Strategic Effects of Service Innovation on Financial and Market Performance

2021 ◽  
pp. 17-35
Author(s):  
Yasemin Kocak Bilgin ◽  
Zafer Adiguzel
Keyword(s):  
Service Sector ◽  
Positive Impact ◽  
Market Performance ◽  
Service Innovation ◽  
Strategic Orientation ◽  
Mediation Effect ◽  
Performance Criteria ◽  
Strategic Analysis ◽  
Innovation Activities ◽  
Day By Day

The reason for the emphasis on innovation and strategy was the need for organizations to be successful in performance criteria and growth aspirations against competitors. The fact that the competition continues to increase day by day and the entrance to the market is becoming more difficult in every sector shows the fact that companies need to improve their innovation skills in order to ensure sustainability in national or international activities. In the research, the effects of service innovation activities on financial and market performance, as well as strategic analysis and strategic orientation, are examined in banks which have a significant position in the service sector. The surveys were collected from 358 (white-collar) employees at the expert level, after the research model and the sector to be researched were determined. SPSS 25 and AMOS programs were used in the analysis, and the Sobel Test and Hayes process were used for mediation variable analysis. According to survey data, service innovation has a positive impact on both strategic orientation and strategic analysis, as well as financial and market performance. In addition, it is understood that strategic analysis and the mediation effect of strategic orientation variables exist.

scholarly journals Relationship between User Innovation Activities and Market Performance: Moderated Mediating Effect of Absorptive Capacity and CEO’s Shareholding on Innovation Performance

2020 ◽  
Vol 12 (24) ◽  
pp. 10532
Author(s):  
Eun Hwa Lee ◽  
Choo Yeon Kim ◽  
Jae Wook Yoo
Keyword(s):  
Absorptive Capacity ◽  
Positive Impact ◽  
Market Performance ◽  
Moderated Mediation ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Mediation Effect ◽  
Successful Implementation ◽  
User Innovation ◽  
Innovation Activities

Although user innovation has been regarded as an important source of firms’ competitive advantage, the internal processes and mechanisms involved in the relationship between firms’ user innovation activities and market performance are seldom studied. By applying moderated mediation analyses, we examine (1) whether firms’ user innovation activities have a positive impact on market performance and (2) how and under what conditions user innovation activities can have a positive impact on a firm’s market performance. The findings on a sample of Korean manufacturing firms indicate that user innovation activities significantly increase firms’ innovation performance, which consequently leads to superior market performance (confirming the mediation effect of innovation performance). Additionally, we observe the positive mediation effect of innovation performance only in firms with higher levels of absorptive capacity (confirming the moderated mediation effect of absorptive capacity). Further analysis confirms that the positive interaction effects between user innovation activities and absorptive capacity on market performance through innovation performance were more pronounced for firms with higher Chief Executive Officer (CEO) shareholding levels (confirming the moderated mediation effect of CEO’s shareholding). Our findings provide theoretical and practical implications on the successful implementation of user innovation strategies.

Measuring Perceived Service Innovation Typologies in Retail Industry

2019 ◽  
Vol 04 (02) ◽  
pp. 1850019 ◽  
Author(s):  
Sridhar Manohar ◽  
Geeta Kapur
Keyword(s):  
Factor Analysis ◽  
Corporate Reputation ◽  
Positive Impact ◽  
Integrated Design ◽  
Service Innovation ◽  
Mediation Effect ◽  
Measurement Scale ◽  
Retail Industry ◽  
Customer Perspective ◽  
Nomological Validity

Purpose: The study is undertaken with two objectives, first to develop a scale that can measure service innovation from customer perspective in retail industry, and second to find out how the developed service innovation measurement scale has an effect on predicting customer’s Word-of-Mouth (WOM), followed by testing the mediation effect of corporate reputation between service innovation and WOM. Methodology: The study followed the Integrated Design Approach that included qualitative studies and quantitative studies in exploring and validating the measurement items for service innovation typologies. The codes that represent the typologies of service innovation were elicited through group discussions with selected customers and validated through in-depth interviews with decision maker/managers of retail industry in different parts of South India. The approved codes were validated through two expert opinion surveys and further authenticated through quantitative approaches such as: Exploratory Factor Analysis and Confirmatory Factor Analysis with two different sets of samples. Finally, the nomological validity of the developed scale was tested on estimating its effect on Corporate Reputation and WOM. Findings: The developed service innovation scale can be adopted by both researchers and managers in measuring service innovation in retail industry. The path analysis results concluded that service innovation has positive impact on corporate reputation and WOM, where the decision makers/managers can note that if service innovations are brought in frequently, it would make the firm reputed in the market and ultimately results in positive WOM from the customers. The mediation analysis result also gives an insight that even if the service innovation is by a non-reputed retailer, it still gets positive WOM. Originality/Value: The study contributes by providing a unique scale to measure service innovation from customer perspective in retail industry, overcoming the existing Goods-Dominant logic. Further, by empirically testing nomological validity, the effect on non-financial performance is estimated to understand how innovation in services would build corporate reputation that ultimately results in customers’ positive WOM which is wanting in literature on service innovation.

