Skip to main content
SpringerLink
Log in

Exploring a Multidimensional Approach to Service Innovation

  • Chapter
  • First Online:
Book cover The Handbook of Service Innovation

Abstract

Given the fuzzy nature of services, it proves challenging to describe precisely what element of a renewed service offering can be regarded as innovative. Many existing characterizations are criticized for being too limited to capture distinctive features of new services accurately. This chapter describes the possibilities offered by a multidimensional approach to service innovation. Adhering to differentiated frameworks of where novelty can occur allows for comprehensive measurement and comparative analyses across sectors. Additionally, a multidimensional approach provides a basis for the application of system and complexity theory to service innovation. The rich but largely unexploited potential of this perspective is illustrated by testing a hypothesis regarding the relation between radicalness and innovation performance. Using survey-data from 341 firms, we operationalize a multidimensional conceptualization of service innovation and show that firms renewing a higher number of dimensions indeed tend to yield a higher percentage of their turnover from innovation. Further implications of treating services as multidimensional systems are discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 109.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 139.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    For instance, there is not much to learn from comparing the service blueprints from a restaurant visit with the service blueprint of consulting a financial advisor. Only within these specific contexts, detailed mappings can point out differences and similarities that might lead to improvements.

  2. 2.

    Here, one could argue that these aspects pertain to types of innovations rather than dimensions of an individual service innovation.

  3. 3.

    Also the characteristics-based approach by Gallouj and Weinstein (1997) has been represented as a system of interrelated elements (Windrum and García-Goñi 2008). However, although noting that “the model is helpful for describing the various ways in which service innovations can produced”, it has been criticized for not being “very helpful if we want to describe more concretely the possible loci of innovation, i.e. all those elements of the service which can be changed” (Toivonen and Tuominen, 2009, p. 891).

  4. 4.

    This calculation is based on respondent evaluation of the question: “Our turnover mainly stems from services”. Using a7-point Likert-scale, we counted firms with a response of 4 or higher as service providers.

  5. 5.

    An exception is the measurement scale for Elevated Service Offerings (Agarwal and Selen 2011). However, being based on the older 4D-model and focused on collaboratively developed services, it is less suitable than the enhanced 6D-model by den Hertog et al. (2010).

  6. 6.

    Additional tests reveal that removing item 4B enhances the discriminant validity of two constructs sufficiently, also leading to a better model fit (χ2/df = 1.7; RMSEA = 0.045).

  7. 7.

    Exception here is the dimension New Value System, which relies on just a single item.

  8. 8.

    Robustness of our tests is warranted by using other thresholds (2, 6) as well. Results remain largely equal.

References

  • Aa W, Elfring T (2002) Realizing innovation in services. Scand J Manag 18:155–171

    Google Scholar 

  • Agarwal R, Selen W (2009) Dynamic capability building in service value networks for achieving service innovation. Decis Sci 40(3):431–475

    Article  Google Scholar 

  • Agarwal R, Selen W (2011) Multi-dimensional nature of service innovation: operationalisation of the elevated service offerings construct in collaborative service organisations. Int J Oper Prod Manag 31:1164–1192

    Google Scholar 

  • Amara N, Landry R, Doloreux D (2009) Patterns of innovation in knowledge-intensive business services. Serv Ind J 29(4):407–430

    Article  Google Scholar 

  • Anderson E, Fornell C, Rust R (1997) Customer satisfaction, productivity, and profitability: Differences between goods and services. Mark Sci 16:129–145

    Google Scholar 

  • Baines T, Lightfoot H, Evans S, Neely A, Greenough R, Peppard J, Wilson H (2007) State-of-the-art in product service systems. Proc Instit Mech Eng Part B J Eng Manuf 221:1543–1552

    Google Scholar 

  • Barras R (1986) Towards a theory of innovation in services. Res Policy 15:161–173

    Google Scholar 

  • Beinhocker E (2006) The origin of wealth: evolution, complexity, and the radical remaking of economics. Harvard Business School Press, Boston, MA

    Google Scholar 

  • Bitner M, Ostrom A, Morgan F (2008) Service blueprinting: a practical technique for service innovation. Calif Manag Rev 50(3):66–94

