The role of a firm’s innovation competence on customer adoption of service innovation

2017 ◽  
Vol 40 (4) ◽  
pp. 378-409 ◽  
Author(s):  
Navneet Bhatnagar ◽  
Arun Kumar Gopalaswamy

Purpose This paper aims to identify the dimensions of a firm’s service innovation competence. This paper also aims to establish the relationship between a firm’s service innovation competence dimensions and customer-oriented service innovation configurations and customer adoption. This study probes the supply side of service innovation to assess the key drivers or capabilities that influence the service innovation process at the firm level. Design/methodology/approach This study uses the triangulation method using existing theoretical concept supplemented by 18 in-depth interviews of senior level managers from service firms from three sectors – hospitality, mobile telecommunication services and financial services. The interview findings were supplemented by 12 service innovation case studies (four from each sector). Content analysis of in-depth interviews was performed using three raters, and inter-rater reliability was tested. Case studies were categorized in terms of the strength of the innovation competence dimension observed. Findings Based on the content analysis of the interviews and categorization of case study observations, six distinct dimensions of the firm’s service innovation competence were identified. Four attributes of each dimension were also identified. Based on the interview insights and case observations, seven propositions are suggested, and a conceptual framework is presented to establish the relationship between the firm’s service innovation competence dimensions and service innovation configurations and customer adoption. Research limitations/implications This study was conducted in the Indian context and remains to be tested using quantitative research. Therefore, researchers are encouraged to test the proposed framework in a different geographical context to ascertain its validity. Practical implications The conceptual framework presented in the paper may help managers of service firms in building innovation capabilities that are relevant to development of customer-oriented innovations. This would lead to better customer adoption of their new services. Originality/value This paper fills an important knowledge gap regarding the dimensions of a critical supply-side component of service innovation, that is, innovation competence. Clear identification of competence dimensions and their relationship with customer adoption extends the current knowledge on service innovation.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Veronica Ungaro ◽  
Laura Di Pietro ◽  
Maria Francesca Renzi ◽  
Roberta Guglielmetti Mugion ◽  
Maria Giovina Pasca

PurposeThis study aims to investigate the consumer's perspective regarding the relationship between services and well-being, contributing to the knowledge base in transformative service research (TSR). More specifically the aim was to understand consumers' perceptions of the relationship between services and well-being and their views about how companies can contribute (directly and/or indirectly) to achieve the well-being.Design/methodology/approachTo reach the research aim, the study adopts an explorative inductive design, carried out through a qualitative approach and grounded in 30 in-depth interviews with consumers.FindingsService sustainability represents the fundamental characteristic that determines the service ability to be transformative, requiring the implementation of the triple bottom line dimensions: social, environmental and economic. It emerged that, in the consumer's mind, the service categories that present a stronger relationship between service and well-being are as follows: healthcare, financial and transport.Originality/valueThe paper proposes a conceptual framework to describe the consumer perspective of the services' transformative role in promoting well-being, providing a theoretical lens for conducting future research and continuing to expand transformative service research (TSR).


2017 ◽  
Vol 20 (2) ◽  
pp. 250-268 ◽  
Author(s):  
Frank Crowley

Purpose The purpose of this paper is to explore product/service innovation and discontinuation using the firm as a unit of analysis. A key objective of the paper is to compare the results between manufacturing and service firms. Design/methodology/approach A two-step production function approach is employed to examine first, a firm’s decision to innovate and second, a firm’s decision to discontinue products/services. Findings The results indicate that the factors affecting product innovation and discontinuation are similar for manufacturing and service firms, where innovation was significant for product/service discontinuation and process innovation was found to be important for innovations. Similarly, monopoly power was important for innovation in both industry types. However, there were also some underlying differences, particularly in relation to firm age and economic geography effects. Practical implications The conclusion of the paper is that it is not appropriate to assume that the process of product innovation and discontinuation will be identical across industry types. Originality/value This study is the first study in the literature that examines product/service discontinuation at the firm level and the relationship between innovation and product/service discontinuation using the firm as a unit of analysis. This study further adds to the under-researched (relative to manufacturing studies) area of service innovation.


IMP Journal ◽  
2015 ◽  
Vol 9 (2) ◽  
pp. 177-207 ◽  
Author(s):  
Caroline Cheng ◽  
Elsebeth Holmen

Purpose – The purpose of this paper is to systematically review the relationship and networking strategy tools in the IMP literature. It proposes six dimensions for characterizing such tools: approach to tool development, level (and layer) of analysis, perspective of interaction, activities of network strategizing, external or internal orientation and use for “strategizing on” vs “strategizing in” relationships and networks. Design/methodology/approach – The paper uses a manual qualitative content analysis approach and an inductive approach, well suited for extracting relationship and networking strategy tools due to their implicit and dispersed nature. Findings – The paper presents an IMP toolbox comprising a wide variety of relationship and networking strategy tools emphasizing interconnectedness, interdependence and limited managerial autonomy, as well as an analysis of how identified tools are positioned along each of the six proposed dimensions. Research limitations/implications – This paper contributes a conceptual framework with a vocabulary to content analyze and discuss relationship and networking strategy tools in IMP research. Practical implications – The IMP toolbox may be a useful point of departure for managers who feel a need for developing and using a mix of tools for strategizing in business relationships and networks. Originality/value – The paper instills a strategy tool lens in the IMP literature and foregrounds strategizing concepts and techniques that were previously difficult to attend to for both researchers and practitioners.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natália Peroni Pellin ◽  
Alex Weymer ◽  
Leila Andressa Dissenha ◽  
Márcio André Leal Bauer

