Value co-creation practices in the service of innovative digital products and their effects on consumer eudaimonic well-being

Innovative digital products (IDPs) are novel products that combine traditional physical components with smart (AI) and connectivity (IoT) components. While these innovative technological products are designed to enhance consumer well-being, their actual effects remain controversial. We propose resolving the well-being paradox in smart services through consumer-driven value co-creation with IDPs. However, how consumers proactively leverage IDPs to co-create value and enhance their well-being remains underexplored. Our research aims to identify the specific value co-creation practices between consumers and IDPs that can improve consumer eudaimonic well-being and examine the underlying mechanisms. In Study 1, we employed practice theory—a sociological lens—to qualitatively identify three types of consumer-IDP value co-creation practices: (1) adapting practices, (2) crafting practices, (3) connecting practices. In Study 2, we quantitatively demonstrated that these practices positively affected basic need satisfaction, which in turn enhanced consumer eudaimonic well-being. Our research provides theoretical contributions and managerial implications for facilitating consumer-driven value co-creation and improving consumer well-being in IDP services.