Purpose This study aims to validate a model of relationships between critical factors such as service strategy, culture-climate, leadership, customer involvement, technology strategy and service innovation (SI). Moreover, it investigates the impact of SI on a company’s performance and the moderating role of digitalization in the relationships between critical factors and SI. Design/methodology/approach Primary data were collected through a survey and partial least squares structural equation modeling was used to analyze the collected data and test the research hypotheses. Findings The results suggest positive associations of service strategy toward culture-climate, leadership, customer involvement and technology strategy in terms of significance and effect size. However, only two factors (e.g. customer involvement and technology strategy) positively influence SI, which affects financial and non-financial performance. Furthermore, digitalization does not strengthen the influence of four antecedents (i.e. culture-climate, leadership, customer involvement and technology strategy) in SI. Originality/value First, the study provides a comprehensive framework of SI critical factors and their impact on company performance. Second, it links servitization, SI and digitalization. Third, it tests the effects of digitalization.

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The literature on service innovation has identified many factors that contribute to its success. However, the literature is fragmented concerning identifying and analyzing the critical factors that lead to success in service innovation. This article has two main objectives. First, we describe, analyze, and synthesize these critical factors via a literature review of the research conducted on service innovation. Second, we outline a framework that consists of the most influential Critical Success Factors (CSFs). The systematic literature review analyzed a sample of 317 articles published between 1985 and 2018. The analysis identified 16 of the most influential critical factors that are included in a proposed conceptual framework for service innovation. This article contributes theoretically with an analysis and synthesis of the success factors for service innovation and by offering a practical tool in the form of a conceptual framework that can be used as an analytical tool by firms and their service managers. Furthermore, this study identifies new areas for research in service innovation, focusing on discovering CSFs for service innovation in manufacturing companies, the influence of specific CSFs in organizational performance, or by empirically validating our conceptual framework as well as the impact of new technologies on success innovation factors. In the conclusion, we discuss the limitations of the research and offer suggestions for future studies.

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