Customer Interaction and Innovation in Hybrid Offerings: Investigating Moderation and Mediation Effects for Goods and Services Innovation

Mario Schaarschmidt*, Gianfranco Walsh, Heiner Evanschitzky

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Hybrid offerings are bundles of goods and services offerings provided by the same firm. Bundling value offerings affects how firms innovate, interact with customers, and customize their goods and services. However, it remains unclear how customer interaction might drive the innovation performance of various bundled components. Therefore, this study investigates the effects of customer interactions and service customization on both goods and services innovations in a hybrid offering context, using a unique data set of 146 information technology and manufacturing firms. Customer interaction appears beneficial to both goods and services innovation in a hybrid offerings context, but service customization has different direct effects on goods versus services innovation. As a potential mediator, customer knowledge mobilization resources exert different effects on the goods and services elements of hybrid offerings. Furthermore, for high-interaction customers, medium levels of technical modularity lead to most favorable innovation outcomes for services innovation. The results thus suggest that providers of hybrid offerings should foster customer interactions, to drive the innovation performance of the good and service components, while still making sure to implement service customization strategies. These findings have notable implications for service innovation research.

Original languageEnglish
Pages (from-to)119-134
Number of pages16
JournalJournal of Service Research
Volume21
Issue number1
Early online date31 May 2017
DOIs
Publication statusPublished - 1 Feb 2018

Bibliographical note

Customer Interaction and Innovation in Hybrid Offerings: Investigating Moderation and Mediation Effects for Goods and Services Innovation
Schaarschmidt, M., Walsh, G. & Evanschitzky, H. 31 May 2017 In : Journal of Service Research. 21, 1, p. 119-134 16 p. Copyright ©2017 Sage. Reprinted by permission of SAGE Publications.

Keywords

  • customer interaction
  • goods innovation
  • hybrid offerings
  • knowledge integration mechanisms
  • services innovation

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