Product-service Innovation Research Articles

Total quality management practices, organisational culture and firm performance; service or product innovation

The study determines how total quality management practices and good organizational culture will enhance operational performance in the banking sector in Ghana. The study is explanatory research design in nature. Taking the time frame of the study and the need to bring out a finding reasonable for generalization, the researcher selected a sample of 153. The findings of the study establish that total quality management has a positive and significant effect on service product innovation. Organizational culture has a positive and significant effect on service product innovation. Service product innovation has a positive and significant effect on firm performance. Organizational culture has a positive but insignificant effect on firm performance. Total quality management has a positive and significant effect on firm performance. The study further revealed that service product innovation positively and significantly mediates the relationship between total quality management and firm performance. The study finally assessed the mediating effect of service product innovation on the relationship between organizational culture and firm performance and the findings of the study indicate that service product innovation positively and significantly mediates the relationship between organizational culture and firm performance. How Total Quality Management practices and good organizational culture influence operational performance in the banking sector in Ghana.

The Influence of Product Innovation and Service Innovation on Interest in BMT Sarana Wiraswasta Muslim through Trust as an Intervening Variable

Aims: This study aims to determine the influence of Product Innovation and Service Innovation on Interest in Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim with Trust as an Intervening Variable. Study Design: This study uses a quantitative approach with primary data types. Place and Duration of Study: Respondents in this study were 100 traders who were classified based on location, namely at the Upper Dinoyo Market, Lower Dinoyo Market, Side Landungsari Market, and Edge Landungsari Market in Malang City. Methodology: The sampling technique in this study used the proportionate stratified random sampling technique. Data collection for this study was conducted offline using interviews and closed questionnaires with a Likert scale featuring four response options. The data analysis included both outer and inner model analyses and hypothesis testing, conducted using software like Microsoft Excel and SmartPLS. Results: Based on the results of the analysis carried out, it was obtained that Product Innovation and service innovation had a significant effect on the Interest of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslims, Product Innovation, and service innovation had a significant effect on the Trust of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim, Trust had a significant effect on the Interest of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim’s. Furthermore, trust can mediate the influence of product innovation on the Interests of Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim. However, Trust cannot mediate the influence of Service Innovation on the Interest of Baitul Maal Wa Tamwil (BMT) Sarana Entrepreneurs. Conclusion: The variables of Product Innovation and Service Innovation have a significant effect on Interest and also increase Trust in Baitul Maal Wa Tamwil (BMT) Sarana Wiraswasta Muslim. Trust is proven to mediate the relationship between Product Innovation and Interest, indicating that trust strengthens the influence of product innovation on interest. However, Trust does not mediate the relationship between Service Innovation and Interest, implying that trust formed among members plays a more important role in determining interest, regardless of service innovation.

The Influence Of Product Innovation, Process Innovation And Service Innovation On The Marketing Performance Of Culinary Msmes In Oku District

The industrial sector is one of the important sectors in helping the economy progress, therefore the existence of industry as one of the pillars of the economy in OKU Regency has had an influence on the regional economy, even though demographically the livelihood of the majority of the population is as farmers. The policies implemented by the OKU Regency government in handling industry are directed at increasing industrial and craft growth, production and competitiveness, absorbing labor as well as creating a conducive business climate and increasing market share. The programs implemented to advance industry in OKU Regency are small and medium industry development programs and assistance (grants). Through small and medium industry development programs, we strive to improve the skills of entrepreneurs and craftsmen. Meanwhile, the development policy for the industrial, trade and SME cooperative sectors in OKU Regency is directed at growing, fostering and developing small and medium trade industries and cooperatives. The research method used in this research is a survey method conducted on 100 MSME research in OKU Regency. Analysis of the data processed in the research is primary and secondary data. Primary data is used for linear regression. Secondary data is used to look at MSME data in OKU Regency, while to answer problems, assessment criteria using a Likert scale are used, and to look at the influence of product innovation, process innovation and service innovation using linear regression analysis. Based on the analysis of the results of the research that has been carried out, it can be concluded that the research results show that product innovation, process innovation and service innovation have an influence on marketing performance in OKU Regency.

