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To cite this article: Anne Jørgensen Nordli (2017) Measuring innovation in tourism
with Community Innovation Survey: a first step towards a more valid innovation
instruments., Scandinavian Journal of Hospitality and Tourism, 17:4, 423-440, DOI:
10.1080/15022250.2016.1247382
Introduction
Tourism is one of the fastest-growing industries globally (Alsos, Eide, & Madsen, 2014).
Therefore, tourism firms’ competitiveness depends on their innovativeness in achieving
lower costs and/or higher quality outputs that meet the demands of potential customers,
and their ability to introduce new products (Sundbo, Orfila-Sintes, & Sørensen, 2007).
However, research-based knowledge on innovation in tourism is deficient, and future
research should focus on both empirical research and the development of theory
CONTACT Anne Jørgensen Nordli anne.nordli@hil.no Faculty of Economic and Organization Science, Lillehammer
University College, Lillehammer, Norway
© 2016 Informa UK Limited, trading as Taylor & Francis Group
424 A. J. NORDLI
(Camisón & Monfort-Mir, 2012; Hall & Allan, 2008; Hjalager, 2010). Hjalager (2010) argues
that the tourism industry should be represented in survey programmes such as the Euro-
pean Community Innovation Survey (CIS), to provide a comprehensive picture of inno-
vation activity in the tourism industry and allow comparisons with other industries. At
the same time, the literature points to measurement bias following the use of scales
such as the CIS to measure innovation in tourism (Camisón & Monfort-Mir, 2012). Biased
and inadequate measurements do not permit comparisons with other industries.
Camisón and Monfort-Mir (2012) argue that low innovation rates may be a result of a
large number of hidden innovations. Furthermore, literature in other low-technology
industries also finds hidden innovation processes (Serin & Hansen, 1997). In a national pol-
itical context, policy-makers need more knowledge about innovation in the tourism indus-
try to assess the need for new ways to support the industry. That may result in adverse
consequences if the results from surveys are used to confirm whether funding for inno-
vation in tourism has had an effect.
Statistics Norway included the tourism industry in the Norwegian part of the CIS for the
first time in 2010. The survey shows low innovation rates in the Norwegian tourism indus-
try (Wilhelmsen & Foyn, 2012). Some years earlier, another national innovation survey was
conducted in Norway, using a modified version of the CIS questionnaire (Rønningen,
2009). This survey finds rather high innovation rates in the tourism industry. Thus, some
studies on innovation in the tourism industry find that the industry is weakly or moderately
innovative (Hjalager, 2010; Mattsson, Sundbo, & Fussing-Jensen, 2005; Sundbo et al., 2007;
Wilhelmsen & Foyn, 2012), while other studies find that the industry is quite innovative
(Fuglsang, Højland, Sundbo, & Sørensen, 2008; Rønningen, 2009; Rønningen & Lien, 2014).
There is no doubt that this field of tourism innovation research, that is, quantitative
measurement, needs further investigation (Hall & Allan, 2008; Hjalager, 2010; Rønningen
& Nordli, in press).
The conceptualization and operational definition of innovation used in the CIS are
provided in the Oslo Manual (OECD, 2005). The CIS has been criticized for favouring
technological innovation and not taking service features into account. Such favouring
of technology innovation may turn out to be unfortunate for an industry such as
tourism, and may explain some of the measurement bias. The CIS also contains a
large amount of technical and professional language that may create problems in
tourism research. If the current approach to tourism innovation research is inadequate,
then the measurements and questionnaires used in quantitative studies may be quite
biased. Even the procedure used to obtain information from firms may be affected by
the firms’ understanding of what constitutes innovation, and the procedure may affect
the innovation rates measured by the questionnaire. These effects will be examined
later.
This paper focuses on whether the CIS manages to measure all innovations
implemented in the tourism industry, and examines whether the CIS provides a reliable
and valid picture of the innovations introduced in tourism businesses. The research is
an explorative study and a first step towards a more systematic methodological analysis
of the CIS and similar surveys. The focus of the study is primarily methodological, and it
identifies possible ways of improving the CIS. It identifies to what extent innovation is cap-
tured by the CIS and whether some elements of innovation are not captured.
