Understanding the drivers of staying innovative
What is it about?
How can some companies be the innovation leader in their industry over prolonged periods of time, while others cannot? We use a longitudinal case study approach to gain an understanding of what and how Singapore Airlines (SIA), one of the most successful and consistently profitable airlines in the world, sustained service innovation for over 30 years. We explore the long-term institutional foundations and service innovation-related capabilities that enabled SIA to persistently innovate and prevail in a hyper-competitive business environment.
Why is it important?
This study is the first to investigate the drivers of industry-leading sustained service innovation over a prolonged period of time. We identify three key institutional foundations for service innovation: innovation climate, investments in human capital, and resource configurations, which are the basis of four service innovation-related dynamic capabilities: (1) embracing ambidexterity, (2) institutionalizing learning and knowledge integration, (3) orchestrating collaboration, and (4) reinventing customer value. Most importantly, the three institutional foundations and four dynamic capabilities seem to be stable over time. Our findings offer managers a road-map to examine a pathway to sustained service innovation performance.
The following have contributed to this page: Jochen Wirtz and Dr Sven Tuzovic