Journal of Korean Society for Quality Management (품질경영학회지)

Korean Society for Quality Management (한국품질경영학회)
권호 표지

The aims of innovation and innovation strategy as the determinants of firm performance in the service sector

혁신목적과 혁신전략이 서비스 기업의 성과에 미치는 영향에 관한 연구

  • Park, Da-Hyoun (College of Business Administration, Seoul National University) ;
  • Park, Sang-Wook (College of Business Administration, Seoul National University)
  • Received : 2010.06.10
  • Accepted : 2010.07.30
  • Published : 2010.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

Although the importance of the service sector has been highlighted recently, service innovation remain under-researched by scholars. Innovation research based on manufacturing sector suggests that innovation strategy varies according to the objectives of innovation and has a positive influence on firm performance. To investigate the path that links the objectives of innovation, innovation strategy used and firm performance, this study develops a conceptual model of service innovation from the literature and tests the Structural Equation Model(SEM) using STEPI (Korea's Science and Technology Policy Institute) data. We could identify the causal relationships both between the objectives of innovation and innovation strategy and between innovation strategy and firm performance in service as in manufacturing, but we also found that the results of the empirical study for the service industry, in particular, the empirical results on the relationship between the aims of innovation and innovation strategy used, are quite different from those for manufacturing.

Keywords

References

  1. 배병렬(2009), Amos 17.0 구조방정식모델링, 2판, 청람.
  2. 엄미정, 최지선, 이정열(2006), "2006년 기업혁신활동 조사: 서비스업", 과학기술정책연구원.
  3. 이군희(2001), 사회과학연구방법론, 법문사.
  4. Abernathy, W. and Utterback, J.M.(1978). "Patterns of Industrial Innovation", Technology Review, June-July, pp. 41-47.
  5. Anderson, J.C. and Gerbing, D.W.(1988), "Struct ural Equation Modeling in Practice: a Review and Recommended Two-step Approach", Psychological Bulletin, Vol.103 pp.411-423. https://doi.org/10.1037/0033-2909.103.3.411
  6. Avlonitis, G.J. and Gounaris, S.P.(1999), "Market ing Orientation and its Determinants: an Empirical Analysis", European Journal of Marketing, Vol. 33, No. 11/1, pp. 1003-1037. https://doi.org/10.1108/03090569910285896
  7. Barras, R. (1986), "Towards a Theory of Innovation in Services", Research Policy, Vol.15, No.4, pp. 161-173. https://doi.org/10.1016/0048-7333(86)90012-0
  8. Boer, H. and During, W.E.(2001), "Innovation, What Innovation? A Comparison Between Product, Proc ess and Organisational Innovation", International Journal of Technology Management, Vol. 22, No. 1-3, pp.83-107. https://doi.org/10.1504/IJTM.2001.002956
  9. Bonanno, G. and Haworth, B.(1998), "Intensity of Competition and The Choice Between Product and Process Innovation", International Journal of Industrial Organization, Vol.16, No.4, pp. 495–510. https://doi.org/10.1016/S0167-7187(97)00003-9
  10. Boyer, K.K. and Lewis, M.W.(2002), "Competitive Priorities: Investigating the Need for Trade-offs In Operations Strategy," Production and Operations Management, Vol.11, No.1, pp.9–20.
  11. Boyer, K.K. and McDermott, C.M.(1999), "Strategic Consensus in Operations Strategy," Journal of Operations Management, Vol.17, No.3, pp.289-305. https://doi.org/10.1016/S0272-6963(98)00042-4
  12. Camacho, J.A. and Rodriguez, M. (2008) "Patterns of Innovation in the Service Sector: Some Insights From the Spanish Innovation Survey," Economics of Innovation and New Technology, Vol.17, No.5, pp. 459-471. https://doi.org/10.1080/10438590701362874
  13. Capon, N., Farley, J.U., Lehmann, D. R. and Hulbert, J.M.(1992) "Profiles of Product Innovators Among Large US Manufacturers," Management Science, Vol. 38, No. 2, pp.157-169. https://doi.org/10.1287/mnsc.38.2.157