SCANDINAVIAN JOURNAL OF HOSPITALITY AND TOURISM 425
Literature review
CIS and the Oslo Manual
The CIS-based innovation statistics are part of the EU’s science and technology statistics.
Surveys are carried out every two years by EU member states and other member countries
in the European Statistical System. The CIS is a survey of innovation activities within
enterprises.
The Oslo Manual provides guidelines about conducting the CIS. The first edition of the
Oslo Manual was published in 1992, originally with a focus on manufacturing and technol-
ogy. Following the first edition, the second and third editions were published (OECD, 1997,
2005). The second edition was the first to cover services as well as manufacturing;
however, it still focused primarily on manufacturing. The focus on manufacturing made
innovation closely related to technological development and R&D. However, the second
edition of the Oslo Manual suggests that innovation in service-oriented sectors differs sub-
stantially from innovation in many manufacturing industries; however, the third edition
still included the services sector (OECD, 2005). The Oslo Manual became the reference
for various large-scale surveys that examine the nature and the impact of innovation in
the business sector, such as the CIS.
During the development of the Oslo Manual from 1996 to 2005 and the CIS question-
naires used from 2000 to 2010, service features were in some sense taken into account,
which significant changes in the CIS questionnaires since 1996 reveal. Until 2000, the defi-
nition and operationalization of innovation only focused on product and process inno-
vation. During development, adjustments were made, so that organizational innovation
and marketing innovation were given the same attention as product innovation and
process innovation. All four innovation types are measured using several items of the
questionnaire.
In Norway, Statistics Norway (SN) is the organization that collects the CIS data every
second year. The survey conducted for the period 2008−2010 included both manufactur-
ing and services, and also tourism for the first time. This is the survey referred to in the
introduction, which indicated that the Norwegian tourism industry has remarkably low
innovation rates. SN addresses in their report whether the results would have been differ-
ent if enterprises were given more customized questions about innovation specifically for
the tourism industry (Wilhelmsen & Foyn, 2012). The other national survey in Norway on
tourism innovation (Rønningen 2009) and the survey of Fuglsang et al. (2008) are
examples of surveys using the CIS that find high innovation rates. Some studies also indi-
cate that some tourism businesses have had difficulty understanding the CIS questions
(Rønningen, 2009; Rønningen & Nordli, in press). Rønningen (2009) conducted a pilot
study prior to the survey to test CIS items and identifies possible improvements. The
pilot study showed that changes in language and terminology were appropriate; these
changes will be explained in more detail in the discussion section below. This issue justifies
the first research question for the study concerning how well respondents understand the
CIS questions: How well do key persons answering the CIS relate to and understand the ques-
tions and items?
In the existing literature, the requirements and constraints on the respondents who
answer the CIS questionnaire have been given inadequate attention. The questionnaire
426 A. J. NORDLI
was and still is sent to each company’s central management at the main office address.
There are no guidelines relating to how companies gather information about innovation.
It is likely that innovation initiated at the management level will be reported, but it is
unknown whether companies have procedures to capture innovation initiated at the
departmental level. Thus, the second research question is as follows: Do companies have
procedures to capture innovations that are not initiated by or rooted in the senior level man-
agement, especially at the departmental or sectional level?
Many definitions of innovation have strong similarities. There must be something new,
at least for the firm, implementation must be central, it must differ from invention and the
innovation must be reproduced and implemented more than once.
Differences are much more prominent when it comes to operationalization of the
concept and specification of types, modes or processes of innovation. This means that
operationalization in regard to methodology and measurement of innovation becomes
very crucial in innovation research.
