Service innovation in emerging economies : the impact of DUI and STI innovation modes on innovation performance

This study examines the influence of DUI (Doing, Using, Interacting) and STI (Science, Technology, Innovation) innovation modes on the innovation performance of service sector firms in Colombia. Unlike the manufacturing sector, where innovation is typically associated with formal R&D, the service sector is characterized by experience-based and interaction-driven innovation with customers and suppliers. A quantitative approach was employed, using data from EDITS VIII (Colombia). A structural equation modeling (SEM) approach was applied to a sample of 2,782 firms to assess the relationship between innovation modes and two types of innovation: incremental and organizational. The results reveal that the DUI mode has a significant positive effect on both incremental and organizational innovation, whereas the STI mode exhibits an inverse effect. This suggests that experience- and interaction-based knowledge is more effective for service innovation than an approach exclusively reliant on science and technology. By quantifying the differential impact of DUI and STI modes across various innovation dimensions, this study provides an empirical foundation for strategic decision-making in a critical sector for Colombia's economic development and other emerging economies.