  14. Christiansen, T.B., Berry, W.L., Bruun, P. and Ward, P.(2003), "A Mapping of Competitive Priorities, Manufacturing Practices, and Operational Performance in Groups of Danish Manufacturing Companies," International Journal of Operations & Production Management, Vol.23, No.10, pp.1163-1183. https://doi.org/10.1108/01443570310496616
  15. Cohen, W., Nelson, R.R. and Walsh, J.(1997), Appr opriability Conditions and Why Firms Patent and Why They Do Not in the American Manufac turing Sector, Carnegie Mellon University, Pittsburgh.
  16. Damanpour, F. and Evan, W. M.(1984), "Organiza tional Innovation and Performance : The Problem of Organizational Lag", Administrative Science Quarterly, Vol.29, No.3, pp.392-409. https://doi.org/10.2307/2393031
  17. Damanpour, F. and Gopalakrishnan, S.(2001), "The Dynamics of the Adoption of Product and Process Innovations in Organizations," Journal of Management Studies, Vol.38, No.1, pp. 45–65. https://doi.org/10.1111/1467-6486.00227
  18. Damanpour, F., Walker, R. and Avellaneda, C. (2009), "Combinative Effects of Innovation Types and Organizational Performance: a Longitudinal Study of Service Organizations," Journal of Management Studies, Vol. 46, No.4, pp.650–675. https://doi.org/10.1111/j.1467-6486.2008.00814.x
  19. de Brentani U.(1989), "Success and Failure in New Industrial Services," Journal of Product Innovation Management, Vol.6, No.4, pp. 239-258. https://doi.org/10.1016/0737-6782(89)90077-5
  20. Deshpande, R., Farley, J.U. and Webster, F.E. Jr. (1993), "Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: a Quadrad Analysis," Journal of Marketing, Vol.57, No.1, pp. 23-37. https://doi.org/10.2307/1252055
  21. de Vries, E.I.(2006), "Innovation in services in networks of organizations and in the distribution of services", Research Policy, Vol.35, No.7, pp.1037-1051. https://doi.org/10.1016/j.respol.2006.05.006
  22. Djellal, F. and Gallouj, F.(2001), "Patterns of Innova tion Organisation in Service Firms: Postal Survey Results and Theoretical Models", Science and Public Policy, Vol. 28, No.1, pp.57-67. https://doi.org/10.3152/147154301781781688
  23. Evangelista, R.(2000) "Sectoral Patterns Of Techn ological Change In Services," Economics of Innovation and New Technology, Vol.9, No.3, pp.183-222. https://doi.org/10.1080/10438590000000008
  24. Fornell, C. and Larcker, D.F.(1981), "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error," Journal of Marketing Research, Vol.18, No.1, pp. 39–50. https://doi.org/10.2307/3151312
  25. Freeman, C.(1982), The Economics of Industrial Innovation, Frances Pinter, London.
  26. Gadrey, J., Gallouj, F. and Weinstein, O. (1995), "New Modes of Innovation: How Services Benefit Industry", International Journal of Service Industry Management, Vol. 6 No.3, pp.4-16. https://doi.org/10.1108/09564239510091321
  27. Gallouj, F. and Weinstein, O. (1997), "Innovation in Services", Research Policy, Vol. 26, No.4-5, pp.537-556. https://doi.org/10.1016/S0048-7333(97)00030-9
  28. Gorecki, P. K. (1986), "The Importance of Being First", International Journal of Industrial Organization, Vol.4, pp. 371-395. https://doi.org/10.1016/0167-7187(86)90011-1
  29. Griffin, A. (1997), "PDMA Research on New Product Development Practices: Updating Trends and Benc hmarking Best Practices", Journal of Product Innovation Management, Vol. 14, No.6, pp. 429-458. https://doi.org/10.1016/S0737-6782(97)00061-1
  30. Hair Jr., J.F., Black, W.C., Babin, B.J., Anderson, R. and Tathum, R.(2006), Multivariate Data Analysis, 6th ed., Prentice Hall, Upper Saddle River.
  31. Hall, P.(1994), Innovation, Economics and Evolution, Harvester Wheatsheaf.
  32. Han, J.K., Kim, N. and Srivastava, R.(1998), "Market Orientation and Organizational Performance: is Inn ovation a Missing Link?", Journal of Marketing, Vol. 62, No. 4, pp.30-45. https://doi.org/10.2307/1252285
  33. Haukness, J.(1998), Services in Innovation - Innov ation in Services: SI4S Final Report, STEP Group, Oslo.
  34. Hipp, C. and Grupp, H.(2005) "Innovation in the Service Sector: The Demand for Service-specific Innovation Measurement Concepts and Typologies," Research Policy, Vol.34, No.4, pp. 517–535. https://doi.org/10.1016/j.respol.2005.03.002
