Proceedings of Annual Tokyo Business Research Conference

Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Service Innovation Failure: Insights into Service Orientation
and Behavioural Changes
Nor Khalidah Abu*, Abdul Ali**, Garry J. Clayton* and Dewi A. Sapuan*
Given the growing importance of service sector and small enterprises in many
countries, any innovation effort of newly established small enterprises in services
sector is critical and forms the building blocks of those economies as they are said to
be more innovative as compared to the larger organisations. However, the cost of
innovation is high and any investment in innovation is highly risk as the facts shows
that negative performance outcome of innovation are higher. Despite the difficulties
that resulted from failure, it is seen as a key to future innovation success as
organizations that manage failure intelligently are expected to outperform those that
try to minimize failure, and that failure builds the learning curve for future innovation.
Therefore, an understanding of the service innovation failures is necessary for any
organization that is seriously considering an innovation orientation and to continuously
innovate. This conceptual paper attempts to develop insights into the relationship
between service orientation, service innovation failure, and the behavioral changes
that motivates new ventures to continue innovating.
Discipline: Entrepreneurship, Marketing
*Universiti Tun Abdul Razak, Malaysia; ** Babson College, USA