Relation between Customer Interaction and Service Innovation in Brazil Firms Investigating Organization Learning from Customers

Abstract

The main purpose of this study is to evaluate the mediating and indirect effect of customer satisfaction and service innovation, from an organization learning perception a survey is developed in Brazil using a new data set of 190 service firms from Rio Grande do Su, State of Mato Grosso, State of Goias, State of Sao Paulo and State of Bahia. The study used cross-sectional survey design to collect primary data from individual services firms in the states of Brazil. Data was analysed with Statistical Package for the Social Science (SPSS). Results indicate that partial mediation was supported by adopting Baron and Kenny method and sobel test. The research is the first attempt to examine the customer interaction practice of service firms in an emerging market of Brazil. In addition, the atmosphere of innovation will regulate the positive relationship between customer firm interaction and organizational learning. Secondly by analysing the relationship between organizational learning and innovation performance. Thirdly it is revealed that customer firm interaction can positively promote service innovation performance by influencing the improvement of organizational learning.