PurposeThe aim of this article was to analyze how the presence of the elements that constitute organizational links are related to sensemaking in a cooperative system of medical work.Design/methodology/approachA content analysis was conducted following interviews with the managers of the cooperative, which is a member of the Brazilian cooperative system and one of the largest in the world. This analysis enabled the systematization of the categories that were identified through the coding of responses, aided by Atlas.ti 8.0 software.FindingsAfter the analysis, it was possible to resize the constitutive elements identified in the specialized literature into three categories: identification, cooperation and recognition. The proposed resizing does not preclude the presence of the constitutive elements identified in the analysis, but it evidences the presence of these elements in a contextualized manner, suggesting a model of an organic organizational link that is dependent on the relationship between subject–object (organization), in which the different perceptions of meanings affect identification, and this can strengthen or weaken the link in a constant process of resignification.Originality/valueWith regard to its theoretical relevance, the work helps to bring concepts related to organizational links and sensemaking closer together as a process in the realm of intersubjectivity. This provides evidence of the presence of constituent elements of ties in a contextualized manner, demonstrating that the interpretation of managers aids sensemaking in a process of circularity and resignification.


2019 ◽  
Vol 36 (3) ◽  
pp. 342-364 ◽  
Author(s):  
Feng Hsu Liu ◽  
Lu Jui Chen ◽  
Hung Tai Tsou

Purpose The purpose of this paper is to investigate the effects of original equipment manufacturing suppliers’ local network embeddedness on buyers’ relative attention and joint innovation through service innovation competence. Design/methodology/approach A structural equation model was analyzed using AMOS 21 with data derived from 165 buyers in the Taiwanese electronics industry. Findings From the buyer perspective, suppliers with embedded network relationships in emerging markets are perceived to be service oriented and to have relative attention and joint innovation that are attractive to buyers. In addition, the findings of empirical testing conducted in this study suggest that perceived exploitative and explorative service innovation competence partially mediate the relationship between perceived network embeddedness and relative attention, while explorative service innovation competence partially mediates the influence of perceived network embeddedness on buyers’ joint innovation. Originality/value This study innovatively employed a buyer perspective to examine the servitization of manufacturing suppliers and the effects of this on the buyer–supplier relationship, providing new insights into the role of service innovation competence as well as important theoretical and managerial implications.


2020 ◽  
Vol 40 (7/8) ◽  
pp. 971-995
Author(s):  
Yiyi Fan ◽  
Mark Stevenson ◽  
Fang Li

PurposeThe aim of the study is to explore how two dimensions of interpersonal relationships (i.e. size and range of relationships) affect supplier-initiating risk management behaviours (SIRMB) and supply-side resilience. Further, the study aims to explore the moderating role of dependence asymmetry.Design/methodology/approachNine hypotheses are tested based on a moderated mediation analysis of survey data from 247 manufacturing firms in China. The data are validated using a subset of 57 attentive secondary respondents and archival data.FindingsSIRMB positively relates to supply-side resilience. Further, SIRMB mediates the positive relationship between range and supply-side resilience, and this relationship is stronger at lower levels of dependence asymmetry. Yet, although dependence asymmetry positively moderates the relationship between range and SIRMB, it negatively moderates the relationship between size and SIRMB. We did not, however, find evidence that size has a conditional indirect effect on supply-side resilience through SIRMB.Practical implicationsManagers in buying firms can incentivise SIRMB to enhance supply-side resilience by developing a diverse rather than a large set of interpersonal relationships with a supplier. This might include allocating particular employees with a wide range of contacts within a supplier to that relationship, while it may be necessary to adopt different networking strategies for different supplier relationships. Firms in a highly asymmetrical relationship may seek to raise supplier expectations about the necessity to initiate risk management behaviour or look to change the dynamic of the relationship by managing contracts for fairness.Originality/valueNew knowledge on SIRMB as a mediating variable underpinning the relationship between interpersonal relationships and supply-side resilience is provided; and empirical evidence on the opposing moderation effect of dependence asymmetry is presented.


