Process reference frameworks as institutional arrangements for digital service innovation. (October 2020)

• Record Type: Journal Article
• Authors: Iden, Jon; Eikebrokk, Tom Roar; Marrone, Mauricio
• Is Part Of: International journal of information management. Volume 54(2020)
• Publication Date: 2020-10
• Subjects: Digital service innovation -- Process reference framework -- ITIL -- Service-dominant logic -- Institutional arrangements; Social sciences -- Information services -- Periodicals; Social sciences -- Research -- Periodicals; Information science -- Periodicals; Management information systems -- Periodicals; Knowledge management -- Periodicals; Sciences sociales -- Documentation, Services de -- Périodiques; Sciences sociales -- Recherche -- Périodiques; Sciences de l'information -- Périodiques; Systèmes d'information de gestion -- Périodiques; Information science; Management information systems; Social sciences -- Information services; Social sciences -- Research; Periodicals; Electronic journals; 025.52068
• DOI: 10.1016/j.ijinfomgt.2020.102150
• Languages: English
• ISSNs: 0268-4012

Abstract

Highlights: We investigate to what extent the use of process reference frameworks influence the IS organization's capabilities for digital service innovation. We conduct a cross-sectional study in the Sweden, Denmark, Finland and Norway. We find that process reference frameworks influence digital service innovation directly, and indirectly by stimulating a positive digital service climate and digital service co-creation. We contribute by closing a gap in the literature regarding the nature of institutional arrangements for value co-creation and digital service innovation. We contribute by revealing how process-oriented frameworks can stimulate organizational changes that increase the innovation capabilities and thus, the success of the IS organization. Abstract: Information systems (IS) service organizations are increasingly more concerned with their ability to co-create digital services with customers in service ecosystems. Practitioners and researchers, however, lack understanding of which organization mechanisms effectively contribute to IS organizations' innovation practices. Grounded in service-dominant logic, we hypothesized that process reference frameworks (PRFs), such as the IT Infrastructure Library (ITIL), act as institutional arrangements through their norms, rules, and practices, enhancing IS organizations' ability to innovate digital services. Data collected from 159 IS organizations confirmed our hypotheses, showing that effects on digital service innovation are mediated by an organization's digital service climate and co-creation practices. This study makes four major contributions. First, our results contribute to the literature on service-dominant logic and the role of institutional arrangements in facilitating service innovation in service ecosystems. Second, our study offers a novel understanding of PRFs' role in value co-creation and digital service innovation. Third, by introducing the digital service climate from existing theoretical frameworks that might assist in conceptualizing the role of culture and shared meaning, our study contributes to further theorizing on the social factors that influence service ecosystem practices. Finally, our findings can motivate IT managers to consider using PRFs to develop capabilities for creating business value together with customers.