The Research On Management Mechanism Of Service Innovation In Service Enterprises

With the development of economic globalization, acceleration of social change and fewer obstacles to enter a new industry, enterprises are confronted with fiercer and fiercer competition. Innovation, especially successful service innovation, helps enterprises win competition. It is the vital strategic resources of enterprises, the only way to slow down disappearance of knowledge advantage, and key to ensure enterprises’continuous and healthy development. Innovation is fundamentally originated from employees. Service enterprises are the principal market participant of service innovation, and to a large extent, employees bear the primary role of enterprise innovation. Employees’innovative thinking and activities are the basis of enterprise innovation and provide abundant resources to continuous innovation. The key to success of innovation lies in good management. This paper studied management from the mechanism controlling phenomena instead of phenomena themselves, so as to reveal the laws of innovative management of service enterprises on a deeper level.The literature review analyzed and summarized both the foreign and domestic research results on service innovation. On the basis of studying6611papers on service innovation, which were downloaded from database of Web of Science, this paper analyzed the papers by utilizing visualization software Histcite and Citespace Ⅱ. By the means of visualization, this paper showed the development situation of service innovation, drew the picture of its historical course, and revealed the interrelationship among important papers of service innovation and the mainstream research areas. It discovered and illustrated the research frontier of service innovation, and pointed out the limitation and future development direction of this study. After literature study, this paper noticed that most foreign and domestic studies concerning service innovation concentrate on the organizational level, and paid little attention to employee service innovation activities. This is an important motivation for this paper to focus on employees’ service innovation behavior. The main part of this paper studied management mechanism of employees’ service innovative behavior. The study was conducted from three sub-mechanisms:guide mechanism, motivation mechanism and support mechanism, which are closely connected, mutually cooperative, and together stimulate employees’performance on service innovation in organizations. Furthermore, this paper discussed in depth the composition factors of aforementioned three mechanisms of guide, motivation and support, and illustrated how they work on employees’innovative behavior.In the perspective of guide mechanism, guiding factor of employee innovation behavior is innovative organization culture. There are three dimensions composing innovative organization culture:risk motivation and failure tolerance, market orientation and shared study. This study separately tested and verified each dimension’s influence on employees’innovative behavior by hierarchical regression analysis. The study result showed that all the three dimensions-risk motivation and failure tolerance, shared study, market orientation-exerted positive impact on employees’innovative behavior. By the means of case study, this paper analyzed the organizational culture of Ritz-Carlton Hotel and Singapore Airlines, and provided evidence to three dimensions of innovative culture. In order to explore how innovative culture acts on employee behavior, this paper introduced the variable of Emotion. Emotional commitment reflects individuals’ recognition and dependence on organization’s values and goals. When organization highlights the importance of innovation, individuals in the organization more often have innovative behaviors due to internal motivation. Emotional commitment plays an intermediary role in innovative organization culture and employees’service innovation. Test results of intermediate effect show that, innovative culture not only influences employees’ behaviors directly, it also exerts influence by emotional commitment as an intermediation.In the perspective of motivation mechanism.This paper divides motivation factors of employees’innovation into two kinds:one is internal motivation and the other is external innovation. By exploratory case analysis, it firstly verified the existence of external and internal motivation in China’s service enterprises, and their positive impact on employees’ service innovation. By the means of hierarchical regression analysis, this paper testified the positive impact of both internal and external motivation on employees’ service innovative behavior. Moreover, the impact of external motivation on employees’ innovative behavior is bigger than internal motivation. Existing study reveals that the combination of material incentives and spiritual incentives is beneficial to strengthening employees’ internal motivation and external behavior. Therefore, there exists interactive effect between internal motivation and external motivation in the study. Test results also proved that internal motivation and external motivation are interdependent, and collectively affect employees’ innovative behavior. Further illustration of interactive effect shows that, no matter whether internal motivation level is high or low, external motivation always has influence on innovative behavior. In the meantime, when internal motivation level is relatively high, external motivation will produce more obvious influence on innovative behavior. According to Social Exchange Theory, emotional commitment is considered as intermediate variant between motivation and innovative behavior. Test results showed that emotional commitment has partial intermediate effect between internal motivation and employee innovative behavior, while fails to function between external motivation and employee innovative behavior. Finally, evidence from a survey on the employees of Ctrip backed up the idea that external motivation can largely promote employees’ service innovative behaviors.In the perspective of support mechanism.Support measures include organizational structure, resources and institution. Firstly, organizations should provide innovators with supportive organizational structure, which is characterized by decentralization, delayering and flexibility. This kind of organization contributes to knowledge integration, and boost innovation performance. The paper demonstrate this idea by a case of bank A. Secondly, specialization in the management function of service innovation can be realized by setting up special functional department, organizing committee or appointing senior management personnel, so as to manage the service innovation of organization. This idea can be testified by cases of American Express and Hai Di Lao Hot Pot. This paper further designed the duties of such departments (positions), including collection of innovative ideas, screening of innovative ideas, setting up teams, and reviewing and motivating employees who participate in service innovation. Thirdly, for service enterprises, institutional arrangements of innovation can effectively ease confliction, leading to less coordination fees, and improved working efficiency. For example, to achieve this purpose, China Merchant Bank formulated innovation management measures and working norms. Fourthly, employees’service innovative behavior also needs the support of resources. This paper pointed out that authorization was a good way of providing support of resources, including authorization of fund, equipment and time. Employees of service enterprises need authorization, so that they will have the rights to solve problems according to their work reality and individual capability, or propose innovative ideas to promote work efficiency. Cases of service enterprises, such as Rits-Calton Hotel and Disneyland, well illustrated this idea. In the aspect of innovator obstacle, only when individuals have the knowledge and skills required by innovation, they would come up with innovative ideas, and put the ideas into practice. Therefore, organizations should select innovative employees, and pay attention to cultivating their innovative ability. The4-3-3fee principle of Singapore Airlines is a good example to illustrate this idea.Besides, this paper also pointed out that there are differences in genders and ages of employees’innovative behavior. The innovative behavior of male employees is much more than female employees’. The innovative behavior of age group "less than20"is obviously less than other age groups; age group "from21to30" is the best among all the age groups. In service enterprises, there is difference of the perception of internal and external motivation among employees with different degrees. Groups of "high school and below" and "junior college" have more perception of external motivation; groups of "college" and "master and above" have more perception of internal motivation.