The Effect of Interactivity between Knowledge Intensive Business service (KIBS) firms and Customers on Innovations in KIBS Firms

Abstract
It is now well established that innovation and
knowledge management can improve firm’s
performance. However, questions like what kind of
factors affect the innovations and how knowledge is
related to innovation remain largely uninvestigated.
In this study, we partially examine what is the key
factor for facilitating innovations and how this factor
is formed in the case of Knowledge Intensive
Business Services (KIBS) firms. The innovation in
services is often the result from a collaborative
process between KIBS firms and client firms. We
examine the role of interactivity in shaping
innovations in KIBS firms and subsequent impact on
firm performance. We collected data from 91 IT
Service Management firms through the survey
method. The results show that interactivity may be a
significant indicator of innovation within KIBS firms.
This study provides a blueprint to further
investigation of the critical role of service in service
science perspectives.

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