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Article
Publication date: 19 October 2010

A. Parasuraman

The purpose of this paper is to discuss the intertwining of productivity, quality and innovation in the service domain and, based on that discussion, propose and examine the…

4984

Abstract

Purpose

The purpose of this paper is to discuss the intertwining of productivity, quality and innovation in the service domain and, based on that discussion, propose and examine the implications of a service productivity framework that incorporates not only the company's perspective (as is done traditionally) but also the customer's perspective and a typology for classifying service innovations on the basis of their potential impact on productivity from the company's and the customer's perspectives.

Design/methodology/approach

The service productivity framework and service innovation typology are developed by synthesizing – and extending – concepts and insights from the relevant literature pertaining to productivity, quality and innovation.

Findings

Analysis and discussion of the proposed frameworks lead to the overarching conclusion that strategies to improve service productivity, enhance service quality or implement service innovations, are likely to be suboptimal if pursued in isolation. As such, it is important for companies to consider the inter‐linkages among service productivity, quality and innovation when formulating and implementing strategies pertaining to any of them.

Originality/value

The integration of conventional productivity concepts with key insights from the rich literature on service quality is novel. The resulting expanded service productivity framework and service innovation typology have important managerial implications and also offer several potentially fruitful avenues for further research.

Details

International Journal of Quality and Service Sciences, vol. 2 no. 3
Type: Research Article
ISSN: 1756-669X

Keywords

Open Access
Article
Publication date: 16 May 2023

Peter Samuelsson

This study aims to explain the effects of different types of innovations on organizational performance in terms of firms’ external effectiveness and internal efficiency. The study…

3053

Abstract

Purpose

This study aims to explain the effects of different types of innovations on organizational performance in terms of firms’ external effectiveness and internal efficiency. The study examines the interrelationship of technical and nontechnical innovations in complex services and the mediating effect of customer participation on the relationship between innovation type and organizational performance.

Design/methodology/approach

The study draws on a neo-Schumpeterian model for innovation to examine the complex service setting of healthcare provision. Data from Statistics Sweden, containing 38 hospitals and 242 primary care units in Sweden, provided the study's results.

Findings

The findings show the importance of combining different types of innovations in complex services, demonstrating a mediating effect of nontechnical innovation on both the relationship between technical innovations and external effectiveness and internal efficiency. Moreover, the results show that customer participation has a positive mediating effect for technical innovation and nontechnical innovation on external effectiveness. However, there is no such significant effect on internal efficiency.

Research limitations/implications

The findings are based on self-assessment data, which has inherent limitations. The innovation data used were cross-sectional, which may lack reliability (although self-assessed data counter this risk to some extent).

Practical implications

Managers should pursue both technical and nontechnical innovations for gains in external effectiveness and internal efficiency. However, complex services call for technical innovations to be accompanied by nontechnical innovations to support positive effects. The results cause a dilemma for managing customer participation in complex services. As the results show customer participation resulting in external effectiveness, they also fail to establish an effect on internal efficiency.

Originality/value

The primary contribution is to add to the knowledge of different types of innovation in complex services by demonstrating their interdependent effects on both external effectiveness and internal efficiency. Furthermore, the study tests and advances the mediating effect of customer participation in complex services on organizational performance.

Details

European Journal of Marketing, vol. 57 no. 13
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 3 May 2023

Hyekyung Park, Minwoo Lee and Ki-Joon Back

With the increasing importance of technology in hospitality and tourism, technology-driven service innovation has been a salient topic discussed from both customers’ and…

Abstract

Purpose

With the increasing importance of technology in hospitality and tourism, technology-driven service innovation has been a salient topic discussed from both customers’ and suppliers’ perspectives. However, there has been a lack of research that provides an overview of research on technology-driven service innovation. The purpose of this study is to review current discussions on technology-driven service innovation and provide directions for future studies in the hospitality and tourism literature.

Design/methodology/approach

A total of 82 articles on technology-driven service innovation were collected from top-tier hospitality and tourism journals. The papers were analyzed using content analysis to derive key topics discussed in the literature. Such discussions were made by different service innovation categories, antecedents, outcomes and theories. Future research agendas were suggested based on the research gap found in the literature.

Findings

The results indicate that prior discussions on technology-driven service innovation viewed technology as a service or service delivery method, with limited focus on management, marketing and institutional service innovation. In addition, the study reveals five key topics that need further discussion, such as cocreative technology, human resources management, strategy management, emerging technology and digital transformation.

Research limitations/implications

While there have been increasing studies that reveal determining roles of technology in service innovation, scarce research introduced the new concept of technology-driven service innovation, suggesting a comprehensive approach. By adopting the unique approach of technology-driven service innovation, the research reveals the multifaceted roles of technology in service innovation and areas that need further discussion to implement highly sustainable strategies.

Originality/value

The research adds to the knowledge of technology-driven service innovation by providing a holistic view of current discussions, finding research gaps and proposing future research agendas for extended discussion.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 12
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 13 January 2023

Pankaj Tiwari

The purpose of this study is to examine the effects of banking innovations (INNs) on customer experience (EXP), satisfaction (SAT) and loyalty (LOY).

