scholarly journals AN APPROACH TO THE COOPERATION FOR INNOVATION IN THE SERVICE SECTOR

Author(s):  
JUAN CARLOS FERNANDEZ DE ARROYABE ◽  
NIEVES ARRANZ ◽  
KIM YOUNG

This study examines how firms cooperate for innovation in the services sector. We tested the theoretical development using cluster analysis and ordinal logit regression analysis with firm-level data collected from the Spanish Technological Innovation Panel (PITEC) for the period 2011–2013. Overall, 2,622 service firms have been used. This research contributes as follows: first, the findings show that the greater degree of penetration into the innovation modes of the firms means that the intensity of the use of cooperative agreements as well as the diversity of cooperative partners increases. Second, the empirical evidence for the taxonomy of innovation development in the service sector provides firms with the ways how to innovate based on their strategic orientation.

2016 ◽  
Vol 36 (9) ◽  
pp. 974-994 ◽  
Author(s):  
Daniel I. Prajogo ◽  
Adegoke Oke

Purpose The purpose of this paper is to examine the effect of human capital (HC) on service innovation advantage (SIA) and business performance (BP) in service sector firms, and how external environmental factors influence these relationships. Design/methodology/approach This study utilized a cross-sectional mail survey of a random sample of Australian service firms with the unit of analysis being at the firm level. In total, 228 usable responses were received. Findings The overall findings of this study show that HC is positively related to the creation of value or SIA which in turn results in rent generation for firms. The results further show that the effect of SIA on BP is influenced by environmental dynamism and competitiveness with dynamic environments enhancing the effect while competitive environments weakening it. Research limitations/implications The findings demonstrate the complementarity between the resource based theory and contingency theory as they clearly shows that the value of innovation as a firm’s capability is enhanced or weakened within a business environment that is more dynamic or competitive. Practical implications The findings demonstrate the importance of HC, and, thus, encourage managers to seek ways to harness and leverage HC for improving innovation and BP. In addition, the study also helps managers to understand the contingency effect of business environment on the effectiveness of innovation, hence, helping them in deliberating firms’ strategy in different business environments. Originality/value To the best of the authors’ knowledge, this is the first study which examines the effectiveness of HC as organizational resource for building SIA as a source of organizational competitive advantage.


Author(s):  
Birgit Aschhoff

SummaryIn this paper I analyze which firms receive R&D project grants and how this public support evolves over time by considering in particular firm’s previous participation. The extent of the dynamics of firms’ participation within the funding scheme gives information about the openness of the scheme towards non-participating firms. Using firm-level data on German manufacturing and knowledge-intensive service firms, it turns out that participation in the funding scheme shows a rather high level of continuity. This is also confirmed by applying a multivariate approach. Firms which received funding in the past are more likely to be selected for public funding again. Moreover, a firm’s size and knowledge capabilities increase the probability of entering the scheme.


2019 ◽  
Vol 11 (2) ◽  
pp. 167-186 ◽  
Author(s):  
Fazli Idris ◽  
M. Muzamil Naqshbandi

Purpose The purpose of this study is to explain the components of competitive priorities of Indian service firms, to find out the competitive priorities of different service industries in India and to find out how these competitive priorities change across low- and high-performing service firms. Design/methodology/approach An empirical study of 166 firms from five different service industries is undertaken in New Delhi and its surroundings. Findings The results reveal the presence of three competitive priorities in the services sector in India: cost, flexibility and quality/delivery, with quality/delivery being the most distinctive competitive priority. Hotel and auto-repair industries are found to be focused on controlling costs, while hospitals, banks and private colleges prioritized quality/delivery. For high-performing firms, cost is the top most competitive priority, followed by quality/delivery and flexibility, while for low-performing firms, quality/delivery remains the top most competitive priority, followed by flexibility and cost. Originality/value The paper enhances the understanding of competitive priorities in the Indian services sector. The identification of competitive priorities of different service industries in India and their dynamics across different industries add value to the current literature and fill an important research gap. Additionally, surveying diverse industries in this paper reveals a holistic picture of the Indian service industry and helps achieve some degree of cross-industry perspective.


2017 ◽  
Vol 237 (2) ◽  
pp. 81-113 ◽  
Author(s):  
Miruna Sarbu

Abstract: Social media applications such as wikis, blogs or social networks are being increasingly applied in firms. These applications can be used for external communication and internal knowledge management. Firms can potentially increase their productivity by optimising customer relationship management, marketing, market research and project management. On the other hand, the use of social media might lead to shirking among employees and might be, in general, very time-consuming preventing employees from managing their normal workload. This might lead to a decrease of labour productivity. This paper analyses the relationship between social media applications and labour productivity using firm-level data of 907 German manufacturing and service firms. The analysis is based on a Cobb-Douglas production function. The results reveal that social media might be related to labour productivity in an negative way which points towards a suboptimal use of social media.


2020 ◽  
pp. 0143831X2096115
Author(s):  
Laura Peutere ◽  
Antti Saloniemi ◽  
Petri Böckerman ◽  
Simo Aho ◽  
Jouko Nätti ◽  
...  

