Purpose. The main aim of this paper is to assess and analyze the role of sustainability policy in influencing service innovation practices in the context of public transport. The intension is to understand the critical dimensions related to sustainability policy driven service innovation. The critical dimensions mainly focus on the relationship between innovation and policy, the challenges, competences and opportunities driven by sustainability policy. Design/methodology/approach. The paper is of an explorative nature. Critical case study method is adopted in this paper to understand the role of sustainability policy in service innovation. Findings. The study reveals that national sustainability policy framework drives the formulation and implementation of sustainable service innovation as a tool to achieve sustainable public transit system. The sustainability policy context in terms of responsibility, power and resource integration creates shared-platform that induces service innovation, which create value co-creation opportunities to the customers and other stakeholders. Research limitations/implications. The single case-study design of the present research does not enable empirical generalizations to be made. Contribution/value. The paper makes an original contribution to the study of sustainable and innovative public transit by explicitly linking the adoption of sustainability policy and its role in service innovation and value co-creation embedded on social and environmental perspectives. Practical implications. National policies often cannot influence local/urban transport directly, but become effective tool towards service innovation and value co-creation.
Keywords: Sustainable public transit, sustainability policy, service innovation, value cocreation, bus rapid transit
Jel Code: L88