The Effects of Service Innovation to Customer Satisfaction on Electrical and Electronic Industries in Taiwan

[[abstract]]According to the variation of the world economic structure, the economic development has turned into a service economy era now. The service economy caused a great deal of impact for the manufacturing industry in this macro environment. The managers have been actively thinking about a new business model, adding in the concept of service innovation to enhance the additional values of their products and service quality to achieve customer satisfaction. Manufacture industry has got into the era of manufacturing services. In this paper, we attempt to explore the research model through reviewing the literature. The study aims to discuss the relationship among four aspects including service innovation, relationship bonds, service quality and customer satisfaction. To understand whether manufacturing industry to initiation service innovation with their customers have positive effects under the Business to Business viewpoint in Taiwan. The subject of this study is the Electrical and Electronic Industries in Taiwan, and the data are collected by questionnaires. This study use structural equation modeling (SEM) to conduct analysis. The results of this study, service innovation has a positive effect on relationship bonds. Service innovation and relationship bonds have a positive effect on service quality. Service quality has a positive effect on customer satisfaction, but the impact of service innovation and relationship bonds on customer satisfaction is not significant. The advance analysis presented, service innovation and relationship bonds would affect customer satisfaction only when service quality have been improved. Secondly, research and development of new market and new client interface are the main reason for customer dissatisfaction in service innovation aspect. Therefore, the study suggests that the manager of Electrical and Electronic Industries should focus on R & D of new market and new client interface to improve the performance. This will promote service quality and customer satisfaction, also reached the companies? operation goal. The study result will provide the business model transformation of Electrical and Electronic Industries for reference