Services and services innovation

Innovation processes in services remain under-researched, but recently large-scale surveys have been conducted which allow for a more systematic appraisal of the level and scope of innovation in services. To date, much of the literature on innovation in services focuses on the adoption and use of information and communication technologies (ICTs). Innovation in services, and services innovation, should, however, be understood in broader terms, and this understanding should extend to non-technological innovation. This paper presents evidence from a recent large-scale survey of innovation amongst German commercial service firms. It shows that services are much more active with respect to innovation than is widely thought. They are innovative in terms of being producers of service and process innovations. From our broader perspective, we examine the pattern of innovation as it relates to the standardisation-particularisation of service products, across a range of service sectors and across firms of various sizes. The production of bespoke or customised services shaped by client inputs has long been considered a defining characteristic of many services, and one that has affected their innovation potential. The present analysis reveals a pattern of diversity in behaviour, which reflects the diversity amongst service firms, and demonstrates the need for more subtle and differentiated analyses of services and services innovation.

Customer service plays an essential role in firm performance. In this perspective, customer service process should be constantly improved to meet the expectations of customers. Despite the essence of customer satisfaction and its relations to organizational performance firms still fails to satisfy its entire customer segments. This study examines how the interaction between service innovation and total quality management can contribute to customer satisfaction. The study proposes a framework that seeks to aid firms on how to develop and implement quality customer service for its customers. This model takes into consideration the perceived expectation of customers in relation to value and quality.

Coopetition is considered an important strategy for innovation. However, the literature provides limited evidence on how coopetition relates to innovation in service sector, particularly in emerging markets. Moreover, little is known about the effects of the formal and informal aspects of coopetition on innovation and how absorptive capacity of firm may influence this relationship. Against this background, using the official national innovation surveys of Nigeria (2008 and 2011), this study contributes to the ongoing debate by empirically examining the innovation endeavors of 421 Nigerian SMEs. The study employs logistic regression methods to model and explore the relationships between coopetition and innovation in the sample. The results show that that formal coopetition hinders innovation while informal coopetition supports it and absorptive capacity moderates these relationships. The study provides important insights about the concept of coopetition in emerging markets, especially vis-à-vis their institutional idiosyncrasies. Finally, the study highlights its implications and suggests some avenues for future research.

Purpose This study examines how intellectual capital components – human, structural, relational and renewal capital (RNC) – impact service innovation performance (SIP) in Chinese management consulting firms. It also investigates the mediating role of dynamic capabilities (DCs) in transforming intellectual capital into innovative service outcomes. The research aims to provide a comprehensive understanding of how consulting firms can strategically leverage their intangible resources and organizational capabilities to sustain a competitive advantage in a rapidly evolving market. Design/methodology/approach The study employs a quantitative research design using survey data from Chinese management consulting firms. Structural equation modeling is utilized to test relationships between intellectual capital dimensions, DCs and SIP. The analysis focuses on the direct effects of human, structural, relational and RNC on innovation, as well as the mediating effect of DCs. This empirical approach integrates theories from the resource-based view (RBV), enterprise capability theory and service innovation literature. Findings Results indicate all four intellectual capital components positively and significantly influence service innovation, with RNC exerting the strongest effect. DCs mediate these relationships by enabling firms to sense opportunities, seize them and reconfigure resources effectively. Human capital (HC) fosters creativity; structural capital supports knowledge management; relational capital enhances client collaboration and RNC drives continuous learning and adaptability. The findings confirm that strategic orchestration of intellectual capital through DCs is essential for sustaining innovation in consulting services. Research limitations/implications The study is limited by its focus on Chinese consulting firms, which may restrict generalizability to other cultural or industry contexts. The cross-sectional design limits causal inferences, suggesting longitudinal studies for future research. Measurement of intellectual capital and DCs relies on self-reported data, which may introduce bias. Further research could explore sector-specific variations, incorporate qualitative insights and examine external environmental factors influencing the intellectual capital innovation relationship. Despite limitations, the findings offer valuable insights for theory development and practical innovation management in knowledge-intensive service industries. Practical implications Consulting firms should invest in targeted HC development, advanced knowledge management systems and robust client relationship management to drive service innovation. Emphasizing continuous learning and renewal through research and development, foresight activities and collaborative partnerships is critical. Firms must enhance DCs by adopting agile project management and digital tools to quickly sense, seize and reconfigure resources. An integrated innovation strategy combining intellectual capital development with capability building helps firms remain competitive and responsive to rapid market changes. These practices foster sustained innovation, improved client satisfaction and organizational resilience. Social implications By enhancing service innovation, consulting firms contribute to more effective and customized solutions for client organizations, potentially improving overall business performance and economic growth. The promotion of continuous learning and talent development supports workforce skill advancement and knowledge diffusion within the industry. Trust-based client relationships foster transparency and collaboration, encouraging ethical business practices. Additionally, innovation driven by intellectual capital and DCs can lead to sustainable consulting services that better address complex societal challenges. These outcomes collectively promote a knowledge-based economy and strengthen the social fabric of professional service ecosystems. Originality/value This study uniquely integrates intellectual capital theory, DCs and service innovation theory to offer a holistic framework explaining innovation performance in consulting firms. It empirically validates the mediating role of DCs in converting intellectual capital into service innovation, extending the RBV with capability orchestration. By focusing on the Chinese management consulting context, the research provides culturally relevant insights into intangible resource management. The multi-theoretical model advances academic understanding and offers actionable strategies for practitioners to enhance innovation through coordinated development of human, structural, relational and RNC alongside dynamic organizational capabilities.