Abstract

Purpose

The purpose of this study is to examine the effects of banking innovations (INNs) on customer experience (EXP), satisfaction (SAT) and loyalty (LOY).

Design/methodology/approach

The author evaluated the data using a structural equation method-artificial neural network (SEM-ANN) method. The author’s results show the presence of relationship between INN, EXP, SAT and LOY. In this study, the node layers of ANNs add an input layer, hidden layers and an output layer. Each “node” acts as an artificial neuron that communicates with others. The ANN model takes the variables from the SEM analysis as input neurons.

Findings

The author observed the significant effects between INN, EXP, SAT and LOY using the normalised importance generated by the multilayer perceptron used in the feed-forward back propagation of the ANN methodology. In this study, the ANN model can predict LOY through service innovation, with a forecast accuracy of 77.6%.

Originality/value

By applying neural network modelling, this research helps us understand how service innovation affects customer behaviour. For the first time, the author examined service innovations' direct and indirect impact on loyalty through EXP and SAT. The author made a significant conceptual contribution by using a non-compensatory model of ANNs to circumvent the limitations of linear models.

Details

Benchmarking: An International Journal, vol. 30 no. 10
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 5 December 2022

Xiaohong Xiao, Chengxu Zhou and Hongyi Mao

This study aims to investigate the impact of the two essential subjects of servitization (service and goods innovation) on customer satisfaction. The authors explained the paradox…

Abstract

Purpose

This study aims to investigate the impact of the two essential subjects of servitization (service and goods innovation) on customer satisfaction. The authors explained the paradox of servitization by determining how service innovation and goods innovation affect customer satisfaction interacting with environmental turbulence and marketing intensity.

Design/methodology/approach

The authors obtained 376 observations of 84 listed Chinese companies. On the basis of content analysis and measurement from secondhand data, the authors first tested the hypotheses in the fixed-effects model. The authors conducted a split-sample analysis by dividing environmental turbulence into two samples to explain the results effectively and better interpret the relationship between two innovations to customer satisfaction.

Findings

The results show that goods and service innovations positively affect customer satisfaction, but the effect of service innovation is more substantial. Furthermore, environmental turbulence negatively moderates the relationship between service innovation and customer satisfaction. The empirical results indicated that, if enterprises enhance marketing intensity, then the growth of environmental turbulence weakens the positive impact of goods and services innovation on customer satisfaction.

Originality/value

This study provided an understanding of the impact of servitization on intangible assets. This study also responded to previous literature’s call for research on the impact of external environmental factors on servitization.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 February 2018

Bijoylaxmi Sarmah and Zillur Rahman

With increased competition in service sector due to dynamic nature of customers’ taste and preferences, service providers have realized the importance of co-creating with…

1684

Abstract

Purpose

With increased competition in service sector due to dynamic nature of customers’ taste and preferences, service providers have realized the importance of co-creating with customers across various stages of new service development. Co-creating with customers require a focused attention on the psychological variables that influence customers to participate in developing a new service. However, availability of scant literature creates difficulty in comprehending co-creative hotel service innovation practices, especially in developing country like India. The purpose of this paper is to explore the inter-relationships among the customer participation in hotel service innovation variables with the help of interpretive structural modeling (ISM) approach.

Design/methodology/approach

ISM approach is used to determine the direction of customer participation and categorization of psychological variables with their driving and dependence power. Identification of related variables was done through a review of literature initially and arrived at a common consensus through brainstorming sessions with academicians and hotel industry experts.

Findings

The results indicate that a few variables possess higher driving power that include: consumer innovativeness, customer participative behavior, customer socialization, willingness to co-create, role clarity, customer ability and their interlinking. Thus, the research contributes in the development of relationship among various identified variables of customer participation in service innovation (CPSI) using ISM.

Research limitations/implications

This study suggests that hoteliers should co-create with customers to develop new services by understanding their psychological variables that play a crucial role determining their active participation in new hotel service offerings.

Practical implications

This study suggests that hoteliers should co-create with customers to develop new services by understanding the enablers of customer participation in co-creative hotel service innovation. Hoteliers can have hierarchical map of their customers for co-creating at different stages of service innovation or can segregate the variables as per their driving and dependence power for enhanced applicability of the variables. Further, the observed inter-relationships among the CPSI variables can guide the managers in planning and implementing identified relationships for successful implementation of co-creative service innovation.

Originality/value

To the best of the authors’ knowledge this study is the first to provide an integrated model using ISM and Matrix Impact Cross-Reference Multiplication Applied to a Classification (MICMAC) analysis with a goal to identify and classify various key enablers of customer participation in co-creative hotel service innovation in India. The authors believe that this study will enhance the understanding of the psychological factors influencing customer-firm co-creative service innovation activities and help the academicians and industry practitioners to select right enablers for customer participation in co-creative hotel service innovation. Thus, this study will be the foundation for studying co-creative service innovation using the ISM and MICMAC approaches.