The aim of this article is to clarify the links between high-involvement management (HIM) practices, productivity and branches of industry. The data combine a representative survey ( N = 787) of private-sector firms in Finland and register-based firm-level data on sales per employee in the year following the survey. The authors analysed the data using mixture regression and identified two clusters in the association between HIM and productivity. In one cluster, high-involvement management and productivity were positively associated, while in the other cluster, the association was negative. The association between the intensity of HIM utilisation and productivity is not always additive; the benefits of HIM were most prominent in industries where HIM was most seldom utilised. This paradox was most notable in the service sector.


2021 ◽  
Vol 19 (1) ◽  
pp. 1-16
Author(s):  
Wulan Oktabriyantina ◽  
Maddaremmeng Andi Panennungi

This study examined the impact of service liberalization on manufacturing productivity firms in Indonesia through mode three (commercial presence) during 2006–2014. It used firm-level data sourced from the manufacturing census published by the Indonesian Bureau of Statistic (BPS). To address the problem of endogeneity in service reform, this research uses an Instrumental Variables (IV) estimation of the fixed-effect model variety and utilized two types of data (FDI and STRI OECD) to compare the result. The findings show that service liberalization in Indonesia has a positive impact on manufacturing productivity at the firm level. Furthermore, this study estimates each service sector (e.g., electricity, gas, and water; construction; transportation, warehouse, and telecommunication), the results indicated that each service had a significant impact on improving firm performance. This research suggests that reducing restrictions on the service market will improve manufacturing productivity.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thomas Anning-Dorson

Purpose This study aims to assess how innovative organizational culture and innovative leadership generate market flexibility for small and medium enterprises (SMEs) in the service sector to enhance their competitiveness. Both organizational culture and leadership are seen as firm-level resources capable of influencing the flexibility of the firm in periods of market turbulence. The study argues that SME service firms must use their internal resources to develop their flexibility capability which is more valuable, rare, inimitable and not substitutable. Design/methodology/approach SME service firms from Ghana are used to test the study’s hypotheses through robust standard regression analysis. A sampling frame was developed from an online database of small and medium enterprises operating in the service sector. Findings The findings suggest that although organizational culture and leadership may influence a service firm’s competitiveness, it is more viable to use these firm-level resources to create market flexibility capability to amplify the effect. This means, when culture and leadership propel the flexibility drive, the service firm is able to connect, coordinate and synchronize functional units to take advantage of new product and market opportunities. Additionally, market flexibility emanating from organizational culture and leadership wields enough power and resource support to tackle the turbulent market conditions better than firms with less support. Practical implications The managerial implication from this study is that firms should use their organizational culture and leadership to create flexible organizations that afford them the opportunity to adapt to the environmental dynamics. If both leadership and culture work together, they are able to create strong market capabilities such as flexibility which determines how well the firm will respond to the competition, customer demand and all other external pressures. It is, therefore, the view of this paper that SMEs should use their organizational culture and leadership to build a market-flexible organization to create a competitive advantage. Originality/value This paper shows how internal resources/assets such as culture and leadership generate the needed flexibility to create a competitive advantage for SMEs. This paper explains the two dimensions of Volberda’s flexibility from a firm-level resource perspective and highlights flexibility as a second-order capability whose cultivation and effectiveness are dependent on a firm’s culture and leadership. Evidence of how a firm’s market flexibility is fuelled by organizational leadership and culture is demonstrated. Finally, this paper shows how resource-poor SMEs in emerging African economies can enhance their market competitiveness through internal systems and processes.


2021 ◽  
Vol 16 (1) ◽  
pp. 120-133
Author(s):  
Nina Vujanović

Abstract Technological efficiency is one of the main factors of economic growth in modern history. Technologies have traditionally been important for manufacturing sector, but the age of digitalization has also made service sector increasingly rely on modern technologies. There are not many studies measuring the technological trends of these two sectors. This study uses the micro approach of the dynamic panel to measure productivity of the manufacturing and service sectors in Montenegro during 2010 to 2019, between the two global economic crises, using firm level data. The results indicate a clear upward technological trend in manufacturing but not in the service sector. Divergent technological trends are found amongst the manufacturing and service industries that require different level of technologies and knowledge in their production processes. The study concludes that there is a room for further technological improvements in both sectors and proposes concrete policy measures for further development.


2019 ◽  
Vol 5 (52) ◽  
pp. 81-95
Author(s):  
Andrzej Cieślik ◽  
Jan Jakub Michałek ◽  
Iryna Gauger

Abstract The main goal of this paper is to empirically investigate the regional dimension of productivity determinants for 24 regions of Ukraine using micro-level dataset for individual firms in 2013. The novelty of our analysis is the comparison of the determinants of productivity in the manufacturing and service sectors. We estimate both pooled regressions for all regions and separate regressions for particular regions. The estimation results obtained for the entire country demonstrate that the majority of our explanatory variables are statistically significant for the manufacturing sector and all are statistically significant for the service sector although at different levels of significance. At the same time, the estimation results obtained separately for each region show a large degree of heterogeneity across the regions and sectors and the lack of scale economies at the firm-level.


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