Service Innovation and Service Innovation Performance: A Study of Banking Services

This study empirically examines the relationship between service innovation and service innovation performance. Typology of service innovation (SI) based on new service offering/product (NSO), new service process (NSP) and new service business model (NSBM)is tested for their likely effect on service innovation performance (SIP) of banks from a developing country context in the face of business environment (BE) characterized by dynamism and competitiveness. It uses quantitative data gathered through cross-sectional self-administered survey questionnaire on a 5 -point Likert-type scale from a sample of 220 managers from the banking organizations to predict the impact of service innovation on service innovation performance. Data are analyzed through SPSS-19 and Amos-18 by means of bivariate correlation and regression. Results indicate a strong impact of multi-dimensional service innovation on service innovation performance. Each dimension of service innovation significantly predicts service innovation performance. Business environment theorized in terms of competition and uncertainty fails to moderate the relationship between service innovation and service innovation performance. In this way, this study offers many valuable insights in the field of service innovation and performance management areas which can be valuable to several stakeholders such as researchers, practitioners and policy makers in developing and implementing optimum service innovation strategies to augment and synergize performance of their services.