Driving sustainability-oriented service innovation in the digital era

Purpose This study examines the dynamic effect of the level of technological advancement [information and communication technologies (ICT)] on sustainability-oriented service innovation (SOSI) and analyses its impact on both brand equity and customer satisfaction with retail establishments. To this end, a causal model is developed that describes the nature of SOSI, identifies ICT as its main antecedent and suggests brand equity and satisfaction as outcome variables. Furthermore, the proposed model incorporates the use of artificial intelligence (AI) tools as a key element in the retail sector. Design/methodology/approach The quantitative research is conducted through an ad hoc survey of a consumer panel, obtaining a total sample of 1,746 responses from customers of retail establishments in Spain. To examine the proposed relationships, the data are analysed using partial least squares regression. Findings The results show that ICT strengthens customers’ perception of SOSI, increasing both their perception of brand equity and their satisfaction with the establishments. Furthermore, the ICT → SOSI effect varies according to the customer’s level of AI use. Originality/value This study contributes to the retailing and sustainability literature by conceptualising SOSI from the consumer perspective and empirically demonstrating how ICT-driven SOSI translates into brand equity and customer satisfaction, while explicitly accounting for the differences between AI users and non-AI users.