Title: Service innovation: the effects of organisational contingencies

Authors: Nadia Anridho; Wann-Yih Wu; Mohamad Suyunus

Addresses: Department of Accountancy, Faculty of Economics and Business, Universitas Airlangga, Jalan Airlangga No. 4–6, Surabaya, Indonesia ' College of Management, Nanhua University, No. 55, Sec. 1, Nanhua Rd., Dalin, Chiayi, 62249, Taiwan; Department of Management, Faculty of Economics and Business, Universitas Airlangga, Jawa Timur 60115, Indonesia ' Department of Accountancy, Faculty of Economics and Business, Universitas Airlangga, Jalan Airlangga No. 4–6, Surabaya, Indonesia

Abstract: This study examines the effects of organisational contingencies such as service climate, service culture, environmental dynamism, and environmental heterogeneity on service innovation and examines service innovation's effect on organisational performance. We employed a survey study with 202 respondents from Indonesian retail companies for data analysis. Then, PLS-SEM was used to analyse the data. The results showed that service climate, service culture, environmental dynamism, and environmental heterogeneity positively affect service innovation. Furthermore, we found that service innovation enhances organisational performance. This study contributes to service innovation literature by examining organisational contingencies as the antecedents of service innovation with evidence from the Indonesian retail industry.

Keywords: organisational contingencies; service innovation; organisational performance.

DOI: 10.1504/IJSOM.2023.131282

International Journal of Services and Operations Management, 2023 Vol.45 No.1, pp.54 - 70

Received: 19 Feb 2020
Accepted: 14 Feb 2021
Published online: 06 Jun 2023 *

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