Influence of customer feedback in driving service innovation in the public sector

Abstract

The public sector faces a growing urge to improve its service delivery and organisational outcome, driven by rising customer expectations. This study aimed to acquire a deeper understanding of customer feedback within the context of service innovation in the public sector. Successful implementation of service innovation based on customer feedback in the public sector requires careful consideration of the sector’s unique context and tailored needs. The study employed a qualitative exploratory approach grounded in an interpretivist methodology. Semi-structured interviews were undertaken with twelve participants whose perspectives were analysed using the public service-dominant logic framework. The findings highlighted the impact of customer feedback on several key areas: leadership, collaboration, innovative solutions, strategic alignment and planning, as well as insights and decision-making. From a technological integration standpoint, the study emphasised the importance of value co-creation, the role of AI/ML, operational efficiency, and the need for customisation and adaptability in technology. Additionally, the research underscored the significance of customer input through idea generation, iterative development, and active customer engagement, which is pivotal in driving service innovations within the public sector. The study’s findings contributed to the literature through the combination of customer feedback impact, technological integration, and customer Input and consequently developed a conceptual framework for customer-driven service innovation. Furthermore, the managers in the service organisations can use the conceptual framework, and the public sector can use the conceptual framework.