Artificial intelligence enabled product–service innovation: past achievements and future directions

AbstractThis study intends to scrutinize the role of Artificial Intelligence (AI) in Product-Service Innovation (PSI). The literature on AI enabled PSI, other related innovation business models, product-service systems, and servitization has grown significantly since 2018; therefore, there is a need to structure the literature in a systematic manner and add to what has been studied thus far. Product-service innovation is used to represent the relevance of achieving innovation in business models dealing with innovation outcomes including artificial intelligence. This study used bibliographic coupling to analyze 159 articles emerging from the fields of computer sciences, engineering, social sciences, decision sciences, and management. This review depicts structures of the literature comprising five (5) clusters, namely, (1) technology adoption and transformational barriers, which depicts the barriers faced during the adoption of AI-enabled technologies and following transformation; (2) data-driven capabilities and innovation, which highlights the data-based capabilities supported through AI and innovation; (3) digitally enabled business model innovation, which explained how AI-enabled business model innovation occurs; (4) smart design changes and sustainability, which reveals the working of AI in product service environments with different design changes and transformations based on sustainability; and (5) sectorial application, which highlights industry examples. Each cluster is comprehensively analyzed based on its contents, including central themes, models, theories, and methodologies, which help to identify the gaps and support suggestions for future research directions.

Understanding the relationship between competitive strategy and product-service innovation: the role of the paradox of openness

PurposeThis study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that external sources of innovation play in influencing this relationship.Design/methodology/approachUsing data obtained from the community innovation survey, we apply a logit regression to a sample of 1,419 Portuguese firms. By examining the moderating effect of open innovation breadth, we assess how the relationship between differentiation intent and outcome is contingent upon the involvement of external stakeholders.FindingsOur findings reveal that the relationship between differentiation intent and outcome is contingent upon the moderating effect of open innovation breadth. Our analysis suggests that the negative influence of different sources of innovation can be addressed by adopting a paradox lens.Practical implicationsThis research provides valuable insights for managers. By simultaneously pursuing a differentiation strategy and engaging in collaboration with external sources, firms may compromise their ability to effectively differentiate their offer. Managers should consider the potential tensions arising from internal and external stakeholder relationships to optimize their innovation strategies.Originality/valueThis study contributes to the existing literature by shedding light on the role of external innovation sources in influencing the relationship between differentiation intent and outcome and the importance that information systems may have in this relationship. By exploring the moderating effect of open innovation breadth, we provide a nuanced understanding of how firms can navigate organizational tensions and leverage innovation for competitive advantage.

Technological innovation and eco-efficiency in manufacturing companies: Does Co-innovation orientation matter?

The rising need for sustainable development poses a critical challenge for manufacturing companies, requiring a fresh perspective on adopting greener practices. One recent approach to enhancing sustainability in manufacturing is the development of innovations in the pursuit of achieving higher eco-efficiency. This study delves into this approach by investigating the effect of technological innovation on eco-efficiency. In addition, this research examines the role of co-innovation orientation in relation to suppliers and customers. In the empirical exercise, an ordered probit model is applied to a sample of 791 manufacturing companies from Peru. Our research reveals a positive association between the distinct types of technological innovation and eco-efficiency, with process innovation yielding the most substantial effect. In terms of co-innovation orientation, we find co-innovation with suppliers to be more effective in driving eco-efficiency through product and process innovations, while co-innovation with customers seems more influential through product-service innovation. We also found that, for companies co-innovating with suppliers (CIS), complementary co-innovation with customers does not influence eco-efficiency. Conversely, for those co-innovating with customers (CIC), the fact that they also co-innovate with suppliers significantly boosts eco-efficiency.

Using machine learning to determine factors affecting product and product–service innovation

PurposeMachine learning (ML) analytical tools are increasingly being considered as an alternative quantitative methodology in management research. This paper proposes a new approach for uncovering the antecedents behind product and product–service innovation (PSI).Design/methodology/approachThe ML approach is novel in the field of innovation antecedents at the country level. A sample of the Equatorian National Survey on Technology and Innovation, consisting of more than 6,000 firms, is used to rank the antecedents of innovation.FindingsThe analysis reveals that the antecedents of product and PSI are distinct, yet rooted in the principles of open innovation and competitive priorities.Research limitations/implicationsThe analysis is based on a sample of Equatorian firms with the objective of showing how ML techniques are suitable for testing the antecedents of innovation in any other context.Originality/valueThe novel ML approach, in contrast to traditional quantitative analysis of the topic, can consider the full set of antecedent interactions to each of the innovations analyzed.