Purpose– The research empirically investigates the firm-level impact of ISO 9000 certification on innovation propensity. The study aims to distinguish between manufacturing and service sectors and adopts different innovation definitions aimed at capturing the peculiarities of innovation in services and small firms.Design/methodology/approach– Relying chiefly on Community Innovation Survey data for Luxembourg, the impact of certification on innovation probability is assessed using a logit model that controls for relevant firms characteristics and market features.Findings– The innovation potential of services and small firms is understated when adopting innovation definitions restricted to technological aspects and more formalised innovation activities. ISO 9000 certification may promote innovation when adopting definitions that captures sectoral innovation specificities. In particular, certification increases innovation propensity in manufacturing when the focus is on technological innovation and formalised innovation expenditures. On the contrary, when non-technological aspects are included and allowance is made for wider innovation activities, the impact of certification on services tends to emerge. However, sharper statistical evidence for manufacturing indicates a more important role of certification for innovation success in this sector.Research limitations/implications– Case-study research could supplement the findings concerning the relative effectiveness of certification in services and manufacturing. The investigation would also benefit from extensions in the econometric analysis to address comparisons across samples and potential causality issues.Practical implications– Findings are interesting to practitioners and registrars in order to identify the specific characteristics of firms for which certification provides higher innovative potential.Originality/value– The study highlights the relevance of sectoral specificities and innovation definitions for the debate about the effect of ISO 9000 certification on innovation.

Amidst the wave of socio-economic problems and challenges plaguing the society, it has become imperative for governments and public managers to find novel ways of innovating in the public sector and service design is being touted as the panacea. There is an array of studies and research works that have attested to the efficacy of service design in fostering public service innovation but many of these works are still bereft of a service innovation perspective that properly sheds the light on the consultancy practices of service designers as external experts in the public sector and their contribution to service innovation in the public sector. Against this backdrop, this paper aims to contribute to the discourse by conceptually explicating the role of service design consultancy in the public sector and the implication on governance through the lens of synthesis service innovation and KIBS perspectives.

Background: In Nepal's commercial banking industry, increased competition has led companies to adopt product differentiation strategies to enhance their market position. However, the impact of these strategies on performance, particularly from an innovation perspective, has not been thoroughly explored. Objective: This study explores how product differentiation strategies influence firm performance, placing special focus on the mediating role of service innovation in this connection. Methods: This study utilised Smart PLS-SEM analysis to examine the suggested relationships, drawing on data from 105 senior executives from 14 different commercial banks. Findings: The analysis reveals that simply differentiating products does not directly enhance the performance. Instead, it significantly boosts service innovation, which in turn positively influences firm performance, thereby confirming the full mediation effect. Conclusion: Service innovation plays a vital role in converting differentiation strategies into significant performance improvements. Implications: Managers should integrate innovation efforts with strategic differentiation, and policymakers should create supportive environments to foster innovation in the Nepalese commercial banking sector.

PurposeThis work tries to detect the factors that can impact service innovation in the retail sector according to a service ecosystem (SES) perspective. This paper aims to understand whether it is possible to study innovation focusing on the impact of technology on resource integration practices in SESs and to rank different patterns of innovation by evaluating their effects in terms of value co-creation.Design/methodology/approachTo show up the perception of actors, a case study has been carried out through semi-structured interviews. The aggregates of practices and the service innovation archetypes, drawn from the theoretical background, have been used as categories of analysis.FindingsService innovation is reconceptualised as the result of the application of new technology to resource integration practices in the retail SES, and it is possible to rank its patterns and outcomes by deepening its effects on the emergence of value co-creation phenomena. Shared intentions have been identified as drivers of service innovation, but greater transparency in systems used to embolden a higher willingness to use could be necessary.Originality/valueService innovation has been studied by focusing on value co-creation; for this reason, the willingness to use technology emerged as a determinant of service innovation. This result implies the need for a multilevel reinterpretation of contemporary SES, both regarding the technical features of digital solutions and their adherence to users' skills and the effects of willingness or unwillingness to use on value co-creation.

