Abstract
In order to enhance customer’s satisfaction and loyalty as well as to render the customer service department to be more devoted to serving customer, the target case in this article, a global semiconductor assembly and testing company’s subsidiary located in Taiwan, has undertaken a stream of internal organizational changed by service innovation since the end of 2015. For example, it expanded its customer service department, separated customer service and production planning department, adopted full turnkey concept in service, and strengthened on-job training of internal and external customer service to all employees. By so doing, it is able to transfer from a production-oriented firm to a customer-oriented one. However, here comes what is called “the dilemma of service innovation” in this article when modern business is overly stressing service innovation internally. So, this paper herein attempts to provide some simple but rather illuminative suggestions to managers in practice facing this urgent issue. Methodologically, the participative action is used to collect the empirical data for the qualitative analysis, so I can highly involve myself into all the contexts, cultures, and details of the case. In the end, it is discovered that service innovation is effective and feasible in the outsourced semiconductor assembly and testing industry particularly by virtue of customers’ positive feedbacks and the decrease of overtime of customer service department.