An evolutionary framework for service innovation: Insights of complexity theory for service science

There is an increasing need for a theory-based and industry-oriented framework for service innovation in both research and practice. However the study of service innovation has been somewhat limited. This paper applies two models of complexity theory (Kauffman's NK model in biology and organizational ambidexterity in organization science) for service innovation and proposes a novel perspective on service innovation as an evolutionary process, which is interactive, local, unpredictable, and emergent. The paper also proposes a typology of service innovation that includes eight different strategic orientations of service innovation; also included are illustrations from a knowledge-intensive service industry, particularly the IT-based consulting and service industry sector. Drawing from this complexity theory perspective, the paper discusses numerous implications for future conceptualization of service, multidimensionality of service innovation, and service innovation strategies. (C) 2011 Elsevier B.V. All rights reserved.