Does Service Innovation Matter in High-Tech Industry?

Service innovation has been found to be a major driver of innovation performance in service contexts. But this issue raises questions concerning the extent to which the relationship between market orientation and innovation performance holds in the high-tech industry. Relatively little research has examined how market orientation contributes to innovation performance through service innovation. We here report an empirical study of 235 Taiwanese high-tech firms to examine the influence of market orientation on service innovation and innovation performance. A noteworthy finding is that the impacts of customer orientation and competitor orientation on innovation performance are fully mediated by service innovation. However, ser-vice innovation does only partially mediate the relationship between inter-functional orientation and innovation performance. The findings of this study should help managers consider appropriate service innovation in high-tech industry