Digital service innovation: a paradigm shift in technological innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Opazo-Basáez ◽  
Ferran Vendrell-Herrero ◽  
Oscar F. Bustinza

PurposeExisting innovation frameworks suggest that manufacturing firms have traditionally developed a complementary model of technological innovations comprising process and product innovations (e.g. Oslo Manual). This article presents digital service innovation as a novel form of technological innovation that is capable of enhancing the performance of firms in certain manufacturing industries.Design/methodology/approachDrawing on technological innovation and digital servitization fields of research, this study argues that digital service innovation, in manufacturing contexts, complements traditional sources of technological innovation, so increasing the profit margins of firms. This effect is significant in industries characterized by business-to-business contexts, high presence of link channels and long product life spans (e.g. manufacturing and computer-based industries). Predictions are tested on a unique sample of 423 Spanish manufacturing firms using parametric (t-test) and nonparametric (fuzzy-set qualitative comparative analysis, fsQCA) approaches.FindingsThe results of this analysis show that a necessary condition so that manufacturing firms can increase profits is the deployment of simultaneous process and product innovations. It also reveals that optimal configuration requires that digital service innovation be undertaken, particularly in machinery and computer-based manufacturing industries. Hence, all three sources of technological innovation are brought together in order to reach the highest levels of company performance. The evidence suggests that technological innovation and digital servitization are closely interrelated in highly innovative manufacturing contexts.Originality/valueThis study's originality and value reside in the fact that it reveals the existence of firms incorporating digital service innovation – a new, technological innovation dimension that challenges existing innovation frameworks – to complement traditional technological innovation sources, namely process and product innovation. Moreover, the study conceptualizes and empirically tests the value-adding role of digital services in firms' technological innovation portfolio.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dedong Wang ◽  
Hui Li ◽  
Yongqiang Lu

PurposeThe purpose of this study is to examine the factors influencing the transaction costs (TCs) in megaprojects to provide a basis for controlling project costs.Design/methodology/approachThis study selects six factors influencing the TCs in megaprojects from the perspective of TC theory and relational contract theory (RCT) through literature review. On the basis of crisp-set qualitative comparative analysis (QCA), this study tests combined factors influencing the TCs and the interaction between them.FindingsResults show that in megaprojects, TCs are affected by combination factors. The combination of asset specificity, uncertainty, transaction frequency and trust and the combination of asset specificity, reputation and trust will control TCs in certain situations. In the configuration leading to high project TCs, the combination of environmental and behavioral uncertainties is a necessary condition.Originality/valueThis paper fills up the research gap in the field of megaproject TCs, and researchers can focus on this field in the future.


2021 ◽  
Vol 12 (2) ◽  
pp. 48-62
Author(s):  
Sanna Ryynänen ◽  
Riitta Uusisalmi

The aim of the study is to describe and increase understanding about digital service design in creating technological innovations in Finnish hospital districts. The data was collected via an open questionnaire during March-August 2019 and analyzed using a combined thematic and narrative analysis. Three distinct themes arose from the research narratives: cooperation, development, and cost. First, the importance of cooperation in the early stages of the service design process, when new technological innovation ideas are developed, was emphasized. Second, the possibilities of digitalization and need for new innovations were taken into account in the development theme. Third, costs define the utilization of an innovation and guide its initial development. If savings and costs are in balance, technological innovations will move forward. Moreover, the findings show that technological innovations in hospital districts progress in a certain pattern, and the utilization of innovations come from the need and pressure to evolve. Keywords Adoption of Innovation, Deployment of Innovation, Digital Service Design, Rogers's Diffusion of Innovation Theory, Service Design, Service Innovation, Specialized Medical Care


2019 ◽  
Vol 30 (7) ◽  
pp. 1097-1114 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Mu-Yen Hsu

Purpose For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through service provision is becoming an important strategy for most industries. A growing demand for packaged product and service delivery is blurring the traditional boundaries between manufacturing and service firms. This trend is called “servitization.” Prior research had different perspectives on the relationship between technological innovations and servitization. Some argued that as servitization exerts the innovative convergence of products and services, the possession of appropriate readiness and absorption capacity through technological innovations for a manufacturing firm is critical to the success of servitization. In contrast, some argued that the knowledge gained from developing technological innovations cannot be applied to the creation of services due to the fundamental difference between technology and service. These contradicting arguments motivated the authors to study the relationship between technological innovations and servitization a step further. The paper aims to discuss these issues. Design/methodology/approach To address the research gap, the authors conducted an empirical study based on the large-scale samples from the second Taiwan Community Innovation Survey (Taiwan CIS). A multivariate logistic regression model was applied in the research. Findings The authors found that different types of technological innovations, namely product innovation and process innovation, have different impacts on servitization. The innovativeness level of the technological innovation moderates the relationship between technological innovation and servitization. Based on the above findings, this research specifically explains the causes of the contradictory results of the prior research. Originality/value The values of this research are twofold. Its academic contribution rests on bridging the literature of innovation and servitization, and on providing a model to clarify the relationships among technological innovation type, level of innovativeness and servitization. Its practical contribution lies in its establishment of a guideline that illuminates manufacturing firms reinforcing service delivery through their existing technological innovation trajectory.