  35. Hipp, C. , Tether, B. and Miles, I.(2000), "The Incid ence and Effects of Innovation in Services: Evide nce from Germany," International Journal of Innovation Management, Vol. 4, No.4, pp. 417-453.
  36. Johne, A. and Storey, C. (1998), "New Service Development: a Review of the Literature and Anno tated Bibliography", European Journal of Marketing, Vol. 32 No.3/4, pp.184-251. https://doi.org/10.1108/03090569810204526
  37. Kerin, R.A., Varadarajan, P.R. and Peterson, R.A. (1992) "First Mover Advantage: A Synthesis, Conc eptual Framework, and Research Propositions," Journal of Marketing, Vol.56, No.3, pp. 33-52. https://doi.org/10.2307/1251985
  38. Küpper, C.(2001), "Service innovation - a review of the state of the art", Working paper, University of Munich.
  39. Lieberman, M.B. and Montgomery, D.B.(1998) "First Mover (Dis)advantage: Retrospective and Link With the Resource-based View," Strategic Management Journal, Vol.19, pp. 1111–1126. https://doi.org/10.1002/(SICI)1097-0266(1998120)19:12<1111::AID-SMJ21>3.0.CO;2-W
  40. Lieberman, M.B. and Montgomery, D.B.(1988), "First-mover Advantages", Strategic Management Journal, Summer Special Issue, Vol. 9, pp. 41-58. https://doi.org/10.1002/smj.4250090706
  41. Matthews, J. and Shulman, A.(2005), "Competitive Advantage in Public-sector Organizations: Explaining the Public Good/sustainable Competitive Advantage Paradox", Journal of Business Research, Vol. 58, pp. 232-240. https://doi.org/10.1016/S0148-2963(02)00498-8
  42. Mendonça, S., Santos Pereira, T. and Godinho, M.M.(2004), "Trademarks as an Indicator of Innov ation and Industrial Change", Research Policy, Vol. 33, No.9, pp. 1385-1404. https://doi.org/10.1016/j.respol.2004.09.005
  43. Miles, I.(1993), "Services in the New Industrial Economy", Futures, Vol.25, No.6, pp. 653-672. https://doi.org/10.1016/0016-3287(93)90106-4
  44. Miles, I.(1996), Infrastructure and the Delivery of New Services, in Employment and Growth in the Knowledge-based Economy, OECD, Paris.
  45. Miles, I.(2001), Services Innovation: A Reconfigura tion of Innovation Studies, University of Manchester, Manchester.
  46. Mishra, A. A. and Shah, R. (2009). "In Union Lies Strength: Collaborative Competence in New Prod uct Development and Its Performance Effects", Journal of Operations Management, Vol.27, No.4, pp.324–338. https://doi.org/10.1016/j.jom.2008.10.001
  47. Neely, A., Filippini, R., Forza, C., Vinelli, A., and Hii, J.(2001), "A Framework for Analyzing Business Performance, Firm Innovation and Related Contextual Factors: Perceptions of Managers and Policy Makers in Two European Regions", Integrated Manufacturing Systems, Vol.12, No.2, pp.114-124. https://doi.org/10.1108/09576060110384307
  48. Nelson, R.R. and Winter, S.G.(1982), "The Schum peterian Tradeoff Revisited", American Economic Review, Vol. 72, No.1, pp.114-132.
  49. Oke, A.(2007) "Innovation Types and Innovation Management Practices in Service Companies", International Journal of Operations & Production Management, Vol. 27, No. 6, pp.564 – 587. https://doi.org/10.1108/01443570710750268
  50. Osborne, S.(1998), Voluntary Organizations and Innovation in Public Services, Routledge, London.
  51. Pacheco Pires, C., Sarkar S., Carvalho, L.(2008), "Innovation in Services - How Different from Manufacturing?," The Service Industries Journal, Vol. 28, No. 10, pp. 1339 - 1356. https://doi.org/10.1080/02642060802317812
  52. Pavitt, K.(1984), "Sectoral Patterns of Technical Change: Towards a Taxonomy and a Theory," Research Policy, Vol.13, No.6, pp. 343-373. https://doi.org/10.1016/0048-7333(84)90018-0
  53. Pennings, J.M. and Harianto, F.(1992), "The Diffusion of Technological Innovation in the Commercial Banking Industry," Strategic Management Journal, Vol.13, No.1, pp.29-47. https://doi.org/10.1002/smj.4250130104
  54. Porter, M.E.(1985), Competitive Advantage: Creating and Sustaining Superior Performance, The Free Press, New York.
