IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v66y2013i8p1108-1123.html
   My bibliography  Save this article

Service innovation: A comparative study of U.S. and Indian service firms

Author

Listed:
  • Thakur, Ramendra
  • Hale, Dena

Abstract

Although major contributions are being made by the service sector in creating wealth, the sector's substantive role in generating and use of innovation is lacking meticulous examination. Academics, managers, and policy makers lack insights into outcomes of service innovation and identifying factors influencing why some innovations succeed and others fail. This study contributes to service management by: (1) developing a comparative theoretical model based on the Strategic Innovation Paradigm, Bain's Social-Conduct-Performance (S-C-P) Paradigm and Social Capital Theory of Innovation; (2) testing the model with Partial Least Squares (PLS) using managerial data from various service industries; and (3) comparing results across a developed (U.S.) and an emerging (India) economy. Results indicate similar managerial perceptions of service innovation success and impeding factors. U.S. managers indicate that factors beyond their control have a negative impact on service innovation, while these factors are not a significant predictor of innovation in the Indian sample. Findings further indicate that service innovation positively relates to the firms' non-financial and financial performance. Related implications for firms, consumers, public policy and future research are discussed.

Suggested Citation

  • Thakur, Ramendra & Hale, Dena, 2013. "Service innovation: A comparative study of U.S. and Indian service firms," Journal of Business Research, Elsevier, vol. 66(8), pages 1108-1123.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:8:p:1108-1123
    DOI: 10.1016/j.jbusres.2012.03.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296312000914
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2012.03.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tufano, Peter, 1989. "Financial innovation and first-mover advantages," Journal of Financial Economics, Elsevier, vol. 25(2), pages 213-240, December.
    2. Lyons, Richard K. & Chatman, Jennifer A. & Joyce, Caneel K., 2007. "Innovation in services: corporate culture and investment banking," LSE Research Online Documents on Economics 26940, London School of Economics and Political Science, LSE Library.
    3. Sirilli, Giorgio & Evangelista, Rinaldo, 1998. "Technological innovation in services and manufacturing: results from Italian surveys," Research Policy, Elsevier, vol. 27(9), pages 881-899, December.
    4. Fernanda Nogueira & Carla Susana Marques, 2008. "Organizational Innovation: Research Into The Information /Training Paths Of Decision-Makers Within Hospital," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 237-254.
    5. Marja Toivonen & Tiina Tuominen, 2009. "Emergence of innovations in services," The Service Industries Journal, Taylor & Francis Journals, vol. 29(7), pages 887-902, July.
    6. Tony Clayton, 2003. "Service Innovation: Aiming to Win," World Scientific Book Chapters, in: Joe Tidd & Frank M Hull (ed.), Service Innovation Organizational Responses to Technological Opportunities & Market Imperatives, chapter 5, pages 113-133, World Scientific Publishing Co. Pte. Ltd..
    7. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805, Elsevier.
    8. Johan Hauknes, "undated". "Services in Innovation – Innovation in Services," STEP Report series 199813, The STEP Group, Studies in technology, innovation and economic policy.
    9. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    10. Gudergan, Siegfried P. & Ringle, Christian M. & Wende, Sven & Will, Alexander, 2008. "Confirmatory tetrad analysis in PLS path modeling," Journal of Business Research, Elsevier, vol. 61(12), pages 1238-1249, December.
    11. I. Miles, 2003. "Services Innovation: Coming Of Age In The Knowledge-Based Economy," World Scientific Book Chapters, in: Ben Dankbaar (ed.), Innovation Management In The Knowledge Economy, chapter 3, pages 59-81, World Scientific Publishing Co. Pte. Ltd..
    12. Joe Tidd & Frank M Hull (ed.), 2003. "Service Innovation:Organizational Responses to Technological Opportunities & Market Imperatives," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number p294, August.
    13. C. Storey & D. Kelly, 2001. "Measuring the Performance of New Service Development Activities," The Service Industries Journal, Taylor & Francis Journals, vol. 21(2), pages 71-90, April.
