Successful Service Innovation Research Articles

How transformational leadership fuels employees’ service innovation behavior

Although there is a consensus that transformational leadership (TFL) is critical to successful service innovation behavior, the relationship between the two remains inconclusive. This study adopts a dual perspective approach that considers both motivational and social-political perspectives to further elicit the influence of TFL on the service innovation behavior of frontline employees. Using multiphase and multisource data from 269 employees and 1396 customers of hair salons, the results show that the perceived organizational climate for innovation, creative self-efficacy, and expected image gains fully mediate the relationship between TFL and employees’ service innovation behavior. TFL positively influences employees’ perceived organizational climate for innovation, which in turn enhances the service innovation behavior of employees through both motivational (i.e. creative self-efficacy) and social-political (i.e. expected image gains) mediating mechanisms. Surprisingly, expected image risks are found to have a non-significant relationship with service innovation behavior. We discuss implications of these findings with respect to innovation literature and management practice, as well as offer suggestions for further research.

Alignment Between Service Innovation Strategy and Business Strategy and Its Effect on Firm Performance: An Empirical Investigation

A well-planned service innovation strategy is recognized as a prerequisite for successful service innovation in organizations. However, prior studies on service innovation strategies struggle to provide guidance on successful service innovation, because they do not consider the alignment between service innovation strategy and business strategy. Furthermore, they did not consider conditions, such as industries, that affect the alignments to improve firm performance. By using empirical data collected from 175 service firms in Korea, this study aims to investigate the effect of alignments between service innovation strategy (i.e., service creation-focused [SCFS], service delivery-focused [SDFS], and customer interaction-focused [CIFS] strategies) and business strategy (i.e., cost leadership [CLS], innovative differentiation [IDS], and focus [FS] strategies) on firm performance, which is assessed using both nonfinancial and financial measures. We then examine how the effect of alignments differs depending on industry types (i.e., scale intensive [SCIS], technology-based knowledge intensive [TKIS], and professional-based knowledge intensive service industries [PKIS]). Empirical evidence indicates that three alignment patterns (i.e., SCFS-IDS pattern, SDFS-CLS pattern, and CIFS-FS pattern) have synergistic effects on firm performance. Results also confirm that the effects of the alignments on firm performance differ according to the types of industry. The SCFS-IDS alignment performs well in the TKIS group, the SDFS-CLS alignment in the SCIS group, and the CIFS-FS alignment in the PKIS group. The implications for practice highlight the idea that successful service innovation requires judicious alignment between service innovation strategy and business strategy with the consideration of industries.

New service innovation success: Analyzing the influence of performance indicator nature

The objected of this paper is twofold: on the one side to analyze the role of cooperative learning and information and communication technologies (ICT) use as drivers of new service innovation success. On the other, identify if the nature of the performance indicator used influences on the high and significance of the dependence relationships. For that we analyze a sample of 287 Spanish SME, which in the last two years have developed new service. Also, it is consider that the new service innovation results can be measured in objective terms – abiding by financial measurements – as well as on the basis of the entrepreneur’s perception.The results evidence the direct influence of co-learning, as well as the direct, moderating role of the ICT use in obtaining the maximum level of objective and perceived results. Relevant differences can be observed, depending not only the performance indicator used (objective versus subjective) but also on the contribution of each of the variables to obtaining the maximum result and, therefore, their success. The study provides evidence that enable us to offer certain strategic recommendations of interest for the management of small and medium sized companies (SME). This research provides evidence for the necessity of considering explicit measures of results based on subjective indicators such as the entrepreneur’s perception.

Signs and Practices as Resources in IT-Related Service Innovation

Emerging from the rapid growth of information technology (IT) in a digital world is the explosion and rapid ascent of IT-related service innovation occurring around the globe. All successful service innovation in a digital world consists of two main abstract domains: signs (because only signs can be digitized) and practices. Signs are perceivable, but practices are not. Signs are commonly understood as resources in the digital world, whereas practices are understood as providing context, not as resources. This article proposes a change in this perspective: according to service-dominant logic, both signs and practices can become resources for service and value cocreation. They become resources if they are integrated in a service offering. We illustrate how recent digital service innovations can be explained with this perspective and how it can be used to distinguish incremental from radical innovation. The article also suggests, using this perspective, that IT and innovation specialists can productively develop ideas and concepts for future service innovation. From the practices framework presented, directions for further research are discussed.

