Understanding the role of technology in service innovation: Comparison of three theoretical perspectives

Abstract

Although prior studies have stressed the importance of technology in service innovation, debates on the roles of technology continue to surface. This study aims to investigate the role of technology in service innovation based on a service innovation framework. After identifying four innovation orientations, we propose three competing models having different roles of technology (direct, indirect, and moderating). Using data from 193 service firms, we determine which model best explains the role of technology. Results show that technology plays multiple roles in service innovation. Our study helps managers effectively coordinate their technology infusion into service innovation to improve firm performance.