Realizing innovation in services

Abstract

This article describes a number of innovation forms that are of special relevance to firms in the service industry. Not only technological innovations but also organizational innovations have been distinguished. In the service industry organizational innovations seem to play a significant role. The literature on innovations makes little mention of new organizational arrangements in services. Based on the service management literature a scheme with three forms of organizational innovation and one form of technological innovation is developed. This scheme is illustrated and elaborated in ten case studies of firms in various service industries. The case studies shed some light on innovations in multi-unit forms, combinations of services and co-operation with customers. On a basis of the service management literature and the case studies some of the main processes supporting the (organizational) innovations are analysed.