Typology of Service Innovation from Service-Dominant Logic Perspective

This study provides a conceptual framework with respect to service innovation,especially from a service-dominant logic (S-D logic) perspective. Even though innovation hasbeen discussed as one of the most critical elements in enhancing the competitiveness of serviceindustry, it was not clear how service innovation should be different from diverse types ofexisting innovation. The S-D logic provides a novel and valuable theoretical perspective thatunifies the conventional literature on innovation. According to this new logic, four types ofservice innovation are presented based on two dimensions: the degree of co-creation and thedegree of networked collaboration. We argue that service innovation can arise by the activityof value co-creation between firm and customer on the first dimension. On the seconddimension, the firm needs to enhance their own capabilities for service innovation by applyingthe resources of all actors including suppliers and customers. Our framework indicates that it iscritical for productive service innovation to make customers participate in value creationprocess and to integrate the dispersed resources held by participants. Examples are discussedwith respect to different types of services innovation.