IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v172y2016icp54-64.html
   My bibliography  Save this article

Service innovation and new product performance: The influence of market-linking capabilities and market turbulence

Author

Listed:
  • Chen, Kaui-Hwang
  • Wang, Chun-Hsien
  • Huang, Shi-Zheng
  • Shen, George C.

Abstract

Service innovation is a significant factor in maintaining a firm׳s competitive advantage in an increasingly service-centered economy. Although there is a rich body of research on the role of service innovation in value creation for firms, little attention has been paid to the effect of service innovation on new product development. This study advances the research on service innovation and market-fit capabilities by examining how a service-based firm׳s market-linking capabilities and market turbulence shape the relationship between service innovation and new product performance. The study offers a theoretical framework that integrates both the resource-based and market orientation perspectives of service innovation to investigate innovative service practices and activities that occur in contemporary service-based firms. Using an original dataset of 170 service-based firms from a service-centered economy, the study demonstrates that the combination of high market-linking capabilities and high market turbulence strengthens new product development performance. The empirical results further show that new product performance is highest in situations involving high levels of service innovation, market-linking, and market turbulence; thus, the findings support the proposed three-way interaction among these variables. Overall, these findings contribute to a better understanding of the contexts in which service innovation represents an invisible specific asset or resource for service-based firms.

Suggested Citation

  • Chen, Kaui-Hwang & Wang, Chun-Hsien & Huang, Shi-Zheng & Shen, George C., 2016. "Service innovation and new product performance: The influence of market-linking capabilities and market turbulence," International Journal of Production Economics, Elsevier, vol. 172(C), pages 54-64.
    • Handle: RePEc:eee:proeco:v:172:y:2016:i:c:p:54-64
    DOI: 10.1016/j.ijpe.2015.11.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315004235
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2015.11.004?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. 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.
    2. Tseng, Chiung-Hui & Lee, Ruby P., 2010. "Host environmental uncertainty and equity-based entry mode dilemma: The role of market linking capability," International Business Review, Elsevier, vol. 19(4), pages 407-418, August.
    3. Chong, Alain Yee-Loong & Zhou, Li, 2014. "Demand chain management: Relationships between external antecedents, web-based integration and service innovation performance," International Journal of Production Economics, Elsevier, vol. 154(C), pages 48-58.
    4. Chae, Bongsug (Kevin), 2012. "An evolutionary framework for service innovation: Insights of complexity theory for service science," International Journal of Production Economics, Elsevier, vol. 135(2), pages 813-822.
    5. repec:hal:journl:hal-02313237 is not listed on IDEAS
    6. Carine Dominguez-Perry & Blandine Ageron & Gilles Neubert, 2013. "A Service Science Framework to Enhance Value Creation in Service Innovation Projects. A RFID case study," Post-Print halshs-00863552, HAL.
    7. Kindström, Daniel & Kowalkowski, Christian & Sandberg, Erik, 2013. "Enabling service innovation: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 66(8), pages 1063-1073.
    8. Brady, Michael K. & Cronin, J. Jr. & Brand, Richard R., 2002. "Performance-only measurement of service quality: a replication and extension," Journal of Business Research, Elsevier, vol. 55(1), pages 17-31, January.
    9. Yan Zhang & Haiyang Li, 2010. "Innovation search of new ventures in a technology cluster: the role of ties with service intermediaries," Strategic Management Journal, Wiley Blackwell, vol. 31(1), pages 88-109, January.
    10. Sakata, Ichiro & Sasaki, Hajime & Akiyama, Masanori & Sawatani, Yuriko & Shibata, Naoki & Kajikawa, Yuya, 2013. "Bibliometric analysis of service innovation research: Identifying knowledge domain and global network of knowledge," Technological Forecasting and Social Change, Elsevier, vol. 80(6), pages 1085-1093.
    11. AfDB AfDB, . "AfDB Group Annual Report 2011," Annual Report, African Development Bank, number 392.
    12. O'Cass, Aron & Sok, Phyra, 2013. "Exploring innovation driven value creation in B2B service firms: The roles of the manager, employees, and customers in value creation," Journal of Business Research, Elsevier, vol. 66(8), pages 1074-1084.
    13. John Hauser & Gerard J. Tellis & Abbie Griffin, 2006. "Research on Innovation: A Review and Agenda for," Marketing Science, INFORMS, vol. 25(6), pages 687-717, 11-12.
    14. Vargo, Stephen L. & Maglio, Paul P. & Akaka, Melissa Archpru, 2008. "On value and value co-creation: A service systems and service logic perspective," European Management Journal, Elsevier, vol. 26(3), pages 145-152, June.
    15. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    16. Unknown, 2012. "2012 Annual Agricultural Outlook," Staff Paper Series 120986, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    17. Ng, Irene C.L. & Maull, Roger & Yip, Nick, 2009. "Outcome-based contracts as a driver for systems thinking and service-dominant logic in service science: Evidence from the defence industry," European Management Journal, Elsevier, vol. 27(6), pages 377-387, December.
    18. Paton, Robert A. & McLaughlin, Stephen, 2008. "Services innovation:: Knowledge transfer and the supply chain," European Management Journal, Elsevier, vol. 26(2), pages 77-83, April.
    19. Wayne S. DeSarbo & C. Anthony Di Benedetto & Michael Song & Indrajit Sinha, 2005. "Revisiting the Miles and Snow strategic framework: uncovering interrelationships between strategic types, capabilities, environmental uncertainty, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 26(1), pages 47-74, January.
    20. AfDB AfDB, . "AfDB Group Annual Report 2011 (Arabic)," Annual Report, African Development Bank, number 394.
    21. Hallikas, Jukka & Immonen, Mika & Pynnönen, Mikko & Mikkonen, Karri, 2014. "Service purchasing and value creation: Towards systemic purchases," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 53-61.
    Full references (including those not matched with items on IDEAS)