2018 ◽  
Vol 21 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Ingela Sölvell

Purpose The task of leading innovation is predominantly pictured as a supportive role vis-à-vis employees. Motivation is a crucial aspect of this task. To better understand the practice of this change-oriented leadership task, the actual behavior and activities of managers are investigated. The purpose of this paper is to reflect through practice and self-reports how this leadership challenge is executed. Design/methodology/approach In this longitudinal multi-method investigation, the service innovation literature constitutes the main theoretical framework. The investigation draws additionally on leadership literature about how to understand leadership through practice. The methodological design facilitated the drawing of causal inferences in the dynamics of service innovation. Findings The investigation enhances our understanding of managers’ particular context of innovation, and particularly the initiation context. It provides empirically grounded descriptions of what managers identify as potential opportunities, and how they take them further in the ideation stage. The results develop the suggestion that leadership roles, and specifically change-oriented roles, are not restricted to initiating or enabling activities related to the employees. Instead the much downplayed leadership role, i.e. the active practice-based involvement in innovation, is theorized as a role that is continuously activated, but tends to be set aside for contingency reasons. Research limitations/implications Further research is needed to assess the importance of managers’ involvement in the practice of innovation, both through systematic mapping of ideas on a larger scale, and through the employee perspective. This paper provides useful insights on managers’ cognition and involvement in innovation for further investigations of innovation management. Practical implications The results provide awareness for managers regarding their diverse leadership roles related to innovation. First, the study embraces heterogeneous ideas that are useful to evaluate and constitute role-modeling. Second, it highlights how managers’ execution of innovation creates awareness about the challenges involved. Finally, but maybe most important, the results alert managers of the discontinuity, even in strategically anchored intentional innovation. Social implications In a changing innovation landscape, individual firms need to draw on other firms to achieve their innovation strategies. In pursuit of this goal, this paper enhances the understanding of the role-modeling leadership task. It is a novel way of guiding individuals that are exposed to new and uncertain innovation contexts, and rethinking how innovation eventually can be achieved. Originality/value While earlier research has identified the multifaceted leadership behavior to support innovation, this paper outlines the contextual conditions and the practice of executing the suggested powerful role of being a role-model for others.


2017 ◽  
Vol 27 (6) ◽  
pp. 1058-1080 ◽  
Author(s):  
Wenbin Sun ◽  
Jing Pang

Purpose The purpose of this paper is to explore the relationship between service quality and firms’ global competitiveness in the service industry. A set of moderating effects is formulated to further reveal how the relationship varies under different situations. Design/methodology/approach This paper tests the model with data collected from multiple sources such as World’s Most Admired Companies and COMPUSTAT. Two types of robust regressions for panel data are employed in the empirical model estimation. Findings Service quality is found to significantly drive global competitiveness. Specifically, its impact is stronger for large service firms and when the global environment is characterized as low munificence, high dynamism, or high complexity. Practical implications The paper provides a set of implications for managers of service firms regarding global expansion and quality management. It generates useful guidelines of maximizing the power of service quality when a firm’s global competitive advantage is considered. Originality/value This paper takes the first attempt to formulate service quality’s influence on firm’s global competitiveness with a consideration of specific situational factors.


2014 ◽  
Vol 11 (2) ◽  
pp. 111-128 ◽  
Author(s):  
Enrico Bracci

Purpose – The aim of the paper is to illustrate the changing structure of accountability under a new public governance agenda introduced in England to deliver social care through personal budgets. Design/methodology/approach – The paper draws on accountability and public governance literature, in particular, the accountability framework proposed by Hupe and Hill. The evidence was gathered from exploratory case studies conducted in two English County Councils. Findings – The introduction of personal budgets has modified the roles of the different actors involved in the co-production of social services. The case studies evidence changes in the accountability and governance process, particularly with respect to the personal budget regime that has devolved responsibility and accountability to the customer. Specifically, the customer's role has shifted and expanded in the accountability chain and thus developed into a partnership. Originality/value – This study is one of the first to analyse the relationship between the personalisation agenda in English social services and the relevant accountability mechanisms involved. Moreover, the paper refines the theoretical framework proposed by Hupe and Hill according to the different role the public now plays.


2018 ◽  
Vol 8 (2) ◽  
pp. 234-255 ◽  
Author(s):  
Ryan Vroegindewey ◽  
Veronique Theriault ◽  
John Staatz

Purpose The purpose of this paper is to examine how various transaction-cost characteristics influence the choice of vertical coordination (VC) structures (e.g. different contract types) and horizontal coordination (HC) structures (e.g. different farmer organization types) to link smallholder farmers efficiently with buyers. It analyzes the relationship between vertical and horizontal structures, and the economic sustainability of different structure combinations. Design/methodology/approach The paper develops a conceptual framework to predict coordination structures as a function of transaction-cost characteristics, compares predictions for the Malian cereals market to empirical evidence using 15 case studies, and then analyzes structure combinations. Findings Asymmetric scale between farmers and buyers; uncertainty in production, prices, policy, and contract enforcement; and quality and quantity debasement lead to selections of structures with high levels of control. Vertical and horizontal structures demonstrate a complementary relationship in certain core coordination roles, while exhibiting substitutability in the provision of other coordination activities. The marketing cooperative and marketing contract pairing is the most prevalent combination. Research limitations/implications The conceptual framework is useful for explaining the selection of coordination structures, and can be applied in other contexts to strengthen external validity. Originality/value The framework facilitates predictions and explanation of both VC and HC structures, with empirical application on a country and value chains receiving little attention in the literature.


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