What this publication covers
Proposes a service-innovation model grounded in service-dominant logic and tests it in luxury hotels. It distinguishes innovation volume from radicalness and relates outcomes to collaboration with customers, partners, and employees, customer orientation, and knowledge-integration mechanisms.
How this reference can help
Use it to turn knowledge about implementation and organizational change into a concrete activity or decision.
Curated by Ricardo Martins
View the original abstract 🇺🇸 🇬🇧
Research to date on service innovation is rooted primarily in traditional new product development focusing on tangible goods. In this article, the authors invoke insights from the emerging service-dominant logic (SDL) perspective and propose a conceptual framework for investigating the antecedents and consequences of service innovation. They then develop a set of hypotheses per- taining to potential predictors of two distinct facets of service innovation (volume and radicalness) and the impact of the latter on two measures of firm performance (revenue growth and profit growth). They test their proposed model using data from a sample of luxury hotels and find that (a) collaborating with customers fosters innovation volume but not radicalness (and vice versa for collaborating with business partners); (b) a firm’s customer orientation—both directly and in interaction with innovative orientation—contributes to innovation radicalness; (c) collaborating with contact employees enhances both innovation volume and radicalness; (d) the use of knowledge integration mechanisms contributes to innovation radicalness (but not volume); and (e) both innovation outcomes have significant but somewhat different effects on the two performance measures. They discuss the theoretical and managerial implications of their findings and conclude with the study’s limitations and directions for further research.