Open Innovation and Service Management: Iranian Banks Case Study

The emergence of the open innovation paradigm in the innovation management environment shows that organizations require development and cooperation of foreign partners alongside their internal research and development, to guarantee their success of offering new products and services. The service economy is highly significant in the modern world, and innovation is a vital component in the success of a service organization. Therefore, this research examines the importance of service management in the banking industry and the effect of open innovation and its impact on the delivery of service packages. The statistical population used in this research includes staff of public and private banks in Tehran, I ran. Over 500 questionnaires were gathered from within the banking industry. To evaluate the validity, first and second order confirmative factor analysis was used and to determine reliability, alpha-cronbakh was used. Research hypothesizes been assessed using structural equation models and route analysis. Findings show service packages have a positive effect on open innovation and service management. Also, that open innovation has a positive impact on service management. These effects are more significant in private banks in comparison to public banks. Results also confirm Open innovation has the intermediating role in the relationship between banking Services Packages and service management. This result would be a useful tool to change executive management's view of the service sector.