Service Innovation: The New Paradigm for Sustainable Organisation Development

Abstract

This study examined the influence of service innovation on organization development. Specifically it examined the relationship between service innovation and organization development metrics (operational efficiency, profitability, market share, customer loyalty). To achieve the objectives of this research, three service organisations were chosen as the case study. The research instrument (questionnaire) was administered on a total of one hundred and five (105) selected customers of First bank PLC , Mutual Benefit Insurance PLC and South-Western hotel, Ado Ekiti. Data obtained were coded and analyzed using multiple regressions. The research findings revealed that there is strong association between service innovation and the four organization development parameters. It was thus recommended that management of service organisations should do everything possible to improve their service quality by adopting emerging innovations which will be comparable with the best in the industry. Employers of service industry should engage in regular training of their staff in order to enhance their skills and efficiency. Furthermore, the policy makers in government should adopt a measure to regulate the quality of services in the service industry by setting minimum standard that must be adhered to by all service organizations.

Keywords: Service innovation, Organisation Development, Sustainable Development