Analyzing the Impact of Value Co-Creation on the Sustainable Development of Urban Tourism, The Mediating Roles of Virtual Reality and Augmented Reality: A case study of Ardabil

Document Type : Research extracted From projects

Authors

1 Department of Business Management, Faculty of Social Sciences, Mohaghegh Ardabili University, Ardabil, Iran

2 Department of Business Management, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran

10.22059/jut.2025.393487.1286

Abstract

A B S T R A C T
Urban tourism development has received comparatively less scholarly and practical attention than other forms of tourism. Consequently, there is an increasing need for tourist engagement in the sustainable development of urban tourism, particularly through the integration of emerging technologies. This study aimed to examine the impact of value co-creation on the sustainable development of urban tourism, with virtual reality and augmented reality serving as mediating variables (Case study: Ardabil, Iran). Methodologically, the study is applied in purpose and adopts a descriptive-survey design with a correlational approach. The statistical population comprised tourists visiting the city of Ardabil. Using Cochran’s formula for large populations, a sample of 384 tourists was selected through simple random sampling, and the research questionnaire was distributed accordingly. The validity of the questionnaire was assessed through confirmatory factor analysis, and its reliability was confirmed using Cronbach’s alpha coefficient. Data analysis was conducted using structural equation modeling (SEM) with the aid of SPSS version 26 and SmartPLS version 3. The results revealed that value co-creation had a direct and significant impact on urban tourism (t > 1.96, β = 0.177), virtual reality (t > 1.96, β = 0.563), and augmented reality (t > 1.96, β = 0.429). Additionally, virtual reality significantly influenced urban tourism (t > 1.96, β = 0.659), as did augmented reality (t > 1.96, β = 0.116). Furthermore, both virtual reality (Z > 1.96, β = 0.37) and augmented reality (Z > 1.96, β = 0.05) were found to mediate the relationship between value co-creation and urban tourism. These findings offer practical implications for promoting the sustainable development of urban tourism.
Extended Abstract
Introduction
In light of the growing importance of value co-creation in the tourism industry and the rapid technological advancements in recent years—particularly the emergence of virtual reality (VR) and augmented reality (AR) as influential tools in tourism—it has become essential to investigate the interrelationships among these variables. This need is further emphasized by the limited number of studies that have simultaneously examined value co-creation, VR, and AR within the context of sustainable urban tourism, especially in localized settings such as the city of Ardabil.
Accordingly, the primary objective of this study was to analyze the impact of value co-creation on the sustainable development of urban tourism, with VR and AR acting as mediating variables (case study: Ardabil, Iran). The central research question was whether value co-creation, facilitated by VR and AR technologies, can contribute to the sustainable development of urban tourism.
 
Methodology
This study is applied in terms of its purpose and employs a descriptive-correlational survey design. The statistical population consisted of all tourists visiting the city of Ardabil. Simple random sampling was employed, and the sample size was determined using Cochran’s formula. Given the large size of the target population, the final sample included 384 respondents.
For data collection in the field phase, four standardized questionnaires were utilized: “Value Co-Creation,” “Tourism Development Strategies,” “Application of Virtual Reality,” and “Augmented Reality.” The reliability of the questionnaires was assessed using composite reliability and Cronbach’s alpha, while their validity was confirmed through confirmatory factor analysis (CFA). Data analysis was performed using structural equation modeling (SEM) with a partial least squares (PLS) approach, supported by SPSS version 26 and SmartPLS version 3.
 
 
Results and Discussion
The analysis revealed that the path coefficient for the effect of value co-creation on urban tourism was 0.177. Given the t-value of 4.784, which is statistically significant at the 0.05 level, it can be stated with 95% confidence that value co-creation has a positive and significant impact on urban tourism. Accordingly, value co-creation—particularly through active tourist participation—can contribute to the sustainable development of urban tourism. In line with the dominant logic of service systems, greater tourist involvement in the value co-creation process enhances its contribution to sustainable urban development.
The path coefficient for the effect of value co-creation on virtual reality was 0.563, with a t-value of 16.415, indicating statistical significance at the 0.05 level. Thus, value co-creation exerts a positive and significant effect on virtual reality. According to the service-dominant logic, increased user engagement with virtual reality technologies facilitates the identification and resolution of technological shortcomings.
The effect of virtual reality on urban tourism yielded a path coefficient of 0.659 and a t-value of 17.564, indicating a strong and statistically significant relationship at the 0.05 level. Accordingly, virtual reality technology can serve as a key enabler of sustainable urban tourism development. Enhancing this technology and using it to effectively showcase urban destinations to potential visitors can further advance sustainable urban tourism.
The path coefficient for the impact of value co-creation on augmented reality was 0.429, with a t-value of 9.785, confirming statistical significance at the 0.05 level. Accordingly, value co-creation supports the refinement and more effective deployment of augmented reality technologies. As per service-dominant logic, higher user involvement in augmented reality technologies enables more responsive improvements to address existing limitations.
The relationship between augmented reality and urban tourism showed a path coefficient of 0.116 and a t-value of 3.269, indicating a statistically significant positive effect at the 0.05 level. Thus, augmented reality technology can play a pivotal role in fostering sustainable urban tourism. Enhancing this technology and integrating real and virtual imagery to promote urban destinations can contribute meaningfully to sustainable tourism development.
The indirect effect of virtual reality on the relationship between value co-creation and urban tourism yielded a path coefficient of 0.37, with a Z-value of 11.67 (Sobel test), indicating significance at the 0.05 level. This confirms that virtual reality functions as a mediating variable in the relationship between value co-creation and urban tourism. Accordingly, the integration of value co-creation processes with virtual reality technologies can promote sustainable urban tourism development.
The indirect effect of augmented reality on the value co-creation–urban tourism link produced a path coefficient of 0.05 and a Z-value of 3.06 (Sobel test), statistically significant at the 0.05 level. Thus, augmented reality also serves as a mediating factor in the relationship between value co-creation and urban tourism. Accordingly, value co-creation facilitated through augmented reality technologies can further support the sustainable development of urban tourism.
 
Conclusion
Today, advancements in emerging technologies have enhanced the potential for greater tourist participation and engagement in the value co-creation process. In this context, technologies such as virtual reality (VR) and augmented reality (AR) can play a pivotal role. The research findings suggest that value co-creation through VR and AR contributes significantly to the sustainable development of urban tourism. In conclusion, enhancing tourist participation in the sustainable development of urban tourism through VR and AR technologies is now feasible and has already made a notable impact in this domain
 
Funding
This article is derived from a research project that was implemented with the financial support of the research and technology department of University of Mohaghegh Ardabili.
 
Authors’ Contribution
Authors contributed equally to the conceptualization and writing of the article. All of the authors approved thecontent of the manuscript and agreed on all aspects of the work declaration of competing interest none.
 
Conflict of Interest
Authors declared no conflict of interest.
 
Acknowledgments
The authors thanks and appreciates all those who helped in this research, especially those who evaluated the quality of the articles.

Keywords

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urban tourism
Volume 12, Issue 2
August 2025
Pages 59-79

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