The impact of service innovation on firm-level financial performance

Tor Helge · Per Egil Pedersen

101 citations0/0 files storedService Industries Journal

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Service and Product Innovation Innovation and Knowledge Management Firm Innovation and Growth

Abstract

This article empirically investigates if firms focusing on service innovation perform better financially than firms not focusing on service innovation. Analysis of the financial performance of 3575 Norwegian firms in the manufacturing industries supports the proposition that firms focusing on service innovation have significantly higher growth of operating results than firms not focusing on service innovation. However, this proposition is not supported in a corresponding analysis of 1132 Norwegian firms in the service industries. We elaborate on these results by investigating a variety of performance measures and by comparing the effects of service innovation between manufacturing and service industries. The article contributes to the service innovation measurement literature and to a better general understanding of the determinants of service innovation performance effects.

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References

2003Evolving to a New Dominant Logic for Marketing 2001Varieties of Capitalism 1990The Effect of a Market Orientation on Business Profitability 2003Varieties of Capitalism: The Institutional Foundations of Comparative Advantage 2006The Oxford Handbook of Innovation 1990The Effect of a Market Orientation on Business Profitability 1997Managing Innovation: Integrating Technological, Market and Organizational Change 2006Competing through service: Insights from service-dominant logic

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2016Understanding the links among innovation performance, market performance and financial performance 2015Performance of professional service firms from emerging markets: Role of innovative services and firm capabilities 2012The impact of service innovation on firm performance 2022Toward Holistic Experience-Oriented Service Innovation: Co-Creating Sustainable Value With Customers and Society 2014Service innovation and its impact: What do we know about?

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