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Professor Thomas Dotzel has won the 2013 Best Services Article Award at the 23^rd annual Frontiers in Service Conference held in Miami from June 26-29, 2014. The award comes from the American Marketing Association鈥檚 Services Marketing Special Interest Group, an organization comprised of the world鈥檚 top services marketing scholars, and is designed to honour the best services paper across all journals in the prior year (2013). Professor Dotzel received this award for his paper entitled, 鈥淪ervice Innovativeness and Firm Value,鈥� published in the top tier marketing journal, Journal of Marketing Research.

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Dotzel, Thomas, Venkatesh Shankar, and Leonard Berry (2013), 鈥淪ervice Innovativeness and Firm Value,鈥� Journal of Marketing Research, 50 (2), 259-276.

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Service innovativeness, or the propensity to introduce service innovations to satisfy customers and improve firm value at acceptable risk, has become a critical organizational capability. Service innovations are enabled primarily by the Internet or people, corresponding to two types of innovativeness: e- and p-innovativeness. The authors examine the determinants of service innovativeness and its interrelationships with firm-level customer satisfaction, firm value, and firm risk and investigate the differences between e- and p-innovativeness in these relationships. They develop a conceptual model and estimate a system of equations on a unique panel data set of 1049 innovations over five years, using zero-inflated negative binomial regression and seemingly unrelated regression approaches. The results reveal important asymmetries between e- and p-innovativeness. Whereas e-innovativeness has a positive and significant direct effect on firm value, p-innovativeness has an overall significantly positive effect on firm value through its positive effect on customer satisfaction but only in human-dominated industries. Both e- and p-innovativeness are positively associated with idiosyncratic risk, but customer satisfaction partially mediates this relationship for pinnovativeness to lower this risk in human-dominated industries. The findings suggest that firms should nurture e-innovativeness in most industries and p-innovativeness in human-dominated industries.