Organisational conditions for service encounter-based innovation

Abstract

This article investigates the organisational conditions for service encounter-based innovation. Its focus is on the initial crucial part of the innovation process during which ideas/new practises are developed by front-line employees and integrated in the organisation. The article argues that service encounter-based innovation varies among service organisations because of different organisational conditions. This is illustrated in a multiple comparative case study of 11 Scandinavian service organisations. A model of conditions for service encounter-based innovation is developed based on the theoretical discussions and the case study. The model suggests how and why some service organisations derive innovation benefits from service-encounters while others do not. Thus, the article provides new and important knowledge concerning user-driven innovation in services.