Driving Innovation in Service Organizations: A Study in the German Airport Industry

209 Pages·2013·5.91 MB·English

by  Jessica Scheler (auth.)

Markt- und Unternehmensentwicklung /
Markets and Organisations
Edited by
A. Picot, München, Germany
R. Reichwald, Leipzig, Germany
E. Franck, Zürich, Switzerland
K. M. Möslein, Erlangen-Nürnberg, Germany
Change of institutions, technology and competition drives the interplay of markets
and organisations. The scientific series ‘Markets and Organisations’ addresses a
magnitude of related questions, presents theoretic and empirical findings and
discusses related concepts and models.
Edited by
Professor Dr. Dres. h. c. Arnold Picot Professor Dr. Egon Franck
Ludwig-Maximilians-Universität Universität Zürich, Switzerland
München, Germany
Professorin Dr. Kathrin M. Möslein
Professor Dr. Professor h. c. Dr. h. c. Universität Erlangen-Nürnberg,
Ralf Reichwald Germany,
HHL – Leipzig Graduate School HHL – Leipzig Graduate School
of Management, Leipzig, Germany of Management, Leipzig, Germany
Jessica Scheler
Driving Innovation
in Service Organizations
A Study in the German Airport Industry
Foreword by Prof. Dr. Kathrin M. Möslein
RESEARCH
Jessica Scheler
Leipzig, Germany Bernhard Schmidt
Voestalpine Langenhagen, Deutschland
Linz, Österreich
HHL – Leipzig Graduate School of Management, Leipzig, 2011
ISBN 978-3-8349-3406-2 ISBN 978-3-8349-3839-8 (eBook)
DOI 10.1007/978-3-8349-3839-8
The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie;
detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.
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Foreword VII
FOREWORD

Our world is increasingly characterized by services. Globalization, technological progress,
and intensifying competition challenge service firms to constantly fuel their engine of
renewal. Hence, the development of new services is key to keep on prospering in this
demanding environment. Ever since Schumpeter’s (1942) classic work, this need for renewal
and innovation in dynamic environments is widely acknowledged in academia. Nevertheless,
rigorous studies on service innovation in general and on resources that affect the ability to
innovate of service organizations in particular remain scarce until today.
In the present research study, “Driving Innovation in Service Organizations – a Study in
the German Airport Industry”, Jessica Scheler reaches beyond the earlier works on service
innovation. Her exploratory journey studying executives dealing with innovation activities at
German airports provides deep insights into and extensive descriptions of activities and
resources affecting the ability to innovate of service organizations. Her data cover extensive
narratives from twenty-four interviews with executives working at the seven largest German
airports. Narratives were systematically condensed to robust categories revealing drivers and
barriers influencing the development of service innovations on an individual and
organizational level. The most exciting key finding of her research is the discovery and
exploration of innovation opponents and the roles they can play in innovation activities. Her
study contradicts the widespread belief that resistance is solely obstructive for driving
innovation. It reveals specific types of innovation opponents that have a positive influence on
an organization’s ability to innovate.
Jessica Scheler delivers considerable value for both, academia and management. Empirical
results contribute to research on service innovation and the roles that individuals play in
innovation activities. Service organizations and especially airports will benefit from this
study’s results by better understanding how to prepare for future opportunities and challenges
by fostering their ability to innovate. More precisely, valuable recommendations for
leadership issues and organizational structure regarding innovation are given.
The book deserves broad dissemination both in academia and management practice. I truly
recommend it as a valuable reading and resource - especially to those with a deep interest in
better understanding and strengthening the ability to innovate in service organizations.

