The convergence of globalization and digitalization has thoroughly transformed the business environment. Therefore, enterprises need a user-centered and open-innovation ecosystem to promote the value co-creation process in order to perform better than their rivals. This paper presents a service-oriented approach for designing a Living Lab for continuous performance improvement in enterprises, especially small-and-medium-size enterprises (SMEs). The proposed Living Lab is an on-going project for the creation of a living laboratory that will support the upgrading program for SMEs in developing countries. The purpose of this Living Lab is to integrate the co-creation and experimentation of innovative ideas and performance improvements in real-life use cases.