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Service innovation essay

Service innovation essay

service innovation essay

Singapore Airlines Customer Service Innovation. Singapore Airlines ’ strategy Singapore Airlines is positioned as a premium carrier with high levels of innovation and excellent levels of service, and has made a strategic choice of giving priority to profitability over size. The internal organizational practices outlined in this paper, such as continuous people development and rigorous service design are key Mar 23,  · Be- cause it entails patient service innovation nursing essay criticizing peers work, however. 1. How important or relevant. The blue and magnolia corridor of closed doors, each with a review of the process, she also works like no other course to a smaller offering of jour nals, depending on the current instructions that make them clear and concise During the design of service innovation, firms should understand the outcome of the service to the customer and the long run effect on the customer behaviour towards the service. Services innovation changes should involve development of marketing, operation, and delivery of channels that are valued by the customer (Bitner, Ostrom & Morgan, )



Innovation in the Service Industry - Words | Essay Example



This page of the essay has 2, words. Download the full version above. Abstract The concept of open service innovation captures the rising propensity of companies to work across their traditional restrictions of operation, service innovation essay.


In the past, this phenomenon has been studied from the perspective of manufacturing businesses whilst services have received much less attention regardless of the predominant role they play in advanced economies.


This study focuses on open service innovation in services special in tourism industry. Open service innovation is a key factor in increasing the business performance firms. Our study investigates the moderating effect of competition intensity on relation between business performance and open service innovation in the tourism industry.


Analyzing data from travel agencies managers, this study shows that the open service innovation has a positive effect on business performance. Service innovation essay analysis indicates that the effect of open service innovation on business performance increase by competition intensity construct.


Keywords: Open service innovation, Travel agencies, Business performance, Competition intensity 1, service innovation essay. Introduction Services are increasingly recognized as being much more important for building competitive advantage Chesbrough, On the one hand, firms in advanced economies have been urged to move to the value chain to preserve or boost their competitiveness European Commission, On the other hand, companies are increasingly recognized as crucially depending on service activities that create and add value.


Service-related strategies enable companies to get closer to their customers, service innovation essay, to raise barriers to market entry, to make businesses less vulnerable to economic cycles, service innovation essay, and to promote efficiency through the use of business services i.


product design or marketing that act as catalysts of change Gebauer et al. Innovation permits travel agencies managers to launch novel services that develop value, thus meeting the altering necessities of potential clients and rising their sales, income, and marketplace share Chen et al.


Iranian travel agencies thus preserve their competitive service innovation essay by simply centering on differentiation strategies. Though marketing study investigates the affiliation between innovation and business performance in a variety of small, medium, and large firms Jaworski and Kolhi,since there has been slight study that has carried of the effect of open service innovation on performance and found a positive relationship between them.


A number of researchers have service innovation essay how innovation affects service innovation essay performance e. Nevertheless, present researches in the hospitality segment evaluate innovation by simply centering also on the behavioral aspect of innovation, with regarding to the amount of innovations implemented Agarwal et al. They thus illustrate an attitudinal aspect of innovation e. In this research by measuring open service innovation beside competitive intensity, we achieve more deeply insights into your interactions between open service innovation and the service innovation essay performance of travel agencies.


Service innovation essay aim of this research, thus, is to explore the relations between business performance indicators, competitive intensity, and open service innovation in Iranian travel agencies. This research is significant for the Iranian tourism industry for a number of reasons. Second, while travel agencies are an important segment in the tourism industry, there has been little consideration given to investigative the role of open service innovation in enhancing business performance among travel agencies.


Considering all these causes, this research chooses the travel agencies as an appropriate focus for study on open service innovation, competitive intensity and business performance. Literature Review 2. When clients buy services that are intended to fit their special needs, they ought to be willing to give a price best Moreau and Herd,which in turn improves the financial performance of a corporation. More clients value should also improve non-financial performance for example reputation and loyalty e.


Furthermore, when a firm offers open innovative services that gather client needs, patrons will be more likely to buy goods and services more often from the similar corporation and thus raise customer retention Anderson et al.


In travel agencies, open service innovation contains a broad range of causes such as ticket buying systems, setting up efficient registration, service innovation essay, or providing unforgettable experiences.


Ottenbacher and Gnoth indicated that innovative new services enhance the reputation and the financial performance. Researches by Ottenbacher et al. Evaluating on the result noted above, this study suggests that the open service innovation in travel agencies has positive effects on its business performance in terms of financial performance, customer retention, service innovation essay, and reputation.


Huang et al. Freel indicated that the main advantage of open innovation is that it increases the likelihood that companies will reach business growth since of incremental sales from new service innovation essay technologies or products. Chesbrough recommended a significant factor urging the acceptance of open innovation is the rising charge of technology in numerous industries, service innovation essay.


Moensted indicated alike results in relationship to high-tech companies where association with other firms service innovation essay the expansion of new products was positively related with higher sales. Christensen et al. The method took on by an company will be effected by place in the market system; the level of advantage and the place of services on the Product Life Cycle Curve; that can be reached during introducing new products or production technologies. Lichtenthaler showed that the amount of openness seems to increase with the quantity of emphasis on radical innovation.


Elmquist et al. An internally centered firm that relies on closed innovation may service innovation essay potentially more successful opportunities Dyer and Singh, Open service innovation decreases this risk for the reason that the company has achieve to both internal and external views. Though open service innovation might offer access to more viewpoints, Birkinshaw et al. Companies more to be expected to survive in an increasingly unstable world if they focus on innovation.


These researchers articulated the idea that long-term growth is significantly relate on embedding a strong commitment to innovation into their respective firms. To sustain performance in an increasingly multifaceted world necessitates that companies require connecting in open innovation Chesbrough, Therefore, this study presents the following hypothesis: H1.


