Service Innovation and Performance in Micro, Small, and Medium-Sized Organizations

While service innovations, new or significantly improved services, are essential to the continued prosperity of micro, small, and medium-sized enterprises (MSMEs), the magnitude of the relationship between service innovation performance (SIP) and organizational performance (OP) for these distinct groups is unknown. This is because they are commonly assumed to be homogeneous and studied together as a single group, obscuring any meaningful or significant differences between them. In addition to providing clarity regarding the SIP-OP relationship for MSMEs, this study also examines how firm size, firm age, and customer profile impact its strength for these organizations. Hypotheses are tested with data collected from 802 Irish service MSMEs using Partial Least Squares Structural Equation Modelling (PLS-SEM) and multigroup analysis.