Overview of research linking innovation types and organizational performance in complex services
| Author | Aim | Innovation operationalization | Effect operationalization | Data and analysis | Main contribution |
|---|---|---|---|---|---|
| Yunis et al. (2018) | To develop and test a framework for exploring the relationship between ICT adoption and use, corporate entrepreneurship and organizational performance | Innovation 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 competitors | 374 organizations (service and other); PLS-SEM multi-group analysis | The 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 categories | Types of product, process and organizational and marketing innovation | Firm performance; measured as turnover caused by innovations | 856 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 innovation | Explorative and exploitative service innovation | Organizational 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 analysis | The 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 innovation | Two dimensions of process Innovation: propensity and effectiveness | Financial performance; measured as profit margin | German manufacturing and service firms; two-step regression procedure | The 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 quality | Two types of organizational innovation capability: technical and non-technical | Firm 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 time | Three types of innovation: service, technological process and administrative process | Organizational 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 analysis | The 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 sector | Uses 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 activity | Economic performance; measured by three indicators: average sales growth rate, average employee growth rate and average level of labor productivity | 735 service firms; regression analysis | The results show that innovating firms outperform non-innovating firm in terms of both productivity and economic growth |
| Author | Aim | Innovation operationalization | Effect operationalization | Data and analysis | Main contribution |
|---|---|---|---|---|---|
| Yunis | To develop and test a framework for exploring the relationship between ICT adoption and use, corporate entrepreneurship and organizational performance | Innovation 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 competitors | 374 organizations (service and other); PLS-SEM multi-group analysis | The 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 |
| To investigate synergy effects of product, process, marketing and organizational innovation in relation to innovativeness levels and industrial categories | Types of product, process and organizational and marketing innovation | Firm performance; measured as turnover caused by innovations | 856 high- and low-tech firms from the Korean Innovation | The study confirms the synergy effect and how it can change according to innovativeness level and industrial category | |
| To explore the relationship between interaction orientation and service innovation | Explorative and exploitative service innovation | Organizational 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 analysis | The study clarifies | |
| To investigate the antecedents, contingencies and performance consequences of interfirm differences in successful process innovation | Two dimensions of process | Financial performance; measured as profit margin | German manufacturing and service firms; two-step regression procedure | The 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 | |
| To explore the relationship between service innovation, customer participation and service quality | Two types of organizational innovation capability: technical and non-technical | Firm performance; measured as relative success in the marketplace on a range of financial | 155 Australian service firms; | The study demonstrates that innovation capabilities affect service quality, and that the effect is mediated by customer participation | |
| 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 time | Three types of innovation: service, technological process and administrative process | Organizational performance; measured as core service performance | 428 public service organizations in the UK; cross-organizational times series data, regression analysis | The 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 | 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 sector | Uses 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 activity | Economic performance; measured by three indicators: average sales growth rate, average employee growth rate and average level of labor productivity | 735 service firms; regression analysis | The results show that innovating firms outperform non-innovating firm in terms of both productivity and economic growth |
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