An empirical study on the relationship between service innovation and firm performance based on revised SPC model: Evidence from China's communication industry

International Journal of Services, Technology and Management

Volumn 18, Issue 3-4, 2012, Pages 154-183

  Lin, Lei ^a,b  

^a Chinese Academy of Science   (China)

^b TSINGHUA UNIVERSITY   (China)

Author keywords

China; Communication; Emerging economies; Performance; Service innovation; SPC model

Indexed keywords

COMMUNICATION; MANAGEMENT; MARKETING;

CHINA; COMMUNICATION INDUSTRY; COMMUNICATION SERVICE; EMERGING ECONOMIES; INTEGRATIVE MODELING; NEW SERVICE DEVELOPMENT; PERFORMANCE; SERVICE INNOVATION;

CUSTOMER SATISFACTION;

EID: 84875789053     PISSN: 14606720     EISSN: 1741525X     Source Type: Journal    
DOI: 10.1504/IJSTM.2012.052857     Document Type: Article

References (73)

1. Aas, T.H. and Pedersen, P.E. (2011) 'The impact of service innovation on firm-level financial performance', The Service Industries Journal, Vol. 31, No. 13, pp.2071-2090.
2. Anderson, E., Fornell, C. and Lehmann, D. (1994) 'Customer satisfaction, market share, and profitability: findings from Sweden', Journal of Marketing, Vol. 58, No. 3, pp.53-66.
3. Anderson, E.W. and Mittal, V. (2003) 'Strengthening the satisfaction profit chain', Journal of Service Research , Vol. 3, No. 2, pp.107-120.
4. Avlonitis, G.J., Papastathopoulou, P.G. and Gounaris, S.P. (2001) 'An empirically based typology of product innovativeness for new financial services: success and failure scenarios', Journal of Product Innovation Management, Vol. 8, No. 5, pp.324-342.
5. Bilderbeek, R., den Hertog, P., Marklund, G. and Miles, I. (1998) Services in Innovation: Knowledge Intensive Business Services (KIBS) as Co-Producers of Innovation , SI4S Project Synthesis Report of the Results of Workpackages 5&6, STEP Group.
6. Blazevic, V. and Lievens, A. (2004) 'Learning during the new financial service innovation process: antecedents and performance effects', Journal of Business Research, Vol. 57, No. 4, pp.374-391.
7. Cainelli, G., Evangelista, R. and Savona, M. (2004) 'The impact of innovation on economic performance in services', The Service Industries Journal, Vol. 24, No. 1, pp.116-130.
8. Cainelli, G., Evangelista, R. and Savona, M. (2006) 'Innovation and economic performance in services: a firm-level analysis', Cambridge Journal of Economics, Vol. 30, No. 3, pp.435-458.
9. Cavalcante, S.A., Kesting, P. and Ulhoi, J.P. (2011) 'Business model dynamics and innovation: (re)establishing the missing linkages', Management Decision, Vol. 49, No. 8, pp.1327-1342.
10. Chen, J-S., Tsou, H.T. and Huang, A.Y-H. (2009) 'Service delivery innovation antecedents and impact on firm performance', Journal of Service Research, August, Vol. 12, No. 2, pp.36-55.
11. Churchill, G.A. (1979) 'A paradigm for developing better measures of marketing constructs', Journal of Marketing Research, February, Vol. 16, pp.64-73.
12. Conceiço, P., Manuel, H. and Veloso, F. (2003) 'Innovative shocks and productivity', Paper presented at the Conference in Honour of Keith Pavitt 'What do we Know about Innovation', Brighton, UK, mimeo.
13. Crepon, B., Duguet, E. and Mairesse, J. (1998) 'Research, innovation, and productivity: an econometric analysis at the firm level', Economics of Innovation and New Technology, Vol. 7, pp.115-158.
14. Cronin, J. and Taylor, S.A. (1994) 'SERVPERF versus SERVQUAL: reconciling performance-based and perceptions-minus-expectations measurement of service quality', The Journal of Marketing, Vol. 58, No. 1, pp.125-131.