The Oslo Manual distinguishes among four types of innovation: product innovation,
process innovation, market innovation and organizational innovation. This operationaliza-
tion is criticized by demarcation scientists, who argue that these innovation types overlap
and that they are impossible to separate and are thus reported incorrectly. This is
explained further in the following section, which deals with various approaches to
service innovation research.
the CIS instrument covers the manufacturing stage in Grônroos and Voimas model well.
CIS has, however, been developed to include services, but still this advancement is criti-
cized for not measuring all aspects of service innovation. Consequently, the CIS’ measure-
ment might not capture all the stages in the service logic model adequately. It is clear in
the model of Grönroos and Voima (2013) how the customer sphere and the provider
sphere overlap and represent the stage of usage, which underlines the interactive
nature of services. Camisón and Monfort-Mir (2012) refer, for example, to service or
sales infrastructure and customer delivery processes as not included in the non-techno-
logical innovations defined in the Oslo Manual. Services or sales infrastructure might be
related to what Grönroos and Voima call back-office attributes, whereas customer delivery
processes occur in the front office (delivery and usage). In the context of the service logic
thinking, the question is whether the CIS, with its roots in manufacturing and technology,
is fully developed to capture innovations related to all stages of the service logic process.
Figure 1 illustrates the demarcation critique of the CIS based on a service logic thinking.
The figure illustrates that the manufacturing stage is completely covered, whereas the
measuring of the other stages is not fully developed and still inspired by the manufactur-
ing instrument. The dotted lines illustrate that the measurement are still are deficient, thus,
addressing the fourth research question in this study: Does the CIS fail to capture innovation
related to services features?
Recently, a third approach to understanding innovation in services has arisen. The third
perspective is called the “integrative approach” (Gallouj & Savona, 2008) or the “synthesis
approach” (Coombs & Miles, 2000). This approach covers both goods and services inno-
vation (Gallouj & Weinstein, 1997), and makes it possible to compare innovations
among industries in a more powerful way. This approach remains in a very early stage
of development, but as, for example, Djellal and Gallouj (2000) explain, the debate that
took place prior to the revision of the Oslo Manual in 1996 opened up a number of
new and very fruitful avenues of research, both service-oriented and integrative in
scope. However, these new paths were not taken into account in the revision of the
Oslo Manual in 1996 (Djellal & Gallouj, 2000). This underlines the potential for further
development of the CIS. Drejer (2004) also points to the assimilation approach as being
too narrow for both manufacturing and services and highlights the need for more integra-
tive approaches.
Figure 1. Service Logic and the CIS, a model inspired of Grönroos and Voima (2013).
SCANDINAVIAN JOURNAL OF HOSPITALITY AND TOURISM 429
Method
The study examines the CIS questionnaire and explores how well managers understand
the questions and how they identify/register reliable information about any innovations
implemented. Qualitative interviews represent a type of exploratory approach, and
provide access to the experiences and information of others (Weiss, 1995). Explorative
qualitative data can be a useful tool for acquiring basic information aimed at developing
quantitative instruments such as questionnaires (Miles & Huberman, 1994; Steckler,
McLeroy, Goodman, Bird, & McCormick, 1992). Eight senior managers and department
managers from tourism businesses were interviewed after they had completed the CIS
questionnaire.
The interviews
We developed a semi-structured interview guide based on the research questions. First,
the respondents were asked to answer the CIS questions about the four innovation
types (the questions/items that were used by Statistics Norway in the 2010 tourism
survey). The respondents were then asked about their interpretation of the CIS questions,
and each was allowed to speak in a comfortable and relaxed setting. This was to minimize
any impact the interviewer may have on the responses (Seidman, 2013). Then respondents
were asked to describe the type and characteristics of all of the innovations reported.
Department managers were asked whether senior management had been involved in
or knew about the innovations and senior managers were asked whether they thought
crucial innovations occurred that they did not know about. This was done to identify
hidden innovation. Any respondents who were uncertain about the questions were
asked to read the introductory questions from the questionnaire used in the study by
Rønningen (2009) in order to see how respondents experience the changes they made
in that questionnaire. The interview guide was used as a checklist to ensure that all
issues were discussed. In total, we conducted eight interviews. All of them lasted
between 45 minutes and one hour and they were all transcribed.