The Role of Managers as Agents in Successful Service Innovations: Evidence from India

The article is based on a three-year study of 70 business executives belonging to 20 large organizations operating in India to identify the kind of interventions used by agents (managers) to make service innovations successful. For the purpose of analysis, the subject organizations were classified into highly successful, successful, and unsuccessful organizations on the basis of their growth rate, and their practices were analyzed to identify the role of agents in those processes or related decisions. The article also compares the practices followed by organizations based in India with global organizations operating in India to understand the contextual issues of service innovations.

The Role of Managers as Agents in Successful Service Innovations: Evidence from India

IntroductionAccording to Gallouj (2002), services have three distinct features: i) they are processes, ii) they are interactive, and iii) there can be extremely diverse. This complex nature of services sets them apart from products (i.e., goods), whose development is relatively linear and independent. When a service-based organization chooses the path of innovation, it needs

Exploring value propositions and service innovation: a service-dominant logic study

This paper presents an eight-firm study, conducted from the service-dominant logic perspective, which makes a contribution regarding knowledge of the anatomy of value propositions and service innovation. The paper suggests that value propositions are configurations of several different practices and resources. The paper finds that ten common practices, organized in three main aggregates, constitute and fulfill value propositions: i.e. provision practices, representational practices, and management and organizational practices. Moreover, the paper suggests that service innovation can be equated with the creation of new value propositions by means of developing existing or creating new practices and/or resources, or by means of integrating practices and resources in new ways. It identifies four types of service innovation (adaptation, resource-based innovation, practice-based innovation, and combinative innovation) and three types of service innovation processes (practice-based, resource-based, and combinative). The key managerial insight provided by the paper is that service innovation must be conducted and value propositions must be evaluated from the perspective of the customers’ value creation, the service that the customer experiences. Successful service innovation is not only contingent on having the right resources, established methods and practices for integrating these resources into attractive value propositions are also needed.

Service users’ perspectives in the design of an online tool for assisted self-help in mental health: a case study of implications

BackgroundThe involvement of persons with lived experiences of mental illness and service use is increasingly viewed as key to improving the relevance and utility of mental health research and service innovation. Guided by the principles of Community-Based Participatory Research we developed an online tool for assisted self-help in mental health. The resulting tool, PsyConnect, is ready for testing in two communities starting 2014. This case study reports from the design phase which entailed clarifying very basic questions: Who is the primary target group? What are the aims? What functions are priorities? Roles and responsibilities? What types of evidence can legitimize tool design decisions? Here we highlight the views of service users as a basis for discussing implications of user involvement for service design and research.Case descriptionPsyConnect has become a tool for those who expect to need assistance over long periods of time regardless of their specific condition(s). The aim is to support service users in gaining greater overview and control, legitimacy, and sense of continuity in relationships. It has a personalized “my control panel” which depicts status → process → goals. Functionality includes support for: mapping life domains; medication overview; crisis management; coping exercises; secure messaging; and social support. While the types of evidence that can legitimize design decisions are scattered and indirectly relevant, recent trends in recovery research will be used to guide further refinements.DiscussionPsyConnect has undoubtedly become something other than it would have been without careful attention to the views of service users. The tool invites a proactive approach that is likely to challenge treatment cultures that are reactive, disorder-focused and consultation-based. Service user representatives will need to play central roles in training peers and clinicians in order to increase the likelihood of tool usage in line with intentions. Similarly, their influence on tool design has implications for choice of methods for evaluation.ConclusionsStarting down the path of service user involvement in intervention design fosters commitment to follow through in the remaining implementation and research phases. While this can be time-consuming and less meriting for researchers, it is probably vital to increasing the likelihood of success of person-centered service innovations.

Creativity for service innovation: a practice-based perspective

Purpose– The success of service innovation is largely dependent on creativity. So far, however, the question of how to reinforce creativity in the development of innovative services, while being an important managerial issue, has not attracted much attention from the academics. The purpose of this paper is to fill in this gap, by studying what constitutes capabilities for reinforcing creativity in service innovation, from a practice-based perspective.Design/methodology/approach– Through the theoretical lens of the resource-based view we set out to conduct three case studies in highly service-innovative European research and technology organisations (RTOs). Through 24 interviews and analysis of secondary sources, we collect our data, which are then analysed from a multi-case perspective, in order to gain understanding on the resource-related practices and resulting capabilities for reinforcing creativity in service innovation.Findings– By studying the resource-related practices of reinforcing creativity in service innovation, this study brings about seven relevant capabilities; namely attracting, stimulating, combining, providing, breeding, opening up and accepting. In this perspective, our work represents an important theoretical contribution in terms of explicitly proposing specific capabilities for reinforcing service innovation creativity.Originality/value– The research is original for a couple of reasons. First, creativity in service innovation has not been explicitly studied before, especially through empirical research. Second, our findings offer a set of original capabilities propositions that can be practically applied in service-innovative organisations. Finally, our research is carried out in a novel field, as RTOs have rarely been studied regarding service innovation-related creativity, even though they represent a very interesting type of organisations in this perspective.

