Service Design Management and Organizational Innovation Performance

Abstract

With the transformation of the industrial paradigm from the manufacturing industry to the service industry, many companies have utilized “service design” as an innovative performance tool to enhance customer satisfaction while increasing organizational efficiency. While interest in the use of service design or its methodology has increased in organizations, research on the factors that influence organizational innovation and performance through service design is lacking. Therefore, this study aims to explore which service design management factors affect service innovation performance. For empirical analysis, a survey was conducted on Korean companies applying service design methodologies, and hypotheses were verified through partial least square structural equations modeling (PLS-SEM). According to the analysis, top management support and customer focus influenced concept transformation, and stakeholder collaboration and customer focus affected process improvement. Conceptual transformation and internal process improvement were shown to have a positive impact on perceived service innovation. Finally, innovative service outcomes, through the application of service design, satisfied customers, which in turn increased organizational performance. This study has great significance in that it addresses the application of service design to management activities.