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The purpose of this paper is to explore the role of context in service innovation by developing a conceptual framework that illuminates the key elements and trends in context change.

The paper adopts a service ecosystem lens for understanding how elements and trends in context foster service innovation. A conceptual framework identifying the role of context change in fostering service innovation is developed and justified through illustrations across industry settings of health, retailing, banking and education.

Context change is conceptualized by three trends – speed, granularity and liquification – that provide an analytical foundation for understanding how changes in the elements of context – space, resources and institutional arrangements – can foster service innovation. The analysis indicates emerging patterns across industries that allow exploring scenarios …