Title: Service innovation by SME

Authors: Lorna Uden, Marja Naaranoja

Addresses: Faculty of Computing, Engineering and Technology, Staffordshire University, Beaconside, Stafford, ST18 0AD, UK. ' Vaasan ammattikorkeakoulu, University of Applied Sciences, Wolffintie 30, 65200 Vaasa, Finland

Abstract: Service innovation is important in today|s world economy. It is the current focus of many businesses. The reason is that services today represent 80% of most developed countries| GDP and a growing percentage of the developing countries| GDP. Organisations today can no longer compete solely on providing superior service on their core products, instead, they must move into customer relationship management through the co-evolution of memorable experiences with their customers. This means providing better services for their customers. SMEs are a breeding ground for service innovation. Currently there is very little literature existing concerning the role of SMEs in service innovation. This paper aims to shed some light on identifying the drivers for the application of service innovation for SMEs using a case study from Finland. The case study shows the processes that are important for an SME in service innovation. Central to this is the importance of co-creation of value between provider and customers based on the service dominant logic of marketing. In the paper, emphasis is put on the importance of sustaining relationship with customers by constantly focusing on the quality of customer interactive experiences with the provider to maintain the co-creation of value.

Keywords: service innovation; SMEs; small and medium-sized enterprises; value co-creation; knowledge; Finland; marketing.

DOI: 10.1504/IJWET.2009.031010

International Journal of Web Engineering and Technology, 2009 Vol.5 No.3, pp.268 - 294

Available online: 17 Jan 2010 *

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