Introduction
Service innovation analysis
Types of service innovation
The innovation decision
Models and estimations
One-stage model
Two-stage model
Data and variables
Data
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The ICT-based services according to the nomenclature published in “The directory of ICT in Tunisia”
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The Banks listed in the “Tunisia’s Professional Association of Banks and Financial Institutions (APTBEF)”
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Insurance Companies that are listed in the “Tunisian Federation of Insurance Companies (FTUSA)”.
Size | Total | New-to-market (%) | New-to-firm (%) | Both (%) | |||
---|---|---|---|---|---|---|---|
Number of respondents | INS’ firms | Corrected weight | % | ||||
1–6 | 23 | 12649 | 903.5 | 21.30 | 20 | 5.55 | 24.56 |
7–9 | 17 | 785 | 78.5 | 15.74 | 0 | 16.66 | 15.78 |
10–19 | 18 | 713 | 89.125 | 16.67 | 10 | 27.77 | 15.54 |
20–49 | 13 | 509 | 63.625 | 12.04 | 30 | 5.55 | 12.28 |
50–90 | 10 | 230 | 38.33 | 9.26 | 0 | 11.11 | 7.01 |
100–199 | 10 | 167 | 18.55 | 9.26 | 10 | 11.11 | 7.01 |
≥200 | 17 | 215 | 13.43 | 15.74 | 30 | 22.22 | 15.78 |
Total | 108 | 15268 | 215.04 | 100 | 9.26 | 16.66 | 52.77 |
The variables
Service innovation
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First, we measure the innovation output (INSERV) by a binary variable taking the value 1 if the firm has innovated over the previous three years and 0 otherwise. This measure is obtained by asking informants to indicate if the firm has introduced or not a new or a significant improved product and/or process;
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Second and for the one-stage model, the innovation decision is measured by a discrete variable with four outcomes (InDec). In this case, the firm faces four choices: (0) no-innovation, (1) new-to-market innovation, (2) new-to-firm innovation or (3) both;
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Third and in the two-stage model, the innovation decision is measured by a discrete variable with only three outcomes (InDecII).
Size and vintage of the firm
Education level
Group membership
Cooperation and commitment in innovation activities
Codes | Activities |
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R&Dint | Experimental R&D (R&D in house) |
R&Dext | Acquisition of services of R&D (R&D external) |
MACH | Acquisition of equipment related to the technological innovations |
LOGC | Acquisition of software and other external technologies related to the technological innovations |
FORM | Training of personnel related to the innovation process |
MARK | Internal/external marketing strategy for service innovation |
International orientation
The aims of innovation
Empirical results
Test of significance of the models
Actual probability | One-stage model | Two-stage model | ||||
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Number | % | Predicted probability | % | Predicted probability | % | |
0: No-innovation | 23 | 21.30 | 13 | 12.04 | - | - |
1: New-to-market | 10 | 9.26 | 4 | 3.70 | 5 | 5.88 |
2: New-to-firm | 18 | 16.67 | 3 | 2.78 | 3 | 3.53 |
3: Both | 57 | 52.78 | 46 | 42.59 | 50 | 58.82 |
Number of observation 1–3 | 85 | 58 | ||||
Number of observation 0–3 | 108 | 66 | ||||
Correct prediction rate | 61.11 | 68.23 |
Variables | Multinomial Probit model | |||||||
---|---|---|---|---|---|---|---|---|
No-innovation | New-to-market only | New-to-firm only | Both | |||||
dy/dx | SE | dy/dx | SE | dy/dx | SE | dy/dx | SE | |
Internal knowledge sourcing | ||||||||
