Customer Interaction and Innovation in Hybrid Offerings:Investigating Moderation and Mediation Effects for Goods and Services Innovation

Hybrid offerings are bundles of goods and services offerings provided by the same firm. Bundling value offerings affects how firms innovate, interact with customers, and customize their goods and services. However, it remains unclear how customer interaction might drive the innovation performance of various bundled components. Therefore, this study investigates the effects of customer interactions and service customization on both goods and services innovations in a hybrid offering context, using a unique data set of 146 information technology and manufacturing firms. Customer interaction appears beneficial to both goods and services innovation in a hybrid offerings context, but service customization has different direct effects on goods versus services innovation. As a potential mediator, customer knowledge mobilization resources exert different effects on the goods and services elements of hybrid offerings. Furthermore, for high-interaction customers, medium levels of technical modularity lead to most favorable innovation outcomes for services innovation. The results thus suggest that providers of hybrid offerings should foster customer interactions, to drive the innovation performance of the good and service components, while still making sure to implement service customization strategies. These findings have notable implications for service innovation research

Developing successful technology‐based services: the issue of identifying and involving innovative users

Purpose – The aim of this paper is to explore the identification of innovative customers and the effectiveness of employing such customers to generate new service ideas in a technology-based service setting. Design/methodology/approach – The first study reported here employs the “technology readiness” (TR) construct and involves telephone surveys with randomly selected Swedish consumers. The second involves a field experiment. Findings – Findings from Study I suggest that the TR is a useful tool for identifying users who exhibit both innovative attitudes and behaviors. The results from Study II show that users with a high TR are highly creative as reflected by the quantity and quality of new service ideas. Research limitations/implications – The sample size for Study II was relatively small and making empirical generalizations with confidence should await results from studies involving larger samples. However, in sum the research demonstrates that TR appears to be an effective tool for identifying innovative customers who would be both willing to participate in new service development and capable of generating creative ideas. Originality/value – Service businesses interested in using customers to help generate new ideas could benefit from this research