Service innovation and firm performance: Operational experiences in uncertain environments

Morteza Akbari; Hossein Mokhtari; Afsaneh Moradi; Afsaneh Pourjam; Ala Khosravani

doi:10.1504/IJSEM.2020.111932

Service innovation and firm performance: Operational experiences in uncertain environments

Morteza Akbari^*, Hossein Mokhtari, Afsaneh Moradi, Afsaneh Pourjam, Ala Khosravani

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

Innovation is one of the main factors affecting the firms' performance; however, it is less investigated in service firms. This study aims to assess the effect of service innovation on firms' performance in uncertain environments when the market orientation capabilities can help firms to operate more efficiently. Data was collected from travel agency managers in Iran. The results revealed that in stable environments, service innovation affects firm performance indirectly via quality of service and customer satisfaction. But having considered environmental uncertainties, service innovation showed a direct effect on firm performance in addition to indirect effects. Moreover, market sensing and customer linking capabilities are moderating the relationship between service innovation and firm performance in uncertain environments.

Original language	English
Pages (from-to)	347-370
Number of pages	24
Journal	International Journal of Services, Economics and Management
Volume	11
Issue number	4
DOIs	https://doi.org/10.1504/IJSEM.2020.111932
Publication status	Published - 1 Jan 2020

Keywords

Environmental uncertainty
Firm performance
Service innovation
Tourism industry

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10.1504/IJSEM.2020.111932

Cite this

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title = "Service innovation and firm performance: Operational experiences in uncertain environments",

abstract = "Innovation is one of the main factors affecting the firms' performance; however, it is less investigated in service firms. This study aims to assess the effect of service innovation on firms' performance in uncertain environments when the market orientation capabilities can help firms to operate more efficiently. Data was collected from travel agency managers in Iran. The results revealed that in stable environments, service innovation affects firm performance indirectly via quality of service and customer satisfaction. But having considered environmental uncertainties, service innovation showed a direct effect on firm performance in addition to indirect effects. Moreover, market sensing and customer linking capabilities are moderating the relationship between service innovation and firm performance in uncertain environments.",

keywords = "Environmental uncertainty, Firm performance, Service innovation, Tourism industry",

author = "Morteza Akbari and Hossein Mokhtari and Afsaneh Moradi and Afsaneh Pourjam and Ala Khosravani",

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year = "2020",

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AU - Akbari, Morteza

AU - Mokhtari, Hossein

AU - Moradi, Afsaneh

AU - Pourjam, Afsaneh

AU - Khosravani, Ala

PY - 2020/1/1

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AB - Innovation is one of the main factors affecting the firms' performance; however, it is less investigated in service firms. This study aims to assess the effect of service innovation on firms' performance in uncertain environments when the market orientation capabilities can help firms to operate more efficiently. Data was collected from travel agency managers in Iran. The results revealed that in stable environments, service innovation affects firm performance indirectly via quality of service and customer satisfaction. But having considered environmental uncertainties, service innovation showed a direct effect on firm performance in addition to indirect effects. Moreover, market sensing and customer linking capabilities are moderating the relationship between service innovation and firm performance in uncertain environments.

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KW - Firm performance

KW - Service innovation

KW - Tourism industry

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