Communication and Service Innovation in Small and Medium Enterprises (SMEs)

This paper studies the influence of firm size over degree of innovation in a service sector, specifically in engineering consulting and technology services in Spain. A multiple regression analysis was used to test hypothesis about firm size positive influence over degree of innovation in services. To avoid distortions in this main relationship, three control variables were introduced (degree of standardisation, degree of customisation, and number of firm’s activities). Results seem to indicate that firm size, measured by turnover, is related positively with degree of innovation, independently of moderate influence of control variables.

The objective of this study is to investigate the influence of foreign direct investment, economic growth, international trade, Covid-19 pandemic on unemployment rates in six developing Middle Eastern and North African (MENA) countries, as well as members of the Organization of Islamic Cooperation (OIC), over period 2010 to 2021. Quantitative approaches using panel regression fixed effect model are utilized. According to the findings of this study, all of the variable used include foreign direct investment, economic growth, international trade and the Covid-19 pandemic simultaneously have a substantial impact on unemployment rate in six MENA countries. While partially, foreign direct investment, economic growth and international trade have a strong influence in declining unemployment in six MENA countries, while the Covid-19 pandemic variable has a positive relation and insignificant effect on the unemployment rate which indicates that statistically there is no significant difference of the unemployment rate in the years before and during Covid-19 pandemic. In conclusion, since the MENA countries has experienced a high concentration of unemployment particularly among youth for a long time, the government ought to concentrate more on facilitating skills training support for young people. This will ensure that the young people have added value and are qualified in the sectors and fields offered, particularly in foreign direct investment, allowing the FDI to absorb domestic workers. The youth can so, collectively, escape unemployment and enhance productivity in a country, which will also raise the GDP of the country

Purpose—The study focuses on user-driven service innovation in the public sector. The objective is to discover how individual service users' ideas may be transformed into a collective voice and to parse the collective voice into discrete elements. Approach—A novel framework of analysis is presented, and five elements of the collective voice are identified. Findings and implications—Identification of the elements enables more future-oriented and effective management of the collective voice and its organised use. The elements provide developers with information about the users' needs and views and constitute a structure for the collective voice, enabling developers to better understand and address voice in practical activities. Originality and value—The research results increase scientific and practical understanding of collective voice in user-based service innovation and advance user-driven innovation methods. Users' ideas are the raw material, but collecting and reviewing them is not sufficient; it is vital to deepen the process further, structure the individual ideas and compile the collective voice. Copyright © 2016 John Wiley & Sons, Ltd.

Enterprise Software and Service Innovation: Standardization Versus Customization

Services, particularly in industrialized nations, now account for the majority of employment and economic output, and even manufacturing companies frequently offer a variety of services. However, services are distinct from tangible goods and digital things. Therefore, innovation methods must adapt to and take into consideration the unique qualities of services, including their intangible and extremely perishable nature. Compared to the management of both physical and digital innovative products, new service creation is far less studied, yet the body of knowledge is expanding quickly. With the growth of the service economy, more businesses are turning to service innovation to acquire a competitive edge. However, affecting service innovation Already done on the components Research is scattered, exhaustive and Lack of proper understanding and factors and the relative of each factor A causal link between relevance and failed to install. Hence, service in organizations an overview of ecosystems Using this research service Elaborate on factors influencing innovation Detect and analyze. Performance (a1), Market compliance (a2), Organizational compliance (a3), and Technology and information (a4) were used in this paper as evaluation criteria. The alternative parameters in this case are Industry 1, Industry 2, Industry 3, and Industry 4. (i4). Performance: Possibilities for learning, assessing, and putting into practice.

Studies on innovation and international trade have traditionally focused on manufacturing because neither was seen as important for services. Moreover, the few existing studies on services focus only on industrial countries, even though in many developing countries services are already the largest sector in the economy and an important determinant of overall productivity growth. Using a recent firm‐level innovation survey for Chile to compare the manufacturing and ‘tradable’ services sector, this paper reveals some novel patterns. First, even though services firms have on average a much lower propensity to export than manufacturing firms, services exports are less dominated by large firms and tend to be more skill intensive than manufacturing exports. Second, services firms appear to be as innovative as – and in some cases more innovative than – manufacturing firms, in terms of both inputs and outputs of ‘technological’ innovative activity, even though services innovations more often take a ‘non‐technological’ form. Third, services exporters (like manufacturing exporters) tend to be significantly more innovative than non‐exporters, with a wider gap for innovations close to the global technological frontier. These findings suggest that the growing faith in services as a source of both trade and innovative dynamism may not be misplaced.