The Determinants of Service Innovation; A Systematic Review
Keywords:
Service innovation, determinants, systematic reviewAbstract
Service innovation has emerged as a critical driver of organizational competitiveness, customer satisfaction, and long-term sustainability in an increasingly digital and knowledge-based economy. Despite its growing relevance, the determinants that enable or constrain service innovation remain fragmented across behavioral, organizational, technological, and institutional domains. Understanding how these multidimensional factors interact is essential to guide both theoretical development and managerial practice. This study aims to systematically review and synthesize contemporary evidence on the determinants of service innovation across industries and regions. The objective is to identify, categorize, and analyze the behavioral, organizational, technological, and contextual factors that influence the development and performance outcomes of service innovation. Following the PRISMA 2020 framework, a systematic review was conducted using Scopus, Web of Science, and ScienceDirect databases. A total of 612 records were initially identified, and after screening and eligibility assessment, 30 studies published between 2020 and 2025 were included for analysis. Data were extracted and thematically coded into major determinant categories: organizational, leadership, behavioral, technological, knowledge-based, and institutional factors. The selected studies were summarized in a literature review matrix to enable cross-comparative synthesis. The findings reveal that service innovation is driven by a complex interplay of internal and external determinants. Behavioral factors such as leadership, motivation, and employee creativity interact with organizational enablers including dynamic capabilities, structure, and digital readiness. Technological drivers such as artificial intelligence, big data analytics, and ICT infrastructure enhance innovation efficiency and customer value creation. Meanwhile, institutional and market environments shape firms’ ability to adopt and sustain innovative practices. Collectively, these determinants contribute to improved firm performance, adaptability, and strategic competitiveness. Service innovation represents a multidimensional phenomenon that integrates human creativity, technological advancement, and organizational learning. The review underscores that success in service innovation depends on aligning behavioral and technological capabilities with supportive institutional contexts. This integrative understanding provides a foundation for future research and practical strategies aimed at building innovation-oriented cultures and sustainable service systems.
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