Abstract
The study is a pilot investigation of the critical factors that are contributing to successful innovations in the service sector in Pakistan. The study dependent variable is innovation performance which has been divided into four main dimensions that are service innovations, process innovations, organization innovations, and marketing innovations while the independent variables are human capital, acquisition of knowledge, information sources for innovations and cooperation for innovation, and the moderating variables are size of firm in term of number of employees and budget for innovation. The data was collected using the modified CIS (community innovation survey) questionnaire which is mostly used by most European countries to access the innovation performance of firm. A sample of 127 firms was taken from different service firms from banking, software development, health, telecommunication firms. The study has firstly used descriptive analysis to explain the characteristics of sample then different inferential statistics are used to check the hypothesis developed for the study. The reliability, validity, internal consistency and internal correlation of items in the CIS was checked by using values of Cronbch’s Alpha values and KMO values for factor analysis. The study has used the Tobit regression model and the results have shown the P value of human capital and information sources are significant for service innovations and the value for cooperation for innovation is significant for process innovations while human capital and cooperation for innovation had significant p values at 5 percent significance level for organizational innovations and acquisition of knowledge and information sources have significant p value for marketing innovations. And the value for budget for innovation is significant for firm’s organizational innovations.
Highlights
Services and innovations have characterized the recent growth of world economies, the service sector and innovation is emerging as a research area with an increasing importance and reference to economies especially the developing and under developed economies but many researchers (Sanchez, 2010; Castro et al, 2011; Crevani et al, 2011)
As according to the inversion perspective of innovation services are in itself a source of innovation in other sectors especially in the manufacturing sector so from this perspective the importance of conducting research about innovations in service sector becomes even more important as these innovations can be treated as high tech innovations. (Czarnitzski & Spielkamp, 2009) says services are becoming more and more innovative imagined as compared to the manufacturing sector innovations average OECD (2005) and playing multivariate role in economies in all world economies the share of services is increasing every year in the Gross Domestic Product (GDP) especially related to those in the high tech sector
According to Vermeulen et al (2005) If we consider that the delivery of many services are based on people and their knowledge it is natural that human capital and knowledge emerge as important and crucial factors of innovation in services
Summary
Services and innovations have characterized the recent growth of world economies, the service sector and innovation is emerging as a research area with an increasing importance and reference to economies especially the developing and under developed economies but many researchers (Sanchez, 2010; Castro et al, 2011; Crevani et al, 2011). (Czarnitzski & Spielkamp, 2009) says services are becoming more and more innovative imagined as compared to the manufacturing sector innovations average OECD (2005) and playing multivariate role in economies in all world economies the share of services is increasing every year in the GDP especially related to those in the high tech sector Another important trend in service sector is that the services and products are becoming merged with each other and the intangible and tangible difference is becoming smaller and smaller so there is a strong need to conduct further studies in the area of service innovations especially with reference to developing countries. Strategy works as an inspiration for innovation to know the desires of customers and internal available resources, in strategic innovations market demand is customer demand, competition, market possibilities and ideas for innovation comes from both internal and external sources
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