Marketing orientation, strategic orientation and their synergistic impact on business performance

2016 ◽  
Vol 18 (1) ◽  
pp. 27-52 ◽  
Author(s):  
Hardeep Chahal ◽  
R.C. Dangwal ◽  
Swati Raina
Keyword(s):  
Business Performance ◽  
Service Sector ◽  
Positive Impact ◽  
Strategic Orientation ◽  
North India ◽  
Strong Impact ◽  
Integrated Marketing ◽  
Content Type ◽  
Marketing Orientation

Purpose The main purpose of this study is to examine the synergistic impact of marketing orientation (MO) and strategic orientation (SO) on business performance (BP) and to explore role of entrepreneurial qualification (moderating) and SO (mediating) in MO and BP relationship. Design/methodology/approach Nine hundred small and medium-sized enterprises (SMEs) owners/managers operating in Jammu District, North India, are contacted during October 2013 to February 2014. Findings The study identifies and confirms MO (marketing strategy, customer philosophy, operational efficiency and integrated marketing) and SO (defensive, proactive, analytical and risk-averse) as multi-dimensional constructs. Although both orientations have positive impact on SMEs performance, however, their synergistic impact is weak. In addition, the study also reveals that MO has direct and indirect impact (through SO) on BP. Lastly, there exists moderating role of entrepreneurial qualification between MO and SO. Research limitations/implications The major limitation of the study is the focus on SMEs. Based on the strength of the relationships among the dimensions and sub-dimensions of the MO, SO and BP, replication and validation of research in service sector across the country and globe is required to generalise the results and to develop stronger theory. Originality/value This is the first empirical study to investigate the synergistic impact of two well-established notions – MO and SO. It provides empirical evidence for the claim that synergistic impact of marketing and SO on BP is weak, unlike their respective strong impact on BP. This study also clarifies roles of entrepreneurial qualification and SO in MO and BP relationship.

APPLYING CONFIGURATIONAL THINKING TO IDENTIFY RECIPES FOR PRODUCING SERVICE INNOVATIONS IN THE SERVICE SECTOR

2018 ◽  
Vol 22 (06) ◽  
pp. 1850049 ◽  
Author(s):  
NUTTANEEYA ANN TORUGSA ◽  
ANTHONY ARUNDEL ◽  
PAUL L. ROBERTSON
Keyword(s):  
Comparative Analysis ◽  
Research And Development ◽  
Service Sector ◽  
Qualitative Comparative Analysis ◽  
Service Innovation ◽  
Service Firms ◽  
Logit Regression ◽  
Innovation Activities ◽  
Using Data ◽  
Innovation Attributes

Using data from a sample of 2,528 European service firms, this study applies configurational thinking to identify combinations or “recipes” of attributes that can result in service innovation. Attributes of interest include the sector of service activities, the type of market served, the presence of production in other countries, the introduction of potentially complementary process and organisational innovations, and investment in research and development. We employ crisp-set qualitative comparative analysis (QCA) to identify recipes for service innovation, and verify the results using logit regression. By revealing several recipes for service innovation and demonstrating the value of QCA’s configurational thinking in providing a nuanced picture of the heterogeneity of innovation activities at the level of individual firms, our findings provide valuable linkages to managerial actions and have the potential for revitalising theory of service innovation.

Research on the Driving Factors of Customer Participation in Service Innovation in a Virtual Brand Community

2015 ◽  
Vol 7 (4) ◽  
pp. 299-309 ◽  
Author(s):  
Li Zhihong ◽  
Colin Duffield ◽  
David Wilson
Keyword(s):  
Knowledge Sharing ◽  
Perceived Risk ◽  
Service Sector ◽  
Virtual Communities ◽  
Positive Impact ◽  
Service Innovation ◽  
Driving Factors ◽  
Customer Participation ◽  
Brand Communities ◽  
Effective Strategies

With the development of the service sector and network communication technology, customers are involved in business activities through virtual communities and demonstrating the ability to create personalized products or services with companies. This paper systematically studied the driving factors of customer participation in service innovation. Based on related literature research achievements and a better development of virtual brand communities in China-XiaoMi community, this paper empirically analyzed the different factors. The results showed that self-efficacy and trust have a significant positive impact on knowledge sharing and co-production, while the perceived risk and helpfulness have a significant positive impact on knowledge sharing. Finally, effective strategies and recommendations are proposed on how companies encourage and manage customers to effectively participate in service innovation of virtual brand communities based on the conclusions of analysis.

