5. CONCLUSION
5.1 Findings and Final Remarks
Both academics and businesses have addressed
the value of service innovation for decades, because
the service industry dominates the global economy,
and service innovation is crucial for ensuring that
service sectors continually grow.
Services tend to innovate differently from
manufacturers. In addition, researchers believe that
SMEs adopt innovative designs and strategies
differing from those of MNEs. Moreover, the
definition of R&D may differ based on the nature of
the industry. Furthermore, ITeS is regarded as a key
factor influencing the paradigm shift in service
innovation.
However, although innovation has been
considered the key factor for the survival, growth,
and development of SMEs, and although service
innovation has received increasing attention in
scientific research, the service innovation of large
high-tech MNEs has been the focus of analyses. By
contrast, few studies have investigated the
development of service innovation in small
organizations.
To bridge the aforementioned research gap, this
study focused on the service innovation behaviors of
SMEs in the service industry. In particular, this
research clarified the patterns, outcomes, and effects
of R&D and IT on service innovation. The following
research goals were addressed in this study: (1) to
clarify the patterns of service innovation implemented
by SMEs in the service industry; (2) to explore the
relationships between the characteristics, patterns,
and short-term performance of service innovation
implemented by SMEs; and (3) to investigate the role
of ITeS in SME-based service innovation.
Through content analysis of 103 SMEs in the
tourism and food service industries that participated
in the ASSTD project and received sponsorship from
the Taiwanese government between 2006 and 2011,
the following findings were observed.
First, service innovation projects initiated by
SMEs tended to be implemented using a multifaceted
approach. Although no significant difference in
service innovation patterns was observed between
medium firms and small firms, SMEs aimed to obtain
new markets and new customers and therefore
focused on new product and service development.
Moreover, the direction of service innovation projects
was highly dependent on the self-perceived status and
position of the SMEs.
Second, revenue improvement and an increase
in new product and service offerings were the most
common outcomes of service innovation projects
initiated by SMEs.
Third, IT was observed to play a key role in
facilitating service innovation, but was not a
necessary condition for SME-based service
innovation because of the high-touch nature of
service industries. The role of IT in mediating and
facilitating service innovation was emphasized.
Finally, SME-based service innovation tended
to focus more on commercial and softer aspects than
on technological innovations, differing from the focus
on R&D patterns observed in the manufacturing
sector. This result indicated that SME-based service
innovation emphasized soft technology and
commercialization rather than new technology and
product development. This is particularly common
for SMEs in the service industry because of resource
limitations.
5.2 Limitations and Future Directions
This study entailed limitations in data richness
and representativeness (i.e., number of SMEs,
coverage of service sectors, number of countries, and
variety of data sources) as well as the robustness of
the analytical techniques (i.e., coding approach,
participant experience, and number of participants).
Therefore, it is strongly suggested that future studies
extend this research by resolving at least one of these
limitations to validate the findings of this study.
ACKNOWLEDGEMENT
The authors are grateful for the support from
the National Science Foundation (NSC
100-2410-H-034- 002) in Taiwan. The authors would
also like to thank the valuable comments received
from CIIA 2012 and that from the anonymous
reviewers and editors, which offer greatly aid in
improving the paper presentation.
5. CONCLUSION5.1 Findings and Final RemarksBoth academics and businesses have addressedthe value of service innovation for decades, becausethe service industry dominates the global economy,and service innovation is crucial for ensuring thatservice sectors continually grow.Services tend to innovate differently frommanufacturers. In addition, researchers believe thatSMEs adopt innovative designs and strategiesdiffering from those of MNEs. Moreover, thedefinition of R&D may differ based on the nature ofthe industry. Furthermore, ITeS is regarded as a keyfactor influencing the paradigm shift in serviceinnovation.However, although innovation has beenconsidered the key factor for the survival, growth,and development of SMEs, and although serviceinnovation has received increasing attention inscientific research, the service innovation of largehigh-tech MNEs has been the focus of analyses. Bycontrast, few studies have investigated thedevelopment of service innovation in smallorganizations.To bridge the aforementioned research gap, thisstudy focused on the service innovation behaviors ofSMEs in the service industry. In particular, thisresearch clarified the patterns, outcomes, and effectsof R&D and IT on service innovation. The followingresearch goals were addressed in this study: (1) toclarify the patterns of service innovation implementedby SMEs in the service industry; (2) to explore therelationships between the characteristics, patterns,and short-term performance of service innovationimplemented by SMEs; and (3) to investigate the roleof ITeS in SME-based service innovation.Through content analysis of 103 SMEs in thetourism and food service industries that participatedin the ASSTD project and received sponsorship fromthe Taiwanese government between 2006 and 2011,the following findings were observed.First, service innovation projects initiated bySMEs tended to be implemented using a multifacetedapproach. Although no significant difference inservice innovation patterns was observed betweenmedium firms and small firms, SMEs aimed to obtainnew markets and new customers and thereforefocused on new product and service development.Moreover, the direction of service innovation projectswas highly dependent on the self-perceived status andposition of the SMEs.Second, revenue improvement and an increasein new product and service offerings were the mostcommon outcomes of service innovation projectsinitiated by SMEs.Third, IT was observed to play a key role infacilitating service innovation, but was not anecessary condition for SME-based serviceinnovation because of the high-touch nature ofservice industries. The role of IT in mediating andfacilitating service innovation was emphasized.Finally, SME-based service innovation tendedto focus more on commercial and softer aspects thanon technological innovations, differing from the focuson R&D patterns observed in the manufacturingsector. This result indicated that SME-based serviceinnovation emphasized soft technology andcommercialization rather than new technology andproduct development. This is particularly commonfor SMEs in the service industry because of resourcelimitations.5.2 Limitations and Future DirectionsThis study entailed limitations in data richnessand representativeness (i.e., number of SMEs,coverage of service sectors, number of countries, andvariety of data sources) as well as the robustness ofthe analytical techniques (i.e., coding approach,participant experience, and number of participants).Therefore, it is strongly suggested that future studiesextend this research by resolving at least one of theselimitations to validate the findings of this study.ACKNOWLEDGEMENTThe authors are grateful for the support fromthe National Science Foundation (NSC100-2410-H-034- 002) in Taiwan. The authors wouldalso like to thank the valuable comments receivedfrom CIIA 2012 and that from the anonymousreviewers and editors, which offer greatly aid inimproving the paper presentation.
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