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Service innovation and firm performance: operational experiences in uncertain environments

Service innovation and firm performance: operational experiences in uncertain environments Innovation is one of the main factors affecting the firms' performance; however, it is less investigated in service firms. This study aims to assess the effect of service innovation on firms' performance in uncertain environments when the market orientation capabilities can help firms to operate more efficiently. Data was collected from travel agency managers in Iran. The results revealed that in stable environments, service innovation affects firm performance indirectly via quality of service and customer satisfaction. But having considered environmental uncertainties, service innovation showed a direct effect on firm performance in addition to indirect effects. Moreover, market sensing and customer linking capabilities are moderating the relationship between service innovation and firm performance in uncertain environments. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Services, Economics and Management Inderscience Publishers

Service innovation and firm performance: operational experiences in uncertain environments

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
1753-0822
eISSN
1753-0830
DOI
10.1504/IJSEM.2020.111932
Publisher site
See Article on Publisher Site

Abstract

Innovation is one of the main factors affecting the firms' performance; however, it is less investigated in service firms. This study aims to assess the effect of service innovation on firms' performance in uncertain environments when the market orientation capabilities can help firms to operate more efficiently. Data was collected from travel agency managers in Iran. The results revealed that in stable environments, service innovation affects firm performance indirectly via quality of service and customer satisfaction. But having considered environmental uncertainties, service innovation showed a direct effect on firm performance in addition to indirect effects. Moreover, market sensing and customer linking capabilities are moderating the relationship between service innovation and firm performance in uncertain environments.

Journal

International Journal of Services, Economics and ManagementInderscience Publishers

Published: Jan 1, 2020

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