Abstract

The purposes of this study are, in the first stage, to conceptualize service innovation effort, corporate performance by checking their validity and reliability, and to examine empirically the causal relationships between service innovation effort and corporate performance in service industry of China.BR In the second stage of this study, we examined whether there are moderate effects on the relationship by implementing servicescape strategy and CRM strategy respectively. To confirm two models we conducted sample survey for empirical analysis to 194 companies of 10 cities in China.BR The results of this study are as follows : firstly, 2 constructs are confirmed as valid and reliable ones used in models for empirical studies. Second, service innovation efforts has positive effect on corporate performance. Third, servicescape strategy shows significant positive moderate effect on relationship between service innovation effort and corporate performance, while CRM strategy does not. This implies that sevicescape strategy has synergy effect on service innovation effort of Chinese service companies in order to improve performance.

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