Service innovation in medical device manufacturers: does the digitalization matter?

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.,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.,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.,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.