Inovasi Layanan Mobil Siaga Desa dalam Meningkatkan Pelayanan Publik di Kabupaten Bojonegoro

The Bojonegoro Regency Government, through the Social Service, provides innovative Village Alert Car services to improve public services to village communities in Bojonegoro Regency. This innovation will be implemented in December 2022 as a service product innovation. This research aims to determine and describe the innovation of the Village Alert Car service. This research uses descriptive qualitative research with data collection techniques in the form of interviews, observation and documentation. Researchers use the Typology of Innovation theory according to Mulgan & Albury in Muluk (2008), an innovation is said to be successful if the innovation is the result of the creation and implementation of product innovation, process innovation, method innovation, strategy or policy innovation, and system innovation. Based on this theory, the research results show that currently the Bojonegoro Regency Government has provided a safe and comfortable transportation model for village communities in the form of village standby cars. Apart from being easy to use, this transportation has no fees. It is hoped that the innovation of the village standby car service in Bojonegoro Regency will become a role model for other regions in meeting the needs of public facilities for village communities experiencing social emergencies. Although there are several obstacles that must be evaluated based on strategy or policy innovation, namely the outreach carried out by the village government must be improved further, because not all levels of society know about the village standby car policy or program. Even though there are complaints, it is not an obstacle in implementing the village standby car service and it continues to run.

Green supply chain technology and organization performance: Moderating role of environmental dynamism and product-service innovation capability

The green supply chain management (GSCM) system is considered as an environmentally friendly approach which considers different environmental issues in supply chain flow. There are different underlying technologies used in implementing GSCM; yet, we still have limited knowledge concerning how green SCM technology can enhance organizational performance. Further, the conditions that indirectly affect organizational performance within this context remain underexplored. Drawing on this gap of knowledge, the purpose of this research work is to investigate how adoption of GSCM can improve organizational performance. We also argue that the dynamism of the environment and the product-service innovation capability of organizations will have conditioning effects on this relationship. Grounded on the dynamic capability view as a theoretical lens, a conceptual model has been developed which is explored through feedback from 307 organizations involved in green supply chain management activities. We find that environmental dynamism and product-service innovation capability have moderating impacts on adopting green supply chain technology and organizational performance. The outcomes also indicate that green supply chain technology can considerably improve business value under certain contextual factors.

Integrating product-service innovation into green supply chain management from a life cycle perspective: A systematic review and future research directions

Product-service innovation and its associated benefits for customers and manufacturers has gained significant attention in the innovation and servitization literature. However, the extant literature remains unclear in regard to how product-service innovation may contribute to green supply chain management with improved environmental performance and to the pathways by which it can do so. In order to fill this important gap, this paper presents a systematic review of the body of knowledge on product-service innovation and green supply chain management by considering the missing link in servitization research—namely, the product lifespan and life cycle perspective. Anchored in stakeholder theory as an overarching theoretical perspective, our study reveals (1) the categorical product lifespan approach to and (2) the dynamic life cycle perspective on product-service innovation and green supply chain management, and (3) how collaborative partnerships can be a pathway for the integration of product-service innovation into green supply chain management. We found that it is crucial to engage with diverse stakeholders from a life cycle perspective, including beginning, middle, and end of life. Our study provides important insights into the enabling role played by product-service innovation for environmental sustainability and outline the future research directions.

Sharia Fintech: Opportunities and Challenges in Indonesia

Introduction: The rapid development of technology will certainly have a direct impact on the economic aspects of life. The presence of financial technology (fintech) will make it easier to obtain financing in a relatively fast time and easy to use capital. Fintech in Indonesia has given rise to a new innovation, namely sharia fintech. This study aims to determine the potential and challenges of fintech as an economic development effort correlated with sharia principles in encouraging a country's economic growth rate. Method: This study uses a qualitative approach of qualitative descriptive method because this research will explain the facts or symptoms that appear in the development of Islamic fintech in Indonesia. This research uses secondary data collection in the form of news and research journals on the phenomenon of Islamic fintech in Indonesia. Result: The results showed that currently the development of fintech platforms is growing rapidly from 2015. The presence of sharia fintech is a great. Based on OJK data, in 2021 the contribution of the Indonesian fintech industry has reached IDR272.4 trillion. This will certainly be an opportunity for the financial industry, especially sharia. Conclusion: To revolutionize conventional activities into sharia-based digital product service innovations to facilitate the community.