Service innovation in product-centric firms: a multidimensional business model perspective

Purpose– This article aims to investigate the nature and characteristics of business model elements required for successful service innovation. The authors examine which unique resources and capabilities product-centric firms should develop and deploy to pursue service innovation.Design/methodology/approach– Data collected from several research projects support iterations across empirical data and theory, in an abductive process. Empirical data come from product-centric firms; interviews and focus groups were the main data collection methods.Findings– Specific resources and capabilities are needed for the proposed business model elements, as defined by the overarching strategy and structure. Firms can approach the process of service innovation from different starting points and sequences, depending on the context.Research limitations/implications– Because it takes a synthesizing approach, this research lacks some detail. By taking a business model approach with a holistic perspective, it forgoes detailed descriptions to provide greater breadth.Practical implications– Managers can use business models as tools to visualize changes, which should increase internal transparency, understanding, and awareness of service opportunities and necessary changes. Dependencies exist among elements; a change in one element likely affects the others. This study provides insights into which efforts are necessary and offers managers a guiding framework.Originality/value– By providing a multidimensional perspective on service innovation, this study merges various previous research into a synthesized discussion. Combining a resources and capabilities perspective with a business model framework also leads to new insights regarding service innovation and associated activities.

STRATEGIC KNOWLEDGE MANAGEMENT CREATIVITY AND SERVICE PERFORMANCE: AN EMPIRICAL RESEARCH OF HOTEL BUSINESSES IN THAILAND

ABSTRACT This research attempts to integrate the key components of strategic knowledge management creativity (knowledge value mindset, knowledge transfer focus, knowledge sharing orientation, knowledge integration commitment, knowledge storage concern, and knowledge utilization awareness) into the new model. The main purpose of this research is to examine the impacts of six dimensions of strategic knowledge management creativity (SKMC) on service performance via new service development competence, service innovation success, and outstanding service quality excellence. In addition, it investigates the key antecedents of SKMC including executive transformational leadership, organizational knowledge culture, organizational learning capability, information technology growth, and competition environmental force. Moreover, it also explores the moderating effects of organizational experience, and employee-organization relationship management capability. The model is tested using data collected from mail survey questionnaires of 339 hotel businesses (three-to-five star levels) in Thailand. The results of OLS regression analysis indicate that knowledge sharing orientation and knowledge utilization awareness have a full positive significant influence on SKMC consequences. In addition, knowledge value mindset and knowledge storage concern have partial positive significance with SKMC consequences. Likewise, all antecedent variables have a partial positive significant impact on SKMC. However, employee-organization relationship management capability and organizational experience are poor moderating variables in this research. Furthermore, a knowledge-based view of the firm and organizational learning theory are strong theories to explain the relationships among conceptual model. This paper might be useful to scholars and to those who are interested. Also, it can be used as a guideline for future researches. Potential discussion for research results is evidently implemented in the study. Theoretical and managerial contributions are explicitly provided. Finally, a conclusion and directions for further research are highlighted. Keywords Strategic knowledge management creativity, Knowledge value mindset, Knowledge transfer focus, Knowledge sharing orientation, Knowledge integration commitment, Knowledge storage concern, Knowledge utilization awareness, New service development competence, Service innovation success, Outstanding service quality excellence, Service performance, Executive transformational leadership, Organizational knowledge culture, Organizational learning capability, Information technology growth, Competition environmental force, Organizational experience, Employee-organization relationship management capability

A Successful Service Innovation Model for Shortening the Design Process

A brand company always comes a well-design corporate identity system (CIS) which preserve its management qualities with outcome products, packages, details, related people behaviors, all interaction etc. At present, Taiwans cultural creative industries play a very important role in constructing the soft collective infrastructure. This project try to prove the tailor-made model which a well design package system concerned new CIS will enhance good impression to wide consumers especially for small food and bakery industries. Research methods are selected both focus group and content analysis qualitatively gather experts opinions, quantitatively coding the key words. To accumulate form images related knowledge. The result can be applied to some Taiwan small business on Shorten design process for developing their products and commercial packages.

