ABSTRACT

The concept of innovation, especially innovation in service, is facing many arguments and contradicted thoughts. For example, the technological innovation concept and meaning challenge the concept of service concepts with regard to the type of product, uniqueness of service, intangibility characteristic of service and the use of technology. Technological innovation is the adoption of new technologies that are incorporated into processes or products. Technological innovation provides long-term success in markets through high competitive advantages. Open innovation is “a distributed innovation process based on purposively managed knowledge flows across organizational boundaries”. Open innovation comes from ideas from inside or outside an organization. Organization innovation is measured through percentage of profit or sale resulting from the innovation initiatives; rate of new products, service or solutions provided; number of ideas generated; number of patent submissions; total cumulative working hours set into an innovation initiative and variety of human resource capital.