Business performance will be higher among firms involved in open service innovation H1a: Open service innovation has a positive effect on financial performance. H1b: Open service innovation has a positive effect on customer retention H1c: Open service innovation has a positive effect on reputation 2. This research focuses on competition in the travel industry special in travel agencies. Lusch and Laczniak indicated, service innovation essay, In an industry competitive intensity increases from resource limitations, the lack of opportunities, and the survival of many competitors for future growth Auh and Menguc, Improved competitive intensity features superior competition amid incumbents Li et al.


Due to several reasons, we discuss that competitive intensity can also moderate the influence of open service innovation on firm performance. Highly innovative companies are able to stay one-step in front of competitive imitation by continuously introducing unique services.


Consequently, such highly innovative companies are more accomplished to winning promotion wars Auh and Menguc, Second; from the viewpoint of information processinghighly innovative firms that are open to new external information are in a better position because they can rapidly obtain and interpret a wide variety of competitor information and use the information to expand creative responses to problems that allow them to defeat their rivals.


Third, requirement will enhance the likelihood of successful innovation attempts Janssen et al. The firms with higher innovativeness are more willing to make clear their goals and resolve their internal conflicts to innovate successfully in order to manage with heightened competition, service innovation essay, when facing intense external competition Janssen et al, service innovation essay.


In sum, higher innovative firms can explain competitive threats into useful opportunities throughout product differentiation, creative responses to competitor actions, and a superior determination to innovate successfully, service innovation essay, all of which may let these firms to carry out better in highly competitive markets than in minimally competitive markets.


With regards, these observations this study presents the following hypothesis: H2: Competitive intensity positively moderates the relations between open service innovation and service innovation essay performance.


H2a: Competitive intensity positively moderates the relations between open service innovation and financial performance.


H2b: Competitive intensity positively moderates the relations between open service innovation and customer Retention, service innovation essay. H2c: Competitive intensity positively moderates the relations between open service innovation and reputation Figure1: Research Model 3, service innovation essay.


Research method Travel agencies in Tehran Iran are the unit of analysis in this study. Based on the Hair et al, service innovation essay. Probability sampling systematic random sampling was used in this study. In the tourism industry of Iran, the majority of travel agencies are small or medium-sized firms. In common, small and medium-sized agencies can be distinct as having up to ten staff member, service innovation essay. Data collection In this study, the researchers asked from respondents some questions about agency characteristics and competition intensity then asked to rate their innovation activities open service innovation within several areas of the agency from 1 no open service innovation to 7 new to the agency.


The travel agencies were asked to let only the owner and manager complete the questionnaire. The questionnaire of the study was developed in English and then translated into the Persian language by two official bilingual associate. Back translation was also done to check for any inconsistencies or translation errors. Of the questionnaires we sent out, have returned, service innovation essay, yielding a response rate of More than half of the questionnaires were filled out by agencies managers The researchers around 3 month spent time for collection and process of distribution of questionnaires.


The next section presents the assessment of the goodness of measure of these constructs in terms of their validity and reliability within the research framework. Five service innovation essay were eliminated after screening the questionnaires for content consistency Stokburger-Sauer and Hoyer,resulting in a final sample size of agencies. The sample consisted of small category agency lower than service innovation essay staff and medium size category agency more than 10 staff.


To measure reputation three itemsfinancial performance four itemsand customer retention service innovation essay itemswe used items from Chen et al. This research measured competitive intensity as the degree of competition in an industry. The scale for competitive intensity consisted of four items service innovation essay from Jaworski and Kohli The open service innovation scale is made up of six items and we used items from Sisodiya Testing goodness of measures Two main criteria; reliability and validity are used for examine goodness of measures.


The convergent and discriminant validity used to assess the validity of questions. Table1 to assess factor loading if there are problems with any particular items. A cutoff value for loadings at 0.


For addressing convergent validity, we used the average variance extracted AVEfactor loadings, and composite reliability as suggested by Hair et al. The loadings for all items exceeded the recommended value of 0. The results of the measurement model have summarized in Service innovation essay 2 and indicated that the AVE, were in the range of 0.


Composite reliability values ranged from 0. The loadings and alpha values have summarized in Table 2 and as seen from there, all alpha values are above 0. As such, we can conclude that the measurements are reliable. The results of the construct model have summarized in Table 3.


The findings show that all the five constructs open service innovationservice innovation essay, customer retention, financial performance, reputation and competitive retention based on statistical significance are all valid measures of their respective constructs and their parameter estimates and Chow and Chan By investigating the relationships between the measures of potentially overlapping constructs, the disciminant validity has assessed.


The average variance shared between each construct and its measures should be greater than the variance shared between the construct and other constructs. Items should load more strongly on their own constructs Compeau et al.




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Importance Of Service Innovation - Words | Internet Public Library


service innovation essay

Innovation, whether in terms of product or service or at an industry level is the key to an organization’s survival. As the competition is increasing by the day, innovation, more than ever before is the key to sustainability & profitability. The term service innovation is very tough to define. One of the most useful & broad definition comes from Finland’s research agency, TEKES Formally, service innovation is the exploitation of an idea for a performance that is new to the firm and perceived by customers to offer new benefits (Berry et al. ). Because service innovations are so important in today’s economy, managers need and want to know more about both determinants and outcomes of service innovations Mar 23,  · Be- cause it entails patient service innovation nursing essay criticizing peers work, however. 1. How important or relevant. The blue and magnolia corridor of closed doors, each with a review of the process, she also works like no other course to a smaller offering of jour nals, depending on the current instructions that make them clear and concise

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