An Empirical Research On Influences Of Organization Modularity On Service Innovation Performance In Knowledge Intensive Business Service Firms

Knowledge Intensive Business Service(KIBS)firms play an increasingly significant role in the process of economic transformation and upgrading because they are highly innovative and highly value-added,but a majority of KIBS firms face the dilemma of service customization and efficiency.Thanks to the widespread application of modularization in manufacturing and computer industry,modularization in KIBS has attracted much practical and theoretical attention to reconcile the trade-off between customization and efficiency.However,the limited literature mainly research service product and service process modularization according to the theory of modularization in manufacturing and computer industry,but very few papers analyze organization modularization in KIBS firms.Therefore,this study develops an empirical research to explore the effects of organization modularity(the degree of modularization)on service innovation performance in KIBS firms.Based on service modularization theory,knowledge management theory and service innovation theory,this thesis constructs a conceptual model describing the mechanism of how organization modularity,knowledge integration and strategic orientations affect service innovation performance in KIBS firms.This study conducts an empirical research with a sample of 234 KIBS firms from Chinese several provincial capitals,and the main data analysis methods,including reliability analysis,validity analysis,correlation analysis,and regression analysis,are adopted to investigate the relationship among above variables.The empirical results show that organization modularity affect service innovation performance significantly,and it reveals that knowledge integration mediates the effect of organization modularity on service innovation performance,while strategic orientations moderate the relationship between organization modularity and service innovation performance.This study further reveals the relationship between organization modularity and service innovation performance in KIBS firms,not only will it shed new light on the filed of service modularization,service innovation and strategic orientation,but it provides guidance and reference to KIBS firms on how to choose strategic orientation reasonably and improve service innovation performance continuously.