Important Factors for Innovation in Physical Distribution and Commercial Distribution (1)

ABSTRACT

1. Innovation in services is comprised of service product innovation, service delivery innovation and service environment innovation.

2. The following important factors for innovation in physical distribution and commercial distribution were derived by Kimura (2008) (Research Report No. 309): (1) that it is possible to adequately acquire the necessary information for business at the business locations from the information systems, (2) a company-wide prevalence of a strong customer-oriented philosophy that begins with top management, (3) the activity of small groups at the business locations ((1) and (2) are factors for both service product innovation and service delivery innovation in physical distribution and commercial distribution, (3) is a factor of service delivery innovation in physical distribution, and of service product innovation and service delivery innovation in commercial distribution). These factors were verified based on the results of a questionnaire survey.

3. The results of this verification reject hypothesis (1) regarding service delivery innovation in physical distribution and service product innovation in commercial distribution, but support the other hypotheses. For companies to gain an edge in service innovation among other companies in the same industry, it is necessary that they pay attention to the factors verified as significant.