Jon Sundbo

Management of innovation in services.

The article discusses two issues. The first is whether service firms innovate at all; the second is how they organise the innovation activities. The basis for the analysis is a series of case studies in Danish service firms. The first issue is discussed theoretically. Of the several paradigms within traditional innovation theory, the strategic innovation paradigm is the most adequate to explain service innovations. Organisational learning must be separated from innovation whereby the latter means a jump in turnover and profit while the first means a lower and continuous growth. The emphirical analysis demonstrates that the service firms innovate. The second issue is analysed empirically. Different ways of organising the innovation activities are set placed a taxonomy. It is concluded that the service firms rarely have R&D departments and innovation generally is an unsystematic search-and-learn process.

Modulization of service production and a thesis of convergence between service and manufacturing organizations

A new phase in market competition in the service sector has developed in Denmark within the last 5 years. This has led to new behaviour by service firms and the evolution of new forms of the production organization in service firms. These tendencies are discussed on the basis of two Danish multiple case studies. It is assumed that the tendencies can be categorized as a development towards modulization. Modulization means that the service products will be standardized, but as modules which can be combined by the customer. This is discussed and a model of modulization is stated. This model develops some parts of the service management and marketing theories from the 1980s. Finally, it is argued that service organization and manufacturing organization are becoming similar and can be understood in terms of the same model.

Shaping, organizing, and rethinking service innovation: a multidimensional framework

Purpose – The purpose of this paper is to review key research contributions that may be useful for rethinking service innovation. Service innovation is not a monolithic construct; therefore, the opportunities for further research are multidimensional and interdisciplinary.Design/methodology/approach – A summary analysis of extant literature identifies valuable contributions and fundamental methodological issues from various perspectives. The proposed directions for future research entail where to innovate, how to innovate, and what to innovate in services.Findings – The analysis and discussion lead to a multidimensional framework of service innovation, with a particular emphasis on organizational and customer cocreation perspectives.Practical implications – This article contains guidelines and real‐world examples to help practitioners and policy makers develop service innovation strategies through the consideration of different levels, organizations, and perspectives.Originality/value – This article offer...

Innovation as a loosely coupled system in services

The goal of this paper is to assess whether innovation in services can be described as a coherent and steady system. Our results are based on a survey of a great deal of theoretical but mostly empirical literature, including a European project called SI4S (Innovation in services and services in innovation). We first present some general characteristics of services and of service innovations. Then, we analyse some typical innovation patterns in services. These patterns are different versions or configurations of a model of actors and trajectories. The discussion of these different patterns leads us to the conclusion that innovation in services is not an institutionalised system but rather a loosely coupled system.

The Service Economy: Standardisation or Customisation?

Service firms are squeezed between customisation and standardisation (the latter emphasises productivity in accordance with neo-classic economic theory). This presents a dilemma to service firms and to economic theory. The theoretical logics of both are discussed and a third theory, based on modulisation, is presented. The article investigates the issue of towards which of the three logics the service sector is developing. This is measured via two surveys carried out in Denmark. The results of the surveys say that the development is towards that of customisation with some minor tendencies towards modulisation. These results are discussed thoroughly.

The balancing of empowerment. A strategic resource based model of organizing innovation activities in service and low-tech firms

Abstract The empowerment of employees as corporate entrepreneurs in the innovation process is important. However, it is also important to control, and thus balance, it. This article tries to answer two questions: Do firms stimulate and balance innovation empowerment, and, if so, how do they organize and manage it? First, innovation empowerment is discussed theoretically within the framework of the resource based theory of the firm. Firms might establish two systems of organizing innovation activities. One is the expert system (typically R&D departments), the other is the empowerment system. The empowerment system is particularly important for low-tech and service firms. The empowerment system is organized corporate entrepreneurship which is controlled by the management—in contrast to free (uncontrolled) corporate entrepreneurship. The argument for controlling empowerment is that it may easily use too many resources. Second, the two questions are discussed empirically on the basis of case studies in Danish firms. Nearly all firms practised empowerment stimulation. A fewer, but still most, practised empowerment control. Inducement mechanisms which stimulate the empowerment and control mechanisms were found. Strategy, particular innovation departments and practical instruments for procuring ideas were the most important inducement mechanisms. Networking and empowerment of customers were under-utilized mechanisms. The most important control mechanisms were the strategy and a linear organization of the innovation process. Organizational learning is the most efficient control mechanism, but is difficult to practise. A model of the balance system is put forward.

Innovation in the experience economy: a taxonomy of innovation organisations

This article theoretically discusses innovation in the experience economy and presents a taxonomy of experience firms according to their dynamic drivers. On the basis of the taxonomy, more principal innovation lines are suggested. Three central issues are discussed. The three issues are: society’s demand for experiences, the company’s effort to produce innovations and technology (by which is meant information and communication technology (ICT)). These issues are crucial to understanding the evolving experience economy and the role and character of innovation in this economy. Finally, whether innovation systems can be found in the experience economy is discussed.

Innovation Systems in Tourism: The Roles of Attractors and Scene‐Takers

This paper proposes a model of an attractor‐based innovation system for understanding tourism. Key components of the model are the attractor (that which attracts visitors), scene‐maker, scene, collaborative networks between tourism and other firms and, finally, the crucial function of the scene‐taker. Findings from eight in‐depth case studies taken from around the world are summarized in the form of seven hypotheses concerning the operations of such innovation systems. It is argued that scene‐takers, in the form of individual entrepreneurs and organizations, perform a crucial function in the innovation system in developing and maintaining the scene. Finally, some policy implications for building such a system are suggested.

Creating Experiences in the Experience Economy

Creating Experiences in the Experience Economy focuses on the creation of experience from a business perspective. In doing so, the book establishes a more solid foundation for making better and more complex analyses of experience creation, paving the way for the development of analytically based and innovative experiences in experience firms and institutions. The contributors emphasise that experience creation is not an easy task with a straightforward formula and examine how marketed experiences are constructed, developed and innovated.

The organizational innovation system: Three modes

Abstract In this article, we see innovation as a social system, which is an important part of the management environment in an organization such as a firm. We attempt to explain how innovation as a system can capture the attention of actors during changes. Our aim is to analyse the relation between the innovation system and social actors to understand how the social system can determine action during changes. We argue that it is possible to identify three modes of innovation in the management environment that suits such a purpose: (1) a value-based entrepreneurial mode, (2) a technology-based functional mode, and (3) a strategic reflexive mode. In the strategic reflexive mode, which we consider to be the most important today, the innovation system seeks to determine action and capture the attention of actors through strategy and reflexivity.