Study on service innovation with employee and customer involvement-based on service profit chain

Service innovation is the most important method for service firms to obtain and maintain advantage in competitive market. It is a complex process, which involves many participators including employees, customers and suppliers, etc. Each participator plays different role in service innovation process. It is key factors for the success of service innovation to understand and manage the roles of all participators. Among these participators, employees and customers play extremely vital roles in the process of production, diffusion, application and research of service innovation. Based on the theory of service profit chain, this paper analyzed the roles of employees and customers in service innovation and integrated customers and employees in the service innovation process.