Services and services innovation

Abstract

We have witnessed a dramatic transformation of the USA and western European economies in just twenty years. Built on manufacturing, today these are indubitably services-based economies. The transformation raises a number of important issues for economists, and for evolutionary economists in particular for they have long highlighted the importance of innovation and structural change in their treatment of industrial organisation, employment creation, welfare, economic growth, and international trade. Our understanding of the innovation process, and its economic implications, were built on studies of manufacturing sectors. What needs to be changed? Are some theories and models no longer applicable? Do we need to develop new explanations, theories and models? Is innovation in service sectors fundamentally different to innovation in manufacturing sectors, or is there a set of common features? These are key questions that are now being asked.We suggest that, by studying services innovation, scholars of innovation have an opportunity to develop an integrated account of innovation that is applicable to both services and manufacturing, and which covers all aspects of the innovative process. This requires a reassessment of established theories and models, and the development and testing of new theories and models. In other words, it requires a thorough review of what (we think) we know about innovation.

Service innovation in product-centric firms: a multidimensional business model perspective

“…In the search for an alternative framework (Droege et al, 2009), Gallouj and Windrum (2009) suggest an integrated approach that includes nontechnological aspects (e.g., services, processes, knowledge, business models) of service innovation processes, along with technological (product) forms. Such a perspective suggests a synthesis approach (Coombs and Miles, 2000) that attempts to combine manufacturingoriented innovation research with service innovation to achieve a more unified framework (Gallouj and Savona, 2010;Gallouj and Windrum, 2009). Other researchers affirm a broad, multidimensional interpretation of service innovation (den Hertog et al, 2010;Ostrom et al, 2010).…”

“…When they do, their resources and capabilities may be insufficient-or even counterproductive-for taking advantage of opportunities for service innovation. Therefore, firms must develop servicerelated resources and capabilities (den Hertog et al, 2010;Fischer et al, 2010;Martin and Horne, 1993) and reconfigure fundamental elements of their business models (Amit and Zott, 2012;Neu and Brown, 2008) to adopt a broad, multidimensional view on service innovation (Gallouj and Weinstein, 1997;Maglio and Spohrer, 2008;Roth and Menor, 2003;Windrum and Garcia-Goñi, 2008) that resonates with an integrated perspective on service innovation (Coombs and Miles, 2000;Gallouj and Savona, 2010;Gallouj and Windrum, 2009;Ordanini and Parasuraman, 2011;Rubalcaba et al, 2012). This perspective integrates not only the uniqueness or newness of the service but also innovations in other elements of the business model (Amara et al, 2009;Bessant and Davies, 2007;Drejer, 2004;Gallouj, 2002;Toivonen and Touminen, 2009;Yang, 2007), such as the service delivery process, customer interfaces, and the value network (de Jong and Vermeulen, 2003;Nenonen and Storbacka, 2010).…”

On Service Innovation and Realization in Manufacturing Firms

“…As the field continues to evolve and the service innovation concept becomes all-encompassing, identifying the exact loci of service innovation research becomes more difficult. This development is driven, among other things, by the service-based economy (Gallouj & Windrum, 2009), which demands expansive innovation. In the past three decades, major deregulation has occurred across economies in industries such as air transportation, financial services, health care, and telecommunications, and paralleled by the emergence of new industries, especially in the information and communication technology field (Fisk, Brown, and Bitner, 1993;Rust and Thompson, 2006).…”

Innovation and service outsourcing: an empirical analysis based on data from Tunisian firms

“…The topic of outsourcing is a key concept for services and their innovation (Gallouj and Windrum 2009). In this setting, many authors have closely examined the determining factors of taking the decision to outsource.…”