Engaging in innovation activities (ENGAG) | 0.104 | 0.110 | −0.058 | 0.041 | −0.026 | 0.023 | −0.019 | 0.123 |
External knowledge sourcing | ||||||||
Cooperation (COOPER) | −0.251 | 0.088*** | −0.041 | 0.036 | 0.029 | 0.029 | 0.262 | 0.101*** |
International orientation (INTER) | −0.034 | 0 .027 | −0.011 | 0.018 | −0.001 | 0.011 | 0.047 | 0.036 |
Absorptive capacity | ||||||||
Education level (QUAL) | 0.098 | 0.114 | −0.048 | 0.086** | 0.178 | 0.079** | −0.228 | 0.175 |
Group membership (APP_GROUP) | 0.048 | 0.094 | −0.019 | 0.038 | 0.031 | 0.037 | −0.060 | 0.119 |
Resources | ||||||||
Size (SIZE) | 0.085 | 0.067 | 0.055 | 0.043 | 0.044 | 0.032 | −0.185 | 0.084** |
Size-squared | −0.004 | 0.008 | −0.004 | 0.004 | −0.004 | 0.004 | 0.012 | 0.010 |
Firm vintage (AGE) | −0.009 | 0.005* | −0.005 | 0.003 | 0.002 | 0.001 | 0.012 | 0.006* |
The aims of the innovation | ||||||||
Replace obsolete services (SERV_OBS) | 0.042 | 0.026 | −0.004 | 0.015 | −0.007 | 0.010 | −0.031 | 0.032 |
Improve service quality (QUAL_SERV) | −0.035 | 0.039 | 0.132 | 0.062 | −0.025 | 0.021 | −0.072 | 0.076 |
Extend the line of services (GAM_SERV) | −0.022 | 0.028 | 0.042 | 0.027 | 0.021 | 0.013 | −0.041 | 0.042 |
Sustain the market share (PART_MAR) | −0.052 | 0.040 | −0.138 | 0.061** | 0.021 | 0.018 | 0.169 | 0.081** |
Reduce production cost (RED_COUT) | −0.027 | 0.020 | −0.018 | 0.019 | −0.025 | 0.011** | 0.071 | 0.035** |
Log-likelihood | −6964.8497 | |||||||
Likelihood Ratio statistic (LR) | 10119.297 | |||||||
Prob > LR | [0.000] | |||||||
AIC | 14013.7 | |||||||
BIC | 14122.69 | |||||||
R squared | 0.42 | |||||||
Number of observation | 99 |
Variables | Probit model | Multinomial Probit model | ||||||
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New-to-market only | New-to-firm only | Both | ||||||
dy/dx | SE | dy/dx | SE | dy/dx | SE | dy/dx | SE | |
Internal knowledge sourcing | ||||||||
Engaging in innovation activities (ENGAG) | −0.193 | 0.120 | −0.062 | 0.041 | −0.029 | 0.023 | 0.091 | 0.048* |
External knowledge sourcing | ||||||||
Cooperation (COOPER) | 0.191 | 0.087** | −0.039 | 0.044 | 0.025 | 0.029 | 0.014 | 0.057 |
International orientation (INTER) | 0.040 | 0.020** | −0.010 | 0.019 | 0.000 | 0.011 | 0.010 | 0.023 |
Absorptive capacity | ||||||||
Education level (QUAL) | 0.060 | 0.125 | −0.041 | 0.085 | 0.164 | 0.087*** | −0.122 | 0.124 |
Group membership (APP GROUP) | 0.057 | 0.046 | −0.022 | 0.036 | 0.037 | 0.035 | −0.014 | 0.056 |
Ressources | ||||||||
Size (SIZE) | −0.007 | 0.048 | 0.063 | 0.044 | 0.057 | 0.036 | −0.121 | 0.056** |
Size-squared | −0.003 | 0.006 | −0.005 | 0.004 | −0.005 | 0.004 | 0.010 | 0.006* |
Firm vintage (AGE) | 0.009 | 0.005 | −0.004 | 0.003 | 0.001 | 0.001 | 0.002 | 0.003 |
The aims of the innovation | ||||||||
Replace obsolete services (SERV_OBS) | −0.023 | 0.020 | −0.002 | 0.013 | −0.006 | 0.010 | 0.009 | 0.017 |
Improve service quality (QUAL_SERV) | 0.043 | 0.045 | 0.119 | 0.056** | −0.021 | 0.021 | −0.097 | 0.059* |
Extend the line of services (GAM_SERV) | 0.020 | 0.022 | 0.038 | 0.024 | 0.021 | 0.014 | −0.059 | 0.029** |
Sustain the market share (PART_MAR) | 0.037 | 0.037 | −0.125 | 0.056** | 0.015 | 0.019 | 0.110 | 0.060* |
Reduce production cost (RED_COUT) | 0.037 | 0.019* | −0.019 | 0.019 | −0.025 | 0.010** | 0.044 | 0.023* |
Log-likelihood | −1526.3879 | −4360.0491 | ||||||
Likelihood Ratio statistic (LR) | 20814.832 | 6830.8306 | ||||||
Prob > LR | [0.000] | [0.000] | ||||||
AIC | 4627.886 | 8776.098 | ||||||
BIC | 4664.217 | 8842.443 | ||||||
R squared | 0.80 | 0.44 | ||||||
Number of observation | 99 | 79 |