Firms increasingly engage in business-to-business cooperation to develop relevant innovations. Scholars have shown that firms can improve service innovation either by cooperating with suppliers or by ...cooperating with competitors. However, there is a dearth of research examining the relative importance of cooperating with suppliers and competitors to improve service innovation, and how this relative importance depends on embracing product innovation. Based on a cross-industry sample of 16,062 Spanish firms, this article addresses these research gaps, finding that firms can benefit from cooperating with both suppliers and competitors to boost service innovation, without prioritizing either. However, this article also shows that, if firms embrace product innovation, they should prioritize cooperating with competitors to boost service innovation.
•Firms increasingly embrace cooperation to generate service innovations.•Firms face challenges in choosing specific business partners for cooperation.•Cooperating with both suppliers and competitors can boost service innovation.•Product innovation influences business partner selection for service innovation.
•We highlight service innovation in the sharing economy (SE) as a strategic priority.•Our Sharing Economy Innovation Framework synthesises current research.•13 papers in this Special Issue deepen ...knowledge on innovations in the SE.•We outline a comprehensive research agenda for service innovation research in SE.
The sharing economy (SE) has been variously described as a disruptive, discontinuous, and social innovation. Now, more than a decade since the emergence of seminal platforms such as Airbnb, and amid heightened competition and macroenvironmental pressures, service innovation has become a strategic priority. Our editorial essay is guided by three objectives. First, as a prelude to this Special Issue, we examine the current state of SE service innovation literature. Despite some important contributions, especially in relation to business model innovation, other salient types of service innovation remain underexplored. Second, we position the contributions of the 13 papers in this Special Issue on our novel Sharing Economy Innovation Framework, which stipulates both the type of service innovation examined, and the focal dyadic relationships involved. Third, based on remaining gaps in the framework, we outline an agenda for future research on SE innovations.
Drawing on the ambidexterity and organizational design theoretical lenses this article analyzes the interplay between R&D team structure, firm’s Information Technology (IT) processes deployment and ...innovation outcomes. The evidence presented herein upholds the importance of IT and R&D team structure for strategic decisions and to better exploiting firm’s innovation capabilities. Concretely, we argue that R&D team structure (centralized vs formalized vs autonomous) moderates the relationship between IT processes and innovation because it influences the way in which IT is utilized. Considering these facts, we focus on a specific type of innovation, Product-Service Innovation (PSI), largely underexplored despite being increasingly important in modern manufacturing companies. PSI differs from other technological innovations in that it involves continuous engagement with customers and logistics. Through estimation of a Multiple-Indicators Multiple-Causes (MIMIC) model with a unique sample of 352 Manufacturing Multinational Enterprises (MMNEs), we find that customer and logistics IT processes are positively linked to higher levels of PSI and that, as hypothesized, service R&D team structure moderates this relationship. In firms with autonomous R&D teams, customer-based IT processes lead to higher PSI levels, whereas in firms with formalized R&D teams, logistics-based IT processes is conducive to higher PSI levels. IT processes are not an input of PSI in centralized service R&D teams.
Manufacturers that develop product-service innovation (PSI) attend increasingly to two criteria: choosing the right set of technologies to achieve PSI, and choosing how to manage the ...technologies—that is, whether to manage them internally or through collaboration with knowledge-intensive business service (KIBS) firms. This study argues that manufacturing outcomes for financial and organizational performance depend on the organization's decision whether or not to develop PSI and how the two criteria coexist and interact. To test this hypothesis, a sample of Spanish manufacturing firms was chosen through purposive sampling. A fuzzy-set qualitative comparative analysis (fsQCA) of the data returned two superior manufacturing performance scenarios. One involved pure manufacturers that did not develop PSI and relied entirely on traditional supportive manufacturing technologies. The other involved servitized manufacturers that developed PSI with or without KIBS firms and benefitted from access to larger Smart Manufacturing technologies. This study is novel in affirming the importance of choosing the right set of technologies for manufacturers that embrace service infusion. The study also reaffirms the role of KIBS firms in supporting PSI, while recognising that collaboration with KIBS firms enables firms to benefit from Smart Manufacturing technologies.
Service design and innovation are receiving greater attention from the service research community because they play crucial roles in creating new forms of value cocreation with customers, ...organizations, and societal actors in general. Service innovation involves a new process or service offering that creates value for one or more actors in a service network. Service design brings new service ideas to life through a human-centered and holistic design thinking approach. However, service design and innovation build on dispersed multidisciplinary contributions that are still poorly understood. The special issue that follows offers important contributions through the examination of service design and innovation literature, the links between service design and innovation, the role of customers in service design and innovation, and service design and innovation for well-being. Building on these contributions, this article develops a future research agenda in three areas: (1) reinforcing and expanding the foundations of service design and innovation by integrating multiple perspectives and methods; (2) advancing service design and innovation by improving the connection between the two areas, deepening actor involvement, and leveraging the role of technology; and (3) upframing service design and innovation to strengthen research impact by innovating complex value networks and service ecosystems and by building a cornerstone for transformative service research.
In the service industry, word of mouth (WOM) has become an important indicator for influencing customer behaviour and developing marketing strategies. The current study develops a new theoretical ...model to analyse the moderating mechanism of electronic WOM, and further considers a multiple mediation analysis of how service innovation may influence in-person word of mouth (WOM) through service quality and brand loyalty. The results show that managers need to focus on WOM to improve customer service quality perception and encourage revisits. A study of 939 customers of a famous hotpot restaurant provides supporting evidence for this moderated mediation analysis. This study also discusses how this intriguing design of moderated mediation could be clarified using regulatory focus theory and further literature.
