Demand Heterogeneity, Decomposability, and The Coordination of Service Innovation in Multi-Unit Organizations

Sampsa Ruutu, Paul Windrum, Kirsi-Maria Hyytinen, Marja Toivonen, Hannamaija Tuovila

    Research output: Contribution to journalArticleScientificpeer-review


    This article presents a computational model of organizational search that compares different strategies of organizing service innovation in a multi-unit organization: centralisation, decentralisation, and partition search conducted by the different business units on a specific part of the innovation. The performance is compared for varying degrees of problem decomposability and varying levels of demand heterogeneity between units. It illustrates the findings using a case study from the health care sector.
    Original languageEnglish
    Pages (from-to)15-44
    Number of pages30
    JournalEuropean Review of Service Economics and Management
    Issue number5
    Publication statusPublished - 6 Apr 2018
    MoE publication typeA1 Journal article-refereed



    • NK model
    • Health care
    • Simulation
    • Organizational search
    • Service innovation

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