THE RELATIONSHIP BETWEEN SERVICE CULTURE AND SERVICE INNOVATION: THE MEDIATING ROLE OF SERVICE ORIENTATION

Ferry Tema Atmaja, Lizar Alfansi, Fachri Eka Saputra

Abstract


The objective of the study is to investigate the inter-relationship between service culture, service orientation and service innovation in the small-medium enterprises (SMEs) in the city of Bengkulu, Indonesia. A sample of 300 small-medium enterprises in the service industry in the city was employed in the study. Mediated regression analysis was applied to the dataset to examine the proposed model. The result of the study reveals that service culture has a positive effect on service orientation and service innovation of the small-medium enterprises. The study also concludes that service orientation is indeed mediating the relationship between service culture and service innovation. Thus, in implementing a service innovation strategy, small-medium enterprises should build strong service orientation and service culture.

Keywords: 1 Service Orientation · 2 Service Culture · 3 Service Innovation, SMEs.


Full Text:

PDF

References


Baron, R.M. & Kenny, D.A. (1986), The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations, Journal of Personality and Social Psychology, Vol. 51 (6), pp. 1173-1182.

Baydoun, R., Rose, D. & Emperado, T. (2001), Measuring customers service orientation of the validity of the customer service profile, Journal of Business and Psychology, Vol. 15 (4), pp. 605-620.

Carroll, D. (2002), Releasing trapped thinking in colleges. Part 2: Managing innovation and building innovation into ordinary work, Quality Assurance in Education, Vol. 10 (1), pp. 5-16.

Carson, D. (1993), A philosophy for marketing education in small firms, Journal of Marketing Management, Vol. 9, pp. 189-204.

Chen, J.C., Tsou, H.T. & Huang, Y.H. (2009), Service delivery innovation: Antecedents and impact on firm performance, Journal of Service Research, Vol.12 (1), pp. 36-55.

Christensen, C.M. & Raynor, M. E. (2003), The Innovator's Solution, Boston, MA: Harvard Business Press.

Curtis, C.R. & Upchurch, R.S. (2008), A case study in establishing a positive service culture: Attachment and involvement in the workplace, Journal of Retail & Leisure Property, Vol. 7 (2), pp. 131-138.

Deshpande, R., Farley, J.U. & Webster, F.E. (1993), Corporate culture, customer orientation, and innovativeness in Japanese firms: A quadrat analysis, Journal of Marketing, Vol. 57 (1), pp. 23-57.

Forrest, J.E. (1990), Strategic alliances and the small technology-based firm, Journal of Small Business Management, Vol. 28 (3), pp. 37-45.

Gadrey, J., Gallouj, F. & Weinstein, O. (1995), New modes of innovation: How services benefit industry, International Journal of Service Industry Management, Vol. 6 (3), pp. 4-16.

Ghosh, B.C., Liang, T.W., Meng, T.T. & Chan. B (2001), The key success factors, distinctive capabilities, and strategic thrusts of top SMEs in Singapore, Journal of Business Research, Vol. 51, pp. 209-221.

Gilmore, A., Carson, D. & Grant, K. (2001), SME marketing in practice, Marketing Intelligence and Planning, Vol. 19 (1), pp. 6-11.

Gronroos, C. (1990), Service Management and Marketing, Lexington, MA: Lexington Books.

Hoang, H.T., Hill, S.R. & Lu, V.N. (2010), The influence of service culture on customer service quality: Local versus foreign service firm in emerging markets, Proceeding in Australia and New Zealand Marketing Academy.

Hughes, A. (2005), Activity-based costing and activity-based management: A profitability model for SMEs manufacturing clothing and textiles in the UK, Journal of Fashion Marketing and Management, Vol. 9 (1), pp. 8-19.

https://finance.detik.com/berita-ekonomi-bisnis/d-4119386/jadi-penggerak-ekonomi-begini-kondisi-umkm-ri/

Ismail, M. (2005), Creative climate and learning organization factors: Their contribution towards innovation, Learning and Organization Development Journal, Vol. 26 (8), pp. 639-654.

Johne, A. & Davies, R. (2000), Innovation in medium-sized insurance companies: How marketing adds value, International Journal of Bank Marketing, Vol. 18 (1), pp. 6-14.

Johne, A. & Storey, C. (1997), New service development: A review of the literature and annotated bibliography, Management Working Paper B97/2, City University Business School, London.

Kelley, S.W. (1992), Developing customer orientation among service employees, Journal of the Academy of Marketing Science, Vol. 20 (1), pp. 27-36.

Lytle, R.S., Hom, P.W., & Mokwa, M.P. (1998), SERV*OR: A managerial measure of organizational service-orientation, Journal of Retailing, Vol. 74 (4), pp. 455-489.

Lytle, R.S. & Timmerman, J.E. (2006), Service orientation and performance: An organizational perspective, Journal of Services Marketing, Vol. 20 (2), pp. 136-147.

MacGregor, R.C. (2004), Factors associated with formal networking in regional small business: Some findings from a study of Swedish SMEs, Journal of Small Business and Enterprise Development, Vol. 11 (1), pp. 60-74.

MacKinnon, D.P., Fairchild, A.J. & Fritz, M.S. (2007), Mediation analysis, Annual Review of Psychology, Vol. 58 (1), pp. 593-614.

McDermott, C.M. & Prajogo, D.I. (2012), Service innovation and performance in SMEs, International Journal of Operations and Production Management, Vol. 32 (2), pp. 216-237.

O’Dwyer, M., Gilmore, A. & Carson, D. (2009), Innovative marketing in SMEs, European Journal of Marketing, Vol. 43 (1/2), pp. 46-61.

Ostrom, A.L., Bitner, M.J., Brown, S.W., Burkhard, K.A., Goul, M., Smith-Daniels, V., Demirkan, H. & Rabinovich, E. (2010), Moving forward and making a difference: Research priorities for the science of service, Journal of Service Research, Vol. 13 (1), pp. 4-36.

Rujirawanich, P., Addison, R. & Smallman, C. (2011), The effects of cultural factors on innovation in a Thai SME, Management Research Review, Vol. 34 (12), pp. 1264-1279.

Salavou, H., Baltas, G. & Lioukas, S. (2004), Organisational innovation in SMEs: The importance of strategic orientation and competitive structure, European Journal of Marketing, Vol. 38 (9/10), pp. 1091-1112.

Schneider, B., White, S. S. & Paul, M. C. (1998), Linking service climate and customer perceptions of service quality: Tests of a causal model. Journal of Applied Psychology, Vol. 83 (2), pp. 150-163.

Simon, M. (1992), Strategy search and creativity: The key to corporate renewal, European Management Journal, Vol. 10, (2), pp. 230-238.

Slater, S.F. & Narver, J.C. (1994), Does competitive environment moderate the market orientation-performance relationship?, Journal of Marketing, Vol. 58 (1), pp. 46-55.

Teare, R. (1993), Designing a contemporary hotel service culture, International Journal of Service Industry Management, Vol. 4 (2), pp. 63-73.

Umashankar, N., Srinivasan, R. & Hindman, D. (2011), Developing customer service innovation for service employees: The effects of NSD characteristics on internal innovation magnitude, Journal of Service Research, Vol. 14 (2), pp.164-179.

Zeithaml, V.A. & Bitner, M.J. (2000), Service Marketing: Integrating Customer Focus across the Firm, New York: McGraw-Hill Inc.


Refbacks

  • There are currently no refbacks.