Abstract:
Motor vehicle retailers in South Africa, as in many countries worldwide, are faced with fierce competition and resort to innovative strategies to sustain their competitive position. Previous studies focused on benefits such as profit maximisation and competitive advantage derived from the effective implementation of service innovations. The purpose of this paper is to address the gap in literature by examining the barriers that impede the implementation of service innovations by motor vehicle retailers. The contingency theory served as the underlying conceptual lens that enabled this research to answer the research question and attain the research objective. A qualitative research method was followed to realise the research objective. Content analysis method was used to analyse the primary data of this research paper with the aid of Atlas.ti version 8 software. The results of this paper adds contribution to academic literature by indicating that service organisations, specifically, motor vehicle retailers experience both internal and external barriers in implementing service innovations. This paper provides recommendations to service managers in service organisations and directions for future research.
