Abstract

This research aims to explore the relationship between service innovation and international development of service firms. Therefore a theoretical model is tested with the purpose of explaining how firms achieve international performance. Data from a specific survey answered by 51 top managers of business service firms are analyzed using the Partial Least Squares method. The result shows that service innovation does play a significant role in international performance but far less than international experience. Symmetrically, international competence of the firm’s personnel enhances innovative behavior. The ability to use ICT appears also to be a powerful driver for both strategies.

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