15. de Jong, J.P.J., Bruins, A., Dolfsma, W. and Meijgaard, J. (2003) 'Innovation in service firms explored: what, how and why? Part of the research programme SMEs and entrepreneurship', Strategic Study B, Vol. 200, No. 205, Business & Policy Research, EIM.
16. den Hertog, P. (2000) 'Knowledge-intensive business services as co-producers of innovation', International Journal of Innovation Management, Vol. 4, No. 4, pp.491-528.
17. Dillman, D.A. (1978) Mail and Telephone Surveys: The Total Design Method, Wiley Interscience, New York.
18. Drejer, I. (2004) 'Identifying innovation in survey of services: a Schumpeterian perspective' , Research Policy, Vol. 33, No. 3, pp.551-562.
19. Eisingerich, A.B., Rubera, R. and Seifert, M. (2009) 'Managing service innovation and inter-organizational relationships for firm performance: to commit or diversify?', Journal of Service Research, Vol. 11, No. 4, pp.344-356.
20. Evangelista, R. (1999) Knowledge and Investment. The Sources of Innovation in Industry, Edward Elgar, Cheltenham.
21. Evangelista, R. and Savona, M. (2003) 'Innovation, employment and skills in services: firm and sectoral evidence', Structural Change and Economic Dynamics, Vol. 14, No. 4, pp.449-474.
22. Evangelista, R. and Sirilli, G. (1998) 'Innovation in the service sector: results from the Italian statistical survey', Technological Forecasting and Social Change, Vol. 58, No. 3, pp.251-269.
23. Fagerberg, J. (2003) 'Innovation: a guide to the literature', in Fagerberg, D.C. and Mowery, R.R. (Eds.): Working Papers on Innovation Studies Vol. 2003, No. 1012, Centre for Technology, Innovation and Culture, University of Oslo.
24. 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.
25. Grawe, S.J., Chen, H. and Daugherty, P.J. (2009) 'The relationship between strategic orientation, service innovation, and performance', International Journal of Physical Distribution & Logistics Management, Vol. 39, No. 4, pp.282-300.
26. Griliches, Z. (1995) 'R&D and productivity: econometric results and measurement issues' , in Stoneman, P. (Ed.): Handbook of the Economics of Innovation and Technical Change, Blackwell, Oxford.
27. Griliches, Z. (1998) R&D and Productivity, the Econometric Evidence, University of Chicago Press, Chicago, IL.
28. Hair, J.F. Jr., Anderson, R.E., Tatham, R.L. and Black, W.C. (1998) Multivariate Data Analysis, 5th ed., Prentice Hall, Upper Saddle River, NJ.
29. Heskett, J., Sasser, E. and Schlesinger, L. (1997) The Service Profit Chain , The Free Press, New York.
30. Heskett, J.L., Jones, T.O. and Loveman, G.W. (1994) 'Putting the service profit chain to work', Harvard Business Review , Vol. 2, No. 2, pp.164-171.
31. Hollenstein, H. (2003) ' Innovation modes in the Swiss service sector: a cluster analysis based on firm-level data', Research Policy , Vol. 32, No. 5, pp.845-863.
32. Huarng, K.H. and Yu, T.H.K. (2011) 'Entrepreneurship, process innovation and value creation by a non-profit SME', Management Decision, Vol. 49, No. 2, pp.284-296.
33. Jennings, J.E., Jennings, P.D. and Greenwood, R. (2009) 'Novelty and new firm performance: the case of employment systems in knowledge-intensive service organizations', Journal of Business Venturing, Vol. 24, No. 4, pp.338-359.
34. Kanerva, M., Hollanders, H. and Arundel, A. (2006) Can We Measure and Compare Innovation in Service? , 2006 TrendChart report.
35. Kemp, R.G.M., Jong, J.P.J.de., Folkeringa, M. and Wubben, E.F.M. (2003) ' Innovation and firm performance: differences between small and medium-sized firms', Paper presented at the Annual International SMS-conference on Intersections: Strategy across Conventional Boundaries, SMS, Baltimore.
