Experimenting on the metaverse to foster innovation

Purpose This study aims to investigate the evolving concept of the metaverse and its implications for service innovation. It seeks to understand how integrating technologies such as extended reality, blockchain, artificial intelligence and non-fungible tokens enables companies to experiment and innovate. Design/methodology/approach Adopting a qualitative methodology, this investigation conducts an immersive netnography across more than 25 case studies spanning diverse industries such as gaming, retail, health care and education. The thematic analysis method is used to distill critical insights, providing a deep dive into the technological enablers, innovation processes and market adaptations within the metaverse. Findings The study addresses four main building blocks through which companies experiment with the metaverse to foster innovation: enabling virtual identities’ agency, developing non-fungible tokens, designing immersive paths and crafting phygital microworlds. They shape the metaverse by enacting actors, resources, processes and phygital ecosystems. Companies obtain learning outcomes from such experimentation and identify learning challenges. Originality/value This research contributes to the nascent body of knowledge on the metaverse and service innovation by providing a comprehensive framework that encapsulates the multifaceted ways companies experiment within the metaverse. It extends the understanding of digital-physical convergence in service research, offering theoretical and practical insights into the development of phygital service ecosystems.