  55. Prajoro, D.I. and McDermott, C.M.(2008), "The Relationships Between Operations Strategies and Operations Activities in Service Context," International Journal of Service Industry Management, Vol. 19, No.4, pp.506-520. https://doi.org/10.1108/09564230810891932
  56. Roberts, P.W. and Amit, R.(2003), "The Dynamics of Innovative Activity and Competitive Advantage: the Case of Australian Retail Banking, 1981 to 1995", Organization Science, Vol.14, No. 2, pp.107-122. https://doi.org/10.1287/orsc.14.2.107.14990
  57. Robinson, W.T.(1988), "Sources of Market Pioneer Advantages: The Case of Industrial Goods Industries," Journal of Marketing Research, Vol.25, No.1, pp.87-94. https://doi.org/10.2307/3172928
  58. Schumpeter, J.(1934), Capitalism, socialism, and democracy, Harper & Row, New York.
  59. Schumpeter, J.(1961), The Theory of Economic Development, Harvard University Press, Cambridge.
  60. Shah, R. and Goldstein, S.M.(2006), "Use of Struc tural Equation Modeling in Operations Management Research: Looking Back and Forward", Journal of Operations Management, Vol. 24, No.2, pp.148-169. https://doi.org/10.1016/j.jom.2005.05.001
  61. Sirilli, G. and R. Evangelista(1998), "Technological Innovation in Services and Manufacturing: Results from Italian Surveys", Research Policy, Vol.27, No.9, pp. 881-899. https://doi.org/10.1016/S0048-7333(98)00084-5
  62. Song, M.X., Benedetto, C.A. and Zhao, Y.(1999), "Pioneering Advantages in Manufacturing and Service Industries: Empirical Evidence from Nine Countries", Strategic Management Journal, Vol.20, No.9, pp. 811-836. https://doi.org/10.1002/(SICI)1097-0266(199909)20:9<811::AID-SMJ52>3.0.CO;2-#
  63. Song, X.M., di Benedetto, C.A. and Song, L.Z. (2000), "Pioneering Ddvantage in New Service Development: a Multi-country Study of Managerial Perceptions", Journal of Product Innovation Management, Vol. 17, No.5, pp.378-392. https://doi.org/10.1016/S0737-6782(00)00054-0
  64. Sundbo, J.(2003), "Innovation and Strategic Reflexivity: an Evolutionary Approach Applied to Services", In The International Handbook on Innovation, Elsevier, Oxford.
  65. Sundbo, J., Orfila-Sintes, F. and Soerensen, F. (2007), "The Innovative Behaviour of Tourism Firms - Comparative Studies of Denmark and Spain", Research Policy, Vol. 36, No. 1, pp.88-106. https://doi.org/10.1016/j.respol.2006.08.004
  66. Teece, D.J.(1987), "Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions", Interfaces, Vol.18, No.3, pp.46-61.
  67. Terill C.A.(1992), "The Ten Commandments of New Service Development", Management Review, pp. 24-27.
  68. Tether, B. (2003), "The Sources and Aims of Innovation in Services: Variety Between and Within Sectors," Economics of Innovation and New Technology, Vol.16, No.6, pp. 481-506.
  69. Toivonen, M. and T. Tuominen(2009), "Emergence of Innovations in Services", The Service Industries Journal, Vol. 29, No. 7, pp. 887-902. https://doi.org/10.1080/02642060902749492
  70. Utterback, J.M. and Abernathy, W.J.(1975), "A Dynamic Model of Process and Product Iinnovation," Omega, Vol.3, No.6, pp. 639-656. https://doi.org/10.1016/0305-0483(75)90068-7
  71. van der Aa, W. and Elfring, T.(2002), "Realizing Innovation in Services", Scandinavian Journal of Management, Vol.18, No.2, pp.155-171. https://doi.org/10.1016/S0956-5221(00)00040-3
  72. Walker, R.M.(2004), "Innovation and Organizational Performance: Evidence and A Research Agenda", Advanced Institute for Management Research Working Paper Number 2, London.
  73. Ward, P.T. and Duray, R.(2000), "Manufacturing Strategies in Context: Environment, Competitive Strategy and Manufacturing Strategy", Journal of Operations Management, Vol.18, No.2, pp.123-138. https://doi.org/10.1016/S0272-6963(99)00021-2
  74. Wischnevsky, J. D. and Damanpour, F.(2006), "Organizational Transformation and Performance: an Examination of Three Perspectives", Journal of Managerial Issue, Vol. 18, No. 1, pp.104-128.
  75. Zaltman, G., Duncan, R. and Holbek, J.(1973), Inno vations and Organizations, Wiley, New York.