• Knowledge Management Research
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• v.13 no.5
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• pp.113-137
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• 2012

Since service innovation is considered as a new way to gain an advantage in a highly competitive environment, it is imperative for companies to align their service innovation strategy with their business strategy in order to achieve better firm performance. Accordingly, a critical challenge facing firms is how to effectively organize and manage a well-planned service innovation strategy in accordance with the direction of their business strategy. Firms with a good fit between business strategy (i.e., cost leadership, innovative differentiation, and marketing differentiation strategies) and service innovation strategy (service creation-focused, service delivery-focused, and client interface-focused strategies) are expected to have better firm performance than those without such a fit. Based on empirical data from 209 service firms in South Korea, this study aims first to investigate whether a certain service innovation strategy is more effective than others within a particular business strategy. We then examine whether their effective alignment positively affects firm performance. The empirical evidence indicates that the alignment of service innovation strategy with business strategy significantly influences firm performance. The adoption of service innovation strategy was found to have positive effects on firm performance with innovative differentiation and marketing differentiation strategies and negative effects with cost leadership strategy. Lastly, we discuss our study's implications for further research and practice.

• Journal of Information Technology Services
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• v.13 no.4
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• pp.155-168
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• 2014

This paper discussed about business ethics and innovation management performance of IT service firms in Korea. To prove empirically the research hypothesis, the statistical analysis was based on the response from the 92 IT Service firms in Korean. As analysis results, it was found that the business ethics of organizations were the effect factors of the innovation management performance. And the knowledge competency and creativity are confirmed as a mediator between the business ethics and innovation management performance. So this paper suggests that business ethics in organizations are the important factor for enhancement of IT service firm's innovation performance. Specially the mediation effects of knowledge competency and creativity variables were proved empirically for the relation between the business ethics and innovation management performance. So it is desirable that knowledge-based service firms, for example IT service firms, have to strive to upgrade their level of business ethics and to link with their creativity and knowledge competency.

• Journal of Information Technology Services
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• v.14 no.2
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• pp.195-229
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• 2015

Service innovation is considered a new way to gain competitive advantage and enhance firm performance. However, service innovation does not always guarantee the desired outcome. The effective organization and management of well-planned service innovation practices, which are consistent with the firm's business environment, become a critical challenge for service innovation success. In addition, an increasing number of studies have focused on the role of information technology (IT) capability in service innovations. Most studies on service innovation have focused on the influences of the strategic alignment and IT capability separately. In contrast, the current study combines them by investigating the positive moderating effect of IT capability on the alignment between business strategy and service innovation strategy. Based on data collected from 183 service firms in Korea, we first explore the effect of service innovation strategies when coupled with different business strategies on better firm performance. We then investigate the moderating effect of IT capability on the relationship between strategic alignments and firm performance. Empirical evidence indicates that a synergistic effect between alignment and IT capability on firm performance exists. Firms that have aligned service innovation strategy with business strategy should consider improving their organizational IT capability to ensure substantial leverage.

• Journal of Information Technology Applications and Management
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• v.24 no.2
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• pp.55-70
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• 2017

A key factor of competitiveness of a firm is technology innovation including product and process innovation. This paper explores the importance and performance of innovation in IT industry across manufacturing and service business. Using importance-performance analysis based on a survey of Korean manufacturing and service firms, we find the characteristics of innovation in IT under the context of industry difference. Out study indicate that Korean IT firms need to recognize the importance of technology innovation and enhance the performance in some areas. In future research, we will expand the boundary of innovation into non-technology innovation as well as service-specific innovation.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.32 no.2
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• pp.147-157
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• 2009

This paper is to test the modulating effect of organizational culture on the relationship between personality and incremental innovation, and study of the relationship between incremental innovation and service Quality in service industry. Based on 507 data gathered in service companies in Korea, analysis results and showed that procedural, interactional, and innovative culture have affirmative relation with incremental innovation. Therefore innovative culture appeared to have some modulating effect on the relationship between personality and incremental innovation. And ana-lysis results of relationship between incremental innovation and service quality are followed; service innovation and process innovations showed positive effects except some operation innovations.

