tadhg blommerde
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TOWARDS A CAPABILITY-BASED SERVICE INNOVATION MATURITY MODEL FOR SMES
Mr. Tadhg Blommerde12th June 2013Supervisor: Dr. Patrick Lynch
AGENDA
The service innovation landscape Practical service innovation issues Literature evaluation The research imperative and question Theoretical perspective Maturity models A maturity model for service innovation capabilities Next steps and time line Proposed methodology Skills and personal and professional development Questions and comments
SERVICE INNOVATION
THE SERVICE INNOVATION LANDSCAPE
(CSO, 2011)
1926-2011 Persons at work by sector
THE SERVICE INNOVATION LANDSCAPE
4 out 5 jobs in services 78.1% of Irish jobs (90.3% of women) 38% growth in the last 50 years Ireland is responsible for 2.7% of global service
exports 10th highest service exporter 1997-2007 gross value added in services trebled
€34 billion to 108 billion 40% of the jobs are ‘high skilled’
(Forfás, 2008)
THE IMPORTANCE OF INNOVATION TO SERVICES
10th most innovative of the EU27 59.6% of firms engaging in innovative activities Benefits of service innovation on an economic level:
growth, competitiveness, employment, more rapid recovery
Estimated 5.3 billion spent by Irish firms on innovation Gross value added by employees €78,000 in non-
innovative and €139,000 for innovative firms Role of service innovation in cohesion policies
(EuroStat, 2013; EuropeanCommission, 2013; Carney and Ryan, 2010; CSO, 2012)
THE IMPORTANCE OF INNOVATION TO SERVICES AT FIRM-LEVEL
Firm-level benefits such as competitiveness, responsiveness, enhanced market perception, greater retention, quality, efficiency, and financial rewards
98% of all firms are SMEs Service innovation encouraged by European
Union, Forfás, and organisations such as Service Cluster Ireland and Innovation Voucher incentives
(Ojasalo, 2009; Aas and Pederson, 2011)
PRACTICAL SERVICE INNOVATION ISSUES
(Forfás, 2011; Power et al., 2010; Aizcorbe et al., 2009; Mankin, 2007; Ostrom et al., 2010; Hogan et al., 2011; Sheehan, 2006; Gallouj and Savona, 2009; McDermott and Prajogo, 2012; Karniouchina et al., 2006)
Historical manufacturi
ng focus
Lack of formalisatio
n
Weak culture and
supports
Insufficient research
LITERATURE EVALUATION
Despite existing articles on the subject over-dominance of manufacturing
Mostly concerned with the larger organisation Difficulty in defining service innovation leads
to issues with measurement Under-researched area
(Power and Lynch, 2012; Vang and Zellner, 2005; Adams et al., 2006)
THE RESEARCH IMPERATIVE AND QUESTION
What are the capabilities associated with superior service innovation processes, and how can they be managed effectively to enhance overall innovativeness?
Determine characteristics of effective service innovation
Assessment mechanism Evaluate and describe specific improvement
initiatives Evolutionary framework which accounts for
capability development
THEORETICAL PERSPECTIVE
Resource-based theory and dynamic capabilities theory
Differences in firm performance over time Competitive advantage when VRIN and
deployed and configured correctly Exploit to maximum capacity thus
enhancing the innovative performance
(Barney, 2007; Walsh et al., 2011)
MATURITY MODELS
Develop and improve business processes The maturity levels range from low to high with
increased sophistication of processes Descriptive, prescriptive, comparative tool Embeds desired processes and support
infrastructure No existing document meets the following criteria:
evolutionary framework, focus on service innovation, follows resource-based logic, considers small and medium enterprises
(Ojasalo, 2012; Esterhuizen et al., 2012; Jochem, 2011; Essman, 2009)
MATURITY MODELS
Existing maturity model literature is useful to identify the stages/levels in a service innovation maturity model
Full composite attached to presentation Mini-composite indicates how the
stages were identified and named
MATURITY MODELS
MATURITY MODELS5. Optimising
Service innovation is institutionalised through empowered staff and formalised processes. It is linked to the firm’s strategy and outputs lead to competitive advantage.
4. Measured Understanding of service innovation in the context of the firm’s strategy. Consistent results through monitored processes.
Improvement: Process Control
3. Defined
Consistent and standardised service innovation processes, practices, and procedures.
Improvement: Process Measurement
2. Managed
Beginning to understand service innovation necessity. Inconsistent but attributable results.