    Article  Google Scholar 

  • Boone T (2000) Exploring the link between product and process innovation in services. In: Fitzsimmons JA, Fitzsimmons MJ (eds) New service development: creating memorable experiences. Sage, Thousand Oaks, CA, pp 92–107

    Chapter  Google Scholar 

  • Bryson J, Rubalcaba L, Strom P (2012) Services, innovation, employment and organisation: research gaps and challenges for the next decade. Serv Indus J 32:641–655

    Google Scholar 

  • Cainelli G, Evangelista R, Savona M (2004) The impact of innovation on economic performance in services. Serv Ind J 24(1):116–130

    Article  Google Scholar 

  • Carlborg P, Kindström D, Kowalkowski C (2013) The evolution of service innovation research: a critical review and synthesis. Serv Ind J. doi:10.1080/02642069.2013.780044

    Google Scholar 

  • Castaldi C (2009) The relative weight of manufacturing and services in Europe: an innovation perspective. Technol Forecast Soc Chang 76:709–722

    Article  Google Scholar 

  • Castellacci F (2008) Technological paradigms, regimes and trajectories: manufacturing and service industries in a new taxonomy of sectoral patterns of innovation. Res Policy 37:978–994

    Article  Google Scholar 

  • Chae B (2012) A framework for new solution development: an adaptive search perspective. Serv Ind J 32:127–149

    Article  Google Scholar 

  • Chesbrough H (2011) Open services innovation: rethinking your business to grow and compete in a new era. John Wiley and Sons, New York, NY

    Book  Google Scholar 

  • Churchill G (1979) A paradigm for developing better measures of marketing constructs. J Mark Res 16:64–73

    Google Scholar 

  • Consoli D (2007) Services and systemic innovation: a cross-sectoral analysis. J Institut Econ 3(1):71–89

    Article  Google Scholar 

  • Cook DP, Chon-Huat G, Chung CH (1999) Service typologies: a state of the art survey. Prod Oper Manag 8(3):318–338

    Article  Google Scholar 

  • Cuthbertson R, Furseth P (2012) The service innovation triangle: a tool to create value through innovation. In: The Proceedings of The XXIII ISPIM Conference. Barcelona, Spain: ISPIM

    Google Scholar 

  • D’Alvano L, Hidalgo A (2011) Innovation management techniques and development degree of innovation process in service organizations. R&D Manag 4:60–70

    Google Scholar 

  • Davies A (2004) Moving into high-value integrated solutions: a value stream approach. Ind Corp Change 13(5):727–756

    Article  Google Scholar 

  • De Vries E (2006) Innovation in services in networks of organizations and in the distribution of services. Res Policy 35:1037–1051

    Google Scholar 

  • den Hertog P (2000) Knowledge intensive business services as co-producers of innovation. Int J Innov Manag 4:491–528

    Google Scholar 

  • den Hertog P (2010) Managing service innovation: firm-level dynamic capabilities and policy options. PhD-thesis. University of Amsterdam, Amsterdam

    Google Scholar 

  • den Hertog P, Aa W, De Jong M (2010) Capabilities for managing service innovation: towards a conceptual framework. J Serv Manag 21:490–514

    Google Scholar 

  • Djellal, F, Gallouj, F (2001) Innovation surveys for service industries: a review. In: European Commission, innovation and enterprise creation: statistics and indicators. European Commission, Luxembourg (EUR 17083), p 70–76

    Google Scholar 

  • Djellal F, Gallouj F (2008) Measuring and improving productivity in services: issues, challenges and strategies. Edward Elgar, Cheltenham

    Book  Google Scholar 

  • Drejer I (2004) Identifying innovation in surveys of services: a Schumpeterian perspective. Res Policy 33:551–562

    Google Scholar 

  • Droege H, Hildebrand D, Heras Forcada M (2009) Innovation in services: present findings, and future pathways. J Serv Manag 20:131–155

    Google Scholar 

  • Edvardsson B, Olsson J (1996) Key concepts in new service development. Serv Indus J 16:140–164

    Google Scholar 

  • EPISIS (2011) European policies and instruments to support service innovation: service typologies and tools for effective innovation policy development. In: Proceedings of PRO INNO Europe: Innonet

