Determinants to Service Innovation Success: an Organizational Orientation Perspective

Heidi Korhonen, Soili Peltola, Tapani Ryynänen, Mika Westerlund

    Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review


    What makes business based on service innovations to become more successful? In defining relevant determinants for the success, we focus on service providers that offer business-to-business services. This perspective highlights the significance of organizational orientation, which is an emerging approach in the service literature. We identify its three key dimensions that affect service businesses' innovation success. These three dimensions; customer, entrepreneurial and value creation orientations, are both parallel and overlapping, and they interact throughout the service creation and consumption life-cycle. We propose that the most successful innovators in the contemporary service economy need to simultaneously become customer-driven and engage entrepreneurially in needs co-creation, and commit themselves to value co-creation activities. The implementation of these orientations can, however, be challenging because a new kind of attitudinal perspective is required. This paper contributes to service literature by describing key factors that drive success of the providers' business based on service innovation. Our work helps firms in perceiving and developing their service strategy, sales and customer relationships.
    Original languageEnglish
    Title of host publicationCombi2010 Conference Proceedings
    EditorsMinna Mattila, Timo Riihelä
    Place of PublicationVantaa, Finland
    PublisherLaurea ammattikorkeakoulu
    ISBN (Print)978-951-799-213-8
    Publication statusPublished - 2010
    MoE publication typeA4 Article in a conference publication

    Publication series

    SeriesLaurea Publications
    NumberA 72


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