Abstract
Applying the concept of absorptive capacity in the context of consumer integration for new product development in tourism, this study provided empirical support for the multidimensionality of capacity for consumer co-creation. Co-creation capacity consists of lower level capabilities, including explorative, transformative and exploitative capacity to turn consumer knowledge into consumer-centric products/services. It was identified that social media, in which consumers are increasingly participating in the knowledge exchange processes, is an important avenue for tourism organizations to nurture relationships with consumers that drive participation and integration. Social media strategy is shown to have a positive effect on capacity for co-creation, specifically the capability to process consumer knowledge into valuable assets. Finally, it was also identified that capacity for co-creation among tourism organizations has a positive impact on their performance.