IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Service innovation: A comparative study of U.S. and Indian service firms

Author Info

Listed author(s):
  • Thakur, Ramendra
  • Hale, Dena
Registered author(s):

    Abstract

    Although major contributions are being made by the service sector in creating wealth, the sector's substantive role in generating and use of innovation is lacking meticulous examination. Academics, managers, and policy makers lack insights into outcomes of service innovation and identifying factors influencing why some innovations succeed and others fail. This study contributes to service management by: (1) developing a comparative theoretical model based on the Strategic Innovation Paradigm, Bain's Social-Conduct-Performance (S-C-P) Paradigm and Social Capital Theory of Innovation; (2) testing the model with Partial Least Squares (PLS) using managerial data from various service industries; and (3) comparing results across a developed (U.S.) and an emerging (India) economy. Results indicate similar managerial perceptions of service innovation success and impeding factors. U.S. managers indicate that factors beyond their control have a negative impact on service innovation, while these factors are not a significant predictor of innovation in the Indian sample. Findings further indicate that service innovation positively relates to the firms' non-financial and financial performance. Related implications for firms, consumers, public policy and future research are discussed.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296312000914
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 66 (2013)
    Issue (Month): 8 ()
    Pages: 1108-1123

    as
    in new window

    Handle: RePEc:eee:jbrese:v:66:y:2013:i:8:p:1108-1123
    DOI: 10.1016/j.jbusres.2012.03.007
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

    Keywords: Service innovation; Structure-conduct-performance paradigm; Customer demand; Competition; Knowledge-based network; Strategic innovation paradigm; Performance;

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Tufano, Peter, 1989. "Financial innovation and first-mover advantages," Journal of Financial Economics, Elsevier, vol. 25(2), pages 213-240, December.
    2. Richard K. Lyons & Jennifer A. Chatman & Caneel K. Joyce, 2007. "Innovation in services: corporate culture and investment banking," LSE Research Online Documents on Economics 26940, London School of Economics and Political Science, LSE Library.
    3. Sirilli, Giorgio & Evangelista, Rinaldo, 1998. "Technological innovation in services and manufacturing: results from Italian surveys," Research Policy, Elsevier, vol. 27(9), pages 881-899, December.
    4. Fernanda Nogueira & Carla Susana Marques, 2008. "Organizational Innovation: Research Into The Information/Training Paths Of Decision-Makers Within Hospital," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 237-254.
    5. de Brentani, Ulrike, 1995. "New industrial service development: Scenarios for success and failure," Journal of Business Research, Elsevier, vol. 32(2), pages 93-103, February.
    6. Marja Toivonen & Tiina Tuominen, 2009. "Emergence of innovations in services," The Service Industries Journal, Taylor & Francis Journals, vol. 29(7), pages 887-902, July.
    7. Blazevic, Vera & Lievens, Annouk, 2004. "Learning during the new financial service innovation process: Antecedents and performance effects," Journal of Business Research, Elsevier, vol. 57(4), pages 374-391, April.
    8. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
    9. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
    10. Johan Hauknes, "undated". "Services in Innovation – Innovation in Services," STEP Report series 199813, The STEP Group, Studies in technology, innovation and economic policy.
    11. Gudergan, Siegfried P. & Ringle, Christian M. & Wende, Sven & Will, Alexander, 2008. "Confirmatory tetrad analysis in PLS path modeling," Journal of Business Research, Elsevier, vol. 61(12), pages 1238-1249, December.
    12. Frambach, Ruud T. & Barkema, Harry G. & Nooteboom, Bart & Wedel, Michel, 1998. "Adoption of a service innovation in the business market: An empirical test of supply-side variables," Journal of Business Research, Elsevier, vol. 41(2), pages 161-174, February.
    13. Billie Jo Zirger & Modesto A. Maidique, 1990. "A Model of New Product Development: An Empirical Test," Management Science, INFORMS, vol. 36(7), pages 867-883, July.
    14. C. Storey & D. Kelly, 2001. "Measuring the Performance of New Service Development Activities," The Service Industries Journal, Taylor & Francis Journals, vol. 21(2), pages 71-90, April.
    15. Faridah Djellal & Faïz Gallouj, 2001. "Patterns of innovation organisation in service firms: postal survey results and theoretical models," Science and Public Policy, Oxford University Press, vol. 28(1), pages 57-67, February.
    16. A. Lievens, 2000. "Project Team Communication in Financial Service Innovation," Journal of Management Studies, Wiley Blackwell, vol. 37(5), pages 733-766, 07.
    17. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2004. "The impact of innovation on economic performance in services," The Service Industries Journal, Taylor & Francis Journals, vol. 24(1), pages 116-130, January.
    18. Mark A. Dutz, 2007. "Unleashing India's Innovation : Toward Sustainable and Inclusive Growth," World Bank Publications, The World Bank, number 6856, August.
    19. Greis, Noel P. & Dibner, Mark D. & Bean, Alden S., 1995. "External partnering as a response to innovation barriers and global competition in biotechnology," Research Policy, Elsevier, vol. 24(4), pages 609-630, July.
    20. Andrew Chan & FRANK M. GO & RAY PINE, 1998. "Service Innovation in Hong Kong: Attitudes and Practice," The Service Industries Journal, Taylor & Francis Journals, vol. 18(2), pages 112-124, April.
    21. Jon Sundbo, 1997. "Management of Innovation in Services," The Service Industries Journal, Taylor & Francis Journals, vol. 17(3), pages 432-455, July.
    22. Jeroen de Jong & Brouwer, 1999. "Determinants of the innovative ability of SMEs," Scales Research Reports B199902, EIM Business and Policy Research.
    Full references (including those not matched with items on IDEAS)

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    as
    in new window


    Cited by:

    1. Xavier Pavie & Eva Hsu & Hanns Justus Tillman Rödle & Raquel Orozco Tapia, 2013. "How to Define and Analyze Business Model Innovation in Service," Working Papers hal-00921420, HAL.
    2. Snyder, Hannah & Witell, Lars & Gustafsson, Anders & Fombelle, Paul & Kristensson, Per, 2016. "Identifying categories of service innovation: A review and synthesis of the literature," Journal of Business Research, Elsevier, vol. 69(7), pages 2401-2408.
    3. repec:hal:journl:hal-00921420 is not listed on IDEAS
    4. Lin, Chiu Hui & Wu, Chih-Wen & Cheng, Yi-Han, 2015. "The empirical study of consumers' loyalty for display technology," Journal of Business Research, Elsevier, vol. 68(11), pages 2260-2265.
    5. Amara, Nabil & D'Este, Pablo & Landry, Réjean & Doloreux, David, 2016. "Impacts of obstacles on innovation patterns in KIBS firms," Journal of Business Research, Elsevier, vol. 69(10), pages 4065-4073.
    6. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Access and download statistics

    When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:66:y:2013:i:8:p:1108-1123. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.