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Service response to economic decline: Innovation actions for achieving strategic renewal

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  • Martin-Rios, Carlos
  • Parga-Dans, Eva

Abstract

This paper develops process theory on how service firms deal with persistent economic decline and the practices they adopt to overcome it. It examines how a knowledge-based service activity — commercial archeology — attempts to overcome environmental constraints of increasing complexity and economic downturn, as it unfolded over an 8-year period. This longitudinal, multimethod field study illustrates how confronting an external crisis may actually lead surviving firms to attempt innovation actions, a critical factor in achieving organizational renewal. Findings suggest that the renewal ability of highly dynamic services hinges on which innovation activities firms select and adopt, whether they implement them effectively, and the consequences of such implementations. This article contributes to the development of theory about the role of organizational innovation in service adaptation by offering insight into the link between strategic renewal and innovation activities.

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  • Martin-Rios, Carlos & Parga-Dans, Eva, 2016. "Service response to economic decline: Innovation actions for achieving strategic renewal," Journal of Business Research, Elsevier, vol. 69(8), pages 2890-2900.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:8:p:2890-2900
    DOI: 10.1016/j.jbusres.2015.12.058
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    Cited by:

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    2. Anzola-Román, Paula & Bayona-Sáez, Cristina & García-Marco, Teresa, 2018. "Organizational innovation, internal R&D and externally sourced innovation practices: Effects on technological innovation outcomes," Journal of Business Research, Elsevier, vol. 91(C), pages 233-247.
    3. Hosanoo, Zuberia & Patel, Parth & Prikshat, Verma & Kanungo, Rama Prasad & Gupta, Surkasha, 2024. "Focal firms and interorganisational relationships in small economies: Towards a multi-level theoretical framework for enhancing value co-creation and performance," Journal of International Management, Elsevier, vol. 30(3).
    4. Eva Parga Dans & Pablo Alonso González, 2021. "The Unethical Enterprise of the Past: Lessons from the Collapse of Archaeological Heritage Management in Spain," Journal of Business Ethics, Springer, vol. 172(3), pages 447-461, September.
    5. Hortovanyi, Lilla & Szabo, Roland Zs & Fuzes, Peter, 2021. "Extension of the strategic renewal journey framework: The changing role of middle management," Technology in Society, Elsevier, vol. 65(C).
    6. Carlos Martin-Rios & Anastasia Hofmann & Naomi Mackenzie, 2020. "Sustainability-Oriented Innovations in Food Waste Management Technology," Sustainability, MDPI, vol. 13(1), pages 1-12, December.

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