Outcomes of management innovation: An empirical analysis in the services industry

Abstract

The purpose of this paper is to advance the knowledge in the under-developed literature on management innovation in the services sector. Management innovation entails new internal organizational methods in which managers are closely and directly involved. Therefore, its introduction can be a powerful tool in managers' hands to promote their firms' success. Data obtained from 109 firms were analysed using structural equations modelling, in order to evaluate the influence of management innovation on different organizational outcomes. The results show that management innovation activities favour the introduction of learning capability and product innovation. Moreover, it indirectly affects the achievement of financial performance through its effect on product innovation.