Tadhg blommerde

TOWARDS A CAPABILITY-BASED SERVICE INNOVATION MATURITY MODEL FOR SMES

Mr. Tadhg Blommerde12th June 2013Supervisor: Dr. Patrick Lynch

AGENDA

The service innovation landscape Practical service innovation issues Literature evaluation The research imperative and question Theoretical perspective Maturity models A maturity model for service innovation capabilities Next steps and time line Proposed methodology Skills and personal and professional development Questions and comments

SERVICE INNOVATION

THE SERVICE INNOVATION LANDSCAPE

(CSO, 2011)

1926-2011 Persons at work by sector

THE SERVICE INNOVATION LANDSCAPE

4 out 5 jobs in services 78.1% of Irish jobs (90.3% of women) 38% growth in the last 50 years Ireland is responsible for 2.7% of global service

exports 10th highest service exporter 1997-2007 gross value added in services trebled

€34 billion to 108 billion 40% of the jobs are ‘high skilled’

(Forfás, 2008)

THE IMPORTANCE OF INNOVATION TO SERVICES

10th most innovative of the EU27 59.6% of firms engaging in innovative activities Benefits of service innovation on an economic level:

growth, competitiveness, employment, more rapid recovery

Estimated 5.3 billion spent by Irish firms on innovation Gross value added by employees €78,000 in non-

innovative and €139,000 for innovative firms Role of service innovation in cohesion policies

(EuroStat, 2013; EuropeanCommission, 2013; Carney and Ryan, 2010; CSO, 2012)

THE IMPORTANCE OF INNOVATION TO SERVICES AT FIRM-LEVEL

Firm-level benefits such as competitiveness, responsiveness, enhanced market perception, greater retention, quality, efficiency, and financial rewards

98% of all firms are SMEs Service innovation encouraged by European

Union, Forfás, and organisations such as Service Cluster Ireland and Innovation Voucher incentives

(Ojasalo, 2009; Aas and Pederson, 2011)

PRACTICAL SERVICE INNOVATION ISSUES

(Forfás, 2011; Power et al., 2010; Aizcorbe et al., 2009; Mankin, 2007; Ostrom et al., 2010; Hogan et al., 2011; Sheehan, 2006; Gallouj and Savona, 2009; McDermott and Prajogo, 2012; Karniouchina et al., 2006)

Historical manufacturi

ng focus

Lack of formalisatio

n

Weak culture and

supports

Insufficient research

LITERATURE EVALUATION

Despite existing articles on the subject over-dominance of manufacturing

Mostly concerned with the larger organisation Difficulty in defining service innovation leads

to issues with measurement Under-researched area

(Power and Lynch, 2012; Vang and Zellner, 2005; Adams et al., 2006)

THE RESEARCH IMPERATIVE AND QUESTION

What are the capabilities associated with superior service innovation processes, and how can they be managed effectively to enhance overall innovativeness?

Determine characteristics of effective service innovation

Assessment mechanism Evaluate and describe specific improvement

initiatives Evolutionary framework which accounts for

capability development

THEORETICAL PERSPECTIVE

Resource-based theory and dynamic capabilities theory

Differences in firm performance over time Competitive advantage when VRIN and

deployed and configured correctly Exploit to maximum capacity thus

enhancing the innovative performance

(Barney, 2007; Walsh et al., 2011)

MATURITY MODELS

Develop and improve business processes The maturity levels range from low to high with

increased sophistication of processes Descriptive, prescriptive, comparative tool Embeds desired processes and support

infrastructure No existing document meets the following criteria:

evolutionary framework, focus on service innovation, follows resource-based logic, considers small and medium enterprises

(Ojasalo, 2012; Esterhuizen et al., 2012; Jochem, 2011; Essman, 2009)

MATURITY MODELS

Existing maturity model literature is useful to identify the stages/levels in a service innovation maturity model

Full composite attached to presentation Mini-composite indicates how the

stages were identified and named

MATURITY MODELS

MATURITY MODELS5. Optimising

Service innovation is institutionalised through empowered staff and formalised processes. It is linked to the firm’s strategy and outputs lead to competitive advantage.

4. Measured Understanding of service innovation in the context of the firm’s strategy. Consistent results through monitored processes.

Improvement: Process Control

3. Defined

Consistent and standardised service innovation processes, practices, and procedures.

