancing marketing performance: An SDL perspective. Business: Theory and Practice, 21(2), 623–632. https://doi.org/10.3846/btp.2020.12163
Henseler, J., & Chin, W. W. (2010). A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Structural Equation Modeling, 17(1), 82–109. https://doi.org/10.1080/10705510903439003
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Henseler, J., & Sarstedt, M. (2013). Goodness-of-fit indices for partial least squares path modeling. Computational statistics, 28, 565-580.
Huarng, K. H., & Más‐Verdú, F. (2018). Innovation and Service-Dominant Logic. Service Business, 12(3), 453-456. https://doi.org/10.1007/s11628-018-0369-6
Hughes, T. (2019). Marketing Agency/Client Service-for-Service Provision in an Age of Digital Transformation. Journal of Business-to-Business Marketing, 26(3-4), 265-280. https://doi.org/10.1080/1051712x.2019.1611080
Jarvis, C. B., MacKenzie, S. B., & Podsakoff, P. M. (2003). A critical review of construct indicators and measurement model misspecification in marketing and consumer research. Journal of Consumer Research, 30(2), 199–218. https://doi.org/10.1086/376806
Kamasak, R. (2017). The contribution of tangible and intangible resources, and capabilities to a firm’s profitability and market performance. European Journal of Management and Business Economics.
Karpen, I. O., Bove, L. L., & Lukas, B. A. (2012). Linking service-dominant logic and strategic business practice: A conceptual model of a service-dominant orientation. Journal of Service Research, 15(1), 21-38.
Khan, K. U., Xuehe, Z., Atlas, F., & Khan, F. (2019). The impact of dominant logic and competitive intensity on SMEs performance: A case from China. Journal of Innovation & Knowledge, 4(1), 1-11.
Kiliç, S. (2016). Cronbach's alpha reliability coefficient. Psychiatry and Behavioral Sciences, 6(1), 47.
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1–10. https://doi.org/10.4018/ijec.2015100101
Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS-SEM: The inverse square root and gamma-exponential methods. Information Systems Journal, 28(1), 227–261. https://doi.org/10.1111/isj.12131
Krings, W., Palmer, R., Harrison, M. J., & Inversini, A. (2022). Digital Media as a Game-Changer in B2B Buyer-Vendor Relationships. Journal of Sustainable Business and Economics, 5(3), 27-43. https://doi.org/10.30564/jsbe.v5i3.17
Kristensen, H. S., & Remmen, A. (2019). A framework for sustainable value propositions in product-service systems. Journal of cleaner production, 223, 25-35.
Lichtenthaler, U. (2021). Data Management Efficiency: Major Opportunities for Shared Value Innovation. Management Research Review, 45(2), 156-172. https://doi.org/10.1108/mrr-10-2020-0639
Liu, H., & Tan, K. H. (2023). The Viewer Value Co-Creation Process on Sports Live Streaming Platforms. Industrial Management & Data Systems, 123(5), 1523-1547. https://doi.org/10.1108/imds-04-2022-0251
Lusch, R. F., & Vargo, S. L. (2006). Service-dominant logic: Reactions, reflections and refinements. Marketing Theory, 6(3), 281-288. https://doi.org/10.1177/1470593106066781
Lusch, R. F., Vargo, S. L., & O'Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of Retailing, 83(1), 5–18. https://doi.org/10.1016/j.jretai.2006.10.002
Mishra, S., Ewing, M. T., & Pitt, L. F. (2020). The effects of an articulated customer value proposition (CVP) on promotional expense, brand investment and firm performance in B2B markets: A text based analysis. Industrial Marketing Management, 87, 264-275.
Morgan, T., Anokhin, S. A., & Wincent, J. (2019). Influence of market orientation on performance: the moderating roles of customer participation breadth and depth in new product development. Industry and Innovation, 26(9), 1103-1120.
Morgan, T., Obal, M., & Anokhin, S. (2018). Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies. Research Policy, 47(2), 498-510.
Mustak, M., Jaakkola, E., Halinen, A., & Kaartemo, V. (2016). Customer Participation Management. Journal of Service Management, 27(3), 250-275. https://doi.org/10.1108/josm-01-2015-0014
Ng, H. S., Kee, D. M. H., & Ramayah, T. (2020). Examining the mediating role of innovativeness in the link between core competencies and SME performance. Journal of Small Business and Enterprise Development, 27(1), 103-129.
Oduro, S., & Mensah-Williams, E. (2023). Marketing Capabilities and Competitive Performance in the SMEs Context: A Bi-Theoretical Perspective. Journal of Small Business Strategy, 33(2), 17-35.
Palma, F., Trimi, S., & Hong, S.-G. (2018). Motivation Triggers for Customer Participation in Value Co-Creation. Service Business, 13(3), 557-580. https://doi.org/10.1007/s11628-018-00395-w
Pandey, S., & Kumar, D. (2020). Customer-to-customer value co-creation in different service settings. Qualitative Market Research: An International Journal, 23(1), 123-143.
Panjaitan, R., Moonti, A., & Adam, E. (2021). Technology Readiness and Digital Competing Capabilities: Digital Value Resonance. Shirkah: Journal of Economics and Business, 6(2), 205-226.
Pham, T.-A. N., Le, H. N., Nguyen, D. T., & Pham, T. N. (2022). Customer service co-creation literacy for better service value: evidence from the health-care sector. Journal of Services Marketing, 36(7), 940-951.
