Innovation in small and mediumsized firms in the security service industry

A case study of how security service companies can avoid the service squeeze by means of innovation and service development

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Resumé

This article is a study of innovation in the security sector based on an analysis
of three Danish security companies. It uncovers the logics and dynamics of innovation in the security business, which is part of the operational service sector.
Operational service companies are forced to choose between two major development paths: either to standardise in order to lower costs and become more competitive or to dfferentiate and even customise to avoid competition from other service companies. Due to strong competition on prices there is only small surplus to invest in innovation and developmental activities. In order to overcome this general ‘service squeeze’ and break with a mature market, security companies use different strategies for innovation. These strategies depend on the ability of the individual security companies to activate the innovative resources among employees in order to move the business activities further up in the market hierarchy of security services by offering more complex and knowledge-intensive solutions to the customers, thereby reducing price competition and increasing the profits of the business activity in the same way as known from other industries such as manufacturing.
OriginalsprogEngelsk
TidsskriftDanish Journal of Management and Business
Vol/bind78
Udgave nummer1
Antal sider18
StatusUdgivet - 2014

Citer dette

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abstract = "This article is a study of innovation in the security sector based on an analysisof three Danish security companies. It uncovers the logics and dynamics of innovation in the security business, which is part of the operational service sector.Operational service companies are forced to choose between two major development paths: either to standardise in order to lower costs and become more competitive or to dfferentiate and even customise to avoid competition from other service companies. Due to strong competition on prices there is only small surplus to invest in innovation and developmental activities. In order to overcome this general ‘service squeeze’ and break with a mature market, security companies use different strategies for innovation. These strategies depend on the ability of the individual security companies to activate the innovative resources among employees in order to move the business activities further up in the market hierarchy of security services by offering more complex and knowledge-intensive solutions to the customers, thereby reducing price competition and increasing the profits of the business activity in the same way as known from other industries such as manufacturing.",
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AB - This article is a study of innovation in the security sector based on an analysisof three Danish security companies. It uncovers the logics and dynamics of innovation in the security business, which is part of the operational service sector.Operational service companies are forced to choose between two major development paths: either to standardise in order to lower costs and become more competitive or to dfferentiate and even customise to avoid competition from other service companies. Due to strong competition on prices there is only small surplus to invest in innovation and developmental activities. In order to overcome this general ‘service squeeze’ and break with a mature market, security companies use different strategies for innovation. These strategies depend on the ability of the individual security companies to activate the innovative resources among employees in order to move the business activities further up in the market hierarchy of security services by offering more complex and knowledge-intensive solutions to the customers, thereby reducing price competition and increasing the profits of the business activity in the same way as known from other industries such as manufacturing.

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