Table 2.

Overview of research linking innovation types and organizational performance in complex services

AuthorAimInnovation operationalizationEffect operationalizationData and analysisMain contribution
Yunis et al. (2018)To develop and test a framework for exploring the relationship between ICT adoption and use, corporate entrepreneurship and organizational performanceInnovation treated as a higher-order multidimensional construct by assessing two lower-level constructs: innovation atmosphere (6 items) and innovation opportunities (5 items)Organizational performance; measured on a 7-item scale inviting respondents to assess the organization’s performance in relation to competitors374 organizations (service and other); PLS-SEM multi-group analysisThe results support the study’s thesis that ICT adoption and innovation enhance organizational performance and that the effect is in part mediated by corporate entrepreneurship
Lee et al. (2019) To investigate synergy effects of product, process, marketing and organizational innovation in relation to innovativeness levels and industrial categoriesTypes of product, process and organizational and marketing innovationFirm performance; measured as turnover caused by innovations856 high- and low-tech firms from the Korean Innovation
Survey (KIS) 2014; SEM – path analysis
The study confirms the synergy effect and how it can change according to innovativeness level and industrial category
Liu (2016) To explore the relationship between interaction orientation and service innovationExplorative and exploitative service innovationOrganizational performance; measured as explorative and exploitative service innovation (The study does not assess the effects of service innovation but treats service innovation as organizational performance.)152 service providing electronics manufacturing firms; PLS-SEM analysisThe study clarifies
the links between an organization’s strategic
orientation and the development of organizational
capabilities that result in service innovation
Piening and Salge (2015) To investigate the antecedents, contingencies and performance consequences of interfirm differences in successful process innovationTwo dimensions of process
Innovation: propensity and effectiveness
Financial performance; measured as profit marginGerman manufacturing and service firms; two-step regression procedureThe study provides new insights into the configuration of process innovation capabilities, enabling firms to increase the likelihood of process innovation activity and associated profit margins
Ngo and O'Cass (2013) To explore the relationship between service innovation, customer participation and service qualityTwo types of organizational innovation capability: technical and non-technicalFirm performance; measured as relative success in the marketplace on a range of financial
and non-financial performance indicators
155 Australian service firms;
PLS analysis
The study demonstrates that innovation capabilities affect service quality, and that the effect is mediated by customer participation
Damanpour et al. (2009) To investigate the consequences of three types of innovation in the service sector and whether the impact of innovation on organizational performance depends on the configuration of innovation types over timeThree types of innovation: service, technological process and administrative processOrganizational performance; measured as core service performance
(CSP), largely based on archival performance indicators, supplemented by inspection results and assessments of statutory plans
428 public service organizations in the UK; cross-organizational times series data, regression analysisThe study concludes that it is unwise to focus on a single type of innovation, that adopting the same set of innovation types may have no effect, and that diverging from industry norms may prove advantageous for organizational performance
(Cainelli et al., 2004)To empirically explore the relationship between innovation and economic performance, and in particular to assess whether innovation and level of resources spent on innovation can explain economic performance in the service sectorUses of the community innovation survey, should entail the Oslo Manual definition of innovation. However, innovation is not operationalized but is measured as the absence/presence of innovation activityEconomic performance; measured by three indicators: average sales growth rate, average employee growth rate and average level of labor productivity735 service firms; regression analysisThe results show that innovating firms outperform non-innovating firm in terms of both productivity and economic growth
Source: Research presented in the table were compiled and summarized by the author

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