    14. Faridah Djellal & Faïz Gallouj, 2001. "Patterns of innovation organisation in service firms: postal survey results and theoretical models," Science and Public Policy, Oxford University Press, vol. 28(1), pages 57-67, February.
    15. A. Lievens & R. K. Moenaert, 2000. "Project Team Communication in Financial Service Innovation," Journal of Management Studies, Wiley Blackwell, vol. 37(5), pages 733-766, July.
    16. Mark A. Dutz, 2007. "Unleashing India's Innovation : Toward Sustainable and Inclusive Growth," World Bank Publications - Books, The World Bank Group, number 6856.
    17. Greis, Noel P. & Dibner, Mark D. & Bean, Alden S., 1995. "External partnering as a response to innovation barriers and global competition in biotechnology," Research Policy, Elsevier, vol. 24(4), pages 609-630, July.
    18. Jeroen de Jong & Brouwer, 1999. "Determinants of the innovative ability of SMEs," Scales Research Reports B199902, EIM Business and Policy Research.
    19. Christiane Hipp & Bruce S. Tether & Ian Miles, 2000. "The Incidence And Effects Of Innovation In Services: Evidence From Germany," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 417-453.
    20. Ranjay Gulati, 1999. "Network location and learning: the influence of network resources and firm capabilities on alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 397-420, May.
    21. Jon Sundbo & Faïz Gallouj, 1998. "Innovation as a loosely coupled system in services," Post-Print halshs-01113675, HAL.
    22. de Brentani, Ulrike, 1995. "New industrial service development: Scenarios for success and failure," Journal of Business Research, Elsevier, vol. 32(2), pages 93-103, February.
    23. Sally Wyatt, 2000. "Ict Innovation In Central Government: Learning From The Past," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 391-416.
    24. Blazevic, Vera & Lievens, Annouk, 2004. "Learning during the new financial service innovation process: Antecedents and performance effects," Journal of Business Research, Elsevier, vol. 57(4), pages 374-391, April.
    25. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
    26. Patrick Vermeulen & Wietze van der Aa, 2003. "Organizing Innovation in Services," World Scientific Book Chapters, in: Joe Tidd & Frank M Hull (ed.), Service Innovation Organizational Responses to Technological Opportunities & Market Imperatives, chapter 2, pages 35-53, World Scientific Publishing Co. Pte. Ltd..
    27. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2004. "The impact of innovation on economic performance in services ?," Post-Print hal-00278629, HAL.
    28. Storey, Chris & Easingwood, Christopher J., 1999. "Types of New Product Performance: Evidence from the Consumer Financial Services Sector," Journal of Business Research, Elsevier, vol. 46(2), pages 193-203, October.
    29. Frambach, Ruud T. & Barkema, Harry G. & Nooteboom, Bart & Wedel, Michel, 1998. "Adoption of a service innovation in the business market: An empirical test of supply-side variables," Journal of Business Research, Elsevier, vol. 41(2), pages 161-174, February.
    30. Billie Jo Zirger & Modesto A. Maidique, 1990. "A Model of New Product Development: An Empirical Test," Management Science, INFORMS, vol. 36(7), pages 867-883, July.
    31. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2004. "The impact of innovation on economic performance in services," The Service Industries Journal, Taylor & Francis Journals, vol. 24(1), pages 116-130, January.
    32. Andrew Chan & FRANK M. GO & RAY PINE, 1998. "Service Innovation in Hong Kong: Attitudes and Practice," The Service Industries Journal, Taylor & Francis Journals, vol. 18(2), pages 112-124, April.
    33. Jon Sundbo, 1997. "Management of Innovation in Services," The Service Industries Journal, Taylor & Francis Journals, vol. 17(3), pages 432-455, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xavier Pavie & Eva Hsu & Hanns Justus Tillman Rödle & Raquel Orozco Tapia, 2013. "How to Define and Analyze Business Model Innovation in Service," Working Papers hal-00921420, HAL.
    2. Don Kusalani De Silva ˆ—, 2016. "Developing Service-Oriented Government Agencies: Observations On The Divisional Secretariats In Galle, Sri Lanka," International Journal of Humanities, Arts and Social Sciences, Dr. Mohammad Hamad Al-khresheh, vol. 2(5), pages 165-171.
    3. Xin Liu & Yan Huang & Jaehyoung Kim & Sanggyun Na, 2023. "How Ethical Leadership Cultivates Innovative Work Behaviors in Employees? Psychological Safety, Work Engagement and Openness to Experience," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    4. Mittal, Swati & Dhar, Rajib Lochan, 2016. "Effect of green transformational leadership on green creativity: A study of tourist hotels," Tourism Management, Elsevier, vol. 57(C), pages 118-127.