36. Klomp, L. and van Leeuwen, G. (1999) The Importance of Innovation for Firm Performance , CBS Statistics Netherlands, LNM-series, 9902.
37. Kren, L. and Tyson, T. (2009) 'Trade-offs in objective and subjective performance evaluation: a case study examining the validity of agency theory predictions', Management Accounting Quarterly, Winter.
38. Laing, J. (1988) 'Self-report: can it be of value as an assessment technique?', Journal of Counseling and Development, Vol. 67, No. 1, pp.60-61.
39. Lei, L. (2011) ' The impact of service innovation on firm performance: evidence from the Chinese tourism sector', The Service Industries Journal , DOI:10.1080/02642069.2011.638712.
40. Lei, L. and Guisheng, W. (2007) Service Innovation , 2nd ed., Tsinghua University Press, Beijing.
41. Lievens, A. and Moenaert, R.K. (2000) 'Communication flows during financial service innovation', International Journal of Bank Marketing, Vol. 19, No. 2, pp.68-88.
42. Loof, H. and Heshmati, A. (2001) 'On the relationship between innovation and performance: a sensitive analysis', Paper presented at the Eindhoven Centre for Innovation Studies (ECIS) Conference, 20-23 September, Eindhoven.
43. Lopes, L.F. and Godinho, M.M. (2005) Services Innovation and Economic Performance: An Analysis at the Firm Level , DRUID Working Paper (No. 05-08).
44. Love, J.H., Roper, S. and Hewitt-Dundas, N. (2010) 'Service innovation, embeddedness and business performance: evidence from Northern Ireland', Regional Studies, Vol. 44, No. 8, pp.983-1004.
45. Lyons, R.K., Chatman, J.A. and Joyce, C.K. (2007) 'Innovation in services: corporate culture and investment banking', California Management Review, Vol. 50, No. 1, pp.174-191.
46. Matear, S., Gray, B.J. and Garrett, T. (2004) 'Market orientation, brand investment, new service development, market position and performance for service organizations', International Journal of Service Industry Management, Vol. 15, No. 3, pp.284-301.
47. Normann, R. (1984, 1991) Service Management, Strategy and Leadership in Service Businesses, Wiley, Chicester.
48. OECD/Eurostat (2005) Oslo Manual - Guidelines for Collecting and Interpreting Innovation Data, 3rd ed., OECD, Paris.
49. Ordanini, A. and Rubera, G. (2010) 'How does the application of an IT service innovation affect firm performance? A theoretical framework and empirical analysis on e-commerce', Information & Management, Vol. 47, No. 1, pp.60-67.
50. Podsakoff, P.M., MacKenzie, S.M., Lee, J. and Podsakoff, N.P. (2003) ' Common method variance in behavioral research: a critical review of the literature and recommended remedies', Journal of Applied Psychology , Vol. 88, pp.879-903.
51. Prajogo, D.I. (2006) ' The relationship between innovation and business performance: a comparative study between manufacturing and service firms', Knowledge and Process Management , Vol. 13, No. 3, pp.218-225.
52. Roth, A.V. and Jackson, W.E. (1995) 'Strategic determinants of service quality and performance: evidence from the banking industry', Management Science, Vol. 41, No. 11, pp.1720-1732.
53. Royston, G., Halsall, J., Halsall, D. and Braithwaite, C. (2003) ' Operational research for informed innovation: NHS direct as a case study in the design, implementation and evaluation of a new public service', Journal of the Operational Research Society, Vol. 54, No. 10, pp.1022-1028.
