Towards a theory of service innovation : an inductive case study approach to evaluating the uniqueness of services

Abstract

Much of the innovation literature focuses exclusively on product-oriented companies. While scholars have begun researching innovation in service companies, the field of service innovation remains undeveloped and relatively immature. This paper begins with a summary of the various differences that distinguish services and products-building a key framework for analyzing services proposed by Bitran and Lojo (1993). Case studies of three service companies then present detailed information regarding seven specific innovation decisions. The paper compares, contrasts, and integrates these seven innovation decisions to develop three testable propositions suggestive of a service innovation theory. I conclude by drawing attention to future research that might advance the development of service innovation theory and the ultimate generation of a general innovation theory that incorporates both products and services.