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The purpose of this paper is to analyse the types and the nature of innovations developed by small companies in a traditional service sector, as well as the ways that innovations impact their strategic capabilities.

The paper provides evidence from three case studies captured through a number of interviews with senior managers within the companies. The paper adopted a comparative analysis, selecting two cases that have managed this process with great success and one showing evidently less success.

Organisational and process innovations are critical aspects of a dynamic strategy in small service companies. Although a successful innovation strategy does not require the development of technological systems and knowledge intensive services, it does necessitate their sophisticated usage. Innovation enables the firms to access new markets and the reconfiguration of strategic capabilities in the long term.

The paper identifies the existence of strong linkages between organisational and process innovation and dynamic capabilities in the small companies in a traditional service sector. The research has used qualitative methods and a case study methodology. Further research (e.g. other service industries) and ideally statistical evidence are required to generalise these findings into the wider service sector.

This work calls for managers in small companies in a traditional service sector which wish to grow to pay more attention to their active involvement in organisational and process innovations and the sophisticated usage (or development) of knowledge intensive services.

The paper brings together a number of concepts from the innovation studies and the strategic management literature to investigate management practices and strategies of small companies in a traditional service sector, the tramp shipping sector.

The purpose of this paper is to explore the dynamics of the usage of performance measurement (PM) methods and indicators, and this usage's influencing factors in service companies.

The study is based on the contingency theory framework and focuses on PM patterns. The sector, company size, and market environment dynamics, which are these patterns' primary determinants, are analysed. The study uses empirical survey data gathered from the 61 largest companies in Estonia. The study has a dynamic focus, explaining the changes in PM practices as in 2004 and 2007.

The research shows the increasing use of more balanced PM tools combining financial and non‐financial, market‐related and internal process dimensions. Nevertheless, the findings demonstrate that the companies predominantly used traditional cost accounting and reporting methods, as well as financial indicators for their PM. The findings highlight the similarities and differences between the PM patterns in service companies and manufacturing companies.

The general limitations of survey‐based research have to be considered. The findings on the PM indicators and methods explain the usage's intensity, but not the effects of this usage on the performance. The study also analyses only a limited number of drivers that influence PM practices.

The research findings have two main implications. First, the paper contributes to the scarce knowledge about PM practices in service companies. Second, the paper considers the changes in PM patterns, concentrating on the dynamics of PM practices.

The purpose of this paper is to find out how strategic decisions have resulted in innovation in the context of the organizational environment. The author studies connections between strategic decision making and innovation to find out what kinds of factors of the organizational environment influence strategic decisions that lead an organization to innovate.

The theoretical and empirical part proceeds from dividing strategic decisions into proactive and reactive; the environment into internal and external, including primary and secondary environment, and dynamic capabilities; and innovation into product, process, marketing and organizational innovation. The study uses qualitative research and case study methodologies to analyse the case of an Estonian IT company, MicroLink.

The results show that even if innovation is not strategically managed in a company, it can still be innovative. However, the potential for different types of innovation at the organizational and local and global market level is very often determined by the company's general strategic vision and its proactive nature, which should be supported by its dynamic capabilities.

Based on the results, some conclusions are also presented for other Estonian IT companies in terms of what aspects they should keep in mind when making strategic decisions and implementing innovation.

The paper contributes to the understanding of how innovation evolves and it is presumed that innovation is not always a purposeful, but rather an episodic manifestation that could be a result of strategic decisions. Besides, product and process innovation, this study also helps to highlight the role of marketing and organizational innovation, which have gained much less attention in the literature.

The purpose of this paper is to demonstrate how technological innovation serves as an enabling factor to innovation in tourism management. The motivation of this paper is related to the question of how to innovate destination marketing as a tool to manage long‐term customer relationships.

The authors use mobile positioning‐based research methods to measure visitors' behaviour. This provides new data for the detection and measurement of destination loyalty that could be used as valuable input to improve destination marketing strategy and develop new services.

The use of mobile positioning helps to improve the quality of data about tourism flows in Estonia. The authors were able to observe and measure the duration, timing, density, seasonality and dynamics of visitations. Further, it allowed also to distinguish repeat visitors. The rich dataset provided by passive mobile positioning (PMP) allowed the implementation of the proposed, more detailed, classification of segments of repeat visitors and the identification of not loyal, somewhat loyal, loyal, very loyal, functionally loyal and forced to be loyal visitors. This analysis made it possible to reveal transit, long‐term, one‐day and other specific visitors among repeat visitors.

The theoretical novelty of the paper consists in the creation of the innovation model of the destination marketing of the country and providing the new approach of segmentation of repeat visitors. Empirical novelty is the use of PMP in studying repeat visitations for destination marketing. The paper offers new ways for governments to shape service policies and allows tourism industry firms to offer new services.

Virtual work presents new challenges for managers compared to using ordinary, face‐to‐face work practices. The purpose of this paper is to show how different virtual work types are related to different challenges that require different managerial and co‐operation approaches.

Empirical data were gathered during a period of two years using a questionnaire (3,156 respondents from 323 companies representing different Estonian service sector branches) and interviewing.

The paper concludes that a higher level of work virtuality leads to a lower level of work satisfaction, mainly due to inappropriate management techniques and problems related to information and communication technology‐mediated communication.

The sample consists of only service sector organizations, limiting generalization of the results to the practice of manufacturing companies.

The results will help managers of service organizations to prepare and choose appropriate management techniques for working with virtual workforce.

The paper shows that service sector organizations operate with different degrees of virtuality that lead to different challenges and consequently require different management techniques.