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
Ponsignon, F., Davies, P., Smart, A., & Maull, R. (2021). An in-Depth Case Study of a Modular Service Delivery System in a Logistics Context. The International Journal of Logistics Management, 32(3), 872-897. https://doi.org/10.1108/ijlm-07-2020-0295
Preacher, K. J., Rucker, D. D., & Hayes, A. F. (2007). Addressing moderated mediation hypotheses: Theory, methods, and prescriptions. Multivariate Behavioral Research, 42(1), 185–227. https://doi.org/10.1080/00273170701341316
Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. SmartPLS GmbH. http://www.smartpls.com
Prebensen, N. K., Kim, H.-L., & Uysal, M. (2016). Cocreation as Moderator Between the Experience Value and Satisfaction Relationship. Journal of Travel Research, 55(7), 934-945. https://doi.org/10.1177/0047287515583359
Rahman, M., Faroque, A. R., Sakka, G., & Ahmed, Z. U. (2022). The impact of negative customer engagement on market-based assets and financial performance. Journal of Business Research, 138, 422-435. https://doi.org/10.1016/j.jbusres.2021.08.023
Rantala, T., Ukko, J., Saunila, M., Puolakoski, H., & Rantanen, H. (2019). Creating sustainable customer value through digitality. World Journal of Entrepreneurship, Management and Sustainable Development, 15(4), 325-340.
Raza Bilal, A., Naveed, M., & Anwar, F. (2017). Linking distinctive management competencies to SMEs’ growth decisions. Studies in Economics and Finance, 34(3), 302-330.
Rosita, J., Ihalauw, J., Abdi, A. S., & Sirine, H. (2023). The Effect of Entrepreneurial Orientation and Social Media Adoption on Marketing Performance of Culinary Start-up Business. Journal of System and Management Sciences, 13(3), 29-51.
Samuelsson, P. (2023). The effects of innovation types and customer participation on organizational performance in complex services. European Journal of Marketing, 57(13), 27-55.
Sashi, C. M. (2021). Digital Communication, Value Co-Creation and Customer Engagement in Business Networks: A Conceptual Matrix and Propositions. European Journal of Marketing, 55(6), 1643-1663. https://doi.org/10.1108/ejm-01-2020-0023
Saura, J. R., Palacios-Marqués, D., & Ribeiro-Soriano, D. (2021). Digital marketing in SMEs via data-driven strategies: Reviewing the current state of research [Article]. Journal of Small Business Management. https://doi.org/10.1080/00472778.2021.1955127
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322–2347. https://doi.org/10.1108/EJM-02-2019-0189
Streukens, S., & Leroi-Werelds, S. (2016). Bootstrapping and PLS-SEM: A step-by-step guide to get more out of your bootstrap results. European Management Journal, 34(6), 618–632. https://doi.org/10.1016/j.emj.2016.06.003
Suciu, A.-D., Tudor, A. I. M., Chițu, I. B., Dovleac, L., & Brătucu, G. (2021). IoT technologies as instruments for SMEs’ innovation and sustainable growth. Sustainability, 13(11), 6357.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17. https://doi.org/10.1509/jmkg.68.1.1.24036
Vargo, S. L., & Lusch, R. F. (2008a). Service-dominant logic: Continuing the evolution. Journal of the Academy of Marketing Science, 36(1), 1-10. https://doi.org/10.1007/s11747-007-0069-6
Vargo, S. L., & Lusch, R. F. (2008b). Why “service”? Journal of the Academy of marketing Science, 36(1), 25-38. https://doi.org/10.1007/s11747-007-0068-7
Waheed, M., & Kausar, A. R. (2020). Exploring divergence and convergence of training and development using service-dominant logic. International Journal of Business Competition and Growth, 7(1), 4-27.
Wang, L., Jin, J., Zhou, K., Li, C., & Yin, E. (2020). Does customer participation hurt new product development performance? Customer role, product newness, and conflict. Journal of Business Research. https://www.sciencedirect.com/science/article/pii/S0148296319307799
Wilden, R., Akaka, M. A., Karpen, I. O., & Hohberger, J. (2017). The Evolution and Prospects of Service-Dominant Logic. Journal of Service Research, 20(4), 345-361. https://doi.org/10.1177/1094670517715121
Wilden, R., & Gudergan, S. (2017). Service-dominant orientation, dynamic capabilities and firm performance. Journal of Service Theory and Practice, 27(4), 808-832.
Wu, X. L., & Feiyan, L. (2018). An Analysis of the Motivation of Customer Participation Value Co-Creation in the We-Media: A Study Based on Content Marketing. Open Journal of Business and Management, 06(03), 749-760. https://doi.org/10.4236/ojbm.2018.63057
Xie, L., Li, D., & Keh, H. T. (2020). Customer participation and well-being: the roles of service experience, customer empowerment and social support. Journal of Service Theory and Practice, 30(6), 557-584.
Zhang, J., Jiang, Y., Shabbir, R., & Du, M. (2015). Building industrial brand equity by leveraging firm capabilities and co-creating value with customers. Industrial marketing management, 51, 47-58.
Zhang, T. J., Wang, D. T., Tse, C. H., & Tse, S. Y. (2024). Enhancing subsidiary innovation capability through customer involvement in new product development: A contingent knowledge source perspective. Journal of Product Innovation Management, 41(1), 86-111.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Roymon Panjaitan, Handy Nur Cahya, Bobur Sobirov

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
