Management Innovation and Business Performance in Services

Abstract

The concept of management innovation, the characteristics of the services, as well as the multiple ways in which innovation can occur in services make it difficult to measure the result of the influence of management innovation on performance. Based on the rational and institutional perspectives relevant in the study of the effects of management innovation, the objective of this chapter is to analyze how the introduction of this type of innovation determines the performance of service firms. Thorough analysis of the literature suggests that the innovative challenge of service firms focuses not only on technological innovation but also on management innovation focused on economic and/or social potential. The characteristics of management innovation as well as the ability of service firms to integrate different types of innovation enable them to achieve distinct competencies and high sustainable performance in the form of economic and social gains.