Research on Enterprise R&D Strategy of Product-Service Innovation Guided by Quality Preference

Research and development (R&D) plays a crucial role in reducing enterprise costs and enhancing competitiveness in the market. Customers’ quality preference for product-service is a key driver of enterprise sales. Consequently, studying R&D investment strategies holds significant research value. This paper aims to provide a comprehensive analysis of the relationship between customers’ quality preference for product-service, R&D investment, and product-service price. To achieve this, we improve the Stackelberg game model to consider these factors and use numerical simulation to investigate the optimal R&D strategy. Results show that an enterprise’s absorptive capacity positively influences its market demand and profit, while negatively impacting its competitors. A higher customers’ quality preference coefficient indicates a stronger competitive advantage. Moreover, implementing a non-cooperative R&D strategy not only helps enterprises expand their R&D investment scale and accumulate knowledge and technology, but also plays a positive role in increasing sales volume and profits. We suggest that enterprises should focus on improving their absorptive capacity and diversifying R&D strategy, while also considering customers’ quality preferences and market demand when making R&D investment decisions. Careful consideration should be given to the pros and cons of cooperative and non-cooperative R&D strategies to choose the most suitable approach.

Impact of green practices through green product and service innovation: sustainable product-service system performance model

ABSTRACT Today, the manufacturing industry faces worldwide challenges, ecological hazards, climate change, and the use of non-renewable natural resources, so industry players are manoeuvring in a sustainable direction. In this case, green manufacturing practices are used as a starter to contribute to products and services that can help achieve sustainable development goals. The research aims to explore green practices with empirical evidence in the literature and expert opinions of tire manufacturing industry practitioners. The study proposes a framework of key factors: TMC (Top Management Commitment), PPP (Pollution Prevention Practices), and PSP (Product Stewardship Practices) that can affect GPSI (Green Product Service Innovation) significantly affect SPSSP (Sustainable Product-Service System Performance). The study used statistical analysis to calculate the minimum sample size with (G*Power 3.1), the results were 205 respondents adequate, and structural model analysis using Structural Equation Modeling (SmartPLS 4.0). The results show that TMC and PSP significantly affect SPSSP, but PPP does not affect SPSSP. The findings also suggest that the relationship between key factors and SPSSP can be mediated by GPSI. The recommendations of this study provide suggestions to top management for the adoption of GPSI as a novelty in green manufacturing, and as value creation for sustainable development achievements.

International servitization of SMEs in emerging markets: antecedents and boundary conditions

PurposeProduct-service innovation (i.e. servitization) is providing opportunities to small and medium-sized enterprises (SMEs) to offer services that are directly coupled to their products. Despite scholarly efforts on servitization in domestic markets, the determinants of international product-service innovation remain unclear. Therefore, this study draws insights from dynamic capability (DC) view and aims to examine the international human capital and international product-service innovation relationship. Specifically, the authors argue that the effect of international human capital on international product-service innovation is mediated by international inter-organizational marketing capability (IIMC) and moderated by international market complexity.Design/methodology/approachThe authors test the conceptual model using structural equation modeling on a sample of 211 SMEs operating in United Arab Emirates (UAE) – an emerging market economy.FindingsThe results show that IIMC mediates the relationship between international human capital and international product-service innovation. The authors further found that the indirect relationship between international human capital and international product-service innovation is strengthened when international market complexity increases in magnitude.Originality/valueThis study advances the knowledge on international servitization by examining international human capital and IIMC as the determinants and international market complexity as a moderator. Data collection in the UAE contributes to empirical research on international servitization from emerging markets.

혁신지향성이 중소기업의 성과에 미치는 영향: 비즈니스모델혁신과 환경역동성의 역할을 중심으로

This study investigates how innovation orientation and business model innovation(BMI) affect the performance of SMEs. Data were collected from SMEs in the U.S. retail industry. The main findings are as follows. First, product/service innovation(PSI), process innovation(PRI), and resource innovation (RSI) fully mediate the effect of innovation orientation on firm performance. Second, PRI and RSI have positive effects on financial performance, whereas PSI and RSI have positive effects on non-financial performance. Third, RSI has significant positive impacts on both financial and non-financial performance. Fourth, in the relationship between each BMI factor and firm performance, the moderating effect of environmental variables was limited. In highly turbulent environments, only PRI has a greater impact on financial performance. Implications for research and practice are discussed.

Research on the Influence of Circulation Innovation on the Upgrading of Consumption Structure

Based on the China Family Panel Studies (CFPS) database, the paper examines the impact of circulation innovation on household consumption upgrading by building a two-way fixed panel model. The study found that circulation innovation can significantly promote the upgrading of residents' consumption structure, that is, provide upgrading of consumption objects, cater to the upgrading of consumption patterns, and meet the change of consumption concepts from three aspects of product innovation, channel innovation, and service innovation, fully identify consumers' purchase preferences, and stimulate consumers' internal needs.