2020 ◽  
Vol 33 (1) ◽  
pp. 257-291 ◽  
Author(s):  
Lokpriya Gaikwad ◽  
Vivek Sunnapwar

PurposeThis article aims to explore synergies between Lean, Green and Six Sigma practices in order to propose an integrated LGSS framework for continuous and incremental improvement in the Indian manufacturing industries. The three-dimensional LGSS framework seeks to provide various combinations and support operational, financial, environmental and social needs.Design/methodology/approachIn the research method, first, the current problems faced by Indian manufacturing industries are considered and proposition of a conceptual framework that qualitatively integrates synergistic aspects of Lean, Green and Six Sigma practices, and second, the framework is checked by a survey taken from 203 Indian firms by using SPSS-AMOS.FindingsThe hypothesized result suggests that the positive impact of integrated practices on firm performance in terms of operational, financial, social and environmental outcomes. It also provides a systemic and holistic approach to problem-solving through constant and incremental enhancement in the manufacturing sector.Research limitations/implicationsIn this research, only Indian manufacturing industries have been studied but can be extending into different geographical areas and sectors. Future research is also possible for different behavior and characteristics of companies that can lead to recommending strategies on how companies can improve performance. Most importantly, future research can try to understand which specific practice can contribute to competitive advantage and business success.Practical implicationsManufacturing firms that want to improve environmental sustainability should implement integrated LGSS practices into their supply chain. The set of combined practices improves operational, social, economical and environmental benefits.Social implicationsThe research presents an integrated approach of LSS for the manufacturing industry which leads their business processes to achieve economic sustainability through continuous growth and improved operational efficiency. Manufacturing industries result in outcomes like reduced cost, lead time, improved quality, sustainable market position, profitability, customer satisfaction, etc.Originality/valueThis research is different from previous studies because it integrates Lean, Green and Six Sigma practices into a unique framework that fulfills a specific need of the Indian manufacturing sector that guides operational, social, environmental and financial issues in Indian industries.


2014 ◽  
Vol 29 (2) ◽  
pp. 123-131 ◽  
Author(s):  
Ida Gremyr ◽  
Lars Witell ◽  
Nina Löfberg ◽  
Bo Edvardsson ◽  
Anders Fundin

Purpose – The purpose of this paper is to explore the role of innovation modes in understanding challenges of integrated NSD and NPD, and the use of structured NSD processes in manufacturing firms. Design/methodology/approach – The research is based on a two-stage multiple case study. The first stage is an interview study of 17 key informants representing manufacturing firms in the machine industry. The second stage is an in-depth study of three service innovations at three manufacturing firms based on 16 interviews with key informants. Findings – The results of the study show that NSD processes are often more structured if the service is developed separately from the product. The fact that different innovation modes benefit from varying degrees of structure in the development process means that integrated service development can be challenging. Furthermore, service innovations often follow a trajectory of innovation modes before succeeding in the market. Some innovation modes occur within the NSD process, while others occur outside the process. One success factor for NSD is the fit between the innovation modes and the NSD process, rather than the NSD process per se. Originality/value – This research uses innovation modes to explain why NSD in manufacturing firms is often performed on an ad hoc basis, and how service innovations go through a trajectory of innovation modes. In this way, the study contributes to theory development of service innovation, and specifically service innovations in manufacturing firms.


2020 ◽  
Vol 32 (2) ◽  
pp. 769-796 ◽  
Author(s):  
Hossein Olya ◽  
Timothy Hyungsoo Jung ◽  
Mandy Claudia Tom Dieck ◽  
Kisang Ryu

Purpose This paper aims to explore a complex combination of four realms of the experience economy in formulating memories and satisfaction among festival visitors by using augmented reality (AR), thus engaging visitors in the physical science experience. This study also identifies necessary conditions to achieve desired responses from visitors. Design/methodology/approach Asymmetrical modelling with fuzzy set qualitative comparative analysis (fsQCA) was used to investigate causal recipes of two configurations of the experience economy and evaluation of experience leading to both high and low scores from visitor engagement. Necessary condition analysis was applied to examine necessary predictors in visitor engagement. The proposed configuration model was tested by using data obtained from visitors to science festivals in the UK. Findings Five causal recipes explained the complex conditions in which visitors were more likely engaged in AR. Aesthetics, education, entertainment and satisfaction were necessary for high engagement among festival visitors. Research limitations/implications The results from fsQCA and analyses of necessary conditions help festival organizers improve visitor satisfaction and engagement in a memorable AR experience. Originality/value This empirical study deepens current festival understanding of how visitors experience AR by exploring combinations of complex configurations of the experience economy and evaluations of visitor experience based on memories and satisfaction. Unlike symmetrical approaches, asymmetrical modelling by using fsQCA can explore recipes for both high and low scores of visitor satisfaction and engagement. This is the first empirical study investigating necessary predictors of festival visitor behaviour.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on understanding the types of innovation that can boost the profit margins of manufacturing companies in Spain. Digital service innovation can be a welcome factor that meshes with product innovation and process innovation, to enhance profits within defined manufacturing sub-sectors – namely computer manufacturing and machinery manufacturing. These processes should be introduced and pursued simultaneously, as an essential condition for producing positive effects on profitability. In other sub-sectors, the digital service innovation isn't required, since this merely adds a neutral impact to the profit-driving effects of the effective duo of process innovation and product innovation. Originality/value The briefing saves busy executives, strategists and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2018 ◽  
Vol 25 (9) ◽  
pp. 3789-3808 ◽  
Author(s):  
Ville Hallavo ◽  
Markku Kuula ◽  
Antero Putkiranta