Service Innovativeness and Innovation Success in Technology-based Knowledge-Intensive Business Services: An Intellectual Capital Approach

This paper analyzes the influence of the three components of intellectual capital (human, social and organizational) and intensity in collaboration with clients on service innovativeness in knowledge-intensive business services (KIBS). It also includes a discussion on the impact of both service innovativeness and intensity in collaboration with clients on innovation success. An empirical study is conducted on a sample of companies belonging to two technology-based KIBS industries: software and R&D services. The results suggest that the positive effect of human capital on service innovativeness is moderated by intensity in collaboration with clients, being human capital enhanced by organizational and social capital. The effect of social capital on service innovativeness is partially mediated by human capital and also moderated by intensity in collaboration with clients. Finally, service innovativeness positively affects innovation success, while intensity in collaboration with clients has a higher effect.

Identification of Lead User Characteristics Driving the Quality of Service Innovation Ideas

Research indicates that creative ideas provide the seed for successful service innovations. However, little attention has been paid to understanding idea creation, especially for service innovations. Lead user analysis has been shown to provide the highest potential to create attractive innovation ideas. But which characteristics in lead users are important in this regard is still under‐researched. In the realm of an idea contest, we examine the impact of specific lead user characteristics in driving the quality of service innovation ideas. Our study broadens the understanding of which customers are suitable and should be activated for service innovation idea contests. Using the data of 120 ideas resulting from an idea contest for new online services of soccer clubs, our findings demonstrate that specific lead user characteristics affect the quality of service ideas generated. We find that dissatisfaction with existing services has the highest impact on idea quality. Thus, companies should make use of their complaint management database to invite dissatisfied users to participate in idea contests. The results also show that highly experienced users provide ideas of higher quality. Our findings imply that companies should design closed‐membership idea contests so that only people who show specific characteristics can be admitted.

Strategies for the Implementation of Service Innovations

Implementation strategies are the ways in which information about a new service innovation are shared with those employees who must execute on the innovation. This article examines the relationship between innovation success and the frequency of use of various strategies for the implementation of two specific nationwide service innovations in the North American hotels of a global lodging chain. Cost and service quality–based innovations were found to rely on different implementation strategies, suggesting that the connection between an implementation strategy and success depends on the type of innovation. In the hotel chain studied, the most successful strategy for implementing quality innovations was individual counseling, while rewards and focus groups were most strongly associated with success when implementing cost-based innovations. A mix of execution strategies including implementation by persuasion, leader intervention, participation, and even edict were linked to service innovation success. Participative employee-centered implementation strategies emerged as the most critical in the diffusion of service innovations.

Implementing organisation and management innovations in Swedish healthcare

The purpose of this paper is to compare the implementation of 12 different organisation and management innovations (OMIs) in Swedish healthcare, to discover the generic and specific factors important for successful healthcare improvement change in a public health system. Longitudinal cross-case comparison of 12 case studies was employed, where each case study used a common framework for collecting data about the process of change, the content of the change, the context, and the intermediate and final outcomes. Clinical leaders played a more important part in the development of these successful service innovations than managers. Strategies for and patterns of change implementation were found to differ according to the type of innovation. Internal organisational context factors played a significant role in the development of nearly all, but external factors did not. "Developmental evolution" better described the change process than "implementation". The 12 cases were all of relatively successful change processes: some unsuccessful examples would have provided additional testing of the hypotheses about what would predict successful innovation which were used in the case comparison. The cross-case comparative hypothesis testing method allows systematic comparison if the case data are collected using similar frameworks, but this approach to management research requires considerable resources and coordination. Management innovations that improve patient care can be carried out successfully by senior clinicians, under certain circumstances. A systematic approach is important both for developing and adapting an innovation to a changing situation. A significant amount of time was required for all involved, which could be reduced by "fast-tracking" approval for some types of change. This is the first empirical report comparing longitudinal and contextualised findings from a number of case studies of different organisational and management healthcare innovations. The findings made possible explanations for success factors and useful practical recommendations for conditions needed to nurture such innovation in public healthcare.

