Modeling the impact of service innovation for small and medium enterprises: A system dynamics approach

Small and medium-sized enterprises have played an important role in Taiwan's economic development. As the importance of service grows, SMEs could undergo transformation via service innovation. SMEs are likely to encounter within the context of globalization and tried to identify the key factors...

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Published inSimulation modelling practice and theory Vol. 82; pp. 84 - 102
Main Authors Hsieh, Yen-Hao, Chou, Yun-Hsuan
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.03.2018
Subjects
Modeling
Resource-based theory
Service innovation
Simulation
Small and medium enterprises
System dynamics
System dynamics
Small and medium enterprises
Simulation
Service innovation
Resource-based theory
Modeling
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Abstract Small and medium-sized enterprises have played an important role in Taiwan's economic development. As the importance of service grows, SMEs could undergo transformation via service innovation. SMEs are likely to encounter within the context of globalization and tried to identify the key factors influencing service innovation. Resource-based theory was used to construct system dynamics models for the SMEs prior to and after service innovation in order to develop a set of evaluation mechanisms. Simulation results showed that SMEs face operational difficulties due to globalization. Thus, SMEs should invest appropriate resources to develop market adaptability, knowledge application capability, collaboration abilities, and the effective application of information technology. This will enhance the overall service innovation capability of the business, which could then establish a new service value and increase market competitiveness.
AbstractList Small and medium-sized enterprises have played an important role in Taiwan's economic development. As the importance of service grows, SMEs could undergo transformation via service innovation. SMEs are likely to encounter within the context of globalization and tried to identify the key factors influencing service innovation. Resource-based theory was used to construct system dynamics models for the SMEs prior to and after service innovation in order to develop a set of evaluation mechanisms. Simulation results showed that SMEs face operational difficulties due to globalization. Thus, SMEs should invest appropriate resources to develop market adaptability, knowledge application capability, collaboration abilities, and the effective application of information technology. This will enhance the overall service innovation capability of the business, which could then establish a new service value and increase market competitiveness.
Author Hsieh, Yen-Hao
Chou, Yun-Hsuan
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Keywords System dynamics
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Service innovation
Resource-based theory
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Snippet Small and medium-sized enterprises have played an important role in Taiwan's economic development. As the importance of service grows, SMEs could undergo...
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SubjectTerms Modeling
Resource-based theory
Service innovation
Simulation
Small and medium enterprises
System dynamics
Title Modeling the impact of service innovation for small and medium enterprises: A system dynamics approach
URI https://dx.doi.org/10.1016/j.simpat.2017.12.004
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