    5. Zhao, Mengli & Yang, Jianjun & Shu, Chengli & Liu, Jinxin, 2021. "Sustainability orientation, the adoption of 3D printing technologies, and new product performance: A cross-institutional study of American and Indian firms," Technovation, Elsevier, vol. 101(C).
    6. Garcia Martinez, Marian & Zouaghi, Ferdaous & Garcia Marco, Teresa & Robinson, Catherine, 2019. "What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis," Journal of Business Research, Elsevier, vol. 98(C), pages 441-449.
    7. Georgios Giotis & Evangelia Papadionysiou, 2022. "The Role of Managerial and Technological Innovations in the Tourism Industry: A Review of the Empirical Literature," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    8. S. S. Makgopa, 2021. "Drivers of Service Innovation in Service Organisations," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, March.
    9. Chi-Yen Yin & Hsiao-Hsin Chang, 2022. "What Is the Link between Strategic Innovation and Organizational Sustainability? Historical Review and Bibliometric Analytics," Sustainability, MDPI, vol. 14(11), pages 1-23, June.
    10. Chuang, Shu-Hui & Lin, Hong-Nan, 2015. "Co-creating e-service innovations: Theory, practice, and impact on firm performance," International Journal of Information Management, Elsevier, vol. 35(3), pages 277-291.
    11. Lin, Chiu Hui & Wu, Chih-Wen & Cheng, Yi-Han, 2015. "The empirical study of consumers' loyalty for display technology," Journal of Business Research, Elsevier, vol. 68(11), pages 2260-2265.
    12. VGR Chandran & Tariq Ahmed & Fedwa Jebli & Alexander Josiassen & Eva Lang, 2024. "Developing innovation capability in the hotel industry, who and what is important? A mixed methods approach," Tourism Economics, , vol. 30(3), pages 728-748, May.
    13. Magadlene Mpandare & Guoxin Li, 2020. "Utilising Enterprise Social Media for Product Innovation: The Role of Market Orientation," Sustainability, MDPI, vol. 12(9), pages 1-24, May.
    14. Ozlem Uzunsaf Yamak & Serife Zihni Eyupoglu, 2021. "Authentic Leadership and Service Innovative Behavior: Mediating Role of Proactive Personality," SAGE Open, , vol. 11(1), pages 21582440219, January.
    15. Villani, Elisa & Linder, Christian & Lechner, Christian & Muller, Lina, 2021. "How do non-innovative firms start innovation and build legitimacy? The case of professional service firms," Journal of Business Research, Elsevier, vol. 137(C), pages 614-625.
    16. Emel Esen & Secil Tastan & Nihan Degercan, 2021. "The Impact of Perceived Corporate Reputation of Sport Clubs on Social Media Usage: a Study with the Lenses of Social Capital," Postmodern Openings, Editura Lumen, Department of Economics, vol. 12(3), pages 350-383, August.
    17. Machado Léo, Ricardo & Tello‐Gamarra, Jorge, 2016. "Inovac¸ão em servic¸os: estado da arte e perspectivas futuras [Innovation in services: state of the art and future perspectives]," MPRA Paper 82195, University Library of Munich, Germany, revised 29 Mar 2017.
    18. Snyder, Hannah & Witell, Lars & Gustafsson, Anders & Fombelle, Paul & Kristensson, Per, 2016. "Identifying categories of service innovation: A review and synthesis of the literature," Journal of Business Research, Elsevier, vol. 69(7), pages 2401-2408.
    19. repec:hal:journl:hal-00921420 is not listed on IDEAS
    20. Saymon Ricardo Oliveira Sousa & Wesley Vieira Silva & Claudimar Pereira Veiga & Roselaine Ruviaro Zanini, 2020. "Theoretical background of innovation in services in small and medium-sized enterprises: literature mapping," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-26, December.
    21. Veronika Bumberová & František Milichovský, 2020. "Influence of Determinants on Innovations in Small KIBS Firms in the Czech Republic before COVID-19," Sustainability, MDPI, vol. 12(19), pages 1-21, September.
    22. Amara, Nabil & D'Este, Pablo & Landry, Réjean & Doloreux, David, 2016. "Impacts of obstacles on innovation patterns in KIBS firms," Journal of Business Research, Elsevier, vol. 69(10), pages 4065-4073.
    23. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.
    24. Xie, Xuemei & Wang, Hongwei & García, Javier Sendra, 2021. "How does customer involvement in service innovation motivate service innovation performance? The roles of relationship learning and knowledge absorptive capacity," Journal of Business Research, Elsevier, vol. 136(C), pages 630-643.