Service innovation: A comparative study of U.S. and Indian service firms

Although major contributions are being made by the service sector in creating wealth, the sector's substantive role in generating and use of innovation is lacking meticulous examination. Academics, managers, and policy makers lack insights into outcomes of service innovation and identifying factors influencing why some innovations succeed and others fail. This study contributes to service management by: (1) developing a comparative theoretical model based on the Strategic Innovation Paradigm, Bain's Social-Conduct-Performance (S-C-P) Paradigm and Social Capital Theory of Innovation; (2) testing the model with Partial Least Squares (PLS) using managerial data from various service industries; and (3) comparing results across a developed (U.S.) and an emerging (India) economy. Results indicate similar managerial perceptions of service innovation success and impeding factors. U.S. managers indicate that factors beyond their control have a negative impact on service innovation, while these factors are not a significant predictor of innovation in the Indian sample. Findings further indicate that service innovation positively relates to the firms' non-financial and financial performance. Related implications for firms, consumers, public policy and future research are discussed.

Customers' experiences of co‐creation during service innovation

PurposeThe purpose of this article is to present the outcome of a co‐creation service innovation project, both to understand the possible outcome when using a process model and to achieve a better understanding of how customers experience participation in co‐creation in an open service innovation project. The article also discusses the outcome of co‐creation in terms of new knowledge concerning customers' needs, both expressed and latent needs compared to the knowledge gained through a regular guest survey.Design/methodology/approachThe study is based on 29 in‐depth interviews that were conducted subsequent to participation as visitors in a service innovation project which involved testing a model for user involved service innovation. In the process model users were asked to be attentive and produce real time documentations. The co‐creation in this case thus occurred when obtaining input for service innovation ideation.FindingsParticipants (visitors to a Swedish zoo), had mixed opinions about their participation in the project. Favourable experiences, such as benevolence and deepened relationships, were balanced by unfavourable experiences such as incapability and intrusion. Also a user involved service innovation approach as the one studied provides valuable knowledge about customers suggested to be useful for service innovation. Users presented a wide range of real time documentations; from brief comments about certain aspects of their experience to more detailed suggestions for future services.Originality/valueThe study provides empirical evidence regarding the importance of adopting a user's perspective towards service innovation. This is unlike previous research, which has been limited to the study of how companies perceive and can manage co‐creation in a manner that is beneficial for them. The study also connects to this perspective by suggesting that co‐creation both enhances opportunities for successful service innovation and provides a deeper understanding of customers' needs.

Exploring the alignment between service strategy and service innovation

PurposeLiterature is relatively sparse on describing how companies should align their determinants for service innovations with their different types of service strategies. This study seeks to explore the alignment between three types of service strategies and determinants for service innovations.Design/methodology/approachA qualitative, multi‐case research design on 12 Western European capital goods manufacturers including 24 service innovation projects was employed. The study is based on multiple sources of evidence: internal documentation of service innovation and development projects and, most importantly, interview data and participation in internal innovation workshops. Traditional inductive research methods were used to analyze the case studies.FindingsThese indicate that aligning service strategies with determinants for service innovations is very complex. The configurations of the determinants are associated with the innovation success. Alternative configurations of determinants can create counterproductive effects and can limit the success of service innovation projects as well as implementation of service strategies.Research limitations/implicationsThe study is based on interviews and case studies, but the external validity (generalizability) of the alignments could not be assessed accurately. Future research would benefit from insights obtained from quantitative data. The findings supplement existing research on success factors for the service business in manufacturing companies.Practical implicationsThe findings imply that managers contemplating a specific service strategy have to consider the service innovation and reframe the determinant for service innovations accordingly. Companies trying to implement an after‐sales service strategy should focus on a narrow range of determinants for service innovations. The resulting configurations guide managers to set up an efficient and effective service innovation management that helps them to implement their service strategy through successful service innovation project.Originality/valueThis empirical study shows that the configuration of determinants for service innovation differs for each service strategy. Whereas, the few similarities in determinants on service innovation are mainly other applications of existing theories on service innovation, the differences modify the existing theories.

Linking Customer Knowledge With Successful Service Innovation

In order to satisfy customer needs and wants, the business-to-business service provider must develop and market services that provide value to the customers organization. Because of the importance and the difficulty of evaluating value from the customers perspective, a critical need exists for firms to obtain and possess knowledge about what activities create customer value for individual customers. The objective of this study is to explore the activities and knowledge needed to develop and market services that create customer value. Results of a study undertaken on the development and marketing of services and products in the telecommunications industry are provided. The report concludes with a discussion of managerial and research implications.