Prof. Dr. Kathrin M. Möslein
Preface IX
PREFACE

I have always been fascinated by the phenomenon of innovation. It makes perfectly sense and
sounds quite simple – at least in theory. However, my professional life has taught me that it
ain’t always – pitfalls and barriers make it often difficult to bring an innovation to life. I guess
it was this perceived contradiction that triggered my curiosity to dig deeper into this topic
with the aim to better understand drivers as well as barriers having an impact on an
organization’s ability to innovate. This ability is of particular importance in times of changing
markets and consumer needs. Service organizations such as airports have impressively
demonstrated their ability to adapt to these changes. Over the last decades, the non-aviation
segment has become the central growth driver for airports worldwide. The systematic
development of this segment – that is far beyond the traditional core business of an airport –
requires innovation. Hence, airports represent an exciting and valuable empirical field for my
research project. Luckily – because I have always been fascinated by these gateways to the
world that mark the beginning or the end of a journey.
This dissertation is the result of an exciting, adventurous, and intensive journey. It was
only made possible by a number of travel companions. Their support played a decisive part in
making it possible for me to successfully achieve the final destination.
First, and foremost, I would like to thank my supervisor Prof. Dr. Kathrin M. Möslein
for her passion, motivation, and patience. She never got tired to listen to my – sometimes
complex and confused – thought processes. And she always had constructive as well as
valuable feedback that helped me developing this thesis.
Further, I am grateful to Dr. Marcus Kölling, my second advisor, for his outstanding
support and trust. He has been an experienced, creative, and inspiring sparring partner, tireless
motivator, and reliable companion. A substantial share of the successful completion of this
journey belongs to you. Thank you for your guidance, your passion for scientific work that
you shared with me, and your valuable friendship!!
I was lucky to do research in an environment of cooperative and engaged colleagues at
the Center for Leading Innovation and Cooperation (CLIC) at Leipzig – Graduate School of
Management (HHL). Special thanks go to Dr. Anne-Katrin Neyer, Nicole Horbas, and
Claudia Lehmann. I benefitted not only from our conversations and your comments, but also
from your friendship that I would not want to miss. I would also like to thank Christiane
Stempel and Daniel Schölzel for their excellent research assistance. Furthermore, I am
X Preface
grateful to Vera Pfundt and Doreen Merkel who transcribed large parts of the interviews for
this dissertation.
This dissertation emerged in the context of the project ‘Open-I: Open Innovation
within the Firm’ (FKZ 01FM07053, 01FM07054 and 01FM07055) and, hence, benefitted
from support of the German Federal Ministry of Education and Research and the European
Social Fund.
Furthermore, all the exciting findings of this study depend on a number of people who
shared their time, experiences and valuable insights with me during the interviews. I would
like to thank all of them for their motivation and openness.
Special thanks are reserved for my friends. They accompanied me on my journey and
their loving support helped me finding my way through this challenging time. I am indebted
to you: Saida El Morabiti, Sonja Haase, Nicole Henninger, Verena Hensel, Nicole Jaser, Julia
Lichtenberg, Bettina Meyer-Breiting, Thilo Schreiner, Ricarda Vinnemeier.
Finally, I am especially grateful to my family, and foremost my mother, Jutta Scheler.
She has supported me throughout my life, laid the foundations for me to become the person I
am, and has always believed in my capabilities. Thank you for your love. In addition, I would
like to express my gratitude to my aunt and uncle, Gudrun and Sebald Pallhorn, as well as my
cousins Sabine Karl, Ulrike Wälde, Stefan Pallhorn and their families. Throughout my life, I
was the “fourth child” and your caring support means a lot to me.