54. Rust, R.T., Zahorik, A.J. and Keiningham, T.L. (1995) 'Return on quality: making service quality financially accountable', Journal of Marketing, April, Vol. 59, No. 2, pp.58-70.
55. Selnes, F. (1993) ' An examination of the effect of product performance on brand reputation, satisfaction and loyalty', European Journal of Marketing , Vol. 27, No. 9, pp.19-35.
56. Schumpeter, J.A. (1934) The Theory of Economic Development, Harvard University Press, Cambridge (1961, Oxford University Press, New York) ; First published in German, 1912.
57. Segarra-Blasco, A. (2010) ' Innovation and productivity in manufacturing and service firms in Catalonia: a regional approach', Economics of Innovation and New Technology , Vol. 19, No. 3, pp.233-258.
58. Sigala, M. (2006) ' Mass customization implementation models and customer value in mobile phones services: preliminary findings from Greece', Managing Service Quality , Vol. 16, No. 4, pp.395-420.
59. Spector, P.E. (1994) ' Using self-report questionnaires in OB research: a comment on the use of a controversial method', Journal of Organizational Behavior , Vol. 15, No. 5, pp.385-392.
60. Stevens, E. and Dimitriadis, S. (2005) 'Managing the new service development process: towards a systemic model', European Journal of Marketing, Vol. 39, No. 1/ 2, pp.175-198.
61. Sundbo, J. and Gallouj, F. (1998) Innovation in Services , SI4S Project Synthesis Work Package 3/4, SI4S Synthesis Report 2, 1998.
62. Tether, B.S. (2003) 'The sources and aims of innovation in services: variety between a nd within sectors', Economics of Innovation and New Technology, Vol. 12, No. 6, pp.481-505.
63. Theoharakis, V. and Hooley, G. (2003) 'Implementing relationship marketing: organizational resources enabling service responsiveness: evidence from Greece', Industrial Marketing Management, Vol. 32, No. 8, pp.695-702.
64. Tornow, W.W. and Wiley, J.W. (1991) ' Service quality and management practices: a look at employee attitudes, customer satisfaction and bottom-line consequences', Human Resource Planning , Vol. 14, No. 2, pp.105-115.
65. Ulrich, D. and Lake, D. (1990) Organizational Capability: Competing from the Inside Out , John Wiley & Sons, New York.
66. van Ark, B., Broersma, L. and den Hertog, P. (2003) Service Innovation, Performance and Policy: A Review , Synthesis Report in the Framework of the Project Structural Information Provision on Innovation in Services.
67. van der Wietze, Aa. and Elfring, T. (2002) 'Realizing innovation in services', Scandinavian Journal of Management , Vol. 18, No. 2, pp.155-171.
68. van Riel, A.C.R., Semeijn, J., Hammedi, W. and Henseler, J. (2011) 'Technology-based service proposal screening and decision-making effectiveness ', Management Decision, Vol. 49, No. 5, pp.762-783.
69. Vargo, S.L. and Lusch, R.F. (2008) 'Service-dominant logic: continuing the evolution', Journal of the Academic Marketing Science, Vol. 36, No. 1, pp.1-10.
70. Vasconcellos e Sá, J.A., Olo, F. and Pereira, M. (2011) ' From Levitt to the global age: one more time, how do we define our business?', Management Decision , Vol. 49, No. 1, pp.99-115.
71. Venkatraman, N. and Ramanujam, V. (1986) 'Measurement of business performance in strategy research: a comparison of approaches', Academy of Management Review, Vol. 11, No. 4, pp.801-814.
72. Vries, E.J. (2006) 'Innovat ion in services in networks of organizations and in the distribution of services', Research Policy , Vol. 35, No. 7, pp.1037-1051.
73. Wiley, J.W. (1991) 'Customer satisfaction: a supportive work environment and its financial costs', Human Resource Planning, Vol. 14, No. 2, pp.117-128.