Service Innovation Strategy of Manufacturing Firms: A Contingent Perspective

Received:October 11, 2017  Revised:October 11, 2017

Key Words:  service innovation, contingent perspective, manufacturing firm performance, institutional environment, emerging market

Author NameAffiliation
Haina Zhang* Lancaster University 
Feng Zhang Nankai University 
David Brown Lancaster University 

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Abstract:
      This study compares the manufacturing firm performance outcomes of two innovation approaches (i.e., service innovation and product innovativeness) contingent on institutional environment in the emerging market. Drawing upon the survey data collected from a sample of 171 manufacturing firms in China, results of two-way interactions suggest that in the dysfunctional competition environment, service innovation, in contrast to product innovativeness, is less effective for manufacturing performance while results of three-way interactions indicate that service innovation works more effectively for performance in the complicated institutional environment when government support and dysfunctional competition co-exist.

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