Service innovation in Indian knowledge-intensive business services: the Wipro case

Abstract

Innovation is a major factor in the survival of many firms; more specifically for firms in the service sector. Since the service industry is growing fast in India, knowledge intensive business services (KIBS) have understood the need for innovation through the creation and distribution of knowledge. Current literature on service innovation has rarely examined the internal innovation of KIBS firms; it has only been focusing on the acting role of KIBS in innovation for their client firms. Information transfer, design, and implementation of knowledge to the client firm are services provided by KIBS. Helping in to understand the relationships between knowledge management and innovation in KIBS provides ample scope for empirical investigation. The aim of the research is to extend Nonaka and Takeuchi’s (1995) knowledge management life cycle model and to prove, internal and external knowledge acts as a tool for service innovation, in Indian KIBS. Through a case study on a leading Indian KIBS – Wipro – we try to complement existing theory on service innovation with specific reference to knowledge management in KIBS.