    Google Scholar 

  • Expert Panel on Service Innovation in the EU (2011) Meeting the challenge of Europe 2020: the transformative power of service innovation. In: Europe INNOVA, European commission enterprise and industry

    Google Scholar 

  • Forfas (2006) Services innovations in Ireland—options for innovation policy. Forfas, Dublin

    Google Scholar 

  • Frenken K (2006) Innovation, evolution and complexity theory. Edward Elgar, Cheltenham

    Google Scholar 

  • Gallouj F, Djellal F (2010) The handbook of innovation and services: a multi-disciplinary perspective. Edward Elgar, Cheltenham

    Book  Google Scholar 

  • Gallouj F, Savona M (2009) Innovation in services: a review of the debate and a research agenda. J Evol Econ 19:149–172

    Google Scholar 

  • Gallouj F, Toivonen M (2011/2012) Elaborating the characteristics-based approach to service innovation: making the service process visible. J Innov Econ 2:33–58

    Google Scholar 

  • Gallouj F, Weinstein O (1997) Innovation in services. Res Policy 26(4–5):537–556

    Article  Google Scholar 

  • Hair J, Anderson R, Tatham R, Black W (1998) Multivariate data analysis, with readings. Prentice-Hall, Englewood Cliffs, NJ

    Google Scholar 

  • Hauknes J (1998) Services in innovation—innovation in services. SI4S final report, Step Group, Oslo

    Google Scholar 

  • Kauffman S (1993) The origins of order: self-organization and selection in evolution. Oxford University Press, New York

    Google Scholar 

  • Leiponen A (2006) Managing knowledge for innovation: the case of business-to-business services. J Prod Innov Manag 23:238–258

    Google Scholar 

  • Levinthal DA (1997) Adaptation on rugged landscapes. Manage Sci 52:934–950

    Article  Google Scholar 

  • Miles I (1993) Services in the new industrial economy. Futures 25:653–672

    Google Scholar 

  • Miozzo M, Soete L (2001) Internationalization of services: a technological perspective. Technol Forecast Soc Chang 67:159–185

    Article  Google Scholar 

  • Nelson R (2003) On the uneven evolution of human know-how. Res Policy 32:909–922

    Google Scholar 

  • Nelson R, Winter S (1982) An evolutionary theory of economic change. Belknap Press of Harvard University Press, Cambridge

    Google Scholar 

  • NESTA (2009) The innovation index. National Endowment for Science, Technology and the Arts, UK

    Google Scholar 

  • Ng I, Andreu L (2012) Editorial special issue: research perspectives in the management of complex service systems. Eur Manag J 30:405–409

    Google Scholar 

  • Nijssen E, Hillebrand B, Vermeulen P, Kemp R (2006) Exploring product and service innovation similarities and differences. Res Mark 23:241–251

    Article  Google Scholar 

  • Nunally J (1978) Psychometric theory. McGraw-Hill, New York

    Google Scholar 

  • OECD (2012) OECD Science, Technology and Innovation Outlook 2012. OECD Publishing, France

    Google Scholar 

  • Osterwalder A, Pigneur Y (2010) Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley and Sons, Hoboken

    Google Scholar 

  • Parasuraman A, Zeithaml V, Berry L (1985) A conceptual model of service quality and its implications for future research. J Mark 49:41–50

    Google Scholar 

  • Pavitt K (1984) Sectoral patterns of technical change: towards a taxonomy and a theory. Res Policy 13:343–373

    Article  Google Scholar 

  • Porter M, Siggelkow N (2008) Contextuality within activity systems and sustainability of competitive advantage. Acad Manag Perspect 22(2):34–56

    Article  Google Scholar 

  • Rapaccini M, Saccani N, Pezzotta G, Burger T, Ganz W (2013) Service development in product-service systems: a maturity model. Serv Ind J 33(3–4):300–319

    Article  Google Scholar 

  • Rivkin JW (2000) Imitation of complex strategies. Manag Sci 46:824–844

    Article  Google Scholar 

  • Rubalcaba L, Michel S, Sundbo J, Brown S, Reynoso J (2012) Shaping, organizing, and rethinking service innovation: a multidimensional framework. J Serv Manag 23:696–715