Sustainable Development Through Innovation In Service Sector

2014 ◽  
Vol 1 (1) ◽  
pp. 175-178
Author(s):  
Ilie Banu ◽  
Ioana Madalina Butiuc
Keyword(s):  
Sustainable Development ◽  
Tax Evasion ◽  
Service Sector ◽  
Service Innovation ◽  
Slow Recovery ◽  
Quality Research ◽  
Development Indicators ◽  
Economic Cycles ◽  
Sustainable Development Indicators ◽  
Research And Innovation

AbstractRegarding the economic crises and the slow recovery that still continues, we believe that a solution can be improving the capacity to research and innovate in order to achieve sustainable development. Another key issue of the paper is about developing the cooperation between academia and business. The challenge of this development is how to increase the amount to finance research and innovation that can be implemented in the economy. As a global solution, to this problem we can recommend, for example, reducing tax evasion and by fiscal education. Also particular sources have to be found in order to develop innovation on SME level. It is essential for innovation to make quality research in order to be better prepared and increase adaptability to economic cycles. The aim of the paper is to find out how service innovation and cooperation between academia and business can enhance sustainable development indicators. The conclusions of the paper are structured in particular proposals and recommendations.

Pengaruh Mekanisme Konflik Keagenan Terhadap Kinerja Perusahaan (Studi di Pasar Modal Indonesia Periode Tahun 2004-2010)

2017 ◽  
Vol 24 (2) ◽  
pp. 83
Author(s):  
Teguh Prasetyo
Keyword(s):  
Service Sector ◽  
Positive Impact ◽  
Stock Exchange ◽  
Control Variable ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Agency Cost ◽  
Agency Conflict ◽  
Pooled Data ◽  
Independent Variable

This research aims to test of agency theory in Indonesian Stock Exchange as proxy variables within agency conflict mechanism for firm performance. It is used secondary data from Indonesian Capital Market Directory (ICMD) and OSIRIS include all industry manufacture, exclude insurance and finace service sector. It's appropriate sampling criteria's and listing in Indonesian Stock Exchange. Then, using pooled data with observation period 2004th round to 2010th. Variables used in this study is the first Asset Utility as agency cost as dependent variabel. The second variabels is dividen, leverage, institutional ownership as mechanism variables to agency conflict as independent variable. Then, the control variable used firm size. The method of analysis used in this study is multiple regression of pooled data analysis. The results of this study is a positive effect dividend to company's performace of the first. Then, the second is a positive impact leverage to company's performace. The last is a positive impact institutional ownership to company's performace. With the result that, mechanism varibles of agency conflict has been play function of binding and oversight of agency conflict.

scholarly journals The Relationship between Strategic Orientation, Service Innovation, and Performance in Hotels in Angola

2021 ◽  
Vol 13 (11) ◽  
pp. 6256
Author(s):  
Gerdina Handa Serafim ◽  
José Manuel Cristóvão Veríssimo
Keyword(s):  
Developing Countries ◽  
Customer Orientation ◽  
Positive Impact ◽  
Group Analysis ◽  
Strategic Orientation ◽  
New Business ◽  
Competitor Orientation ◽  
And Performance ◽  
Technology Orientation ◽  
The Impact

This paper aims to investigate the impacts of customer orientation, competitor orientation, learning orientation, technology orientation, and entrepreneurial orientation on hotel innovation and performance. Data from 69 hotels in four Angolan provinces were analyzed using the partial least squares (PLS) approach and multi group analysis. The results show that learning and entrepreneurial orientations have a positive impact on hotel innovation. As anticipated, innovation has a positive impact on performance. According to the multigroup analysis, only the hotel category has a moderating effect on performance. Results suggest that hotels in developing countries could add value to both customers and shareholders by promoting new services and exploring new business opportunities. To the best of our knowledge, this is one of the few studies that has researched the impact of strategic orientation on hotel innovation and financial performance in developing countries.

Promoting strategic performance through strategic orientation and strategic renewal

2019 ◽  
Vol 58 (2) ◽  
pp. 376-392 ◽  
Author(s):  
Hassan Ahmed Shah ◽  
Muhammad Yasir ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed
Keyword(s):  
Positive Impact ◽  
Moderated Mediation ◽  
Strategic Orientation ◽  
Mediation Model ◽  
Content Type ◽  
Strategic Performance ◽  
Strategic Renewal ◽  
Mediating Role ◽  
Moderated Mediation Model

Purpose The purpose of this paper is to explore the ways in which strategic orientation (SO) and strategic renewal (SR) could create the possibility for improving strategic performance (SP). The indirect effect of SO was also tested in this study. Furthermore, by using the moderated mediation model, the authors also investigated the moderating role of organizational ambidexterity (OA). Design/methodology/approach The results of this cross-sectional study are based on a survey conducted on 1,430 owner/managers of SMEs. To analyze the relationship among variables, this study used descriptive, correlation and hierarchical multiple regression approach. Findings Results revealed that SO positively affects SR and SP in SMEs. Furthermore, the mediating role of SR between the relationships of SO and SP was also confirmed. Moreover, OA strengthens the connection between SO, SR and SP. Practical implications The current study provides new insights for strategic planning and management by focusing on SO along with its different dimensions. Therefore, it provides new guidelines and a roadmap that would be helpful in achieving the objectives of SP. Originality/value The study makes significant contributions to the extant literature by adding new knowledge about the positive impact of SO on SP. Moreover, with the analysis of mediating role of SR in this relationship, the study has made significant addition to the existing literature on SP. Furthermore, moderated mediation model adds value to the existing body of knowledge.

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