Abstract:
Organisations implement innovation strategies to remain competitive and achieve improved business
performance. Previous studies have focused more on product and technology innovations. The purpose of
this article is to determine the influence of service innovations on the financial performance of organisations
– specifically profit growth – using the theory of competitive advantage. A quantitative research method was
employed to achieve the research objective, with linear regression analysis used to analyse the primary data.
Cronbach values were calculated to determine the reliability and validity of the research instrument used to
collect the primary data. The findings of the research on which this article is based, confirm the existence
of a positive relationship between service innovation practices and profit growth. Recommendations are
made to key stakeholders in the motor vehicle industry and future research directions are outlined.
