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The impact of service innovation on firm performance

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  • Lei Lin

Abstract

This study empirically examines the impact of service innovation on performance in developing countries such as China. We construct a more integrative model linking service innovation, service quality and performance and collect 277 samples in the Chinese tourism sector. The findings are: First, service innovation affects firm performance through direct and indirect paths where service quality plays a positive mediating role, and the direct impact is larger than the indirect one; Secondly, the innovation mode is cost-reductive, which focuses on eliminating internal cost rather than improving service quality; Third, the assessment of service quality emphasizes the dimensions of assurance and reliability.

Suggested Citation

  • Lei Lin, 2013. "The impact of service innovation on firm performance," The Service Industries Journal, Taylor & Francis Journals, vol. 33(15-16), pages 1599-1632, December.
    • Handle: RePEc:taf:servic:v:33:y:2013:i:15-16:p:1599-1632
    DOI: 10.1080/02642069.2011.638712
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    References listed on IDEAS

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    Cited by:

    1. Jalal Rajeh Hanaysha, 2021. "An Examination of Innovation Capabilities and Corporate Reputation in Banking Sector," Jindal Journal of Business Research, , vol. 10(2), pages 199-213, December.
    2. Jalal Rajeh Hanaysha & Mohammed Emad Al-Shaikh & Shanmugan Joghee & Haitham M. Alzoubi, 2022. "Impact of Innovation Capabilities on Business Sustainability in Small and Medium Enterprises," FIIB Business Review, , vol. 11(1), pages 67-78, March.
    3. Hong Y. Park & Il-Hyung Cho & Sook Jung & Dorrie Main, 2015. "Information and communication technology and user knowledge-driven innovation in services," Cogent Business & Management, Taylor & Francis Journals, vol. 2(1), pages 1078869-107, December.
    4. 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.
    5. Lee, Craig & Hallak, Rob & Sardeshmukh, Shruti R., 2016. "Innovation, entrepreneurship, and restaurant performance: A higher-order structural model," Tourism Management, Elsevier, vol. 53(C), pages 215-228.
    6. Sharma, Vivek & Bhat, Dada Ab Rouf, 2020. "Co-creation and service innovation as performance indicators in the hospitality industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(2), pages 76-95..
    7. Eliza Chilimoniuk-Przeździecka & Andżelika Kuźnar, 2016. "Znaczenie usług w globalnych łańcuchach wartości," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 141-156.
    8. Gerdina Handa Serafim & José Manuel Cristóvão Veríssimo, 2021. "The Relationship between Strategic Orientation, Service Innovation, and Performance in Hotels in Angola," Sustainability, MDPI, vol. 13(11), pages 1-14, June.
    9. Sainaghi, Ruggero & Phillips, Paul & Zavarrone, Emma, 2017. "Performance measurement in tourism firms: A content analytical meta-approach," Tourism Management, Elsevier, vol. 59(C), pages 36-56.
    10. Martínez-Román, Juan A. & Tamayo, Juan A. & Gamero, Javier & Romero, José E., 2015. "Innovativeness and business performances in tourism SMEs," Annals of Tourism Research, Elsevier, vol. 54(C), pages 118-135.

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