• Asia pacific journal of information systems
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• v.24 no.4
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• pp.577-610
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• 2014

Although service innovation is not a new concept, innovation research in general tends to focus on technological innovation by manufacturing firms. With this view, innovation studies focus on product(e.g., goods) and process(e.g., product systems) innovation, ignoring service innovation and its inherent opportunities. Since major economy has been transformed to service economy, service innovation is considered a new effective way to sustain and gain a competitive advantage. Service innovation is no longer regarded merely as a side activity to product innovation; it has become a main research topic in its own right, accompanied by an increasing focus on services. While the number of service innovation studies has increased dramatically in the past 30 years in international research, few studies have been performed in domestic studies because domestic service innovation research began from the middle of 2000. In addition, there are no comprehensive literature reviews describing the evolution of service innovation research in both international and domestic studies because of the heterogeneities of service industry and multidiscipline characteristics of service innovation studies. To bridge this research gap, the purpose of this paper is to perform an extensive literature review and synthesis to enable a critical review of extant research on service innovation and trace its evolution, which will establish a foundation for further studies. By reviewing 169 articles (136 international papers; 33 domestic papers) published between 2000 and 2014 (in past 15 years), primarily in leading service, innovation and management information systems journals, this study analyzes the progression of service innovation research according to the four aspects such as number of studies, topics, methodologies and target industries. Overall, the view of service innovation has evolved, from a complement of traditional product innovation to a multidimensional, all-encompassing concept that entails several functions, both within and outside the firms. The results showed that domestic research still stays at the formation phase of service innovation studies although international research is in the maturity or multidimensional phase. We found increasing recent activities pertaining to service innovation, resulting from the increasing interest in services innovation across various industries and the links of new topics to the service innovation concept in both international and domestic studies. However, the main focus of service innovation research showed a different propensity between international and domestic studies: the former mainly focuses on a much more diversified pattern, emphasizing the linkages between service innovation and business strategy while the latter mainly focuses on the service innovation process(system) and service design. In addition, there are many case studies in domestic studies while many empirical studies in international studies. Domestic studies should increases the understanding of the interplay between service innovation and product innovation within manufacturing firms. Furthermore, rather than focusing on intrinsic distinctions between service innovation and product innovation, researchers should strive to develop and conceptualize service innovation in domestics studies. The present research also provides useful implications for practitioners. First, this study contributes to expand the current understanding of service innovation research by performing an extensive literature review. Second, tracing and comparing the progression and trends of service innovation research between international and domestic studies, this study showed the similarities and differences between them, which provide practical guidance on future research directions and research agenda. Third, this study performed literature review establishing the analysis system in the initial stage and using them to analyze articles, which is leading to explain the research review of service innovation more systematically and objectively. Finally, this study suggests the domestic researchers their future interests and topics of service innovation research.

• 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.

• Korean Management Science Review
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• v.32 no.4
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• pp.175-192
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• 2015

Due to the emergence of open innovation driven by development of network service technologies and convergence in ICT service industry, It is necessary for ICT service firms to examine their capabilities for open innovation. The purpose of this paper is to empirically examine determinants affecting open innovation in Korean ICT service industry. In order to analyze, this paper uses logistic and multiple regression models based on survey data of Korean ICT service firms. Estimation results show that external network for collaboration is positive on the technological innovation activity regardless of the innovation type. Specifically, user networks are significant in all types of technology innovation, revealing that it is important to innovation activities of the ICT service firms.

• Information Systems Review
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• v.18 no.4
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• pp.43-67
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• 2016

Although many studies have stressed the importance of technology in service innovation, the roles of technology in service innovation are at the center of debates in the service innovation literature. One major research stream regards technology as a trigger for other innovation based on resource advantage theory. Conversely, another major stream considers it as an enabler of other innovations based on complementary theory. The contradictory situation induces the necessity to better understand the role of technology in service innovation. Therefore, this study aims to identify the role of technology in service innovation. This study investigates the role of technology in service innovation based on a service innovation orientation framework. Four service innovation orientations (i.e., service creation, service delivery, customer interaction, and technology) are identified on the basis of Den Hertog's 4D model. This study proposes a research model that examines the indirect effect of technology orientation on innovation performance through the service creation and service delivery orientations, and the effect of technology orientation on firm performance as a moderator between customer interaction orientation and firm performance. Based on empirical data from 193 knowledge-intensive business service firms in Korea, we explain the role of technology in service innovation. The results indicate that technology orientation influences both service creation and service delivery orientations as an antecedent but customer interaction orientation as an enabler. The three service innovation orientations, which are directly and indirectly influenced by technology orientation, positively affect firm performance. The findings also show that the role of technology is different depending on the type of service innovation orientation in this study.

