Abstract
Recent years have seen increased attention being given to service innovation in enterprises. Service innovation may provide a competitive advantage and give customers the new value of service. However, the new service development process is often hampered during the environment of the rapid development and fierce competition. How enterprises use organization driving forces to maximize the effectiveness of service innovation is an important issue. The method to carry out this study was using a questionnaire survey in Taiwan enterprises. Depending on the degree of innovation in service enterprises, service innovation can be divided into low innovation, incremental innovation, radical innovation and ambidextrous innovation. Then explore the driving forces and performance of the service innovation types. According to the literature, this study presents the three driving forces which affect the development of service innovation: (1) organizational entrepreneurship, (2) organizational strategy, (3) management mechanism. Our analysis finds that different service innovation types have different service performance. Ambidextrous innovation has highest degree of self-perceived competitive advantage and service performance, but the actual financial indicators suggest that its’ return on assets and net profit margin is decreased year by year. Other findings are that different service innovation types have different driving forces. Incremental innovation has low proactiveness, low empowerment, high competitor orientation and low innovative human resource, but it will be to strengthen the innovation capacity of staff through education and training. Radical innovation has low risk taking. Specifically, the usage of professional information systems on radical innovation is lower than incremental innovation. Ambidextrous innovation has high risk taking, high proactiveness and high empowerment, so their employees can decide to pursuit business opportunities. Otherwise, ambidextrous innovation has high competitor orientation, high innovative human resource, high involvement, high knowledge integrator and IT management mechanisms.