Improvement: Process Definitions
1. Initial/Ad hoc
Low service innovation awareness. Short-term focus and inconsistent and unpredictable results.
Improvement: Basic Management
A MATURITY MODEL FOR SERVICE INNOVATION CAPABILITIES
Research up to now Identification of the capabilities Capability table with common themes
attached
NEXT STEPS
Refine the maturity levels further Identify and determine which
capabilities are present at which maturity levels
Locate scales to measure capabilities within maturity levels
PROPOSED METHODOLOGY
Mixed methods study Qualitative research used to refine
model Quantitative research used to measure
and test
TIME LINEMilestone Duration Description
M1 Oct 2012-Dec 2012 Conceptualisation of research topic.
M2 Oct 2012-January 2014 Literature review; completed in parallel
with other activities.
M3 Jan 2013-Jun 2013 Research problem
formulated/defined/refined.
M4 Jul 2013-May 2014 Evaluation of research methodology.
M5 Sept 2013-Dec 2013 Preparation and transfer to PhD register.
M6 Sept 2013-Dec 2013 Qualitative component: Conduct primary
research and data collection. Maintain
reflective diary.
M7 Jan 2014-Apr 2014 Quantitative component: Conduct
primary research including pilot study
and data collection. Maintain reflective
diary.
TIME LINEM8 June 2014-Sep 2014 Analysis & interpretation of data.
M9 Oct 2015 Revision of work to date in parallel with
other activities.
M10 Nov 2014-Jan 2015 Primary Research Findings.
M11 Feb 2015-March 2015 Preparation of Discussion Chapter.
M12 April 2015-May 2015 Preparation of Conclusions.
M13 June 2015 -Oct 2015 Final write-up of thesis including
directions/recommendations
for future research.
M14 Oct 2015 Thesis submission.
M15 Dissemination: Dissemination of findings will be on
going throughout the
process; attendance at special interest
groups and
academic conferences/colloquia will
allow for dissemination of
the research concept in order to generate
feedback.
SKILLS AND PERSONAL AND PROFESSIONAL DEVELOPMENT
Age and circumstances mean that I have a lot to learn
Generic skills (70 hours) Research skills, writing Time management, long deadlines
which require constant self-motivation and enthusiasm, seriousness and respect
Interest in dissemination
RESEARCH DAY
•Debut as a researcher•Feedback and comments•New experience, but enjoyable
ACKNOWLEDGEMENTS
Research colleagues RIKON Staff And particularly to Dr. Pat Lynch for the
opportunity and guidance
QUESTIONS AND COMMENTS
“Essentially, all models are wrong, but some are useful”
- George Box
REFERENCESReference listAas, T. H. and Pedersen, P. E. (2010) 'The firm-level effects of service innovation: A literature review', International Journal of Innovation Management, Vol. 14, No. 5, pp. 759-794. Adams, R., Bessant, J. and Phelps, R. (2006) 'Innovation management measurement: A review', International Journal of Management Reviews, Vol. 8, No. 1, pp. 21-47. Aizcorbe, A. M., Moylan, C. E. and Robbins, C. A. (2009) 'Toward Better Measurement of Innovation and Intangibles', Survey of Current Business, Vol. 89, No. 1, pp. 10-23. Camisón, C. and Monfort-Mir, V. M. (2012) 'Measuring innovation in tourism from the Schumpeterian and the dynamic-capabilities perspectives', Tourism Management, Vol. 33, No.
4, pp. 776-789. Carney, P. and Ryan, M. (2010) 'Measuring firm-level innovation: A review of the literature and survey design' [Online]. Available at: http://www.innovationfoundation.ie/Irish
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%20is%20Ireland%20Highlights,%20P2%20Full%20doc.pdf (Accessed 06.06.2013). CSO (2012) 'Community Innovation Survey 2008-2010' [Online]. Available at: http://www.cso.ie/en/media/csoie/releasespublications/documents/multisectoral/2010/
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Marketing Management, Vol. 40, No. 8, pp. 1264-1273. Karniouchina, E. V., Victorino, L. and Verma, R. (2006) 'Product and Service Innovation: Ideas for Future Cross‐Disciplinary Research', Journal of Product Innovation
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Research in Marketing, Vol. 23, No. 3, pp. 241-251. Ojasalo, J. (2012) 'Modeling in Service Innovation: 10 Propositions' [Online]. Available at: http://www.iiis.org/CDs2011/CD2011IDI/DEMSET_2011/PapersPdf/DM770DB.pdf
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