    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. John N. Walsh & Jamie O’Brien, 2018. "Knowledge Asymmetries and Service Management: Three Case Studies," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-26, September.
    2. Mahavarpour, Nasrin & Marvi, Reza & Foroudi, Pantea, 2023. "A Brief History of Service Innovation: The evolution of past, present, and future of service innovation," Journal of Business Research, Elsevier, vol. 160(C).
    3. 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.
    4. Humberto Brea-Solis & Sergio Perelman & David Saal, 2017. "Regulatory incentives to water losses reduction: the case of England and Wales," Journal of Productivity Analysis, Springer, vol. 47(3), pages 259-276, June.
    5. Huma Fatima & Ammar Rashid, 2015. "A Meta-Analysis of Service Science Research," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(7), pages 352-360, July.
    6. Akter, Shahriar & Wamba, Samuel Fosso & D’Ambra, John, 2019. "Enabling a transformative service system by modeling quality dynamics," International Journal of Production Economics, Elsevier, vol. 207(C), pages 210-226.
    7. Kuznetsov, Andrei & Dinwoodie, John & Gibbs, David & Sansom, Mark & Knowles, Harriet, 2015. "Towards a sustainability management system for smaller ports," Marine Policy, Elsevier, vol. 54(C), pages 59-68.
    8. Farrell, Niall & Donoghue, Cathal O’ & Morrissey, Karyn, 2015. "Quantifying the uncertainty of wave energy conversion device cost for policy appraisal: An Irish case study," Energy Policy, Elsevier, vol. 78(C), pages 62-77.
    9. Kotilainen, Juha & Prokhorova, Evgenia & Sairinen, Rauno & Tiainen, Heidi, 2015. "Corporate social responsibility of mining companies in Kyrgyzstan and Tajikistan," Resources Policy, Elsevier, vol. 45(C), pages 202-209.
    10. Wang, Qiang & Zhao, Xiande & Voss, Chris, 2016. "Customer orientation and innovation: A comparative study of manufacturing and service firms," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 221-230.
    11. John A. Parnell, 2017. "Cronyism from the Perspective of the Firm: A Cross-National Assessment of Nonmarket Strategy," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 32(Fall 2017), pages 47-74.
    12. Nina Tura & Lea Hannola & Mikko Pynnönen, 2017. "Agile Methods for Boosting the Commercialization Process of New Technology," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(03), pages 1-23, June.
    13. André de Abreu Saraiva Monteiro Alves & Fernando Manuel Pereira de Oliveira Carvalho, 2022. "How Dynamic Managerial Capabilities, Entrepreneurial Orientation, and Operational Capabilities Impact Microenterprises’ Global Performance," Sustainability, MDPI, vol. 15(1), pages 1-23, December.
    14. Sjödin, David & Liljeborg, Alexander & Mutter, Sermed, 2024. "Conceptualizing ecosystem management capabilities: Managing the ecosystem-organization interface," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    15. Julien Tousignant & François Vaillancourt, 2013. "Le financement des dépenses publiques de santé dans cinq fédérations : Australie, Belgique, Espagne, États-Unis et Suisse," CIRANO Project Reports 2013rp-15, CIRANO.
    16. Rönnberg Sjödin, David & Parida, Vinit & Kohtamäki, Marko, 2016. "Capability configurations for advanced service offerings in manufacturing firms: Using fuzzy set qualitative comparative analysis," Journal of Business Research, Elsevier, vol. 69(11), pages 5330-5335.
    17. Pittaway, Timothy & Niekerk, Pieter van, 2015. "Horizon- Scanning the Ostrich Industry with Bibliometric Indicators," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(1), pages 1-8, March.
    18. Eleonora Bartoloni & Maurizio Baussola, 2015. "Persistent Product Innovation and Market-oriented Behaviour: the Impact on Firms' Performance," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1505, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    19. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    20. Haili Zhang & Yufan Wang & Michael Song, 2019. "Does Competitive Intensity Moderate the Relationships between Sustainable Capabilities and Sustainable Organizational Performance in New Ventures?," Sustainability, MDPI, vol. 12(1), pages 1-18, December.

    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:proeco:v:172:y:2016:i:c:p:54-64. 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/ijpe .

    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.