An Empirical Analysis of the External Factor on Service Innovation - Based on SEM of Panel Data Set

The author puts forward that the degree and scale of innovation in the service industry is of great significance. Factors that will influence innovation in the service industry include two categories: the internal and external factors. An empirical test on panel data by Structural Equation Model shows that the external factors affecting service innovation can be divided into two parts: the market environment factors and human resource factors, two factors on service innovation had a significant effect of positive role.