The Relations between Digitalization, Service Innovation and Service Value Creation Capability: A Model Adaption in the Service Industry

Abstract

Purpose: The purpose of this paper is to determine the effect of service innovation and service value creation capability on the digitalization process on a firm scale. Methodology: The 1-7-point Likert-type measurement scale was administered to tourism enterprise managers and operational staff. Partial Least Square-Structural Equation Modelling (PLS-SEM) modeling was used to analyze the relationships among the following constructs: service innovation capability, service value creation capability, and effect on digitalization. Three types of service facilities were considered: Hospitality, Food & Beverage (F&B), and health care. Descriptive analysis and model structure were analyzed on SPSS 24 and Smart PLS 3.0 respectively. Findings: The relationship between service value creation capability and digitalization service innovation capability and service value creation capability, and service value creation capability and digitalization is supported, as all other constructed hypotheses respectively. Originality: This study is one of a limited number of studies that have empirically addressed service innovation capability and value creation capability relations with digitalization in firms’ operational processes. Additional attempt is required to integrate all functions of the enterprise with in organizational perspective. The main contributions of this paper lie in proposing empirical research that supports service innovation capability, service value creation capability, and digitalization in the case of tourism enterprises.