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The factors that drive green innovation investment and exploitation are examined • Economic, institutional, and social factors drive green innovation investment • Green innovation exploitation is driven by institutional and economic factors • Environmental sustainability valuation was not found to affect green innovation

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Purpose The purpose of this paper is to explore the different human factor characteristics that are emphasized when co-creating value through digital service capabilities. Design/methodology/approach Empirical data are gathered from two small companies that deliver digital services and products in business-to-business markets. Findings The study highlights the role and importance of human factors as reflected in employees’ customer orientation while delivering digital service capabilities. The role of human factors also changes during the digital service production process. Originality/value Developing digital service capability is positively associated with value co-creation, but it requires new skills: firms need to evaluate their mechanisms for supporting continuous learning about the properties of digital technologies. To the authors’ knowledge, this is the first study to focus on the role of human factors in in developing digital service capabilities.

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