PurposeThe purpose of this paper is to study the effects of lean in a longitudinal context. Lean is currently experiencing its second coming. In spite of this, the current body of research on lean is especially lacking in longitudinal studies.Design/methodology/approachThe methodology used in this study is a longitudinal case study. The authors combined elements of multiple-case study and survey research by analyzing interview data on the same 23 Finnish manufacturing firms at three distinct points in time (1993, 2004 and 2010) with a methodology called qualitative comparative analysis (QCA) that is novel to the field.FindingsThe “thick” results of our exploratory contingency theoretic analysis suggest that the holistic and adaptive use of lean bundles is effective. It seems that especially the firm status of ownership and the phase of the business cycle exert an impact on successful lean bundle use. There is also evidence that a certain maturation effect takes place within lean bundle use: lean is increasingly being used as a complete management philosophy.Research limitations/implicationsThe authors hope that this research encourages researchers to use more QCA in their research, especially with small samples.Originality/valueThis is a unique longitudinal study on the same 23 manufacturing firms and their development. Furthermore, this study opens new avenues for lean theory development, introduces a new methodology to the field and helps decision makers to gain a better understanding of the long-term dynamics of lean.


Author(s):  
Davinder Singh ◽  
J.S. Khamba ◽  
Tarun Nanda

Purpose The purpose of this paper is to examine various technological innovation influencers (TIIs) in small manufacturing firms. It introduces a study framework of technological innovation and evaluates the relevance of four TIIs to building and sustaining the competitiveness of Indian firms. Design/methodology/approach This research is based on an in-depth survey of 135 firms located in India’s Northern region. Multiple regression analysis was employed to examine the correlation between TIIs and manufacturing firm performance (MFP) for these firms. Findings The findings verify that entrepreneurial capability, technology infrastructure capability and government initiatives are the most important TIIs for small firms. The findings are also validated by using statistical t-test and canonical correlation analysis. Research limitations/implications This study uses a single informant as the source of information on each firm. The study is limited to small-scale firms in the Northern region of India. Also, the study has been conducted excluding the service sector. Originality/value Recent studies have advocated various TIIs and discussed their impact on MFP. This paper examines the determinants of technological innovation in small manufacturing firms. It introduces a study framework of technological innovation and examines the relevance of four TIIs to building and sustaining the competitiveness of Indian firms.


2020 ◽  
Vol 120 (5) ◽  
pp. 863-882 ◽  
Author(s):  
Haidi Zhou ◽  
Qiang Wang ◽  
Xiande Zhao

PurposeThe purpose of this study was to examine how firms' corporate social responsibility (CSR) strategies affect their innovation performance via two mediating variables, employee involvement and supplier collaboration, and compare how this mechanism works in the service and manufacturing industries.Design/methodology/approachThe conceptual model was built on stakeholder theory, the resource-based view (RBV) and service-dominant logic (SDL). Based on survey data from 686 service firms and 1,646 manufacturing firms, the hypothesized relationships were tested using structural equation modeling (SEM).FindingsThe empirical results showed that CSR positively affected service innovation and product innovation in service firms and manufacturing firms, respectively, and that these effects were positively mediated by employee involvement and supplier collaboration. However, compared with manufacturing firms, the effect of CSR on innovation performance was greater for service firms. Supplier collaboration and employee involvement also played a stronger role in service firms when mediating the relationship between CSR and innovation performance.Originality/valueBy analyzing and validating the direct and indirect effects of CSR on innovation performance in both the service and manufacturing industries, this study addressed the strategic benefit of CSR and extended research focused on the financial benefits of CSR. Therefore, its findings contribute to our understanding of sustainability and innovation issues. From a theoretical perspective, this study extended the RBV, SDL and stakeholder theory to the context of the CSR-innovation relationship, and showed that firms could align CSR and innovation initiatives to achieve strategic synergy. It also revealed the similarities and differences between service and manufacturing firms regarding the mechanism through which CSR affects innovation.


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