    25. Huiying Zhang & Xiguang Chen, 2022. "Open Innovation and Sustainable Innovation Performance: The Moderating Role of IP Strategic Planning and IP Operation," Sustainability, MDPI, vol. 14(14), pages 1-15, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Poh-Kam Wong & Zi-Lin He, 2002. "The Impacts of Knowledge Interaction with Manufacturing Clients on KIBS Firms Innovation Behaviour," WIDER Working Paper Series DP2002-69, World Institute for Development Economic Research (UNU-WIDER).
    2. J Howells & B Tether & F Gallouj & F Djellal & C Gallouj & K Blind & J Edler & C Hipp & F Montobbio & N Corrocher & A Macpherson & D Banach, 2004. "Innovation in Services: Issues at Stake and Trends," Working Papers halshs-01113600, HAL.
    3. K. J. Wang & J. Widagdo & Y. S. Lin & H. L. Yang & S. L. Hsiao, 2016. "A service innovation framework for start-up firms by integrating service experience engineering approach and capability maturity model," Service Business, Springer;Pan-Pacific Business Association, vol. 10(4), pages 867-916, December.
    4. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
    5. Salunke, Sandeep & Weerawardena, Jay & McColl-Kennedy, Janet R., 2013. "Competing through service innovation: The role of bricolage and entrepreneurship in project-oriented firms," Journal of Business Research, Elsevier, vol. 66(8), pages 1085-1097.
    6. Lucia Crevani & Kristina Palm & Annika Schilling, 2011. "Innovation management in service firms: a research agenda," Service Business, Springer;Pan-Pacific Business Association, vol. 5(2), pages 177-193, June.
    7. Anna Cabigiosu & Diego Campagnolo, 2016. "The economic performance of innovations in a collaborative setting: the case of KIBS firms," Working Papers 22, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    8. Snyder, Hannah & Witell, Lars & Gustafsson, Anders & Fombelle, Paul & Kristensson, Per, 2016. "Identifying categories of service innovation: A review and synthesis of the literature," Journal of Business Research, Elsevier, vol. 69(7), pages 2401-2408.
    9. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.
    10. Muller, Emmanuel & Doloreux, David, 2009. "What we should know about knowledge-intensive business services," Technology in Society, Elsevier, vol. 31(1), pages 64-72.
    11. Jeremy Howells, 2010. "Services and Innovation and Service Innovation: New Theoretical Directions," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 3, Edward Elgar Publishing.
    12. Dao Thi Ta & Chia-Han Yang, 2018. "Exploring The Impacts Of Service Innovation On Customer Satisfaction In The Telecom Industry: A Perspective From Interactive And Supportive Service Innovations," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-30, October.
    13. Yang Yang & Zhongqiu Li & Yingying Su, 2018. "The Effectiveness of Service Innovation Practices to Reduce Energy Consumption Based on Adaptive Theory," Sustainability, MDPI, vol. 10(9), pages 1-16, September.
    14. Oihana Basilioa & Philippe Laredob & Paloma Sánchezc, 2019. "The Organization Of R&D Activities In Large Knowledge Intensive Business Services: The Case Of A “Big Four” Consultancy," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-32, April.
    15. Ki H. Kang & Jina Kang, 2009. "Do External Knowledge Sourcing Methods Matter in Service Innovation? Analysis of South Korean Service Firms," TEMEP Discussion Papers 200908, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2009.
    16. Camisón, César & Monfort-Mir, Vicente M., 2012. "Measuring innovation in tourism from the Schumpeterian and the dynamic-capabilities perspectives," Tourism Management, Elsevier, vol. 33(4), pages 776-789.
    17. Orfila-Sintes, Francina & Mattsson, Jan, 2009. "Innovation behavior in the hotel industry," Omega, Elsevier, vol. 37(2), pages 380-394, April.
    18. Lan Li & Hsin-Chieh Kung & Fu-Sheng Tsai & Chih-Fang Liu & Kun-Hwa Lu, 2018. "Service Learning, Service Climate, and Service-Based Social Innovation for Sustainability," Sustainability, MDPI, vol. 10(7), pages 1-12, July.
    19. Tether, Bruce S. & Tajar, Abdelouahid, 2008. "The organisational-cooperation mode of innovation and its prominence amongst European service firms," Research Policy, Elsevier, vol. 37(4), pages 720-739, May.
    20. Witell, Lars & Snyder, Hannah & Gustafsson, Anders & Fombelle, Paul & Kristensson, Per, 2016. "Defining service innovation: A review and synthesis," Journal of Business Research, Elsevier, vol. 69(8), pages 2863-2872.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:66:y:2013:i:8:p:1108-1123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.