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There is a dearth of empirical research on the impact of external knowledge search on innovation performance in different categories of service firms. This study explores the effectiveness of the breadth of external search on product and process innovations in German firms. In particular, the author modelled a non-linear relationship between the breadth of knowledge and product and process innovations.

Drawing on the Mannheim Innovation Panel (MIP) data for the German service firms in the period 2014–2016, the author reported findings from a bivariate probit model which took into account mutual interdependence between product and process innovations. Moreover, the model was separately estimated for knowledge-intensive business services (KIBS) and other services. For comparative purposes, the author also estimated the model for manufacturing firms.

Empirical findings uniformly indicated an inverted U-shaped effect of the breadth of knowledge on both product and process innovations. Furthermore, the results demonstrated that using up to three knowledge sources increases the probability of a joint implementation of product and process innovations. These findings hold for both KIBS firms and other services. However, those service firms that focussed on a single type of innovation experienced diminishing returns to external knowledge when exploiting more than one source of knowledge. These results indicated that a simultaneous introduction of different types of innovation required diverse knowledge sources. In contrast, when focussing on a single type of innovation, service firms experienced diminishing returns when multiple sources were used. However, this finding was only partially found for manufacturing firms. Accordingly, this study’s findings provided support for the demarcation approach, insofar as the breadth of knowledge had a heterogenous impact on innovation in manufacturing relative to service firms.

Previous studies on the breadth of knowledge search mostly examined its influence on innovation performance without separately analysing manufacturing and service firms. The present study focussed on service firms that were further divided into KIBS and other service firms. By investigating potentially non-linear relationships between knowledge breadth and product and process innovations, it illustrated how different innovation strategies were affected by a diverse pool of external knowledge sources.

This study aims to explain why low social conduct in corporate social responsibility (SC-CSR), especially employee exploitation, has a stronger negative impact on consumer reactions for service firms than for manufacturing firms.

Five experiments compared consumer reactions to service and manufacturing firms with low SC-CSR. Study 1 used a choice-based conjoint design to examine the relative importance of various shared attributes when consumers chose services versus goods. Study 2 revealed that low SC-CSR led to more pronounced negative consumers reactions toward service firms. Studies 3A and 3B explained this difference through a serial mediation analysis. Study 4 ruled out an alternative explanation regarding the differentiated effects.

The results reveal that consumer reactions to employee exploitation in service firms are more negative compared to manufacturing firms. This is because consumers’ sense of presence (i.e. feeling of being there) is stronger in a service setting, leading to more intense empathetic emotions toward service employees.

This research contributes to the CSR literature by challenging the conventional notion that sweatshops are more problematic for manufacturing firms. By contrast, the results indicate a stronger negative effect on service firms. It contributes to the services marketing literature by conceptualizing a novel cognitive mechanism. Traditionally, consumers’ negative reactions are driven by anger. However, the authors show that empathetic feelings toward mistreated employees play a predominant role. While it is imperative for all firms to ensure fair treatment of their employees, the findings underscore the heightened significance of this aspect for service firms, given their susceptibility to more pronounced negative effects.

Service innovation (SI) is crucial for social and economic development. However, most of the studies about innovation relate to product/manufacturing. Aimed at enhancing the academic debate about SI, this paper intends to (1) assess the factors applied in empirical studies about SI from 2006 to 2020, (2) evaluate if researchers differentiate innovation in services from innovation in manufacturing, (3) evaluate if researchers differentiate innovation among distinct service segments within the heterogeneous service industry and (4) propose a categorization model for the factors that influence SI.

Our study employs a five-step approach for a systematic literature review of 99 relevant empirical papers from 2006 to 2020.

Our findings demonstrate a persistent lack of conceptual consolidation in the area, adding value to the ongoing dispute between opposite views on current SI's maturity level. Our results also evidence the non-observance of differentiation of innovation factors between service and manufacturing empirical papers. In addition, our paper shows an even higher lack of differentiation in the use of innovation factors among different service segments.

This paper provides the first more systematic verification of the lack of service differentiation within the empirical innovation study field. In addition, despite the abundance of factors that influence SI, the proposed categorization model offers the possibility to promote an area's conceptual consolidation. Our findings and categorization also support the debate about pathways for the field's development and help researchers in their future study designs and analyses.

The aims of this paper are to identify and classify the knowledge resources that shape intellectual capital (IC) within the marketing function, to develop and validate a related scale and to demonstrate the scale's applicability in an empirical context.

A literature-based approach was adopted to identify and classify knowledge assets in the field of marketing. The new scale's content was then tested in a number of companies with different profiles. A subsequent survey of a representative sample of 346 Spanish firms sought to validate the scale and to assess those companies' marketing-related IC.

The literature search provided the basis for a marketing-related IC architecture comprising three main categories, nine subcategories and eighty items whose validity was tested and confirmed. The survey revealed that marketing-specific human capital (HC) is the most developed knowledge resource in Spanish firms, followed by marketing-specific relational capital (RC), while marketing-specific structural capital (SC) is the least developed. Significant differences were also found among companies with different profiles (B2C vs B2B, high-tech vs low-tech and manufacturing vs services).

This study makes a valuable contribution to the IC literature as one of the first to deploy the general IC framework in a specific functional area (here: marketing and sales) for more meaningful and in-depth assessment of firm-specific knowledge resources.

The purpose of this study is to assess employees' perceptions of their organizations' orientation towards learning in manufacturing and service firms.

The Dimensions of the Learning Organization Questionnaire (DLOQ) developed by Marsick and Watkins, was administered to 235 executives working in the National Capital Region (NCR) in India. Regression analysis with the help of Eviews 5 was utilized to investigate the difference between the dimensions of DLOQ in both the sectors.

