Abstract From an organizational learning perspective,this study establishes a framework explaining the relationship of customers and service innovation,and analyzes the path of customer-firm interaction which influences the service innovation performance by influencing organization's motivations and actions to learn from customers. Following an empirical framework,a survey is developed in 122 Chinese service firms from Shanxi,Guangdong,and Jiangsu. Results indicate that: i) there is strong positive relationship between three dimensions (cooperative production,customer contact,customized service) of customer-firm interaction and organizational learning; ii) the positive relationships are moderated by organizational innovative climate and the more innovative the climate,the stronger the improvement effect; iii) the organizational learning is positive to service innovation performance significantly.
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