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Innovating into trouble : when innovation leads to customer complaints
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Roper, Stephen and Bourke, Jane (2022) Innovating into trouble : when innovation leads to customer complaints. Research Policy, 51 (10). 104593. doi:10.1016/j.respol.2022.104593 ISSN 0048-7333.
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Official URL: https://doi.org/10.1016/j.respol.2022.104593
Abstract
This paper examines the unintended consequences of innovation. We show that innovative activity can have adverse outcomes in the form of increased customer complaints with the potential for reputational and financial damage. Complaints may arise directly from adverse reactions to innovative services or indirectly from service failures where firms over-prioritise innovation. Our empirical analysis focuses on legal services in England and Wales. Survey data on innovation by legal service providers is matched with complaints data from the Legal Ombudsman for England and Wales. This allows us to identify the links between innovation activity and subsequent customer complaints. Our analysis reveals that higher levels of innovation activity increase the probability and number of consumer complaints. We identify how firms can reduce the potential for consumer complaints by adopting collaborative innovation strategies. In addition, firms with international competitors are less likely to face complaints. Our results have strategic, regulatory and policy implications.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HF Commerce | ||||||||
| Divisions: | Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management Faculty of Social Sciences > Warwick Business School |
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| Library of Congress Subject Headings (LCSH): | Consumer complaints, Technological innovations, Legal services -- England, Legal services -- Wales | ||||||||
| Journal or Publication Title: | Research Policy | ||||||||
| Publisher: | Elsevier BV | ||||||||
| ISSN: | 0048-7333 | ||||||||
| Official Date: | December 2022 | ||||||||
| Dates: |
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| Volume: | 51 | ||||||||
| Number: | 10 | ||||||||
| Article Number: | 104593 | ||||||||
| DOI: | 10.1016/j.respol.2022.104593 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Date of first compliant deposit: | 30 June 2022 | ||||||||
| RIOXX Funder/Project Grant: |
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