Details

Benchmarking: An International Journal, vol. 25 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 2 February 2018

Linda D. Hollebeek and Tor W. Andreassen

While research on customer engagement and service innovation is rapidly emerging, limited insight exists into the interface of these topic areas. However, given the shared notion…

2612

Abstract

Purpose

While research on customer engagement and service innovation is rapidly emerging, limited insight exists into the interface of these topic areas. However, given the shared notion of (e.g. customer/firm) interactivity across these concepts, the purpose of this paper is to explore their theoretical interface that remains nebulous to date.

Design/methodology/approach

Building on a literature synthesis, the authors develop an S-D logic-informed “hamburger” model of service innovation that depicts the service innovation process, and its ensuing outcomes for particular actor groups, including the firm, its customers, etc. They conclude by proposing frontiers for future research that arise from the model.

Findings

The authors explore the theoretical foundations of customer engagement and service innovation, and integrate these in their S-D logic-informed “hamburger” model of service innovation. In the model, they acknowledge the key role of organizational resources in enabling service innovation, which will interact with specific service innovation actors (e.g. customers, employees) to create successful service innovations. The model next proposes service innovation development and implementation, from which focal service innovation actors will seek, and derive, particular types of value (e.g. profit for the actor of the firm), as shown at the top of the model. They conclude by offering a set of future research directions that arise from the model.

Research limitations/implications

The S-D logic-informed “hamburger” model of service innovation can be used to guide future research into service innovation, including studies investigating service innovation’s role in driving customer engagement and value.

Practical implications

The attained insight will be useful to managers seeking to enhance their service innovation-based returns (e.g. by suggesting ways in which service innovation can enhance customer engagement).

Originality/value

The authors propose a novel, S-D logic-informed “hamburger” model of service innovation and its key antecedents (e.g. firm-based resources) and consequences (e.g. customer engagement and value).

Details

Journal of Services Marketing, vol. 32 no. 1
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 8 August 2016

Sonia Bharwani and David Mathews

The hospitality industry the world over is transforming from a product-focused, physical-asset-intensive business to a customer-focused, experience-centric one. This research aims…

4186

Abstract

Purpose

The hospitality industry the world over is transforming from a product-focused, physical-asset-intensive business to a customer-focused, experience-centric one. This research aims at evolving a typology of customer-centric hospitality innovations. It attempts to explicitly capture the intrinsic DNA of hospitality innovations in the Indian context by exemplifying the typology posited with customer service innovations adopted by contemporary hoteliers that provide new ways of managing and enhancing customer experience.

Design/methodology/approach

This study is based on primary research through qualitative interviews conducted with select hospitality professionals, supplemented by secondary research in the form of a review of academic literature, as well as other secondary data sources such as company websites and travel websites which shed light on customer service innovations in the Indian context.

Findings

To develop and sustain competitive advantage, hospitality businesses are increasingly channelizing their efforts to provide innovative and holistic experiential service offerings. Service innovations are being tailored to cater to the unique personal tastes and requirements of hotel guests to connect with individual guests on a personal and emotional level to create memorable hospitality experiences.

Research limitations/implications

Practitioners, researchers and educationists in the hospitality industry would find the implications of this study useful in the context of the present customer-centric business environment where hotels are constantly striving to meet the exponentially rising bar of guest expectations.

Originality/value

The research highlights that it is critical to keep the customers’ perspectives central while designing innovative hospitality products. Further, it is important to create a cadre of innovation champions and service enthusiasts who can engender a culture of service innovation within the organisation.

Details

Worldwide Hospitality and Tourism Themes, vol. 8 no. 4
Type: Research Article
ISSN: 1755-4217

Keywords

Article
Publication date: 4 November 2014

John Lai, Steven S. Lui and Alice H.Y. Hon

The purpose of this paper is to explore the nature of the novel service encounter with reference to three research questions: first, what kind of creative acts do frontline…

2377

Abstract

Purpose

The purpose of this paper is to explore the nature of the novel service encounter with reference to three research questions: first, what kind of creative acts do frontline employees undertake during a novel service encounter? Second, how does the novel service encounter correlate with service innovation? Third, how does it vary in different market environments? The novel service encounter refers to creative acts undertaken by frontline staff working at the employee-customer interface. These acts are important sources of new ideas for service innovation and demand systematic study.

Design/methodology/approach

Methods in this study are triangulated by combining interviews, field observations and a survey to develop an observation template for examining the creative acts undertaken by frontline employees during service encounters in an international tourist apparel retailer.

Findings

This paper provides initial empirical evidence of the process of the novel service encounter and highlights the use of participant observation as a useful methodology.

Originality/value

This paper contributes to the service innovation literature by examining the novel service encounter using an observation template that takes into account its process-driven nature. It is suggested that improvisation by frontline employees during the service encounter is crucial to innovation, and a standardized service does not fit every situation.

Article
Publication date: 12 February 2019

Kong YuSheng and Masud Ibrahim

The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the…

3839

Abstract

Purpose

The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana.

Design/methodology/approach

Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling.

Findings

The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty.

Research limitations/implications

This study offers theoretical support for the adoption of innovative techniques in service provision and delivery.

Originality/value

This paper provides an initial study into innovation management in financial services context in an emerging economy.

Details

International Journal of Bank Marketing, vol. 37 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

1 – 10 of over 80000