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

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  • Thakur, Ramendra
  • Hale, Dena

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.

Suggested Citation

  • Thakur, Ramendra & Hale, Dena, 2013. "Service innovation: A comparative study of U.S. and Indian service firms," Journal of Business Research, Elsevier, vol. 66(8), pages 1108-1123.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:8:p:1108-1123
    DOI: 10.1016/j.jbusres.2012.03.007
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    9. Chi-Yen Yin & Hsiao-Hsin Chang, 2022. "What Is the Link between Strategic Innovation and Organizational Sustainability? Historical Review and Bibliometric Analytics," Sustainability, MDPI, vol. 14(11), pages 1-23, June.
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    17. Machado Léo, Ricardo & Tello‐Gamarra, Jorge, 2016. "Inovac¸ão em servic¸os: estado da arte e perspectivas futuras [Innovation in services: state of the art and future perspectives]," MPRA Paper 82195, University Library of Munich, Germany, revised 29 Mar 2017.
    18. 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.
    19. repec:hal:journl:hal-00921420 is not listed on IDEAS
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    21. Veronika Bumberová & František Milichovský, 2020. "Influence of Determinants on Innovations in Small KIBS Firms in the Czech Republic before COVID-19," Sustainability, MDPI, vol. 12(19), pages 1-21, September.
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    23. 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.
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