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Service innovation practices and customer loyalty in the telecommunication industry

Author

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  • Ernest Awuku
  • Paul Mensah Agyei
  • Eric Gonu

Abstract

The study sought to assess differences in innovation practices in the telecommunication industry, customer perception of service innovations, and how service innovation practices influence the loyalty of mobile subscribers. A quantitative research approach was adopted to study 250 samples from active subscribers of the leading mobile telecommunication companies in Ghana. Descriptive and regression analytical approaches were used to analyze the study’s objectives. The result indicates service innovation practices significantly influence loyalty. Innovative service concepts, innovative service processes, and new technologies significantly influence customer loyalty with the latter having the strongest influence. The study contributes to the scanty literature on the mentioned subject within the Ghanaian context. Additionally, this study focused on the service sector. Despite the sector’s contribution to the world’s Gross Domestic Product (GDP), previous studies have largely focused on the manufacturing sector. Based on the findings, the study recommends that the management of MTN, Vodafone, and Airtel-Tigo in collaboration with R&D and Marketing departments must invest financial and cognitive resources to develop innovative technologies, processes, and services to address the service convenience, efficiency, and effectiveness needs of customers. The study further recommends that financial and cognitive investment should be based on market and consumer research, and customer interaction. This study recommends similar studies using qualitative research methods in other industries such as banking and insurance.

Suggested Citation

  • Ernest Awuku & Paul Mensah Agyei & Eric Gonu, 2023. "Service innovation practices and customer loyalty in the telecommunication industry," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-18, March.
    • Handle: RePEc:plo:pone00:0282588
    DOI: 10.1371/journal.pone.0282588
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    References listed on IDEAS

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    1. Shaian Kiumarsi & Salmi Mohd Isa & K. Jayaraman & Azlan Amran & Shiva Hashemi, 2020. "The effect of service innovation on service loyalty in post offices," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 21(1), pages 108-127.
    2. Beatriz Moliner-Velázquez & Maria Fuentes-Blasco & David Servera-Francés & Irene Gil-Saura, 2019. "From retail innovation and image to loyalty: moderating effects of product type," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 199-224, March.
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    5. Seyedeh Khadijeh Taghizadeh & Syed Abidur Rahman & Hasliza Abdul Halim & Noor Hazlina Ahmad, 2017. "Dwelling into Service Innovation Management Practices: A Comparison Between Telecommunication Industry in Malaysia and Bangladesh," Global Business Review, International Management Institute, vol. 18(1), pages 87-98, February.
    6. Ark, Bart van & Inklaar, Robert & McGuckin, Robert H., 2003. "ICT and productivity in Europe and the United States," CCSO Working Papers 200311, University of Groningen, CCSO Centre for Economic Research.
    7. Thomas Anning-Dorson & Michael Boadi Nyamekye, 2020. "Engagement Capability, Innovation Intensity and Firm Performance: The Role of Competitive Intensity," Journal of African Business, Taylor & Francis Journals, vol. 21(4), pages 493-508, October.
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    1. Samsuden N.S & Zulkarnaini N.A.S & Shah Rollah Abdul Wahab & Shahrial Bungsu, 2025. "Digital Capabilities and Product Innovation: A Strategic Nexus for Market Success," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(4), pages 1510-1530, April.

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