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The impact of service innovation on firm-level financial performance

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  • Tor Helge Aas
  • Per Egil Pedersen

Abstract

This article empirically investigates if firms focusing on service innovation perform better financially than firms not focusing on service innovation. Analysis of the financial performance of 3575 Norwegian firms in the manufacturing industries supports the proposition that firms focusing on service innovation have significantly higher growth of operating results than firms not focusing on service innovation. However, this proposition is not supported in a corresponding analysis of 1132 Norwegian firms in the service industries. We elaborate on these results by investigating a variety of performance measures and by comparing the effects of service innovation between manufacturing and service industries. The article contributes to the service innovation measurement literature and to a better general understanding of the determinants of service innovation performance effects.

Suggested Citation

  • Tor Helge Aas & Per Egil Pedersen, 2010. "The impact of service innovation on firm-level financial performance," The Service Industries Journal, Taylor & Francis Journals, vol. 31(13), pages 2071-2090, February.
    • Handle: RePEc:taf:servic:v:31:y:2010:i:13:p:2071-2090
    DOI: 10.1080/02642069.2010.503883
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    References listed on IDEAS

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    1. Jeroen de Jong & Ron Kemp & Mickey Folkeringa & Wubben, 2003. "Innovation and firm performance," Scales Research Reports H200207, EIM Business and Policy Research.
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