ABSTRACT
Service innovation is “new developments in activities undertaken to deliver core service products for various reasons”. Service innovation is recombining diverse resources in new or different ways to come up with added value. Another way of thinking about service innovations views them as a combination of many resources that together create value or solve a problem. Innovation in service organizations has become a chief issue in economic research and practice. That is due to the economic transition from product-based innovation to a service-support and solutions focus. The importance of innovation in service is increased because of the increase of services in international and local economic activities. One of the significant service innovation moves was focusing on customer satisfaction. The strategy of service innovation involving customer relations was part of the findings of Scupola and Nicolajsen. Their findings indicated that customers can be the path to achieving success in service innovation in service organizations.
