Service innovation model of the automobile service industry

Abstract

Service innovations in the service industry will improve its ability to compete in maintenance as well as increase the number of customers. Measuring service innovations according to the characteristics of the automobile industry is important. Thus, the aim of this paper is to develop a model to measure service innovation in the automobile service industry. A structural equation model is created based on theory and previous models. Data about the industry's perception of service innovation are collected from questionnaires in Kaohsiung, Taiwan. Samples were collected from 61 authorized automobile service centers. The results indicate that customer demand, competition, and a knowledge-based network as enabler factors are positively correlated with service innovation. Furthermore, a new service concept, new client interface, new service delivery system, and new technology options are positively related to service innovation. Finally, service innovation has a significant positive effect on a firm's performance. This study developed an effective service innovation model of the automobile service industry.