Results suggest a significant impact of structural level dimension on a firm's financial and knowledge performance. Furthermore, no difference was observed between manufacturing and service sectors in context of a learning organization (LO).

Data were collected only from organizations operating in India's National Capital Region.

This research fulfills the literature gap in the domain of LO. It applies the LO approach and the DLOQ tool to examine the learning orientation of both manufacturing and service organizations in the NCR which has not been done so far in the literature. The results indicated greater impact of the structural level dimension as compared to the people level dimension irrespective of the sector in India.

Board size is an important dimension of corporate governance. The purpose of this study is to propose and test indirect effects of organization size on organizational performance via board size, in the context of industry.

The study’s predictions were tested in 288 medium and large organizations listed on the Australian Securities Exchange using archival data.

The findings of this study suggest the following: organization size is positively associated with board size and this relationship is stronger in manufacturing organizations; board size is positively associated with performance and this relationship is conditional on industry; and organization size has an indirect effect on performance via board size, and this indirect effect is also conditional on industry.

The results provide some support for the resource dependency theory, agency theory and contingency theory.

The findings suggest that directors should take into account the effects of board size and industry to provide a more precise assessment of the board’s performance.

It predicts and tests the pioneering moderating effect of industry (manufacturing vs services) on the organization size–board size, board size–organizational performance and organization size–board size–organizational performance relationships.

This study uses social capital theory to analyze how social capital and supplier development support achieving supplier satisfaction and preferred customer status. The resulting model is compared between manufacturing and service suppliers.

A survey receiving 482 supplier responses from manufacturing and service suppliers was utilized and analyzed using partial least squares (PLS) path modeling and multi-group comparison tests.

The paper adds new explanations for preferred customer status through empirical evidence of relationships between supplier development, social capital, supplier satisfaction, and preferred customer status. Cognitive and relational capital directly support achieving preferred customer status. The role of supplier satisfaction in achieving preferred customer status is lower for manufacturing suppliers.

Both service and manufacturing suppliers could also be studied in their specific industry settings. A more in-depth investigation of other business relationship dynamics, such as power, is needed in a future study.

Service and manufacturing suppliers need different strategies to obtain the benefits from supplier development and social capital building. For service suppliers, more intangible factors are relevant in comparison to manufacturing suppliers.

This study advances the literature in two main ways. First, it elaborates the role of supplier development and social capital in the path toward supplier satisfaction and preferred customer status as perceived by suppliers. Second, this study answers the calls for a better understanding of the contextual characteristics underlying potential differences in how preferred customer status is formed.

In order to emphasize the universality of operations management concepts, this paper develops an integrative view of the similarities and continuities between “services products” and operations; and “goods products” and factory operations. The purpose of this paper is to move toward a better understanding of the impact of this convergence.

By reviewing the literature and trade press examples of evolution in both manufacturing and services businesses, it develop a model for understanding the observed phenomena.

This paper finds that services operations are continually adopting the characteristics of traditional manufacturing as they seek to grow and gain increased profitability through economies of scale. At the same time, traditional manufacturing/factory operations continually seek to differentiate themselves by offering more services such as customization, flexibility, and just‐in‐time; without giving up their economies of scale. As goods and services products become more integrated, these two distinct types of operating systems also converge. This paper also finds that information technology (IT) is pervasive, but used differently; and it develop new models to help us to understand the role and importance of IT in different operating systems and its impact upon the economics of innovation in operations.

This paper offers an integrative platform for future discussion and research on the convergence of factory and service operations, the integration of marketing and operations concepts and decisions, the design/management of operations processes, and the role of information systems and technology; in achieving sustained competitive advantage for any business.

This paper aims to examine small- and medium-sized enterprises’ (SMEs) strategic capabilities in terms of their marketing and management capabilities, their sources of environmental uncertainty and their organizational capabilities. Additionally, to what extent the effect differs across two sectors (manufacturing and service).

Partial least squares structural equation modeling was used to conduct multigroup analysis for the two sectors. Data was collected from a sample of 315 Omani SMEs, 166 from manufacturing and 149 from services.

The results show that strategic capabilities have a significant positive effect on customer satisfaction. However, the effect differs between manufacturing and service SMEs; the effect is greater in service than in manufacturing SMEs. Furthermore, the effect of organizational capabilities on customer satisfaction was found to be positive. However, the effect is higher in manufacturing as the difference is statistically significant.

Due to the growing importance of the service and manufacturing SMEs in developing countries and their considerable involvement in economic development, it is important to understand the characteristics of the strategic capabilities in both sectors. Thus, according to the authors’ knowledge, this paper is one of the first to propose a comprehensive framework that measures collectively the direct impact of strategic capabilities, organizational capabilities and environmental uncertainties on SMEs customer satisfaction and effectiveness.

With the rise of service economy, many companies are attempting to gain a competitive advantage through service innovation. However, the existing research has not drawn consistent conclusions about the relationship between service innovation and firm performance. Hence, the purpose of this paper is to provide a quantitative review on the service innovation-performance relationship based on research findings reported in the extant literature.

Studies from 46 peer-reviewed articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between service innovation and firm performance, and the effects of any potential moderators were further explored.

The results found that service innovation has a significant positive impact on firm performance. Additionally, the relationship between service innovation and firm performance is influenced by measurement moderators (economic region and performance measurement), and contextual moderators (firm type, innovation type, customer factors and attitudes toward risk).

The meta-analysis has been used to explore the relationship between service innovation and firm performance, and the findings have contributed to the literature on service innovation, as well as providing future research directions.