Resource Scarcity and Co-creation of Service Innovation from Co-location Perspective: The Case of Lithuanian Resort Birstonas

This paper searches for a response to whether resource scarcity can propel the collaboration of co-located service organizations in order to obtain deficient resources for the creation and implementation of service innovation. Qualitative in nature, this study is based on an empirical examination of health tourism and wellness services organizations co-located in the smallest resort Birstonas town of Lithuania. The study's findings indicate that service innovation requires a wide range of resources where intangible resources dominate against tangible resources. Studied organizations, in creating service innovation, focus exceptionally on internal resources and face the issue of the accessibility of resources. Nevertheless, resource scarcity is not conceded as a factor influencing the closer collaboration of co-located organizations in searching for deficient resources for service innovation. Despite that, the co-location of service organizations has a positive effect on collaboration among studied service organizations in other professional and social activities and provides various benefits.