• Journal of Distribution Science
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• v.13 no.6
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• pp.87-96
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• 2015

Purpose - Several domestic telecommunication companies have made a considerable effort to continuously grow and survive, and they have strived to thrive in the midst of mature market competition. To overcome this challenging situation and to grow continuously, while still meeting customer needs that are becoming more diverse and complicated with the passage of time, extensive support for internal marketing is essential. Without such internal support, companies face serious limitations and market roadblocks. The communication industry is a high-level service industry and a basic communications industry characteristic is its significant dependence on the employees delivering the services. Therefore, entrepreneurs in the information/communications industry, as well as existing competitors, should look to satisfy external customers through critical investment in internal customers (employees). Therefore, it is important for research to examine how internal factors influence technology innovation and service quality, which are the key drivers for companies that are seeking leading market positions. Research design, data, and methodology - The purpose of this study is to analyze the relationship of technology innovation and perceived service quality with the internal marketing factors in the communication industry and to offer suitable and effective internal marketing suggestions. The independent variables of this study are internal communication, education and training, the support of the executives, reward systems, and empowerment. The dependent variables are technology innovation and perceived service quality. Utilizing these, this paper studies the influence of internal marketing factors on technology innovation and perceived service quality. Results - The study results revealed the following. First, the identified internal marketing factors have a positive effect on technology innovation. Among the five internal marketing factors, three had a significant effect on product innovation, empowerment, the support of executives, and education and training, in this order. Second, the internal marketing factors also had a positive effect on the process innovation of technology innovation. The marketing factors, the support of executives, empowerment, internal communication, and education and training, in this order, significantly affect process innovation. Third, technology innovation had a positive effect on perceived service quality. All of the five service quality factors, namely, tangibles, reliability, assurance, responsibility, and empathy, in this order, significantly affect product innovation. Additionally, tangibles, reliability, responsibility, empathy, and assurance, in this order, significantly affect process innovation. Fourth, product and process innovation significantly affect tangibles and reliability in technology innovation. To enhance tangibles and reliability, process innovation should first be enhanced. Fifth, product and process innovation significantly affect responsibility and empathy in technology innovation. To enhance the responsibility and empathy, process innovation should first be enhanced. Sixth, product and process innovation significantly affect assurance in technology innovation. To enhance the assurance, product innovation should first be enhanced. Conclusions - According to the results, a company's internal marketing factors have a positive and significant effect on technology innovation and, further, product and process innovation have a positive and significant effect on the perceived serviced quality.

• Asia pacific journal of information systems
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• v.24 no.4
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• pp.577-610
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• 2014

Although service innovation is not a new concept, innovation research in general tends to focus on technological innovation by manufacturing firms. With this view, innovation studies focus on product(e.g., goods) and process(e.g., product systems) innovation, ignoring service innovation and its inherent opportunities. Since major economy has been transformed to service economy, service innovation is considered a new effective way to sustain and gain a competitive advantage. Service innovation is no longer regarded merely as a side activity to product innovation; it has become a main research topic in its own right, accompanied by an increasing focus on services. While the number of service innovation studies has increased dramatically in the past 30 years in international research, few studies have been performed in domestic studies because domestic service innovation research began from the middle of 2000. In addition, there are no comprehensive literature reviews describing the evolution of service innovation research in both international and domestic studies because of the heterogeneities of service industry and multidiscipline characteristics of service innovation studies. To bridge this research gap, the purpose of this paper is to perform an extensive literature review and synthesis to enable a critical review of extant research on service innovation and trace its evolution, which will establish a foundation for further studies. By reviewing 169 articles (136 international papers; 33 domestic papers) published between 2000 and 2014 (in past 15 years), primarily in leading service, innovation and management information systems journals, this study analyzes the progression of service innovation research according to the four aspects such as number of studies, topics, methodologies and target industries. Overall, the view of service innovation has evolved, from a complement of traditional product innovation to a multidimensional, all-encompassing concept that entails several functions, both within and outside the firms. The results showed that domestic research still stays at the formation phase of service innovation studies although international research is in the maturity or multidimensional phase. We found increasing recent activities pertaining to service innovation, resulting from the increasing interest in services innovation across various industries and the links of new topics to the service innovation concept in both international and domestic studies. However, the main focus of service innovation research showed a different propensity between international and domestic studies: the former mainly focuses on a much more diversified pattern, emphasizing the linkages between service innovation and business strategy while the latter mainly focuses on the service innovation process(system) and service design. In addition, there are many case studies in domestic studies while many empirical studies in international studies. Domestic studies should increases the understanding of the interplay between service innovation and product innovation within manufacturing firms. Furthermore, rather than focusing on intrinsic distinctions between service innovation and product innovation, researchers should strive to develop and conceptualize service innovation in domestics studies. The present research also provides useful implications for practitioners. First, this study contributes to expand the current understanding of service innovation research by performing an extensive literature review. Second, tracing and comparing the progression and trends of service innovation research between international and domestic studies, this study showed the similarities and differences between them, which provide practical guidance on future research directions and research agenda. Third, this study performed literature review establishing the analysis system in the initial stage and using them to analyze articles, which is leading to explain the research review of service innovation more systematically and objectively. Finally, this study suggests the domestic researchers their future interests and topics of service innovation research.

• Journal of Digital Convergence
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• v.10 no.11
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• pp.673-680
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• 2012

The purpose of this study is to investigate the moderating role of customer and supplier participation in the relationship between new product/service development processes and product/service innovation. The research result shows that the high customer participation plays the moderating role in the relationship between strategy design and product/service innovation. Thus, if customers give ideas in the strategy design process, the probability of new product/service innovation will be increased. The conclusions and implications are discussed.