Improvement: Process Measurement

2. Managed

Beginning to understand service innovation necessity. Inconsistent but attributable results.

Improvement: Process Definitions

1. Initial/Ad hoc

Low service innovation awareness. Short-term focus and inconsistent and unpredictable results.

Improvement: Basic Management

A MATURITY MODEL FOR SERVICE INNOVATION CAPABILITIES

Research up to now Identification of the capabilities Capability table with common themes

attached

NEXT STEPS

Refine the maturity levels further Identify and determine which

capabilities are present at which maturity levels

Locate scales to measure capabilities within maturity levels

PROPOSED METHODOLOGY

Mixed methods study Qualitative research used to refine

model Quantitative research used to measure

and test

TIME LINEMilestone Duration Description

M1 Oct 2012-Dec 2012 Conceptualisation of research topic.

M2 Oct 2012-January 2014 Literature review; completed in parallel

with other activities.

M3 Jan 2013-Jun 2013 Research problem

formulated/defined/refined.

M4 Jul 2013-May 2014 Evaluation of research methodology.

M5 Sept 2013-Dec 2013 Preparation and transfer to PhD register.

M6 Sept 2013-Dec 2013 Qualitative component: Conduct primary

research and data collection. Maintain

reflective diary.

M7 Jan 2014-Apr 2014 Quantitative component: Conduct

primary research including pilot study

and data collection. Maintain reflective

diary.

TIME LINEM8 June 2014-Sep 2014 Analysis & interpretation of data.

M9 Oct 2015 Revision of work to date in parallel with

other activities.

M10 Nov 2014-Jan 2015 Primary Research Findings.

M11 Feb 2015-March 2015 Preparation of Discussion Chapter.

M12 April 2015-May 2015 Preparation of Conclusions.

M13 June 2015 -Oct 2015 Final write-up of thesis including

directions/recommendations

for future research.

M14 Oct 2015 Thesis submission.

M15 Dissemination: Dissemination of findings will be on

going throughout the

process; attendance at special interest

groups and

academic conferences/colloquia will

allow for dissemination of

the research concept in order to generate

feedback.

SKILLS AND PERSONAL AND PROFESSIONAL DEVELOPMENT

Age and circumstances mean that I have a lot to learn

Generic skills (70 hours) Research skills, writing Time management, long deadlines

which require constant self-motivation and enthusiasm, seriousness and respect

Interest in dissemination

RESEARCH DAY

•Debut as a researcher•Feedback and comments•New experience, but enjoyable

ACKNOWLEDGEMENTS

Research colleagues RIKON Staff And particularly to Dr. Pat Lynch for the

opportunity and guidance

QUESTIONS AND COMMENTS

“Essentially, all models are wrong, but some are useful”

- George Box

REFERENCESReference listAas, T. H. and Pedersen, P. E. (2010) 'The firm-level effects of service innovation: A literature review', International Journal of Innovation Management, Vol. 14, No. 5, pp. 759-794. Adams, R., Bessant, J. and Phelps, R. (2006) 'Innovation management measurement: A review', International Journal of Management Reviews, Vol. 8, No. 1, pp. 21-47. Aizcorbe, A. M., Moylan, C. E. and Robbins, C. A. (2009) 'Toward Better Measurement of Innovation and Intangibles', Survey of Current Business, Vol. 89, No. 1, pp. 10-23. Camisón, C. and Monfort-Mir, V. M. (2012) 'Measuring innovation in tourism from the Schumpeterian and the dynamic-capabilities perspectives', Tourism Management, Vol. 33, No.

4, pp. 776-789. Carney, P. and Ryan, M. (2010) 'Measuring firm-level innovation: A review of the literature and survey design' [Online]. Available at: http://www.innovationfoundation.ie/Irish

%20Innovation%20Index%20Background.pdf (Accessed 06.06.2013). Christensen, C. M. and Overdorf, M. (2000) 'Meeting the challenge of disruptive change', Harvard Business Review, Vol. 78, No. 2, pp. 66-76. CSO (2011) 'This is Ireland. Highlights from the census 2011, part 2' [Online]. Available at: http://www.cso.ie/en/media/csoie/census/documents/thisisirelandpart2census2011/This

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(Accessed 06.06.2013). 

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