Service innovation in medical device manufacturers: does the digitalization matter?

Purpose This study aims to validate a model of relationships between critical factors such as service strategy, culture-climate, leadership, customer involvement, technology strategy and service innovation (SI). Moreover, it investigates the impact of SI on a company's performance and the moderating role of digitalization in the relationships between critical factors and SI. Design/methodology/approach Primary data were collected through a survey and partial least squares structural equation modeling was used to analyze the collected data and test the research hypotheses. Findings The results suggest positive associations of service strategy toward culture-climate, leadership, customer involvement and technology strategy in terms of significance and effect size. However, only two factors (e.g. customer involvement and technology strategy) positively influence SI, which affects financial and non-financial performance. Furthermore, digitalization does not strengthen the influence of four antecedents (i.e. culture-climate, leadership, customer involvement and technology strategy) in SI. Originality/value First, the study provides a comprehensive framework of SI critical factors and their impact on company performance. Second, it links servitization, SI and digitalization. Third, it tests the effects of digitalization.

Automated summary

This study validates a model of relationships between critical factors such as service strategy, culture-climate, leadership, customer involvement, technology strategy and service innovation (SI), and investigates the impact of SI on a company's performance with the moderating role of digitalization. The results suggest positive associations between service strategy towards culture-climate, leadership, customer involvement, and technology strategy, but only customer involvement and technology strategy positively influence SI, affecting financial and non-financial performance. Digitalization does not strengthen the influence of four antecedents in SI.