Service-innovation capability founded on knowledge from customers

Abstract

This article expands current knowledge by assessing how customer knowledge management influence services innovation capability and what is the reciprocal effect of innovation capability on particular dimensions of customer knowledge management. Unexplored in earlier studies, the article has developed a list of hypothesis through an extensive literature survey, hypothesis were empirically tested, with survey data collected from 319 managerial employees. The results show that knowledge about customers, knowledge for customers, knowledge from customers and knowledge co-created with customers significantly influences service-innovation capability. Yet knowledge from customers appears to have a most powerful effect on innovation capability. The results from reciprocal causation show that innovation capability has significant impact upon all selected dimensions of customer knowledge management. But, the most power influence is found upon knowledge for customers. The article concludes with the study’s qualifications, plus it offers pivotal recommendations for both practitioners and future-research directions.

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