Initiating Service Encounter-based Innovation by Word-of-Business

Purpose – This paper aims to set up a natural experiment as action research and to develop a framework of cognitive distance of informants to
improve the initiation of service encounter-based innovation.
Design/methodology/approach – Natural experiment as action research in one Scandinavian case company is used. This paper includes a
longitudinal study over 10 month’s duration.
Findings – An organisational support system and an improved front-office innovation climate were set up which generated a new system for
information gleaning. A framework of cognitive distance was induced from transcriptions of interviews and transcriptions.
Research limitations/implications – Only one Scandinavian company and a limited number of informants were activated. Also, the time period
only included the initiation phase of service encounter-based innovation.
Practical implications – Three different strategies are suggested to respond to different types of word-of-business.
Social implications – Cognitive distance is a generic concept which relates to all human interaction and communication. It can explain why it is
so difficult to “get things across”.
Originality/value – This paper presents a new theory in an emerging innovation field, open/user-driven innovation. Theory from business
marketing, service encounter and innovation is also used.