Innovation In Services

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Innovation In Services

  • Judy H. Matthews
University of Canberra


In the context of international business, it is generally agreed that innovation in services contributes to the sustainable competitive advantage of service firms, and in part, such innovations may lead to new business models or solutions. Firms in the knowledge economy develop new services as well as new products, providing solutions (Howells, 2000), and experiences (Prahalad & Ramaswarmy, 2004) often co-developing services with their customers (Roberts, 2002). The paper briefly reviews some literatures on innovation and new service development and some early findings from innovation surveys and cases of service innovation. Implications for international business and propositions for future research are developed.

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