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This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that external sources of innovation play in influencing this relationship.

Using data obtained from the community innovation survey, we apply a logit regression to a sample of 1,419 Portuguese firms. By examining the moderating effect of open innovation breadth, we assess how the relationship between differentiation intent and outcome is contingent upon the involvement of external stakeholders.

Our findings reveal that the relationship between differentiation intent and outcome is contingent upon the moderating effect of open innovation breadth. Our analysis suggests that the negative influence of different sources of innovation can be addressed by adopting a paradox lens.

This research provides valuable insights for managers. By simultaneously pursuing a differentiation strategy and engaging in collaboration with external sources, firms may compromise their ability to effectively differentiate their offer. Managers should consider the potential tensions arising from internal and external stakeholder relationships to optimize their innovation strategies.

This study contributes to the existing literature by shedding light on the role of external innovation sources in influencing the relationship between differentiation intent and outcome and the importance that information systems may have in this relationship. By exploring the moderating effect of open innovation breadth, we provide a nuanced understanding of how firms can navigate organizational tensions and leverage innovation for competitive advantage.

This study examines the impact of customer involvement (CI), technology strategy, firm internationalization and servitization on product and service innovation performance (SIP) in hybrid offerings. In addition, it investigates the moderating role of digitization and co-creation in the relationship mentioned above.

A research framework was developed through the lens of service-dominant (S-D) logic theory, and the proposed research hypotheses were empirically tested. Primary data were collected via the survey method, and structural equation modeling was used to analyze the data.

Findings of this study suggest that the S-D logic theory effectively explains CI and servitization in hybrid offerings. Furthermore, digitization is a crucial driver of SIP. Additionally, this paper finds that co-creation moderates between servitization and innovation performance of hybrid offerings.

Besides theoretical contributions, this study presents valuable insights to manage service networks during servitization.

First, this work proposes a comprehensive framework of hybrid offerings' driving factors (i.e. CI, firm internationalization, technology strategy and servitization) and their impact on product and SIP. Second, it tests the moderating effects of digitalization and co-creation in the context of hybrid offerings.

Product-service innovation (i.e. servitization) is providing opportunities to small and medium-sized enterprises (SMEs) to offer services that are directly coupled to their products. Despite scholarly efforts on servitization in domestic markets, the determinants of international product-service innovation remain unclear. Therefore, this study draws insights from dynamic capability (DC) view and aims to examine the international human capital and international product-service innovation relationship. Specifically, the authors argue that the effect of international human capital on international product-service innovation is mediated by international inter-organizational marketing capability (IIMC) and moderated by international market complexity.

The authors test the conceptual model using structural equation modeling on a sample of 211 SMEs operating in United Arab Emirates (UAE) – an emerging market economy.

The results show that IIMC mediates the relationship between international human capital and international product-service innovation. The authors further found that the indirect relationship between international human capital and international product-service innovation is strengthened when international market complexity increases in magnitude.

This study advances the knowledge on international servitization by examining international human capital and IIMC as the determinants and international market complexity as a moderator. Data collection in the UAE contributes to empirical research on international servitization from emerging markets.

Knowledge competencies and (R&D) activities are one of the most important sources of innovation and have been widely discussed in the literature. In comparison, the role of the competitive environment for the innovation activities of firms is still open to debate and has not been fully understood yet. Therefore, this paper intends to provide new evidence on the interaction between knowledge competencies and R&D activities of firms on the one side and their competitiveness in the market environment on the other. In particular, the moderating function of market competition is explored. In this respect, the analysis covers the main innovation types as well as both sectors, manufacturing and services.

The empirical analysis is based on a three years panel dataset of German manufacturing and service firms obtained from Mannheim Innovation Panel (MIP) and Community Innovation Surveys (CISs: 2011, 2013 and 2015). For the estimation, a binary instrumental variable treatment model with Heckman selection method is used. Also, it provides a suitable approach to estimating the binary variables in order to cope with endogeneity concerns.

The estimation results show that R&D activities and knowledge competencies are positively related to innovation activities of different types conditioned on firms' specific perception of their competitive environment, in terms of outdated products/services as well as strong competition from abroad. Most importantly, the results from the moderation estimation reveal that there is a significant difference between the manufacturing and service sector. Service firms engage more in internal R&D activities on generating product innovations while the manufacturing firms conduct more external R&D on specific types of innovation. Further, the authors find that strong competition from abroad positively and significantly reinforces the effect of knowledge competencies on innovation activities for more types in services than in manufacturing. In contrast, outdated products and services tend to decline the effect of knowledge competencies for some innovation types in both sectors. The authors also observe a positive and significant reinforcement effect on knowledge competencies. However, it is found more beneficial for service firms since they can employ more innovation strategies.

The focus of the study is mainly on the impact of firms' competitive environment on innovation activities in various types through its interaction with knowledge competencies and R&D activities, across manufacturing and service firms.

The purpose of this study is to investigate the different types of innovation that are predominant in companies in the UK services sector, the degree of innovativeness, the practices associated with the pursuit of innovation and their relationship with company performance.

The empirical phase of the study was conducted using a two‐stage process initiated by interviews and completed with mail surveys. Interviews were held with six senior executives of leading service companies in the UK. 214 senior managers of UK service companies were surveyed. The response rate was 47 per cent. Relevant statistical analytical techniques including regressions were used to analyse the data.

Product innovations are emphasized more in telecommunications and financial sectors than in transport and retail sectors while service innovations are emphasized more in retail and transport sectors. Radical and incremental innovations were found to be related to innovation performance. Radical innovations were also found to be related to innovation management practices.