• 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 Korea Technology Innovation Society
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• v.16 no.3
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• pp.559-581
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• 2013

Over the last several decades, the service sector has experienced the rapid growth and will continue to grow in importance, stature and job creation potential. Productivity and innovation activities in the service sector have come under the spotlight as an important element of national economic development. Despite the spotlight, however, not many studies have conducted to investigate the characteristics of innovation activities in the service sector, compared to the rich literature on the innovation in the manufacturing sector. One of the distinguishing features of service innovation is that innovation activities differ markedly across services. Therefore, this research purposes to investigate the characteristics of service innovation focusing on the differences across service types. Here, we restrict our focus to technical innovation such as product and process innovation. For the purpose of investigation, firstly, the KIS (Korea Innovation Survey) dataset in the service sector was adopted, which includes information about patterns of innovation in the Korean firms that provide service offerings. Then, service typology was developed by two criteria - customize-based and facility-based - on the assumption that the characteristics of service innovation activities will vary according the these two criteria; the classifies services into four groups the patterns of innovation activities were analyzed with respect to innovation inputs, process, and outputs. The research findings indicate that each service group has its own patterns of innovation activities, providing valuable information about the state of affairs in service innovation, thereby are expected to help further study technology innovation activity in the service sector.

• 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.

• Information Systems Review
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• v.19 no.3
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• pp.127-154
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• 2017

This study aims to identify various service innovation patterns in the service industry and understand the main differences among them. We attempt to create a new typology of service innovation by analyzing its patterns based on the four major dimensions of service innovation (i.e., service concept, service delivery, customer interaction, and technology). We then investigate whether firms pursuing different service innovation patterns significantly differ from one another in terms of their performance (high and low performance). Based on empirical data collected from 198 Korean firms in the knowledge-intensive business service sector, four major clusters composed of different service innovation dimensions are identified. These four clusters can be interpreted as specific service innovation patterns, including "technology based high customer interaction," "high technology based high service delivery," "service delivery and high customer interaction-integrated," and "strongly balanced" innovators. High firm performance does not depend on the individual service innovation dimension but on the specific configurations of such service dimensions. Customer interaction also has an important role in achieving innovation success and improving firm performance, while technology has a key role in enhancing firm performance. This study sheds new light on service innovation research by developing a new typology of service innovation, identifying four major clusters as service innovation patterns, and exploring the relationship between service innovation patterns and firm performance.

• 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.

• Information Systems Review
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• v.18 no.2
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• pp.79-106
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• 2016

Service innovation is one means of gaining an advantage in a highly competitive environment. Although numerous studies have stressed the importance of service innovation, traditional good-dominant logic is still used in service innovation literature. Furthermore, few studies have been conducted on the link between service innovation and its antecedents in terms of service-oriented approach. To fill the gap, this article theoretically and empirically examines service innovation and its antecedents and consequences. Based on service-dominant logic and resource advantage theory, the current study aims to understand the effect of antecedents on service innovation as well as to identify the effect of service innovation on firm performance (i.e., non-financial and financial performance). Three service innovation activities, namely service creation-focused innovation, service delivery-focused innovation, and customer interaction-focused innovation, and four antecedents of service innovation, including human resource management capability, collaboration capability, marketing capability, and information technology capability, are identified based on Den Hertog (2000)'s service innovation framework. By using the empirical data collected from 189 service firms in Korea, this study explores the causal relationship among antecedents, service innovation and firm performance. Findings indicate that human resource management and marketing capabilities influence the three types of service innovation, whereas collaboration and information technology capabilities have a significant effect on both service creation-focused innovation and service delivery-focused innovation. In particular, human resource management capability is strongly related to customer interaction-focused innovation. The three types of service innovation have a positive influence on non-financial performance, whereas service delivery-focused innovation and customer interaction-focused innovation positively influence financial performance. These results support the crucial effects of antecedents, such as human resource management, collaboration, marketing and information technology capabilities, on service innovation.