The impacts of internal innovation orientation and external co-production on service innovation performance

The purpose of this study is to investigate the relations among internal innovation orientation, external co-production, business relation and service innovation performance. Using Structure Equation Model and Amos 20.0 to test the direct effect of constructs and using SPSS liner regression to test the moderating effect of business relations. Through an empirical survey of 161 samples in South China, the research findings show that: (1) Internal innovation orientation has a positive impact on external co-production. (2) External co-production has a positive impact on service innovation performance. (3) Business relations with partners can moderate the relations between the innovation orientation and co-production. The study suggests that managers should focus on the combination of internal innovation orientation and some specific innovation behaviors. And companies in network should strengthen the co-production with external partners to promote innovation.