Service companies need to pursue radical, me‐too and incremental innovations. Formal practices and processes must not be limited to the pursuit of radical innovations. Service companies must also recognize the pursuit of incremental innovations formally in their innovation strategies and define formal process for implementing these types of innovation.

The finding that formal practices are set up to foster the development of radical innovations in spite of the fact that both me‐too and incremental innovations are also related to innovation performance represents an interesting contribution. Applying a framework that was based on the development of new products and innovations in the manufacturing context to the service context represents a contribution to the extant literature. Finally, investigating the link between innovation types, innovativeness, management practices and innovation performance in service companies is pioneering.

The purpose of this paper is to understand the innovative scenario in Portugal, assess the patterns of goods and service change in the past decade and evaluate several essential characteristics from innovation and its relevant aspects.

This research is a case study with secondary data obtained from the Community Innovation Survey (CIS) in which it is applied to the constant comparative method of data analysis proposed by Spiggle (1994).

The innovation of products and services in Portugal increased over the entire period analyzed although not linear, the financing programs contributed to the recovery and growth of innovation and small companies presented the most significant increase in product innovation.

This investigation has limitations related to the data collected because the secondary data analyzed generalize the indicators and make it impossible to comprehend each aspect analyzed in this study in detail. This study also pointed out that Portuguese small- and medium-sized enterprises are more easily able to innovate in times of difficulty when compared to large companies. However, it is necessary to understand this phenomenon and present elements that can support or refute this discovery.

This paper offers a broad view of product and service innovation in Portugal for companies, entrepreneurs, universities and researchers, in addition to facilitating the creation and structuring of policies, research and financing that can develop innovation processes.

By presenting a macro view of product and service innovation, this paper may facilitate the creation of incentives for innovation in Portugal and, consequently, to improve economic and development indicators.

This paper is unique in showing the patterns of innovation in the product and service in Portugal over almost a decade and in demonstrating important indicators that can be used in future research.

By adopting retrospective evaluation theories, this study aims to explain how innovations provided by separate suppliers in the tourism value chain influence tourist’s perceived value of the overall experience and further uncover which innovative product attributes are more effective in improving tourist perceptions of the overall value.

A survey yielded 584 valid responses from tourists who had experienced specific tourist product innovations during their travels. Structural equation modelling was used to test the proposed theoretical model.

The results reveal that tourists evaluate overall travelling experience value either by recalling an intense, impressive moment (i.e. a heuristic approach) or through an evaluation of the overall utility gained from the whole trip (i.e. a normative approach). Furthermore, innovations that are perceived as increasing convenience and enabling learning contribute to tourists’ overall value perception through both normative and heuristic approaches, while immersion resulting from innovation only contributes to overall perceived value through the heuristic approach.

Given the complex service ecosystem of tourism destinations, each tourism service provider should consider how innovations contribute to the experience of the whole trip and which attributes of innovations increase tourists’ overall perceived experience value.

This study complements existing knowledge by revealing the relationship between product innovation in tourism sectors and tourists’ perceived value of the whole trip. Moreover, it offers a theoretical framework for further investigation into service product innovation in hospitality and tourism industry.

As they account for the largest share of employment and value added, services do not (or cannot) lie outside a Schumpeterian view of innovation phenomena. Of the various attempts at shedding more light on the mechanisms of innovation in service industries and firms, we consider the “reverse product cycle” to warrant special attention because of its highly thought‐provoking nature and its theoretical ambition. This article has two objectives: first, to present this interesting and still neglected theoretical study, and second, to evaluate on a theoretical and empirical level the extent to which Barras’ model meets the objective of a “theory of innovation in services”.

The purpose of this paper is to explore product/service innovation and discontinuation using the firm as a unit of analysis. A key objective of the paper is to compare the results between manufacturing and service firms.

A two-step production function approach is employed to examine first, a firm’s decision to innovate and second, a firm’s decision to discontinue products/services.

The results indicate that the factors affecting product innovation and discontinuation are similar for manufacturing and service firms, where innovation was significant for product/service discontinuation and process innovation was found to be important for innovations. Similarly, monopoly power was important for innovation in both industry types. However, there were also some underlying differences, particularly in relation to firm age and economic geography effects.

The conclusion of the paper is that it is not appropriate to assume that the process of product innovation and discontinuation will be identical across industry types.

This study is the first study in the literature that examines product/service discontinuation at the firm level and the relationship between innovation and product/service discontinuation using the firm as a unit of analysis. This study further adds to the under-researched (relative to manufacturing studies) area of service innovation.

This paper aims to answer the following two research questions: “What antecedents are required for the innovation of product‐related services?” and “How do the antecedents differ for product‐related services developed during the product development process or during the product usage?”

A multi‐case research design was employed.

Involvement of frontline employees, information sharing, multifunctional teams, funnel tools, information technology, internal organization, and training and education have a similar impact on the success of integrated and separated service innovations. Presence of service champion, autonomy of employees, market testing, and market research have a positive effect on separated, but a negative impact on integrated service innovations. The strategic focus, external contacts, availability of resources, and management support are positively associated with both innovation types, but their importance is essentially higher for separated than for integrated product‐related service innovations.

The external validity (generalizability) of the antecedents could not be assessed accurately.

The explanation of antecedents forms a model that can guide managers who wish to develop product‐related services successfully.

The findings imply that managers contemplating a product‐related service innovation project have to consider the innovation type (integrated or separated) and reframe the antecedents accordingly.