Innovation Strategies in Retail Services: Solutions, Experiences, Meanings

Purpose – Notwithstanding the importance that innovation scholars have accredited to Design-Driven Innovation, no attempts have been done so far to systematically study whether and how this innovation strategy can be used in the retail context in order to gain and nurture their competitive advantage. The aim of this paper is to make a first step toward closing this gap, therefore understand whether and how companies involved in retail service can create competitive advantage by the adoption of a strategy based on innovation of meanings Design/methodology/approach – Due to the complex ecosystem of variables that inevitably influence the problem, the case study approach represents the best option to grasp the different aspects highlighted by the research objectives. The analysis undergone a thorough and systematic comparison through the use of an ad hoc "paired comparison method" in which, common systemic characteristics have been intended as controlled variable in order to minimize the variance and quantity of factors that can impact on the selected case studies; intersystemic differences have been understood as explanatory variables to decree the contribution in terms of novelty in relation to the current paradigm Findings – The paper provides empirical insights about how radical innovation in meanings can be a very important lever on which retail firms can act to gain and nurture their competitive advantage. Research limitations/implications – Of course the study has several limitations, which represent however opportunities for future research. We have to say that our findings, given the exploratory nature of the study, cannot be generalized to any populations of firms or markets. Rather, they should be used as a basis to develop theoretical understanding of a complex phenomenon and draw research propositions and hypotheses to be tested in subsequent deductive empirical research Practical implications – This paper highlights the importance to think, beyond shopping experience, at the role of new meanings when designing service innovation in retail firms. Although our findings do not have statistical relevance, given the exploratory nature of the study, they suggest that Design Driven Innovation can be a viable option for retail firms managers to improve their competitiveness Originality/value – The study presented in this paper has the merit to broaden the generalizability of the Design Driven Innovation model to other industries, different from those where it was initially studied and applied. This is an important step towards conceptualizing Design Driven Innovation as a novel management paradigm