Identification of Service Innovation Dimensions in Service Organizations

Document Type: Original Research

Authors

1 Assistant Professor, University of Tehran, Tehran, Iran

2 M.A Student, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

Abstract

In today competitive world, innovation is a key factor for creating competitive advantage and even for survival of the enterprises and as a propellant for business growth and prosperity and maintain more profitability for an organization, as a result of market needs and technology push. In service organizations, recognition of the conceptual framework of service innovation, improves performance of the Organization and creates core competencies for achieving competitive advantage through their systematic approach to service development, which is crucial for survival and maintaining competitiveness in the current financial markets. Banking systems due to the rapid global competition, the impact of structural change, deregulation effects, the use of new technologies and the increasing expectations of customers, have sought to develop and implement service innovation in their organizations. In this paper the effective factors of Service Innovation in service organizations has been introduced and case of study is Iranian Governmental Banks. Research methodology is qualitative and qualitative. Data was collected through in-depth interviews with academic experts and managers of governmental banking systems until theoretical saturation was achieved. The gathered data was analyzed using axial and open coding methods. The results show that dimensions of Service Innovation in financial service organization systems consist of six main dimensions including new service concept, new delivery system (organization), new delivery system (technological), interact with new customers, new value systems / new business partners and finally the new revenue models and 36 secondary factors. The results of this paper can be used for the understanding of service innovation for new service design and development in governmental banking system in a competitive environment at the other countries.

Keywords


Chen, J., Tsou, H., Huang, A. (2009). Service Delivery Innovation Antecedents and Impact on Firm Performanc. Journal of Service Research, 12(1)  36-55.
Edvardsson, B. (1997). Quality in New Service Development: Key Concepts and a Frame of Reference. International Journal of Production Economics, 52, 31-46.
Flikkema, M. (2008). Service Development and New Service Performance. PhD Thesis, 1-187.
Frei, F. X. (2008). The Four Things a Service Business Must Get Right. Harvard Business Review, 1-13.
Gronroos, C. (2000). Service Management and Marketing a Customer Relationship Management Approach (2 ed.), John Wiley & Sons Ltd.
Gronroos, C. (2007). Service Management and Marketing Customer Management in Service Competition. West Sussex: John Wiley & Sons Ltd.
Hertog, P. den, van der Aa, W. & de Jong, M.W. (2010). Capabilities for managing service innovation: towards a conceptual framework, Journal of Service Management, Vol. 21, No. 4, pp. 490-514.
Hertog, P. den. (2000). Knowledge Intensive Business Services as Co-producers of Innovation. International Journal of Innovation Management, Vol. 4, No. 4, pp. 491-528.
Jong, J., Bruins, A., Dolfsma, W., Meijaard. J.(2003). Innovation in service firms explored : what, how and why?. Business and policy research.
Kotler, P. (1997). Marketing Management: Analysis, Planning, Implementation and Control. Englewood Cliffs: Prentice-Hall.
Meigounpoory, M & Shabankareh, N., (2013). New theoretical model of New Service Development process in Iranian Governmental Banks,  International Journal of Academic Research in Business and Social Sciences ,August 2013, Vol. 3, No. 8 ISSN: 2222-6990
Meigounpoory, M.R, and Dinarvandi, A. (2013). Identifying Effective Determinants of New Service Design and Development Process in Service Organizations, International Journal of Academic Research in Business and Social Sciences November 2013, Vol. 3, No. 11 ISSN: 2222-6990
Meigounpoory, M.R. and Hosseini, R., and Payami, M. (2013). Conceptualization of new model of factors affecting on learning process of NSD in Iranian Banks,  International Journal of Academic Research in Business and Social Sciences, Vol. 3, No. 12 ISSN: 2222-6990
Normann, R. (2002). Service Management; Strategy and Leadership in Service Business, 3rd edition, Wiley, Chichester [1st edition 1983, 2nd edition 1991].
Preissl, B. (2000). Service Innovation What Makes it Different? Emperical Evidence from Germany. In J. Stanley, & I. Miles, Innovation Systems in The Service Economy (pp. 125-148). Dordrecht: Kluwer Academic Pulisher.
Ramakrishna, Y., (2012). Service Innovation in Banks for Sustainability. International Journal of Management & Business Studies, vol. 2, no. 2, pp.80-83.
Shabankareh. N, Meigounpoory, M. (2013). New theoretical model of New Service Development process in Iranian Governmental Banks. International Journal of Academic Research in Business and Social Sciences, Vol. 3, No. 8.
Sundbo, J. & Gallouj, F. (2000). Innovation as a loosely coupled system in services. International Journal of Services Technology and Management, Vol. 1, No. 1, pp. 15-36.
Toivonen, M., Smedlund, A., & Tuominen, T. (2006). Development of Knowledge Intensive Business Service Innovations and Innovation Networks. International Journal MANAGEMENT, Journal for Management Theory and Practice, 40, 4-11.
Toivonen, M., Tuominen, T. (2009). Emergence of innovations in services. The service Industries Journal, 29, 887‐902.
World Bank (2008), World Development Indicators 2008, Washington, DC: World BankPublications.
Yen, H., Wang,W., Wei, C., Hsu, S., Chiu, H., (2012). Service innovation readiness: Dimensions and performance outcome. Decision Support Systems, 53 (2012) 813–824.