Impact of service standardization on service innovation

Most studies about the impact of standardization on innovation focus on manufacturing sectors for which they often report positive impacts. However, in many countries services represent more than 50 per cent of gross domestic product, and while the number of standards for services is small, it is increasing. This chapter addresses service standardization and its impacts on innovation. First, this chapter presents a model that allows us to study service standardization and innovation in a systematic way. Next, we develop a conceptual model about the impact of service standards, and involvement in service standardization committees on service innovation, at the level of individual organizations as well as at market level. Testing this model in an empirical case, we show a positive impact of a standard at both levels, which seems to be enhanced by participation in standards setting. However, this is just one case, and many categories of service standards and of service innovation apply, so more research is needed; the chapter ends with suggesting directions for future research.