    Google Scholar 

  • Salunke S, Weerawardena J, McColl-Kennedy J (2011) Towards a model of dynamic capabilities in innovation-based competitive strategy: insights from project-oriented service firms. Indus Mark Manag 40:1261–1263

    Google Scholar 

  • Sampson SE, Froehle CM (2006) Foundations and implications of a proposed unified services theory. Prod Oper Manag J 15(2):329–343

    Article  Google Scholar 

  • Saviotti P, Metcalfe J (1984) A theoretical approach to the construction of technological output indicators. Res Policy 13:141–151

    Article  Google Scholar 

  • Shostack LG (1977) Breaking free from product marketing. J Mark 41:73–80

    Article  Google Scholar 

  • Sundbo J (2003) Innovation and strategic reflexivity: an evolutionary approach applied to services. In: Shavinina L (ed) The international handbook on innovation. Elsevier, Oxford, pp 97–114

    Chapter  Google Scholar 

  • Sundbo J, Orfila-Sintes F, Soerensen F (2007) The innovative behaviour of tourism firms—comparative studies of Denmark and Spain. Res Policy 36:88–106

    Article  Google Scholar 

  • Tansik D, Smith W (2000) Scripting the service encounter. In: Fitzsimmons JA, Fitzsimmons MJ (eds) New service development: creating memorable experiences. Sage, Thousand Oaks, CA, pp 239–263

    Chapter  Google Scholar 

  • Tether B (2005) Do services innovate (differently)? Insights from the European Innobarometer Survey. Indus Innov 12:153–184

    Google Scholar 

  • Toivonen M, Tuominen T (2009) Emergence of innovation in services. Serv Indus J 29:887–902

    Google Scholar 

  • Trigo (2013) The nature of innovation in R&D- and non-R&D-intensive service firms: evidence from latent class analysis. Indus Innov 20(1):48–68

    Google Scholar 

  • Van Riel A, Calabretta G, Driessen P, Hillebrand B, Humphreys A, Krafft M, Beckers S (2013) Consumer perceptions of service constellations: implications for service innovation. J Serv Manag 24(3):314–329

    Google Scholar 

  • Voss C, Zomerdijk L (2007) Innovation in experential services an empirical view. AIM Research, London Business School, London

    Google Scholar 

  • Windrum P, García-Goñi M (2008) A neo-Schumpeterian model of health services innovation. Res Policy 37:649–672

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Innovation Sciences, Eindhoven University of Technology, Eindhoven, The Netherlands

    Matthijs Janssen & Carolina Castaldi

  2. Amsterdam Centre of Service Innovation (AMSI), University of Amsterdam, Amsterdam, The Netherlands

    Matthijs Janssen

  3. Dialogic, Utrecht, The Netherlands

    Matthijs Janssen & Pim Den Hertog

  4. Amsterdam Centre for Service Innovation (AMSI), VU University Amsterdam, Amsterdam, The Netherlands

    Alexander Alexiev & Pim Den Hertog

Authors
  1. Matthijs Janssen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Carolina Castaldi
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Alexander Alexiev
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Pim Den Hertog
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Matthijs Janssen .

Editor information

Editors and Affiliations

  1. UTS Business School, University of Technology Sydney, Broadway, Australia

    Renu Agarwal

  2. University of the Sunshine Coast, Queensland, Australia

    Willem Selen

  3. UTS Business School, University of Technology, Sydney, Australia

    Göran Roos

  4. UTS Business School, University of Technology Sydney, Sydney, Australia

    Roy Green

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer-Verlag London

About this chapter

Cite this chapter

Janssen, M., Castaldi, C., Alexiev, A., Den Hertog, P. (2015). Exploring a Multidimensional Approach to Service Innovation. In: Agarwal, R., Selen, W., Roos, G., Green, R. (eds) The Handbook of Service Innovation. Springer, London. https://doi.org/10.1007/978-1-4471-6590-3_5

Download citation

  • DOI: https://doi.org/10.1007/978-1-4471-6590-3_5

  • Published:

  • Publisher Name: Springer, London

  • Print ISBN: 978-1-4471-6589-7

  • Online ISBN: 978-1-4471-6590-3

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation