The effect of Strategic Orientation on Service Innovation :

The Case of Yemen Mobile Company

Abdalkareem Ahmed Al-Dilami

Abstract :

Master in Competitiveness and Innovation
Final Master Thesis
The effect of Strategic Orientation on Service Innovation:
The Case of Yemen Mobile Company
The main purpose of this research is to investigate the effect of strategic orientation on
service innovation in Yemen Mobile Company. Customer orientation, Competitor
orientation, Inter-functional Coordination, Learning orientation, Entrepreneurial
orientation and Technological orientation were the components of strategic orientation
in this research. The population of this research is defined as all directors or managers
at the middle management level in Yemen Mobile Co. in its headquarter. Primary data
were collected from (38) participants by online questionnaires. Multiple regression
analysis was used to fulfill the research objective. The findings indicated that there is a
medium level of implementation of strategic orientation and service innovation within
Yemen Mobile Co. Technological orientation is the most important dimension, but
competitor orientation has the lowest important, furthermore, there is a statistically
significant effect of competitor orientation, entrepreneurial orientation and
technological orientation on service innovation, except for costumer orientation, inter-
functional coordination and learning orientation, and the most important (influential)
independent variable within strategic orientation to influence service innovation was
competitor orientation.
Based on the research empirical findings, several conclusions were drawn. While the
limitations of this research and future research avenues were also addressed.

Keywords: Strategic Orientation, Customer Orientation, Competitor Orientation, Inter-

functional Coordination, Learning Orientation, Entrepreneurial Orientation, Technological
Orientation, Service Innovation.
Supervisor : Prof. Olga Rivera
Introduction
Student Name : Abdalkareem Ahmed Al-Dilami
Nowadays, the environment is dynamic, changeable, and the competition is
Date : 20/05/2015 intensive. These circumstances compel the organizations to adopt certain business
concepts, policies, and practices in order to attain their goals and to get prominent results
(AL-Dmour and Amin, 2012). Change is desired for survival and innovation is one of
the major factors that may enhance organizations position in order to have a competitive
positions.
The strategic orientation is one of the factors that affect the performance of
organizations, it effects on how they think and work. Innovation can be considered as a
necessary ingredient for firms to remain competitive. To be successful, the main task
of a firm is to determine the perceptions, needs and wants of the market in order to create
products with a superior value (Bigliardi et al, 2011)

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 Companies make great efforts in their attempt to be more successful in meeting
the needs of their consumers than their competitors, consequently to achieve a better
position in the market and a better business performance. Business managers agree that
an essential element of an organization’s long-term survival is success in new product
development (Deek and Lian, 2008). So, this requires innovation.
By having a strong strategic orientation, a company will be able to foster its
competitive advantage, be closer to its customers, and it is also related to the company's
ability to innovate, in addition to this, it is possible that the strategic orientation of the
company leads to, at least in part, superior performance because of the innovations
which are brought to market, because innovation can be considered as a necessary
ingredient for companies to remain competitive. For organizations to achieve superior
competitive advantage, it must provide customers with products and services with
superior value in comparison with its competitors.
Companies must be able to adapt and evolve if they want to survive. Business
operate with the knowledge that their competitors will inevitably come to the market
with a product that change the basis of competition. The ability to change and adapt
essential to survival (Trott, 2005). In the service sector the impact of innovation on
growth is generally positive and consistent, with the possible exception of financial
services (Tidd & Bessant, 2009)
Research Problem :
Organizations are living in a dynamic environment, intensive competition and
powerful external and internal forces. In such circumstances, survival is conditioned
upon knowledge, experience, technology, creativity, qualified human resources,
innovation, and many other capabilities (Laforet and Tann, 2006). Therefore, innovation
is one of the most important factors for an organization to have a dominant competitive
positions; also, it is the source of potential competitiveness, survival and the
achievement of the desired ends.
Accordingly, this research is directed to study the effect of strategic orientation
on service innovation, specifically within Yemen Mobile Co.
So, this research will attempt to answer the following questions:
1. To what extent does the Yemen Mobile Co. implement the strategic orientation
dimensions?
2. To what extent does the Yemen Mobile Co. implement service innovation?
3. What is the effect of strategic orientation on service innovation within Yemen
Mobile Co.?
Scope of the research :
The scope of the current research is quite evident, it is localised to the context of
Yemen telecommunication sector. Specifically, this research focuses on Yemen Mobile
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Co., also this research has defined by its focus on the concept of strategic orientation
and service innovation.
- Subject scope :
The researcher restricted the study on strategic orientation and service innovation.
- Geographical scope :
The research covered Yemen Mobile Co. in its headquarter in Sana'a.
Research Objectives:
The purpose of this research is to investigate the effect of strategic orientation on service
innovation within Yemen Mobile Co. To achieve this goal, the following objectives are
established:
1. Measuring the levels of implement strategic orientation and service innovation
within Yemen Mobile Co.
2. Investigating the effect of strategic orientation on service innovation within
Yemen Mobile Co.
3. Identifying the most influential elements of the strategic orientation that effect on
service innovation within Yemen Mobile Co.
Research Significance :
The significance of this research stems from several reasons, as follows :
1. There is an increasing interest towards the telecommunication sector in Yemen,
it plays an important role in the Yemen economy, but, in order to keep growing
and expanding, and even maintain the current position, Yemen Mobile Co. has to
reinforce and expand its capabilities to learn, adapt and innovate new services,
because most of the managers of Yemen Mobile Co. are not fully aware of the
critical role of strategic orientation. So, This research took an important step
towards increasing understanding of strategic orientation in Yemen Mobile Co.
and raise awareness and understanding of the role of strategic orientation on
service innovation.
2. Although there are many studies in strategic orientation, most of these have been
conducted in developed countries. This research will be the first study of strategic
orientation conducted in a developing country like Yemen. In fact, Todorovic and
Ma (2008) suggest that the complementary effect of strategic orientation might
be more effective in developing countries, as strategic actions are not normally
part of the business model in developing countries and those firms employing
such methods may reap significant benefits over their competitors.
3. The research also hopes to make some practical contributions mainly focusing on
identifying which strategic orientation dimension can help improve the service
innovation in Yemen Mobile Co.
4. The findings and recommendations of this research could be useful for Yemen
Mobile Co. and will enable this company to reach an excellence stage, and to get
rid of the difficulties and help it to continue to progress and succeed. The
researcher also hopes to provide a theoretical contribution to strategic orientation
field.
Previous Relevant Studies :
To summarized the results of the previous studies, many of these studies are
aligned in stating that there is a positive relationship between strategic orientation and
performance (Avci et al. 2011; Laukkanen et al. 2013; Liu et al. 2012; Otieno et al.,
2012; Choy, n.d.; Hemati et al. 2013; Joachim & Stephen, 2014 ; Mcdermott &
Prajogo, 2010; Gatignon & Xuereb, 1997; Nazdrol, 2013), market orientation has a
positive impact on performance regardless of the organizational conditions (Kumar et
al. 2011), according to Narver and Slater (1990) there is a positive relationship between
market orientation and performance.
About the relationship between strategic orientation and new product
development, studies have found a positive correlations between them (Storey &
Hughes, 2011; Stephen and Olubusayo, 2014; Adis et al., 2008 ), customer orientation
and technology orientation has significant effect on the new product success (Yang et
al., n.d.)
Only a limited number of studies did analyze for the impact of strategic
orientations on service innovation. The impact of strategic orientation on innovation has
also proven in many studies, (Gomez et al. n.d.) was found that strategic orientation is
directly related to innovation, customer and competitor orientation within a firm are
positively related to service innovation capability (Grawe et al., 2009), on the other hand
(Ngatno et al., 2014) found that responsive customer orientation and responsive
competitor orientation have a positive and significant effect on incremental and radical
service innovation. Also (Cheng & Krumwiede, 2012) found that there is a significant
positive relationship between customer orientation and incremental service innovation,
in addition (Al- Dmour & Amin, 2012) found that there is a positive relationship
between applying market orientation concept and service innovation.
Strategic orientation definition :
Strategic orientation is originally conceptualized from the market orientation,
which was popularly used to measure firm performance in the management literature
(e.g. Pulendran et al., 2003; Matsuno and Mentzer, 2000; Han et al., 1998). Then, it was
extended into strategic orientation (Noble et al., 2002; Voss and Voss, 2000) (cited by
Adis et al. 2008). Strategic orientations have been discussed in both marketing and
strategic management (Gatignon and Xuereb, 1997). So, There is no definitive view on
the nature of strategic orientation. For example, strategic orientation refers to how an
organization uses strategy to adapt to and change aspects of its environment for a more
favorable alignment (Manu,1996). Gatignon & Xuereb (1997) regard the strategic
orientation reflects a firm’s focus in terms of creating behaviors that help it achieve
superior performance.
The firm’s strategic orientation guides how it bundles and leverages
organizational resources in pursuit of emerging market opportunities and the
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exploitation of existing markets (Menor and Roth, 2007; Hughes and Morgan, 2008).
Also it refers to the manner in which a firm adapts to its external (industry/competitive)
environment (Miles & Snow, 1978; Mintzberg, 1973)(cited by Avci et al., 2011).
Strategic orientation defined as organizational “principles that direct and
influence the activities of an organization” (Hakala, 2011, p. 2). Strategic orientation
involves the implementation of strategic direction that guide the activities of a firm to
establish behaviors that achieve continuity in optimal performance for the business.
(Narver and Slater, 1990).
Related researches on strategic orientation are either conducted in a holistic
approach or a subdivision approach, that is, strategic orientation is an integrative
concept consisting of its own dimensions or strategic orientation is a mix covering
entrepreneurial orientation, marketing orientation and learning orientation (LIU and FU,
2011). Hoq and Chauhan, (2011) have indicated strategic orientations as organizational
resources which can improve the success of SMEs.
In the majority of literature, the strategic orientations are regarded as the
organizational resources rather than capabilities (Hunt and Morgan, 1995; Becker and
Homburg, 1999; Wei and Morgan, 2004; Atuahene-Gima, 2005; Menguc B. and Auh
S., 2006) (cited by Yang et al., n.d). Some writers view orientations explicitly as
‘dynamic capability’ (e.g. Santos Vijande et al. 2005; Zhou et al. 2005) (cited by Hakala,
2010). Some other researchers consider strategic orientations as dynamic capability that
represents the organization’s ability to integrate and built internal and external
competencies (Teece, Pisano and Shuen, 1997; Zhou, Yim, and Tse, 2005) (cited by
Herath & Mahmood, 2013). There are other authors who consider orientations as
elements of the organizational culture (Nobel, Sinha and Kumar, 2002).
The mainstream of quantitative empirical studies of strategic orientation regards
the strategic orientation as the competitive culture such as customer orientation,
technology orientation, competitor orientation, interfunctional coordination,
entrepreneurship orientation and innovation orientation (Narver and Slater, 1990).
In this research the strategic orientation is viewed as organizational culture. This
view characterised the concept as a set of attitudes, values and behaviours of the
organization. It is very clear that different authors have viewed strategic orientations
through different lenses.
Strategic Orientation Measurement:
Researchers have adopted several approaches to measure strategic orientation concept,
some of these are:
Table (1) Components of strategic orientation
 Components of strategic orientation Authors innovation plays a critical role in the increasingly competitive business environment in
Customer Orientation, Competitor Orientation, which firms operate. As a result, researchers have provided insights as to how firms
Gatignon and Xuereb (1997) Deek and
Technology Orientation , Inter-functional innovate and how innovations spread to other firms and individuals (Damanpour, 1991).
Lian, (2008).
Coordination Service innovation has been discussed from a conceptual perspective, but has received
Entrepreneurial orientation, market orientation little empirical study. Defined broadly, innovation is an idea, practice, or object that is
LIU and FU (2011).
and learning orientation perceived as new by an individual or organization (Rogers, 2003). However, much of
Resource Orientation , Market Orientation , the existing literature is centered on product innovation.
Learning Orientation , Entrepreneurial Reulink (2012).
Service innovation, a concept that has long been studied in service management
Orientation
research, is a foundation for different issues in service industry such as customer-
Customer orientation , Competitor orientation ,
Hemati et al. (2013) involvement (Bendapudi & Leone, 2003). Also service innovation becomes more
Innovation orientation , Cost/internal orientation
Customer relationship orientation , Innovation important in high-tech industry because service innovation becomes a major source of
orientation , Learning orientation , competitive advantage for high-tech firms cultivating the ability to use knowledge
Laukkanen et al. (n.d.). gleaned from customers, competitors, and their own coordination capabilities to create
Entrepreneurial orientation , Market orientation ,
Brand orientation meaningful and distinctive services (Wang, 2015).
Customer orientation , Technology orientation , Service innovation can be defined as a new service or such renewal of an existing
Interfunctional cooperation , Competitor Yang et al. (n.d.). service which is put into practice and which provides benefit to the organization that
orientation has developed it; the benefit usually derives from the added value that the renewal
Market orientation (MO) Entrepreneurial provides to the customers. In addition, to be an innovation the renewal must be new not
Herath & Mahmood (2013).
Orientation (EO) and Learning Orientation only to its developer, but in a broader context, and it must involve some element that
Customer orientation , Competitor orientation , can be repeated in new situations, i.e. it must show some generalizable feature(s)
Voss & Voss (2000)
Product/technology orientation (Toivonen & Tuominen’s, 2009, 14). Also, (Den Hertog et al., 2000) define service
market orientation , Innovation orientation Zhou et al. (2005) innovation as a new service experience or service solution, that consists of one or several
Avci, et al (2011), Storey & Hughes of the following dimensions: new service concept, new customer interaction, new value
Prospectors , Defenders, Analyzers, Reactors (2011), Kumar et al (2012), Galbreath,
system/business partners, new revenue model, new organizational or technological
(2010), Zinn et al (2008),
service delivery (p. 494).
Aggressiveness, Analysis, Defensiveness, Chatzoglou et al,(2011), Choy, n.d.,
Futurity, Proactiveness, Riskiness Stephen & Olubusayo, (2014), Joachim Service innovation is the multidisciplinary process of designing, realizing and
& Stephen, (2014), marketing combinations of existing and/or new services and products with the final
attempt to create valuable customer experiences (Flikkema et al. 2010). Moreover,
The researcher chose six dimensions to measure strategic orientation (Customer service innovation can increase growth in sales revenue, generate new customers,
Orientation - Competitor Orientation - Inter-functional Coordination - Learning greater market share, more profitability, better returns on investment, and able to reach
Orientation - Entrepreneurial Orientation - Technological Orientation), these financial goals (Merrilees and Lye, 2011). Service innovation is the development of a
dimensions include internal and external orientations. new service that is perceived as new and helpful to a particular focal audience (Flint et
al., 2005). Even though, innovation analysis in service sector is a difficult task for two
Service Innovation definition : viewpoints. The first one: the analysis of technological innovation in manufacturing
activities was the basis upon which the innovation theory has been constructed. The
Innovation is the name of the game for competition in the twenty first century.
second point is that: the unique service activities characteristics, specifically the fuzzy
Increased competition, ceaseless turbulence, change, and uncertainty have forced
nature of their output, make it more difficult to be measured according to the well-
organizations to embrace innovation as an integral part of their corporate strategy
known, familiar economic methods and to realize improvements or changes,
(Keskin, 2006). Innovation is defined as "adoption of an internally generated or
specifically on the qualitative level (Gallouj and Weinstein, 1997).
purchased device, system, policy, program, process, product, or service that is new to
A successful business must be innovative in its nature for the following reasons:
the adopting organization" (Damanpour, 1991: 556). Also, innovation is anything which
(1) to learn more and pursue customers' needs and wants, (2) to conduct successfully
might be an idea, practice, activity, or object that is perceived as new to an individual,
the process of developing new products or services that address those needs and wants
organization, or any other unit of adoption ( Fruhling and Siau, 2007). In addition

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and (3) to help in executing internal activities and processes that enhance product
development process and customers' needs understanding (Narver et al., 2004)
De Jong and Vermeulen (2003) suggested that service innovation is not only
about newness or singularity but also includes another dimensions like after sales
services, delivering systems and the relationships between clients and sellers.
The importance of innovation processes, widely recognized on both the empirical
and theoretical levels, and the increasingly prominent role being played by service
activities in productive systems have combined to make innovation in the service sector
and become an issue of great importance. The construction of a general description of
innovation is essential for an understanding of what the notion of innovation might
encompass, in both services and manufacturing industry, and the basic forms it might
take. The future of culture of innovation on corporate level is based on the provision of
conducive environment, contribution of the individuals in the growth of innovative ideas
and self-development which gives birth to a set of innovations which are radical,
incremental and learnt from the competitors through proper manner recognized in the
corporate world (Qureshi, 2008)
Service Innovation Measurement:
It is well known that services have been viewed differently from goods.
Intangibility, inseparability, heterogeneity and perishability are the major service
characteristics which cause the differences in search properties, credence, measurement
and experience. Researchers have adopted several approaches to measure service
innovation concept, some of these are:
Table (2) Components of service innovation
Approach Authors
Al- Dmour, & Amin, (2012), Grawe et al
Service innovation capabilities
(2009).
Incremental service innovations, radical Cheng & Krumwiede, (2012). Ngatno et al
service innovations (2014), Reulink (2012).
Exploration and exploitation innovation Mcdermott & Prajogo (2010).
dynamic capabilities for service innovation Janssen et al (2014)
Service Innovation Readiness Wang et al (2010)
The researcher chose dynamic capabilities for service innovation to measure service
innovation, because these items are relevant to the respondent’s situation.
Theoretical framework and hypotheses development :
Gatignon and Xuereb (1997) investigate if firm orientation has a positive effects in
the way that innovations are marketed, beyond the greater performance due to having
an innovation with superior characteristics, they also investigate the impact of firm
strategic orientation on the characteristics of innovation, they argue that certain kinds of
innovations are better developed when a firm stress certain strategic orientation, their
study find out that a firm's strategic orientation has a significant impact on the
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characteristics of innovation. (Reulink, 2012) argues that certain relationships between
strategic orientations may provide organizations whit sustained competitive advantage
and that organizations that are able to balance the strategic orientations perform better
in achieving the desired innovation outcomes.
Based on the findings of most empirical studies I hypothesize that:
H0: There is a positive statistically significant effect of strategic orientation on service
innovation.
- Customer orientation and service innovation :
Customer orientation refers to the collection of intelligence about customers to
satisfy their needs and desires (Day, 1994; Deshpande et al., 1993; Hunt and Morgan,
1995) (cited by Cheng and Krumwiede, 2012). Sinkovics and Roath (2004) say that
customer orientation is the idea that the organization focuses on providing superior
service quality to customers. The debate as to the effect of customer orientation on
innovation is still unresolved (Christensen et al., 2005; Lukas and Ferrell, 2000). Cheng
and Krumwiede (2012) reached that customer orientation leads to incremental
innovation. The results of (Narver and Slater, 1990) study suggest that consumer
orientation increases the number of discontinuous innovations and decreases the number
of continuous innovations, thus contesting consumer orientation as being the cause of
incremental innovations. Also the result of (Bozic, 2006) shows that customer
orientation positively impacts the introduction of all kinds of innovation. (Grawe et al.,
2009; Reulink, 2012) have shown that there is a positive relationship between customer
orientation and service innovation. (Han et al., 1998) argue that the customer orientation
will enhance a firm’s innovativeness. besides (Ngatno et al., 2014) have shown that
customer orientation has significant positive effects on the both radical and incremental
service innovation. (AL- Dmour and Amin, 2012) found that there is a significant
positive effects of customer orientation on service innovation. Focusing on future
customer needs may also alert the firm to new market and technology developments and
increase its abilities to integrate developments into product innovation (Zhang and
Duan, 2010). In addition, (Adis et al., 2008) found that customer orientation has a
positive influences on the performance in the product development. Based on the above
I hypothesize that:
H1. There is a positive statistically significant effect of customer orientation on service
innovation.
- Competitor orientation and service innovation :
Competitor orientation refers to a firm’s ability to identify, analyze, and respond to
competitors’ actions (Kholi and Jaworski, 1990). The debate as to the effect of
competitor orientation on innovation is again not resolved as of yet (Lukas and Ferrell,
2000). Generally, to imitate competitors’ new services can be regarded as an attractive
source of service innovation, leading to minimizing risks and development costs. This
implies that competitor oriented service firms would be intended to develop incremental
service innovation and preclude radical service innovation development. (Cheng and
Krumwiede, 2012) reached that competitor orientation is significantly associated with
radical service innovation. Also the result of (Bozic, 2006) shows that competitor
orientation positively impacts the introduction of all kinds of innovation. (Han et al. H3. There is a positive statistically significant effect of inter-functional Coordination
1998) argued that a competitor-centered culture contributes to competitor related on service innovation.
intelligence and facilitates service innovations. Competitor orientation was found to be
- Technological orientation and service innovation
positively related to service innovation (Grawe et al., 2009 ; Reulink, 2012; AL- Dmour
Technological orientation refers to a firm’s inclination to introduce or utilize new
and Amin, 2012). Furthermore, scanning competitors can help high-tech firms to
technologies, products or innovations, therefore product differentiation from the
identify emerging novel substitutes. (Adis et al., 2008) found that competitor orientation
competition or cost advantages in production can be achieved by developing new
has a positive influences on the performance in the product development.
technologies and adapting existing ones and improves the performance of the innovation
Thus, without competitor knowledge, high-tech firm’s managers cannot identify
(Gatignon and Xuereb,1997). A technology (or innovation) orientation suggests that
the best courses of action to enhance their innovation performance (Wang,2015).
consumers prefer technologically superior products and services (Zhou and Li, 2007)
According to Im and Workman (2004), a competitor-oriented firm tends to monitor
Technology orientations embodied in the new product development activities also
progress against rival firms continuously, which can lead to opportunities to create
leads to stronger technology capability through inter temporal integration (Marsh and
products or programs that are differentiated from those of competitors. Also (Ngatno et
Stock, 2003; Danneels, 2002). A firm’s technical skills, R&D resources and
al., 2014) have shown that competitor orientation has significant positive effects on the
technological base are central in bringing innovative, better designed products into the
both radical and incremental service innovation. Based on the above I hypothesize that:
market. And technological superiority gives the firm potential for a greater competitive
H2. There is a positive statistically significant effect of competitor orientation on service
advantage … one cannot easily imitated by the competition (Jeong et al., 2006).
innovation.
Technology orientation, and the closely related terms of innovation and product
- Inter-functional coordination and service innovation :
orientation (Grinstein, 2008). Technological orientation should lead to more radical
Inter-functional coordination refers to the degree to which firms’ cooperation
innovation with the potential for greater competitive advantage (Gatignon and
between different functions or departments is involved in conducting specific tasks
Xuereb,1997). (Adis et al., 2008) found that technological orientation has a positive
associated with new service development (Narver and Slater, 1990). It can facilitate the
influences on the performance in the product development. Based on the above I
generation, collection, and dissemination of market intelligence pertaining to new
hypothesize that:
service development across functional areas (Auh and Menguc, 2005). In addition, it
H4. There is a positive statistically significant effect of technological orientation on
involves sharing of new ideas, resolution of problems, and innovative responsiveness
service innovation.
(Gatignon and Xuereb, 1997). Thus, it is often associated with a positive effect on
- Entrepreneurial orientation and service innovation
radical innovation because it facilitates dissemination of novel market information and
Entrepreneurial orientation refers to as the processes, practices, and decision-making
enhances problem solving (Gatignon and Xuereb, 1997). Information sharing and
activities that lead to the development of new and innovative products. It is
communication across all functions of the organizations, especially in the context of
conceptualized as a set of distinct but related conducts that contribute to a firm’s
market information, has a positive effect on the development of new products (Reulink,
innovativeness, proactiveness, and risk taking because an entrepreneurial orientation
2012). Cheng and Krumwiede (2012) reached that Inter-functional coordination is
promotes the renewal of existing practices and the pursuit of new opportunities (Zhou
significantly associated with radical service innovation. (Reulink, 2012) has shown that
and Li, 2007). Entrepreneurial orientation is one of the important factors to guide the
there is a positive relationship between Inter-functional coordination and innovation.
level of innovation (Pardi et al., 2014). The same idea has been conveyed by Baker and
(AL- Dmour and Amin, 2012) found that there is a significant positive effects of inter-
Sinkula (2009), stating that entrepreneurial orientation will lead to an increase in the
functional coordination on service innovation. (Adis et al., 2008) found that Inter-
level of innovation and corporate performance. Wu et al. (2008) have found that
functional coordination has a positive influences on the performance in the product
entrepreneurial orientation has a positive impact on innovation and corporate
development. Inter-functional coordination also encourages each function to freely
performance. A significant relationship was found between an entrepreneurial culture
communicate information about its various customer experiences and the internal
and the number of new services developed (Storey & Hughes, 2011). (Tajeddini, 2010)
constraints within which new products will have to be developed and marketed (Narver
found that entrepreneurial orientation and innovativeness are associated with improved
and Slater 1990).
business performance. Based on the above I hypothesize that:
To facilitate novelty within a high-tech firm, inter-functional coordination entails the
H5. There is a positive statistically significant effect of entrepreneurial orientation on
collaboration of different units that can facilitate the generation, collection, and
service innovation.
dissemination of market intelligence pertaining to innovation development across
- Learning orientation and service innovation :
functional areas (Auh & Menguc, 2005). Based on the above I hypothesize that:

11 12
 It is assumed that learning orientation plays a key role in defining innovation. One variables Supported literature Variables measurement
of the definitions given in the literature for learning orientation is that it can improve Janssen et al (2014) (8 items) Measured by items 38-47
Service Innovation
quality, strengthen customer-supplier relationships, facilitate the implementation of Grawe et al., (2009) (items 46,47) in the questionnaire
business strategies, and deliver sustainable profitability (Mills and Freisen, 1992)(cited
by Pardi et al., 2014). And adaptation of new ideas, processes, goods or services, Independent Variables
because it is in the cycle; learning orientation and innovation are deemed closely related. The dimensions which used to measure strategic orientation are :
Among the values necessary for organizational innovation is the use of information and - Customer Orientation :
continuous learning approaches (Pardi et al., 2014). Wong and Chin (2007) prove that Customer orientation is an organizational culture that facilitates the understanding
there is a strong correlation between the two concepts. The relationship between of targeted buyers and allows for the continuous creation of customer value (Narver and
learning and innovation is that learning lays the foundation for innovation, because the Slater, 1990). Also, customer orientation represents the organisational culture where
dependence of an organization to learn can improve innovation capacity, while at the managers collect and use customer information (Kohli and Jaworski, 1990). So, when
same time will affect the company's overall performance (Pardi et al., 2014), Calantone the company understand its customers' needs it can share and use the information to
(2002) also argues that learning orientation has a positive impact on the level of ensure the quick response to current needs and anticipate future needs. Items 1-7 were
innovation. The higher the level of learning orientation, the stronger its influence on used to measure customer orientation.
innovation will be. Similar point is also made by Liu (2002) who concludes that learning - Competitor Orientation :
orientation is relevant to build new knowledge and it is important to the level of Competitor orientation is an organizational culture that stresses the understanding of
innovation and business performance. (Keskin, 2006) also found that firm learning- the short-term strengths and weaknesses and long-term capabilities and strategies of the
orientation positively influences firm innovativeness. (Pardi et al., 2014; Storey & current and potential key competitors (Deshpande et al., 1993; Narver and Slater, 1990).
Hughes, 2011) found that learning orientation has a positive effect on innovation. Based It also refers to the continuously monitoring of competitors and seizing opportunities
on the above I hypothesize that: that by creating products and services that are differentiated from those of competitors
H6. There is a positive statistically significant effect of learning orientation on service (Grinstein, 2008). So, competitor orientation is the ability and the will to identify, to
innovation. analyze, and to respond to competitors' actions. Items 8-14 were used to measure
competitor orientation.
Operational Definitions : - Inter-functional Coordination :
The current research used different scales to measure the main variables The inter-functional component refers to all the organizations coordinated actions
(independent variables and dependent variable), scales used to measure the variables (e.g. the utilization of organizational resources) taken to create superior value for
were drawn from the available literature, and are outlined in the following table: customers based on the information of competitors and customers (Narver & Slater,
Table (3): Supported Literature for Measurement Scales 1990). It is also refers to the specific aspects of the structure of an organization which
facilitate the communication among the organization's different functions (Gatignon and
variables Supported literature Variables measurement
Xuereb, 1997). So, inter-functional coordination is like the mechanism which enables
Independent variables :
Narver and Slater’s (1990) Measured by items 1-7 in
the three necessary strategic orientations to work jointly. Items 15-20 were used to
Customer Orientation measure inter-functional coordination.
Janssen et al (2014) the questionnaire
Narver and Slater’s (1990) Measured by items 8-14 in - Learning orientation
Competitor Orientation
Janssen et al (2014) the questionnaire Learning orientation refers to the ability of an organization to develop new
Narver and Slater’s (1990) Measured by items 15-20 knowledge or insights that have the potential of influencing (strategic) behavior. It is
Inter-functional Coordination
in the questionnaire the organizations propensity to create and use knowledge (Sinkulaet al., 1997) in order
Sinkula & Noordewiet (1997) Measured by items 21-27
Learning Orientation to attain competitive advantage (Calantone & Cavusgil, 2002) (cited by Reulink, 2012,
in the questionnaire
Smart and Conant (1994) Measured by items 28-32 p. 20). So, learning orientation allows the firm to detect and correct errors within its
Entrepreneurial orientation boundaries. Items 21-27 were used to measure learning orientation.
in the questionnaire
Hakala, H. (2010).(4 items) Measured by items 33-37 - Entrepreneurial orientation :
Technological orientation Gatignon & Xuereb (1997) (item in the questionnaire Entrepreneurial orientation describes an entrepreneurial approach to the styles, ways
37) and practices of decision making (Wiklund and Shepherd, 2005), it is also reflects the
Dependent variable : firm’s ability to seek out and exploit new opportunities (Zahra, 2008). So, it refers to

13 14
the processes, practices, and decision-making activities that lead to the development of Yemen Mobile Company is one of four mobile phone companies operating
new and innovative products. Items 28-32 were used to measure entrepreneurial in Yemen's telecommunications market, Yemen Mobile as a CDMA 2000
orientation. network is considered the first CDMA network operator in the Middle East. In
- Technological Orientation : 2006 the company became a public joint stock company with a capital estimated
Technological Orientation refers to a firm’s inclination to introduce or utilize new at $ 200 million.
technologies, products or innovations, therefore product differentiation from the The company lives in the growth stage with the high rates in revenue growth
competition or cost advantages in production can be achieved by developing new rates by an average of 16% annually, the rate of growth in profits is the highest
technologies and adapting existing ones (Gatignon and Xuereb 1997). So, technological in Yemen, where the percentage of return on capital is about 17.66%, and
orientation is the ability and the will to acquire a substantial technological background shareholder returns grow between 35-40% annually. According to 2012
and to use it in the development of new products in order to answer and meet new needs estimation about market share, SabaFon had the highest market share (38%),
of the users. Items 33-37 were used to measure technological orientation. followed by MTN Yemen (35%), while Yemen Mobile (23%) and (Y) company
(4%). 2
Dependent Variable :
- Research Sample and Unit of Analysis :
Service Innovation : Purposive sample has been chosen. The unit of analysis for this research is the directors
Service Innovation is the process of developing new services that will be perceived or managers at middle management level, because only these managers have the
as new (never seen before), and are useful and gainful to a specific central customers information that enable them to judge the level of implement strategic orientation and
(Flint et al., 2005). So, service innovation can be new service concept, new solution that service innovation. Also they take the responsibility for the development of new
adding value to customers. Items 38-47 were used to measure service innovation. services and make decisions of strategic orientation.
The results in table (4) reveal sample characteristics on gender, age, education level,
Research Methodology and Procedure:
Functional level.
This research is a descriptive analytical research, investigating the effect of strategic
Table (4): sample characteristics
orientation on service innovation within Yemen Mobile Co., and identifying the most
influential elements of strategic orientation that effect on service innovation. Characteristics Frequency Percentage
- Research Population Gender
The population of this research is defined as all the employees in Yemen Mobile Co. in Male 36 94.7
the headquarter, this company is appropriate to study strategic orientation and its effect Female 2 5.3
on service innovation, since that company is characterized by dynamism, because of Age
accelerated changes, also this company is receiving much attention from the highest Under 30 9 23.7
formal levels in Yemen to get the most possible benefits from it. The researcher hope 30 – less than 35 21 55.3
that this research will contribute to the development of this company. Following a brief 35 – less than 40 6 15.8
about Yemen Mobile Company. 40 – less than 50 2 5.3
Telephone communications and information services have received more Education level:
interest from Yemeni government, so, private sector started to invest in Bachelor degree 33 86.8
telecommunication which was launched for the first time in February 2001 to
provide mobile services system, these two companies are SabaFon (GSM) and
High Diploma 5 13.2
Spacetel Yemen (GSM) which later turned to (MTN Yemen) and the mobile Functional level
phone service via satellite (Thuraya) to provide global communications service, Director 9 23.7
and then the Yemen ministry of telecommunication broke the monopoly in Chair of department 14 36.8
telecommunication market by established Yemen Mobile Company in 2004, also Supervisor 15 39.5
Hits Unitel (Y) company established in the same year.1 Total 38

1 2
http://www.yemen-nic.info/arabic Yemen Mobile Organizational Structure guide

15 16
From Table (4) most of the respondents (94.7%) participating in this research were ranges between 0 and 1. The closer Cronbach's alpha coefficient is to 1 the greater the
male, while (5.3%) were female, the reason behind the low rate of female is because of internal consistency of the items in the scale. The Cronbach reliability test was found to
the Yemeni traditions that prevent women from going out to work. So, The males be satisfactory since the results were all above the required rule of thumb value (0.6)
(Sekaran, 1996). Table (5) showed Cronbach's Alpha values.
dominate the administrative functions in Yemen Mobile Co., The age bracket of the
respondents indicates those between 30 – less than 35 (55.3%) as the predominant age Table (5) : Reliability statistics
group, followed those under 30 are (23.7%) followed by those 35 – less than 40 (15.8%),
Study Scales Cronbach's Alpha Values
and lastly 40 – less than 50 (5.3%). Most of the participants have bachelor degree
Customer Orientation 0.823
(86.8%), followed who has High Diploma (13.2%). Most of the respondents (39.5%) Competitor Orientation 0.841
are supervisors, followed by chair of department (36.8%), and lastly director (23.7%). Inter-functional Coordination 0.876
- Validity and Reliability of Scales: Learning Orientation 0.869
The researcher developed the survey questionnaire used in this research on the Entrepreneurial orientation 0.858
basis of previous studies. It consisted of a combination of 47 close-ended items divided Technological orientation 0.914
into 7 sections (customer orientation, competitor orientation, inter-functional Service Innovation 0.938
coordination, learning orientation, entrepreneurial orientation, technology orientation For all items 0.973
and service innovation), the questionnaire translated into Arabic and sent to respondents
As shown in table (5) all values are greater than (0.80) which is good because it is greater
online. than the accepted percent (0.60).These results mean that the internal consistency
reliability was good and acceptable and can be considered to be reliable to achieve the
A standardised 5 point Likert scale (where 1 is ‘strongly disagree’ and 5 is
research objectives.
‘strongly agree’) was used for questions in the survey except for the sections dealing
with the respondent profile. Descriptive Analysis :
The descriptive analysis allocated to investigate the levels of (1) strategic orientation
- Pilot Study : and (2) service innovation within Yemen mobile company in Yemen.
The data collection in this research was spread over two stages, where a pilot study 1. strategic orientation:
was conducted in the first stage before the actual survey with respondents. The pilot The results showed in Table (6) that the level of implementation of strategic orientation
study was conducted to refine the questionnaire, identify any loopholes in the concept is medium, technological orientation has occupied the highest mean of (3.51)
questionnaire and anticipate any logistical problems during the actual survey. The pilot and a standard deviation of (0.889), followed by learning orientation with a mean of
study was conducted informally among (5) directors of participants. The objectives of (3.39) and a standard deviation of (0.753), while customer orientation has occupied
the pilot study are : mean of (3.29) and a standard deviation of (0.670), also entrepreneurial orientation has
1. To gather feedback about the language used in the questionnaire. occupied mean of (3.22) and a standard deviation of (0.790), and the lowest mean was
2. To assess the ease of the respondents in completing this survey. This was intended to competitor orientation and inter-functional coordination with a mean of (3.11) and a
to detect any flaws in the survey in terms of appearance and format as the survey standard deviation of (0.765, 0.765) respectively. This means that Yemen Mobile Co.
must appear appealing and easy to navigate in order to motivate the respondents has a medium level of implementation for the strategic orientation concept.
Table (6) Means, Standard Deviations and Levels of Implementation for strategic orientation
to complete the questionnaire and increase the response rate. dimensions
Std.
The feedback given from the participants contained a lot more information and the Independent variables Means Levels
deviations
researcher felt that it is worthwhile detailing their individual insights, so the researcher Customer Orientation 3.29 0.670 medium
changed many items in order to be more understandable. Competitor Orientation 3.11 0.765 medium
- Reliability of Scales: Inter-functional Coordination 3.11 0.816 medium
Cronbach's alpha is a measure of internal consistency, which indicates how closely Learning Orientation 3.39 0.753 medium
related a set of items or as a group. Cronbach's alpha reliability coefficient normally Entrepreneurial Orientation 3.22 0.790 medium

17 18
 Technological Orientation 3.51 0.889 high Co.? Multiple linear regression analysis was used to test the research main Hypothesis
Strategic Orientation 3.27 0.666 medium and sub-hypotheses of this research. Multiple regression enables the researcher to
Note: The researchers considered (3) as the mean of the scale (1+2+3+4+5/5), which means that 3 represents a examine the effect of many different factors (independent variables) on certain outcome
medium level. (dependent variable) at the same time. The general goals behind using the multiple
regression method were to learn more about the relationship between several
2. Service Innovation: independent variables and a dependent variable, also to investigate the functional
The results in table (7) showed that service innovation mean was (3.24) with a standard relationships between independent and dependent variables, in order to understand what
deviation of (0.846). This means that Yemen Mobile Co. has a medium level of might be causing the variation in the dependent variable.
implementation for service innovation. - The Main Hypothesis :
Table (7) Means, Standard Deviations and Levels of Implementation for Service Innovation
There is a positive statistically significant effect of strategic orientation on service
Std. innovation.
Dependent variables Means Levels
deviations
Service Innovation 3.24 0.846 medium Table (9) Analysis of Variance (ANOVA)

Sum of Mean
In addition, the questionnaire also included (7) questions about the participant's Model Df F Sig.
squares square
assessment about the dimensions of strategic orientation and service Innovation relative Regression 22.014 1 22.014
to competitors, (where 1 is ‘Much worst’ and 5 is ‘Much better’). Table (8) showed the Residual 4.475 36 0.124 177.095 0.000*
result : Total 26.488 37
* Significant at (α≤0.05)
Table (8) participant's assessment about the research dimensions Table (10) : The Results of main hypotheses

Much The same Much Standardized

dimensions better Worse Hypotheses
better Level worst Model Coefficients t Sig. R square
Testing Results
Customer Orientation 7.9 57.9 15.8 15.8 2.6 Beta
Competitor Orientation 13.2 21.1 50.0 13.2 2.6 Strategic orientation 0.912 13.308 0.000* 0.831 Supported
* Significant at (α≤0.05)
Inter-functional Coordination --- 21.1 47.4 23.7 7.9
Learning Orientation 2.6 52.6 21.1 23.7 --- As shown in Table (9) it is clear that F value for the collected primary data was
Entrepreneurial Orientation 5.3 50.0 31.6 7.9 5.3 (177.095) which is significant at the level of p <0.05 (sig.=0.000). Consequently, this
Technological Orientation 15.8 50.0 26.3 7.9 --- means that there is a statistically significant effect of strategic orientation on service
Service Innovation 5.3 31.6 42.1 10.5 10.5 innovation.
Also, results of the multiple regression test, as shown in Table (10) indicate that
As shown in Table (8), the majority of the participants (57.9%) agree that customer coefficient of determination (R2) of strategic orientation was calculated as (0.831),
orientation for Yemen Mobile is better than competitors, besides, (50%) of the which means that (83.1%) of the variation in service innovation was explained by the
participants agree that competitor orientation in Yemen Mobile is the same level with variation of overall strategic orientation. It indicates to the goodness of fit of the study
the competitors, also participants (47.4%) agree that inter-functional coordination is the model since increasing the level of implementation of strategic orientation will increase
same level with the competitors, furthermore, (52.6% , 50% , 50%) of the participants the level of implementation of service innovation.
agree that learning orientation, entrepreneurial orientation and technological orientation - Sub-hypotheses :
is better than competitors respectively, but (42.1%) of the participants agree that service
innovation in Yemen Mobile is the same level in relative with competitors. Table (11) : The Results of sub-hypotheses
3. Testing Hypotheses : Standardized
This part is concerned about answering the third question of the research problem which Hypotheses Testing
Independent Variables Coefficients t Sig.
Results
is "what is the effect of strategic orientation on service innovation within Yemen Mobile Beta

19 20
 Competitor Orientation 0.382 3.546 0.001* Supported
Technological Orientation 0.349 3.902 0.000* Supported
Entrepreneurial Orientation 0.310 3.081 0.004* Supported
Customer Orientation 0.080 0.672 0.506 Not Supported
Inter-functional Coordination 0.204 1.963 0.058 Not Supported
Learning Orientation 0.059 0.570 0.573 Not Supported
* Significant at (α≤0.05)

Table (11) started with an estimation of beta for each independent variable of this
research. It gives a measure of the contribution of each variable to the model. A large
value indicates that a unit change in this predictor variable has a large effect on the
criterion variable. Competitor orientation, technological orientation and entrepreneurial
orientation represented the highest beta values which were (0.382, 0.349, 0.310)
respectively. So, these dimensions have the highest contributions in the research model,
competitor orientation had the strongest effect over service innovation, technological
orientation was the second strongest driver of service innovation, entrepreneurial
orientation had the weakest effect on service innovation when compared to the effects
of competitor orientation and technological orientation.
Although customer orientation, inter-functional coordination and learning orientation
(Beta are 0.080, 0.204, 0.059) respectively, failed to show any significant effect on
service innovation. The next figure summarized the results of the multiple regression.
figure (1) : the results of the multiple regression.
strategic orientation
0.903
customer orientation
0.080
competitor orientation
0.382
learning orientation 0.059 service innovation
0.310
21
entrepreneurial orientation 0.349
Research Findings & Discussion:
- The extent of the implementation of strategic orientation and service
innovation :
Descriptive analysis indicated that there is a medium positive tendency towards strategic
orientation, since its mean was (3.27) with a standard deviation of (0.666). For Yemen
Mobile to remain competitive, it is extremely important to understand strategic
orientation and service innovation and how Yemen Mobile recognizes, pursues, and
exploits strategic orientation in addition to strategic behavior in an effort to grow,
innovate more new services and to perform better. Directors should further in strategic
orientation for better understanding of the subject. It is clear that the highest degree of
implementation was for technological orientation with a mean of (3.51), this means that
Yemen Mobile Co. is able to use its technical knowledge to build a new technical
solution in order to answer and meet new needs of the users, also this means that
technological orientation is the most important dimension, so this dimension is known
and shared by all actors in the company. followed by learning orientation with a mean
of (3.39), and customer orientation with a mean of (3.32) this result revealed that
satisfaction of customer needs should be a major focus of the development of new
services, followed by entrepreneurial orientation with a mean of (3.22), then inter-
functional coordination with a mean of (3.11) this means that communication and
information sharing through all functions within Yemen Mobile is available in medium
degree, lastly, competitor orientation with a mean of (3.11) Hence, the low implement
of competitor orientation might be explained by responding managers’ belief that a
strong influence of competitor orientation over the service innovation might turn it into
a product imitation, rather than development process, this also means that competitor
orientation has the lowest important dimension. Nevertheless, competitor orientation
remains a considerable driver of service innovation process since it can give the
organization certain directions with regard to the novelty and innovativeness of its
products when compared to those of competitors. Furthermore, the results showed a
medium level of implementation of service innovation as its mean was (3.24).
- The Effect of Strategic Orientation on Service Innovation:
22

