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Service Design Management and Organizational Innovation Performance

Author

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  • Seonghye Lee

    (Team Interface, 55, Seocho-daero 77-gil, Seocho-gu, Seoul 06611, Korea
    Graduate School of Business Administration, Soongsil University, 369, Sangdo-ro, Dongjak-gu, Seoul 06978, Korea)

  • Hae Young Oh

    (Graduate School of Business Administration, Soongsil University, 369, Sangdo-ro, Dongjak-gu, Seoul 06978, Korea)

  • Jeongil Choi

    (College of Business Administration, Soongsil University, 369, Sangdo-ro, Dongjak-gu, Seoul 06978, Korea)

Abstract

With the transformation of the industrial paradigm from the manufacturing industry to the service industry, many companies have utilized “service design” as an innovative performance tool to enhance customer satisfaction while increasing organizational efficiency. While interest in the use of service design or its methodology has increased in organizations, research on the factors that influence organizational innovation and performance through service design is lacking. Therefore, this study aims to explore which service design management factors affect service innovation performance. For empirical analysis, a survey was conducted on Korean companies applying service design methodologies, and hypotheses were verified through partial least square structural equations modeling (PLS-SEM). According to the analysis, top management support and customer focus influenced concept transformation, and stakeholder collaboration and customer focus affected process improvement. Conceptual transformation and internal process improvement were shown to have a positive impact on perceived service innovation. Finally, innovative service outcomes, through the application of service design, satisfied customers, which in turn increased organizational performance. This study has great significance in that it addresses the application of service design to management activities.

Suggested Citation

  • Seonghye Lee & Hae Young Oh & Jeongil Choi, 2020. "Service Design Management and Organizational Innovation Performance," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2020:i:1:p:4-:d:466159
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    References listed on IDEAS

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    1. Mohan V. Tatikonda & Mitzi M. Montoya-Weiss, 2001. "Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance," Management Science, INFORMS, vol. 47(1), pages 151-172, January.
    2. Anna S. Cui & Fang Wu, 2016. "Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 516-538, July.
    3. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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