Identifying factor affecting service innovation from firm and customer perspective - a qualitative study

Grounded theories and literatures on service innovation have gradually changed the mindset of authors who perceived service innovation to be similar to product innovation. The depth review in service innovation literatures helped in identifying major issues that is the factors affecting innovation were mostly based on product and specific to firm perspective. Thus, this study attempted to identify the factors and classify them from both customer and firm perspective. Qualitative approaches such as focus group discussions and in-depth interviews were adopted and opinion was recorded from service firm's customers of South India. The study resulted in six internal and seven external factors from firm perspective and four internal and seven external factors from customer perspective. For decision makers/managers of the service firms this study helps in understand the major factor thereby by taking special effort on overcoming the barrier would facilitate in selling their service innovations to target customers.