0.204
The results showed the presence of a statistical significant positive effect for strategic The limitation of the research is about the sample which was chosen from one company
orientation on service innovation R2 = 0.831. (Yemen Mobile), this limit the ability to generalize the finding to the telecommunication
This research concluded that competitor orientation has the highest degree of impact on sector in Yemen. In addition the sample was chosen from the middle management level.
service innovation (Beta= 0.382), followed by technological orientation (Beta= 0.349),
and then entrepreneurial orientation (Beta= 0.310). On the other hand, there is no Accordingly, some future research avenues are suggested. Firstly, future research can
statistically significant effect of (customer orientation, Inter-functional coordination and apply the same model in other types of industries, and also in other countries. Secondly,
learning Orientation) on service innovation. future research can extend the research model to study the mediating/moderating effects
of other organizational and environmental factors over service innovation, also, there
Recommendations:
According to the previously presented results and analysis, the researcher can are several strategic orientation models with multiple components, consequently, future
recommend the following: research can use it to test their impact on service innovation based on the research
1. Yemen Mobile Co. should adopt strategic orientation to increase the levels of setting. Thirdly, future research can add departments to the questionnaire in order to
service innovation. So, managers should spread a strategic orientation’s culture make a comparison between them according to the answers, also to identify which
for each member at organizational levels, effectively. strategic orientation is more related to departments, marketing department with
2. Among the six components of strategic orientation, technological orientation has customer and competitor orientation, human resources department with inter-functional
the greatest effect on service innovation. So that Yemen Mobile should pay more
coordination or learning orientation, operations with technological orientation.
efforts to developing new technologies in order to respond to the changing
expectations of their customers.
3. Among the six components of strategic orientation, competitor orientation has the
lowest interest, so, managers should pay more efforts to track the market
performance, evaluate the strengths of key competitors and identify competitors’
strategies and appraisal of strength and weakness in their main competitors in
order to respond to competitors' actions, also to provide a solid basis of
intelligence pertaining to present and potential competitors for executive actions.
4. Yemen Mobile Co. should direct more of their capabilities toward benefiting their
customers as much as possible, in addition to broaden the area of customer
participation to express their needs and wants. Besides, they should focus more
on customer oriented behaviors, constant monitoring of customer needs, wants,
preferences, suggestions and complaints can yield to more innovative and
successful products, while customer-focused marketing research can give great
insights for managers as where to go with regard to new services, in addition,
measuring customers’ satisfaction constantly and regularly.
5. it might be helpful to modify the organizational structure of Yemen Mobile Co.
in order to facilitate inter-functional coordination activities. Because service
innovation is a multi-step activity performed by people with different
specializations, and coming from different functions within the organization.
6. Furthermore, managers should enable more effective coordination and
communication among teams, or among functions. While Information and
communication technology can provide suitable infrastructure for more
communication and coordination, managers should also focus on eliminating any
barriers that might hinder coordination within their company.

Limitations and Future Research:

23 24
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Appendix : Questionnaire Strongly Strongly
N Dimension/items Agree Neutral Disagree
Strategic Orientation agree Disagree
Different functional departments often
Strongly Strongly 20 share the experiences in new service
N Dimension/items Agree Neutral Disagree development
agree Disagree
Customer Orientation Learning orientation
Our firm gathers information about All employees are committed to the
1 21
customers’ needs. goals of this firm
Our firm consults customers to improve Employees view themselves as partners
2 22
the quality of service. in charting the direction of the firm
Our firm handles customers’ complaints There is total agreement on our
3 23 organizational vision across all levels,
well.
Our firm looks for ways to offer functions, and divisions
4 The basic values of this firm include
customers more value. 24
5 Our firm treats customers as partners. learning as a key to improvement
We measure customer satisfaction Learning in my firm is seen as a key
6 25 commodity necessary to guarantee
systematically and frequently
We systematically observe and evaluate organizational survival
7 The sense around here is that employee
the needs of our customers 26
Competitor Orientation learning is an investment, not an expense
Top management regularly discusses Managers basically agree that our
8 27 organization's ability to learn is the key
competitors’ actions
We frequently track the market to our competitive advantage
9 Entrepreneurial orientation
performance of key competitors
We frequently evaluate the strengths of our firm has higher tendency to engage in
10 28
key competitors strategic planning activities
We attempt to identify competitors’ our firm has higher ability to identify
11 29
strategies customer needs and wants
Employees throughout the organization 30 our firm has higher level of innovation
12 share information concerning our firm has higher ability to persevere in
competitor's activities 31 making our vision of the business a
13 We respond rapidly to competitive actions reality
We follow which technologies our our firm has higher ability to identify new
14 32
competitors use. opportunities
Inter-functional Coordination Technology orientation
All our firm departments are integrated Our services include high technology
33
15 in serving the needs of our target items
markets. We are very active in developing new
34
All our firm departments share resources technologies
16 We intend to develop new technologies
with other departments
All of our managers understand how 35 in order to respond to the changing
17 everyone in our firm can contribute to expectations of our customers
creating customer value We have better technological knowledge
36
We prefer team work and mutual co- than our competitors
18 we take the lead in using sophisticated
operation
All the functional departments work 37 technologies in new product
19 development
together to meet the market demand

31 32
Service Innovation
Strongly Strongly
N Dimension/items Agree Neutral Disagree
agree Disagree
We analyze the actual use of our
38
services
Our firm is strong in distinguishing
39 different groups of users and market
segments.
Staying up to date with promising new
40 services and technologies is important
for our firm.
In order to identify possibilities for new
41 services, we use different information
sources.
We are innovative in coming up with
42
ideas for new service concepts.
We align new service offerings with our
43
current business and processes.
Collaboration with other organizations
44 helps us in improving or introducing
new services.
Our firm is strong in coordinating
45 service innovation activities involving
several parties
Our company's top management gives
46
special emphasis to service innovation
Our company is able to change
(modify) our current service approaches
47
to meet special requirements of
customers.
Relative to your competitors, how can you assess the following dimensions :

The
Much Much
N Dimension Better same Worse
better worst
level
1 Customer Orientation
2 Competitor Orientation
3 Inter-functional Coordination
4 Learning orientation
5 Entrepreneurial orientation
6 Technology orientation
7 Service Innovation

33 34