The role of customer relations for innovativeness and customer satisfaction A comparison of service industries

Purpose - The purpose of this paper is to provide insights into commonalities and differences of service innovation across industries. The compared sectors are logistics service providers and IT service providers (SPs). Design/methodology/approach - Data were collected from 778 SPs via an online survey. Structural equation modelling was used to analyse the empirical data. Findings - Both types of SPs benefit from close customer relations in terms of innovativeness and customer satisfaction. However, ITSPs rely more on a large number of customers to be innovative than logistics service providers (LSPs), further, LSPs can evoke a higher level of customer satisfaction when being innovative. Research limitations/implications - Empirical data were collected in a single country (Germany) and at one point in time. A confirmation of the results in different service settings is therefore encouraged. Practical implications - The results help managers with regard to their strategic decisions. The differentiating effects influencing innovativeness and customer satisfaction have been revealed. Originality/value - The research is extended by developing a model based on the knowledge of service innovation, social exchange theory and industry characteristics and by empirically testing this model.