The facilitation of service encounter-based innovation - a case study of the Scandic Palace hotel

Anca Andreicut & Maria Abben

Student thesis: Master thesis


This paper investigates the conditions that facilitate service encounter-based innovation in service organisations. This is illustrated in a single case study of the front desk department at Scandic Palace hotel.
A model was developed based on three existing models which investigate conditions that should be in place to support service encounter-based innovation. The analysis is based on collected empirical data, which includes interviews with staff members, observations and internal company reports.
The investigation of the studied case has led to the conclusion that the conditions of the organizational support system and front office innovation climate, factors that influence employee creativity and the nature of service encounters influence the development of service encounter-based innovation. However, the analysis of the data has not revealed any particular examples of the task significance characteristic influencing the employees’ innovativeness. Neither did it offer an understanding of the level of creativity and intrinsic motivation of individual employees, and thus their influence on the creation of ideas.
The findings revealed that when factors that support the development of service encounters-based innovations are in place in a service organization, these would not only lead to the development of service encounter-based innovations, but also of other types of innovations, such as process innovations and service innovations. Moreover, even though the organizational factors that support practice-based innovation processes are present in a service organization, if the ideas generated by front-line employees based on service encounters lead to small changes, employees might not communicate them to the managers, and therefore these would not be formally integrated in the organisations’ innovation processes.

EducationsEconomics and Business Administration, (Bachelor/Graduate Programme) Graduate
Publication date30 Dec 2018
Number of pages90
SupervisorsFlemming Sørensen


  • service encounter-based innovation
  • front-line employees
  • direct innovation
  • tourism