Effect of Innovative Strategies on the Performance of Small and Medium Enterprises in Nairobi County, Kenya

In a progressively challenging environment, innovation is extensively considered as the most vital source of competitiveness, because it creates a constant improvement that assists the organizations to endure. Innovation also leads to product and process enhancements thus enhancing efficiency. Innovation is often a necessity for organizations with strictly limited funds and resources yet are trying to remain profitable and competitive. Therefore, this study sought to establish the influence innovation strategies on performance of small and medium enterprises in Nairobi City County. The specific objectives were to determine the effect of product innovation, service innovation, marketing innovation and process innovation on organizational performance in SMEs. The study used a descriptive research design. A total of 398 Small and Medium Enterprises was used where the enterprise owners was used as the respondents. Primary data was collected through the administration of the questionnaires. Descriptive and inferential statistics analysis was conducted. A regression model was used to determine the effect of innovation strategies on performance of Small and Medium Enterprises in Nairobi County. The regression of coefficients results show that product innovation and organizational performance of SMEs is positively and significantly related. The results further indicated that service innovation and organizational performance of SMEs is positively and significantly related. The results further indicated that marketing innovation and organizational performance of SMEs is positively and significantly related. Lastly, results showed that process innovation and organizational performance of SMEs is positively and significantly related. The study concluded that innovation strategies positively influences performance of SMEs in Kenya. The study recommends that the SMEs should invest in innovative technology to survive intense competition currently experienced in the SMEs. Further, the study recommends that the SMEs should continuously produce new products and re-engineer existing products to prolong the product life cycle. Further, the study recommends that the SMEs should design an innovative marketing strategy that makes customers feel a part of the enterprise through social responsibility and promotions. The study recommended that the SMEs should invest in benchmarking with the technology in the industry. Keywords: Product Innovation, Service Innovation, Marketing Innovation, Process Innovation & Small and Medium Enterprises.

Assessment of industrial pre-determinants for territories with active product-service innovation ecosystems

There has been growing interest in service-augmented products and the subsequent formation of product-service innovation (PSI) ecosystems. Hence, the objective of this paper is to empirically address an unexplored aspect of PSI ecosystems research by offering answers as to whether territories develop more performant PSI ecosystems in terms of manufacturing employment growth when they arise from an existing industrial base. Running a fixed-effects model on a sample of all 17 Spanish autonomous communities in the period from 2006 to 2012, the importance of territories having a strong incumbent manufacturing sector before developing PSI ecosystems is revealed. Specifically, it is found that PSI ecosystems will generate greater industrial employment growth in manufacturing-led territories. Our model and findings suggest various implications for scholars, managers, and policymakers alike.

Use of Design Thinking in Service Product Innovation Cabut Kost

The condition of the Covid-19 pandemic in Indonesia to date has had an impact on all business actors, therefore all actors from various business fields need to make a breakthrough or innovation in order to be able to compete and stay afloat. The problem now is that all must be required to provide appropriate problem solving and be able to be implemented properly in responding to all perceived obstacles and challenges. One of the methods that can be used and provide solutions to current conditions is design thinking. Design thinking is a discipline that uses designer sensibilities and methods to match people's needs with what is technologically feasible and what is feasible according to a business strategy can be transformed into customer value and market opportunities, by analyzing five stages which include empathize, define, ideate, prototypes and tests. The purpose of writing this article is to explain the use of design thinking in the Logistics Service business of Cabut Kost with a qualitative descriptive method with the aim of providing a description or summary of a situation or phenomenon that is currently happening by using scientific procedures to answer actual problems. The results obtained are that the application of design thinking can be used as a reference method for Cabut Kost in developing the business that is being undertaken. As far as the analysis is concerned, design thinking can be a method for developing a strategy to build a brand name for Cabut Kost.

Inovasi untuk Keberlanjutan Usaha Kuliner

This research aims to describe the innovations made by sanjai entrepreneurs for the sustainability of culinary businesses in Bukittinggi City. The research approach is qualitative research with a type of phenomenology research. Sampling techniques use snowball sampling. The key informant is sanjai entrepreneurs. Data collection techniques use in-depth interviews, participation observations, and documentation. Data analysis techniques use miles, huberman, & saldana qualitative research data analysis processes. The results showed that the source of entrepreneurial innovation ideas was obtained from watching videos on Youtube, modeling similar businesses, modeling other different businesses, the result of self-thought, and seeing business products at exhibitions. Forms of innovation carried out by sanjai entrepreneurs are product innovation, technology innovation, and service innovation. The impact of innovation on business sustainability is that products are favored by consumers, consumers increase, revenue increase, profits increase, businesses survive and are sustainable. The results of the research can be used as a reference for culinary entrepreneurs in innovating for the sustainability of culinary businesses.