• Journal of Korean Society for Quality Management
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• v.38 no.3
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• pp.363-377
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• 2010

Although the importance of the service sector has been highlighted recently, service innovation remain under-researched by scholars. Innovation research based on manufacturing sector suggests that innovation strategy varies according to the objectives of innovation and has a positive influence on firm performance. To investigate the path that links the objectives of innovation, innovation strategy used and firm performance, this study develops a conceptual model of service innovation from the literature and tests the Structural Equation Model(SEM) using STEPI (Korea's Science and Technology Policy Institute) data. We could identify the causal relationships both between the objectives of innovation and innovation strategy and between innovation strategy and firm performance in service as in manufacturing, but we also found that the results of the empirical study for the service industry, in particular, the empirical results on the relationship between the aims of innovation and innovation strategy used, are quite different from those for manufacturing.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.401-411
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• 2020

This study aims to analyze the agreement of service innovation using contingency approach (manager personality, organizational structure) moderated by leadership agility. The study has been carried out on Islamic banking companies' managers in Indonesia, from East Java and Yogyakarta region using purposive sampling technique with questionnaire and interviews as the method of data collection. The total number of respondents in the sample is 184. This sample is then analyzed using Euclidience Distance Simple Regression and Simple Regression Moderation method. The results prove that: (1) there is a partial fit between incremental strategy with reactive personality and mechanical organizational structure, which increases the service performance; (2) there is a partial fit between radical strategy with proactive personality and organic organizational structure, which increases the service performance; (3) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and reactive personality toward service performance; (4) leadership agility is able to strengthen the fit the relationship between radical innovation strategy and proactive personality toward service performance; (5) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and mechanical organizational structure toward service performance; and (6) leadership agility is able to strengthen the fit of the relationship between radical innovation strategy and organic organizational structure toward service performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.1091-1099
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• 2021

The purpose of this research is to examine the effect of Servant Leadership and Business Transformation on Corporate Competitiveness and Corporate Sustainability. In this research, Service Innovation is the mediating element. The sample of this study was made up of all ship leaders in all crossings of PT ASDP Indonesia Ferry (Persero), which consisted of 150 Commanders or Chief Commanders (Mualim I). The location of the research is the Vessel PT. ASDP Indonesia Ferry (Persero) is used on all crossings of the company. It is a survey research using questionnaires given to 150 respondents. The validity and reliability were checked using Pearson correlation and Cronbach's Alpha. The analysis used the WarpPLS statistical method and WarpPLS software. The results from this research show that the increased Servant Leadership will improve Service Innovation. Business Transformation developed by PT ASDP has not been able to improve Service Innovation. To our knowledge, there is no study on the concept of comprehensive competitiveness and sustainability involving Servant Leadership, Business Transformation, and Service Innovation in an integrated and simultaneous manner. Therefore, the novelty of this research is the development of concepts or models of Corporate Competitiveness and Corporate Sustainability Theory through Servant Leadership, Business Transformation, and Service Innovation.

• Information Systems Review
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• v.12 no.2
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• pp.145-166
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• 2010

As the service industry is advancing, the meaning of service innovation has been evolved. Recently, service innovation embraces all creative activities about service offering or relevant to service offerings and emphasizes the importance of customers in innovation process as a key driver. The innovation in services is often the result from a collaborative process between KIBS firms and client firms. Many researchers have pointed out about how the KIBS firms drive the innovation through service. In spite of the importance of service innovation, previous studies did not address the questions about what kinds of factors affect service innovation in KIBS firms still remain, or what are the effects of different knowledge on the innovation process. Therefore, the purpose of this study is to investigate the effect of the interactivity that KIBS firms have with their customers on various types of innovations in KIBS firms. Interactivity has been touted to be the most important starting point for and the basis of service innovations. This study also examines the effect of knowledge types (tacit or explicit) on the relationship between interactivity and service innovation. To test the proposed hypotheses, we developed measurement items and distributed survey questionnaires to domestic companies. 230 survey questionnaires were distributed and 81 were returned among which 76 were usable. The results of this study show that interactivity may be a significant indicator of innovation within KIBS firms. It also represents that the effect of knowledge types on the relationship between interactivity and innovation. These results indicate that KIBS firms need to improve the various activities of interaction with customers for innovation. This study provides a blueprint to further investigation of the critical role of service in service science perspectives.

• Journal of Information Technology Applications and Management
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• v.17 no.3
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• pp.25-41
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• 2010

F&B(food and beverage) in accommodation industry is a key service that determine the satisfaction of customers in tourism industry. As the importance of the management of quality gets increasingly highlighted in service industry, the innovation in the management of service quality and satisfaction in tourism industry is gaining high attention. In this research, we focused on the improvement and innovation of the management of procurement process for F&B service based on the smart use of information technology. A case and scenario analysis of the improvements in the management of procurement process is performed focusing on a medium-size accommodation business. Future opportunities and potential of further IT-based innovation is discussed.