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Service Innovation in the IT Service Industry: Social Influence and Relationship Exchange Perspectives

Empowering Value
Leadership Congruence
2
R = .44
Innovation Innovation
Intention Performance
2
2
R = .26 R = .18
Team-Member Felt Obligation
Exchange R = .37
2

Figure 2 Results for the Hypothesized Paths

also add the direct path from felt obligation to innovation performance. As depicted in
Model 3, doing so provides an adequate fit to the data, although again it is not significantly
2
better than the baseline model (∆χ [1] = .49, n.s.); we therefore determine that innovation
intention fully mediates the effect of felt obligation on innovation performance.
We also test the possibility that the two social influences, value congruence and felt

obligation, together fully mediate the relationships between EML or TMX and innovation
intention. Table 3 depicts Models 4 and 5 with direct paths added in the relationships
between EML or TMX and innovation performance. Both tests of rival hypotheses for
the direct effects are insignificant; that is, the mediating mechanism composited by value
congruence, felt obligation, and intention fully mediate the effects of EML and TMX on
innovation performance. In summary, we provide additional evidence of the robustness of
our conceptual model through these tests of mediating effects.

4.4 Moderating Influences
We conduct multiple-group analyses (Jöreskog and Sörbom, 1996) to test our

hypothesis pertaining to the moderating effect of other-orientation on the relationship
between innovation intention and engineers’ service innovation performance. We measure
other-orientation with two items previously used by Grant and Berry (2011), and ask
respondents to indicate the degree to which they value and demonstrate concern for the
well-being of other people: (1) “I like to work on tasks that have the potential to benefit

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