431
(Continued )
432
A. J. NORDLI
Table 1. Continued.
Comparing Preparation before
Rønningen (2009) and Distinguishing among answering the CIS Examples of innovations that are not
Education Understanding of questions in the CIS CIS innovation types survey captured with the CIS
I5 External No bachelor’s or Unaccustomed and felt like an exam. Cannot see any Struggled, especially Did not report Development of aids/tools to
operations master’s “It was difficult to answer.” difference. between product and innovation internal maintenance of lift
degree process. systematically to the systems.
senior level of
management.
I6 Senior University Understood very well, but Was not asked Struggled. Did not gather Refers to employees innovating all
manager: educated commented: because he Miss questions information the time without him knowing it
Alpine centre (master’s) “It seems as if the questions are managed the CIS so appealing to systematically about (As for example, the Ski school
directed towards production and well. something in innovation at the products and the aids developed
physical goods production.” between product/ departmental level. in the outside Operation
In addition, he missed a better process and department). He tries to stimulate
presentation of how the innovation organization. employees to innovate.
types are indexed.
I7 Senior University “Fine to answer and easy to Was not asked Struggled. Did not gather Two new dinner concepts.
manager: educated understand.” because he Viewed all types as information (Experience dinners. One a
Small hotel (master’s) managed the CIS so intertwined. systematically about “mountain farm” dinner from
well. innovation. older days and the other a
cooking-competition concept).
I8 Senior No formal Understood the questions well, but Was not asked Did not struggle (had Did not gather
manager: education, commented that they were because he no process information
Small only superficial, and he needed to think managed the CIS innovations to systematically about
mountain experience hard to make questions relevant to well. report). innovation.
hotel from a range his business! He asked how many
of jobs small innovations he was allowed to
report.
SCANDINAVIAN JOURNAL OF HOSPITALITY AND TOURISM 433
First, three respondents asked for more information before starting the CIS. Obviously,
they felt uncertain when confronted with questions about innovation. One respondent
(R6) suggested some kind of index that outlines the content of the survey.
Table 1 shows that three of the eight respondents (R1, R3 and R6) argued that the ques-
tions seemed to have been developed for goods-producing businesses (manufacturing).
See their comments in column 3 of Table 1.
Two respondents commented that they had difficulty in connecting the questions to their
work, and two respondents believed that the questionnaire did not adequately address
certain areas. One of them stated that there were too few guest-related questions. R3 stated:
There could have been more questions about the guest, in relation to the guest experience
and the interaction between the guest and the organization. We are trained to think about
the guest and innovation in relation to the guest.
R3 discussed the lift personnel as an example, and how they interacted with guests in
the lift and how they communicated with guests. Such issues were omitted from the ques-
tionnaire, she argued.
When asking the respondents whether they understood the questions and question
formulations, two of the eight stated that the questionnaire was very difficult to complete.
Additionally, four more respondents were uncertain about the questions, which the
quotes in Table 1 illustrate. They stated that they understood the questions, but they hesi-
tated when responding. During the interviews, they gave the impression that they were
unsure about their answers. At the end of the interviews, the five respondents who
demonstrated the most uncertainty (R1−R5) were asked the questions from the study
by Rønningen (2009), that is, the introductory questions before each innovation type to
test whether they understood those adjusted questions better. Two respondents could
not see any difference between the two sets of questions, one had no comment and
two respondents (R1 and R2) found them easier to understand and more reader-friendly
because the explanations were simplified.
The lower education level of the R1–R5 respondents may limit their ability to under-
stand. Further attention will be given to this issue in the discussion section.
Hidden innovation
None of the respondents referred to procedures of reporting innovation to senior man-
agers or senior managers gathering information about innovation at the departmental
434 A. J. NORDLI
level. Respondents R1–R5 do not report innovation to senior management, and R6−R8 do
not systematically gather information about innovation. This means that if innovation
occurs at the departmental level, senior managers may be unaware of such innovations.