• East Asian Economic Review
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• v.18 no.4
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• pp.339-366
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• 2014

This paper examines the impact of internationalization on the product, process and organizational innovations of Korean service firms. Despite the increasing importance of the service sector and the discrepancies in the natures of the manufacturing and service industries, the internationalization-innovation link in the context of service firms has rarely been examined empirically on a large sample. Based on the results of the logistic regressions using the 2006 Korean Innovation Survey data, we found that Korean service firms' international expansion is significantly and positively associated with their product and organizational innovations. In addition, the magnitude of the estimates in our models revealed that internationalization has a greater impact on product innovation than on process or organizational innovation.

• Knowledge Management Research
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• v.14 no.3
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• pp.87-100
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• 2013

As the external knowledge networks of firms have become more and more important to their product and service innovations, many global leading companies such as P & G, IBM, and Samsung Electronics have formulated and implemented their open innovation strategy. This study attempts to empirically analyze the effects of CEOs' supports for external knowledge networks, external knowledge network-oriented cultures and inter-organizational knowledge management systems as the major antecedents to external knowledge networks by using the data based on organizational members' perceptions about them. Based on 847 samples collected from employees in three companies in the medical, the construction and the IT service industries, this study performed a structural equation modeling (SEM) analysis about the effects of the antecedents to the external knowledge networks on product and service innovations through Partial Least Squares (PLS). The empirical findings of this study show that CEOs' supports for external knowledge network positively influence product and service innovations, partially mediated by external knowledge network-oriented cultures and inter-organizational knowledge management systems. And they also show that external knowledge network-oriented cultures and inter-organizational knowledge management systems have a positive effect on product and service innovations, respectively, partially mediated by external knowledge networks. With these new findings, academic and practical implications are discussed.

• International Journal of Costume and Fashion
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• v.18 no.2
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• pp.29-43
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• 2018

Service-learning is a form of experiential education in which students participate in organized activities and develop a sense of civic responsibility while acquiring content knowledge of the discipline. The purpose of this study was first, to examine the underlying theories and principles of service-learning, and second, to present a case of systemic implementation of problem-based service-learning into a Product Innovation and Management class in higher education. The New Product Development for an E-Commerce Small Business project was developed for a community partner, BevShots, reflecting the needs of the firm, and was tightly woven into the course content. Students' participation in the project had a significant effect on increasing their awareness of the needs in the community and identifying their roles as citizens as well as enhancing their content knowledge learning. The community partner also received benefits for his business by participating in the project. Through this study, we aim to inspire fashion design and merchandising educators to implement service-learning projects/classes in the curriculum.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2000.05a
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• pp.301-320
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• 2000

This paper is concerned with characteristics of Internet retailing and manufacturer's product development strategy using Internet retailing. First, this paper reviews the current status of Internet retailing companies and explains some barriers to taking advantage of Internet retailing. Second, this paper gives a few suggestions for manufacturer's strategy for product innovation and development which is based on Internet retailing. The suggestions are (1) Product Innovation (2) Target Costing (3) Eliminate Design Mistakes.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.4
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• pp.145-157
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• 2017

SMEs play an important role in the domestic economy. Regarding competency to respond flexibly to unpredictable changes, agility of SMEs is more emphasized. Entrepreneurship orientation is an important factor in the source of SMEs that enable such competency. Entrepreneurial orientation refers to the tendency of a CEO or a member of a corporation to be innovative, risk-taking, and active in the face of various market opportunities. In other words, it refers to the tendency to be expressed in the activities of the entire company without regard to specific technologies or industries. Entrepreneurial orientation has a direct or indirect effect on business performance. Therefore, in this study, we conducted theoretical and empirical studies on the effect of entrepreneurial orientation of SME managers on business performance. Research hypotheses were derived through theoretical research. We focused on the mediating effect of innovation activity and tried to identify the mechanism that entrepreneurial orientation leads to business performance through product innovation and service innovation activity. We investigated whether innovativeness, proactiveness, and risk-taking, which are sub-variables of entrepreneurial orientation, affect business performance through product innovation and service innovation. We conducted a survey of SMEs in Busan and Kyungnam regions to examine the research hypotheses. The results show that product innovation and service innovation have mediating effects. The results of the study are as follows. Product innovation has mediating effect of innovativeness and risk-taking on business performance. Service innovation has been found to mediate innovativeness, proactiveness, and risk-taking on business performance. There was a difference in the mediation effect between the two innovations. Product innovation showed a low mediating effect and a large direct effect. On the other hands, service innovation is relatively more mediating than product innovation. The implications of the research results are derived in relation to the essential differences between product innovation and service innovation. Limitations of the study and directions for future research are presented.

• Journal of Korean Society for Quality Management
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• v.38 no.3
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• pp.363-377
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• 2010

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.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.2
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• pp.469-482
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• 2019

This paper analyzes the effects of government support systems, regulation, and innovation promotion policy on technological innovation performance of companies in the service industry using 4,000 Korean service industry companies. Multiple and hierarchical multiple regression analysis were used to analyze the correlation between the individual factors and process innovation and product innovation. Government support, regulation and technology innovation in the service industry were tested. In addition, government innovation promotion policy includes government support and regulation and the technological innovation performance of service firms. As a result, the government support system affects both the process innovation and the product innovation performance in the service industry, but affects only the process innovation performance in the case of regulation. Innovation promotion policy was found to regulate the relationship between government support systems and regulation and innovation performance of the service industry. Therefore, these findings provide strategic implications for the management of enterprises in relation to government support systems and innovation policy. It is necessary to reorganize regulations that are outdated to improve the effect of innovation policies on innovation performance.