Abstract
The Problem
In the past decade, consumer spending on unique experiences (like vacations and concerts) relative to consumer spending on material goods (like vehicles and clothing) has increased dramatically. This has prompted renewed interest in studying the workplace practices of firms that place the co-created customer experience at the heart of their innovation efforts. In this industry context, innovation is collective, incremental, and ongoing. An updated perspective on developing and maintaining organizational capacities for continuous innovation in the experience economy is needed.
The Solution
A research-based model of organizational capacities for experience innovation is presented. The author discusses how the dimensions labeled Connect, Refresh, and Energize are consistent with key concepts of basic psychological needs and optimal motivation perspectives. This article helps make the business case for self-determination theory from the perspective of senior managers in the field.
The Stakeholders
The specific leadership practices are measurable and can be practically applied by managers and human resource development (HRD) scholar-practitioners in their own organizations.
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