Big Data has recently emerged as a new digital paradigm, one that companies adopt in order to both transform existing business models and nurture their innovation activities. The peculiarities of Big ...Data applications span different fields such as customer need identification, risk management and decision-making, data-driven knowledge, product and service design, quality management, and opportunity recognition and creation. However, while these have resulted in the emergence of a rich research domain focusing on the managerial and practical implications typically addressed from the user perspective, there is still a lack of complete understanding of how companies that provide Big Data solutions can create and capture value from them. This paper explores the question of how provider companies create and capture value from Big Data, drawing on a multiple-case study analysis of provider companies that offer solutions and services based on Big Data. The results illustrate a theoretical framework on value creation and capture by relying on Big Data and identify two main innovation service strategies based on Big Data used by provider companies. In addition, this paper provides valuable insights as to how the network of involved stakeholders influences the design and implementation of the innovation service strategy by the provider companies.
•The paper purposefully focuses on value creation and capture through Big Data from the perspective of companies providing services and solutions that leverage Big Data.•The paper draws on a multiple case study analysis of provider companies that take advantage from Big Data in order to improve their value proposition towards customers.•A theoretical framing on the role of Big Data for value creation and capture processes was proposed.•The paper presents two main innovation service strategies based on Big Data that aim to represent a strategic framework that provider companies establish in order to innovate their value proposition towards their customers and to allow the creation and capture of value for customers and themselves.•The paper discusses the role of customer involvement and interactions, as the end users represent a key stakeholder that shapes the development and implementation of the service innovations pursued by the provider companies.
•The ability to innovate increases sustainable business performance.•Green innovations are hard to imitate in the market.•Green technology companies should not focus only on creating products.•They ...should also provide business solutions to end-users.
In response to greater environmental awareness among stakeholders, companies have become increasingly interested in practices such as eco-innovation. Despite the expanding literature on eco-innovation, scholars have so far paid little attention to the study of eco-innovation and its impact on business sustainability, particularly considering the mediating effect of service innovation capability. To fill this research gap, this study extends the concepts of green business by investigating an original conceptual framework, which proposes that the capacity for service innovation has a mediating effect on the relationship between sustainable organizational performance and environmental innovation. This conceptual framework is subjected to empirical testing, implemented through a survey involving 95 Malaysian firms which use green technology. Data is collected through both postal and online questionnaires and analyzed through structural equation modeling using partial least squares. Respondents for this paper were identified using the directories of MyHijau (2013) and the Malaysia External Trade Development Corporation, 2014. The results suggest that: (1) eco-innovations unlock better sustainable performance; (2) service innovation capability has a partially significant positive mediating effect; (3) service innovation capability ultimately benefits companies by allowing them to differentiate through an emphasis on value creation; (4) service capability can also act as a business strategy to create barriers to new entry by competitors. Thus, eco-innovation and service innovation capability tend to represent significant intangible resources and enable an organization to achieve long-term objectives, competitive advantage and business sustainability. To date, this is the first study relating eco-innovation, service innovation capability and sustainability performance in the Malaysian corporate context and using a specific sample of companies that make use of green technologies.
AI climate-driven service analytics capability has been anecdotally argued as a viable strategy to enhance service innovation and market performance in B2B markets. While AI climate refers to the ...shared perceptions of policies, procedures, and practices to support AI initiatives, cognitive service analytics capability refers to the analytical insights driven by AI climate and augmented by both machines and humans to make marketing decisions. However, there is limited knowledge on the antecedents of such analytics capabilities and their overall effects on service innovation and market performance. Drawing on service analytics literature and the microfoundations of dynamic capability theory, this study fills this research gap using in-depth interviews (n = 30) and a survey (n = 276) of service analytics managers within the AI climate in Australia. The findings confirm the five microfoundations of cognitive service analytics capabilities (cognitive technology, cognitive information, cognitive problem solving, cognitive knowledge & skills, cognitive training & development). The findings also highlight the significant mediating effect of service innovation in the relationship between analytics climate and market performance and cognitive service analytics capability and market performance.
•AI climate is opening new analytics frontiers in industrial marketing•We confirm five microfoundations of cognitive service analytics capability.•We show how AI climate driven analytics influence innovation and performance.
The ability of manufacturing companies to offer advanced services and achieve superior financial performance remains an open question in the servitization literature. One central question relates to ...how providers govern customer relationships to realize profits through servitization. This study addresses this question by unraveling the complex relations between advanced service provision, relational governance strategies, and the financial performance of manufacturing firms. Drawing on a dataset of 50 Swedish advanced service providers, this study uses a configurational comparative method—namely, fuzzy-set qualitative comparative analysis (fsQCA)—to identify the influence of configurations of governance conditions (i.e., service innovation, perceived switching costs, the attractiveness of alternatives, and explicit contracts) on firm performance. This study contributes through the identification of three alternative governance strategies that enable advanced service providers to benefit from service provision: 1) innovation governance strategy (high service innovation, low attractiveness of alternatives, and low use of explicit contracts); 2) relational governance strategy (high service innovation, high perceived switching costs, and low use of explicit contracts); and 3) market-based governance strategy (high service innovation, low perceived switching costs, high attractiveness of alternatives, and high use of explicit contracts). These results enrich the literature on servitization and advanced services by reflecting the need to apply diverse relational governance strategies. The results suggest multiple paths to superior financial performance.
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