The Impact of Service Innovation

Introduction

In the prevailing scenario, in the words of Lusch and Nambisan (2015), the production along with distribution related to new or superior products with effective performance as well as functionality is referred to as more attentive and interested thing in the course regarding the industry’s action. Besides, formulation of an innovative approach is considered a winning strategy for enabling organizations gains a competitive advantage over their competitors in the competitive industry. Creativity denotes making of new products but innovation denotes when financial advantages are affianced with the creative product. Concisely, innovation is referred to as the creation of creation of a new product. Based on the opinion of Barrett et al. (2015), production along with distribution related to new as well as enhanced products, which represents aggressive performance along with functionality is referred to as more attentive and interested thing in terms of industry. Innovative approach is referred to as the unique strategy through which, organizations are seen to be gaining the attention of the customers (Lee et al., 2015). In this rapid increasing intensity regarding competition, rapid development related to technology along with the speed regarding globalization, innovation has become a key factor, which enables an organization to gain competitive advantage over other organizations.

In accordance with the opinion of Witell et al. (2016), service innovation needs to be linked with core reason of the business. It needs to have seamless execution in order to meet the existing and future needs of the customers. As observed by Snyder et al., (2016), the loyalty and the purchasing decision of the customers are largely affected by the service innovation and the constant initiative of the organizations in incorporating effective innovation. In terms of automotive industry in Kuwait, customers are more drawn towards those organizations, which are highly upgraded in terms of innovation. This study will provide a detailed insight into the significance of service innovation and creativity on customers’ loyalty as well as purchasing decision in the context of automotive industry in Kuwait.

Research Aim

The study aims to provide a detailed insight into the significance of service innovation and creativity on customers’ loyalty as well as purchasing decision in the context of automotive industry in Kuwait.

Research Objective

• To gain detailed insight into the importance of service innovation in relation with the automotive sector in Kuwait
• To gain detailed insight into the influence of service innovation on the customer loyalty as well as their purchasing decisions in relation with the automotive sector in Kuwait
• To evaluate the issues the automotive sector faces while taking resort to service innovation
• To recommend ways for mitigating issues faced by the automotive sector faces while taking resort to service innovation

Research Rationale

In the current competitive era, organizations are finding it hard to sustain in the market by drawing the attention of the customers. Most of the organizations are seen to be taking resort to various effective strategies to gain competitive edge over others. In this rapid increasing intensity regarding competition, rapid development related to technology along with the speed regarding globalization, innovation has become a key factor, which enables an organization to gain competitive advantage over other organizations. Automotive sector in Kuwait has undergone major development, which makes it highly pivotal for the organizations to incorporate service innovation. Formulation of an innovative approach is considered a winning strategy for enabling organizations gains a competitive advantage over their competitors in the competitive industry. Henceforth, this specific study will be conducted for gaining an in-depth insight into the necessity of service innovation and creativity on customers’ loyalty as well as purchasing decision in the context of automotive industry in Kuwait.

Literature Review

A research cannot be developed without effective incorporation of the viewpoints of the early researchers. Based on the opinion of Gallouj and Djellal (2018), literature review forms an essential part of a study since it assists the researchers in gaining a comprehensive view of the researches previously developed by the researchers on the significance of service innovation on the customers’ loyalty and purchasing decision. The researcher will be utilizing several effective journals and articles to develop the study.

Importance of Service Innovation

Innovation is referred to as the creation of creation of a new product or implementing. In accordance with the opinion of Salunke et al. (2019), innovative approach is referred to as the unique strategy assisting organizations in gaining the attention of the customers. In this rapid increasing intensity regarding competition, rapid development related to technology along with the speed regarding globalization, innovation has become a key factor, which enables an organization to gain competitive advantage over other organizations.

Research Methodology

The researcher will be incorporating deductive research approach for developing the study on the existing theories of customer loyalty (Kumar, 2019). Besides, the researcher for a comprehensive conduct of the study will incorporate primary data collection method by surveying 182 customers availing service from the automotive sector along with interviewing 3 managers of renowned automotive companies.

Conclusion

It can be concluded that innovation, which is considered as the creation of creation of a new product or implementing. Innovative approach is referred to as the unique strategy through which, organizations are seen to be gaining the attention of the customers. In this rapid increasing intensity regarding competition, rapid development related to technology along with the speed regarding globalization, innovation has become a key factor, which enables an organization to gain competitive advantage over other organizations. In terms of automotive industry in Kuwait, it has been evaluated that customers are more drawn towards those organizations, which are highly upgraded in terms of innovation.

 

References

Barrett, M., Davidson, E., Prabhu, J. and Vargo, S.L., 2015. Service innovation in the digital age: key contributions and future directions. MIS quarterly, 39(1), pp.135-154.

Gallouj, F. and Djellal, F. eds., 2018. A Research Agenda for Service Innovation. Edward Elgar Publishing.

Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications Limited.

Lee, J., Ardakani, H.D., Yang, S. and Bagheri, B., 2015. Industrial big data analytics and cyber-physical systems for future maintenance & service innovation. Procedia Cirp, 38, pp.3-7.

Lusch, R.F. and Nambisan, S., 2015. Service innovation: A service-dominant logic perspective. MIS quarterly, 39(1).

Salunke, S., Weerawardena, J. and McColl-Kennedy, J.R., 2019. The central role of knowledge integration capability in service innovation-based competitive strategy. Industrial Marketing Management, 76, pp.144-156.

Snyder, H., Witell, L., Gustafsson, A., Fombelle, P. and Kristensson, P., 2016. Identifying categories of service innovation: A review and synthesis of the literature. Journal of Business Research, 69(7), pp.2401-2408.

Witell, L., Snyder, H., Gustafsson, A., Fombelle, P. and Kristensson, P., 2016. Defining service innovation: A review and synthesis. Journal of Business Research, 69(8), pp.2863-2872.