Jessica Scheler
Table of Contents XI

TABLE OF CONTENTS

FOREWORD ............................................................................................................ VII(cid:3)
PREFACE ................................................................................................................. IX(cid:3)
FIGURES ..................................................................................................................X V(cid:3)
TABLES .................................................................................................................X VII(cid:3)
ACRONYMS AND ABBREVIATIONS .................................................................... XIX(cid:3)
1(cid:3) INTRODUCTION ................................................................................................... 1(cid:3)
1.1(cid:3)Relevance of subject ................................................................................................................... 1(cid:3)
1.2(cid:3)Research problem and objective ................................................................................................. 3(cid:3)
1.3(cid:3)Outline of dissertation ................................................................................................................ 6(cid:3)
2(cid:3) THEORETICAL BACKGROUND .......................................................................... 9(cid:3)
2.1(cid:3)Introduction to service-dominant logic ...................................................................................... 9(cid:3)
2.2(cid:3)Service-dominant logic on innovation ..................................................................................... 14(cid:3)
2.2.1(cid:3) The traditional perspective on service: goods-dominant logic .................................... 14(cid:3)
2.2.2(cid:3) A new perspective on service: service-dominant logic ............................................... 16(cid:3)
2.2.3(cid:3) Operand and operant resources in the resource-based view of the firm and
service-dominant logic ................................................................................................ 30(cid:3)
2.2.3.1(cid:3) The resource-based view of the firm .............................................................................. 30(cid:3)
2.2.3.2(cid:3) Operand and operant resources in S-D logic: a framework ........................................... 47(cid:3)
2.2.4(cid:3) Innovation within service-dominant logic ................................................................... 59(cid:3)
2.3(cid:3)Major roles of individuals in innovation activities ................................................................... 61(cid:3)
2.3.1(cid:3) Champions, promotors, and opponents ....................................................................... 61(cid:3)
2.3.2(cid:3) Organizational climate and the occurrence of specific roles in innovation activities . 64(cid:3)
2.4(cid:3)Summary .................................................................................................................................. 65(cid:3)
3(cid:3) METHOD ............................................................................................................. 67(cid:3)
3.1(cid:3)Overview .................................................................................................................................. 67(cid:3)
3.2(cid:3)Research approach .................................................................................................................... 68(cid:3)
3.2.1(cid:3) Pre-study of the empirical field: secondary data analysis of annual reports ............... 68(cid:3)
3.2.2(cid:3) Main studies ................................................................................................................ 71(cid:3)
3.2.2.1(cid:3) Quantitative versus qualitative social research .............................................................. 71(cid:3)
3.2.2.2(cid:3) Study 1: narrative interview ........................................................................................... 75(cid:3)
3.2.2.3(cid:3) Study 2: case study approach ......................................................................................... 81(cid:3)
XII Table of Contents
3.3(cid:3)Data collection .......................................................................................................................... 84(cid:3)
3.3.1(cid:3) Pre-study of the empirical field ................................................................................... 84(cid:3)
3.3.2(cid:3) Main studies ................................................................................................................ 85(cid:3)
3.4(cid:3)Analysis and interpretation of data ........................................................................................... 86(cid:3)
3.4.1(cid:3) Pre-study of the empirical field ................................................................................... 86(cid:3)
3.4.2(cid:3) Main studies ................................................................................................................ 88(cid:3)
3.4.2.1(cid:3) Study 1: narrative interviews ......................................................................................... 88(cid:3)
3.4.2.2(cid:3) Study 2: case studies ...................................................................................................... 91(cid:3)
3.5(cid:3)Summary .................................................................................................................................. 92(cid:3)
4(cid:3) THE GERMAN AIRPORT INDUSTRY: EMPIRICAL FINDINGS FROM
THE PRE-STUDY ............................................................................................... 95(cid:3)
4.1(cid:3)Periods of change in the German airport industry .................................................................... 95(cid:3)
4.2(cid:3)Opportunities and challenges of the future ............................................................................... 97(cid:3)
4.2.1(cid:3) Findings from the position reports .............................................................................. 97(cid:3)
4.2.1.1(cid:3) Future developments perceived as opportunities ........................................................... 97(cid:3)
4.2.1.2(cid:3) Future developments perceived as challenges ............................................................... 99(cid:3)
4.2.2(cid:3) Findings from the core figures .................................................................................. 101(cid:3)
4.3(cid:3)Summary ................................................................................................................................ 103(cid:3)
5(cid:3) EMPIRICAL FINDINGS FROM THE MAIN STUDIES ....................................... 105(cid:3)
5.1(cid:3)Study 1: inductive categories – findings from the narratives ................................................. 105(cid:3)
5.1.1(cid:3) Overview ................................................................................................................... 105(cid:3)
5.1.2 Barriers and enablers on the organizational level .......................................................... 108(cid:3)
5.1.2.1(cid:3) Monitoring of environment and competitors ............................................................... 108(cid:3)
5.1.2.2(cid:3) Institutionalization of interaction and exchange .......................................................... 111(cid:3)
5.1.2.3(cid:3) Systematic approach .................................................................................................... 115(cid:3)
5.1.2.4(cid:3) Lack of organizational innovation priority .................................................................. 118(cid:3)
5.1.2.5(cid:3) Limitations in space ..................................................................................................... 121(cid:3)
5.1.3(cid:3) Barriers and enablers on the individual level ............................................................ 122(cid:3)
5.1.3.1(cid:3) Top management commitment ..................................................................................... 122(cid:3)
5.1.3.2(cid:3) Environmental pressure ............................................................................................... 125(cid:3)
5.1.3.3(cid:3) Innovation opponents ................................................................................................... 128(cid:3)
5.1.4(cid:3) Hierarchical framework of innovation relevant operant and operand resources ....... 131(cid:3)
5.1.5(cid:3) Discussion ................................................................................................................. 134(cid:3)
5.2(cid:3)Study 2: the phenomenon of innovation opponents – findings from the case studies ............ 135(cid:3)
5.2.1(cid:3) Overview ................................................................................................................... 135(cid:3)
5.2.2(cid:3) A typology of innovation opponents ......................................................................... 137(cid:3)
5.2.2.1(cid:3) Information deficit opponent ....................................................................................... 137(cid:3)
5.2.2.2(cid:3) Challenger opponent .................................................................................................... 138(cid:3)
5.2.2.3(cid:3) Routine opponent ......................................................................................................... 139(cid:3)
5.2.2.4(cid:3) Fear opponent .............................................................................................................. 140(cid:3)
5.2.2.5(cid:3) Conflict of interests opponent ...................................................................................... 141(cid:3)
5.2.2.6(cid:3) Overview: groups of innovation opponents ................................................................. 143(cid:3)