The Influence of Service Innovations on Profit Growth: a Case of Motor Vehicle Retailers

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Sipho Makgopa
Alex Antonites

Abstract

Organisations implement innovation strategies to remain competitive and achieve improved business performance. Previous studies have focused more on product and technology innovations. The purpose of this article is to determine the influence of service innovations on the financial performance of organisations – specifically profit growth – using the theory of competitive advantage. A quantitative research method was employed to achieve the research objective, with linear regression analysis used to analyse the primary data. Cronbach values were calculated to determine the reliability and validity of the research instrument used to collect the primary data. The findings of the research on which this article is based, confirm the existence of a positive relationship between service innovation practices and profit growth. Recommendations are made to key stakeholders in the motor vehicle industry, and future research directions are outlined.

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