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This paper aims to explore the role of customer engagement during the production of services in a modular innovation. Modularity can be used to explain the structure and relationship in services innovation.

The authors explore the theory of modularity focussing on the context of consumer engagements. They adopted ideas from product modularity and approach services using modular principle.

Contrary to the extant literature, the authors are content that the transactions between the participants were mainly conducted at thick crossing points. By focusing on thin crossing point, the service provider will achieve better overall service structure.

There is a need to focus on specifying interface to define how service modules and service providers interact with the customer within the service.

By engaging customer, modular principle can help firms achieve cost efficiency, higher product and process variety, as well as better response to individual customer needs.

This paper scrutinises the engagement of customer and conceptualises the role of customer in modular innovations that have been previously neglected.

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