Our findings clearly indicate that some innovations are not reported in the CIS (see
Table 1, last column). Senior managers I6 and I8 state that innovation occurs among
employees, that they are not informed about it, and that they have no system of reporting
innovations. The following quotes from department managers support this:
We continuously develop our service product; this is not like manufactured products that you
finish the production of. (R3)
We change continuously. If someone comes up with a good idea, then we test it. If it works
then we use it. (R4)
These findings reveal more innovations that are not reported in the CIS. Some examples
are Hafjell-Skatten, a product/service in a ski school that they changed/developed con-
siderably to create a new concept, but without changing the name (a product innovation).
Innovations commonly occur without the senior management knowing. For example,
many small changes in dealing with customers in the bike rental industry have occurred,
including the queuing system, order of equipment handover and submission and
payment. According to R4, many small changes typically occur, which in total result in a
significantly better experience for the guest and the employees (process innovation). Fur-
thermore, changes in responsibility and reorganization of employees at the departmental
level (organization innovation) occur regularly. Two new dinner concepts that R7 forgot to
report because he was too focused on bigger investments (product innovations). A few
more examples are listed in Table 1 (last column).
Discussion
Summarizing the findings in Table 1, the majority of the respondents show uncertainty in
regard to their understanding of the CIS. Six respondents were uncertain when interpret-
ing some of the questions. Seven out of eight respondents find it difficult to distinguish
between (some of) the innovation types, and find the questions/items of little relevance
to their business. Obviously, there is potential for improving the questionnaire to help
tourism managers report more valid information. Below are various suggestions to
improve the CIS. The last column in Table 1 reveals that some innovations are not captured
by the CIS, a problem that may be solved by improving the instrument.
In general, employees and managers in tourism have less formal education compared
with other service businesses (Hjalager, 2002). Thus, they are probably not trained in using
technical terminology and language. This means that tourism managers may have differ-
ent perspectives when answering a questionnaire such as the CIS that contains technical
questions. When it comes to the language and terminology, the five most uncertain
respondents were presented with information from the paper by Rønningen (2009),
which contains an adjusted version of the CIS. These respondents were also the ones
with the lowest education level. Two of them found the information from Rønningen
(2009) easier to interpret. Because a pilot test of the adjusted CIS had previously indicated
language challenges, there is scope for the survey to be rewritten so that the terminology
SCANDINAVIAN JOURNAL OF HOSPITALITY AND TOURISM 435
is easier to associate with a given work environment. An example of how the questions
were simplified is the introduction to process innovation provided in the adjusted CIS:
SN’s Norwegian version (translated to English):
example of which could be: Have you established new or significantly improved routines/
methods for how you interact with or serve customers? This question relates more to ser-
vices and interaction/co-creation (the service delivery stage in the Figure 1). Manufactur-
ing companies may also have departments delivering services and handling customers,
thus supporting the view that the assimilation approach is too narrow for manufacturing
as well (Drejer, 2004). Furthermore, even though the questionnaire seems to be appropri-
ate for manufacturing, not all manufacturing companies have R&D departments. This is a
challenge that the literature has identified when studying innovation in smaller manufac-
turing companies (Kleinknecht, 1987; Sterlacchini, 1999). This means that an explorative
research design similar to this should also be applied to a manufacturing context. This
is important for keeping the instrument similar across industries, which is one of the objec-
tives of the CIS.
Comparing today’s instrument with the service logic model (Grönroos & Voima,
2013), a review of the literature illustrates that the CIS mainly relates to the manufactur-
ing stage. If items are missing in relation to the stages of design, development and
delivery of services, we should determine whether there are innovations that the CIS
did not capture. Our findings, summarized in Table 1, show that there are innovations
that the CIS has not managed to capture, supporting the findings of Camisón and
Monfort-Mir (2012). Those innovations are mostly developed and implemented at the
departmental level in the companies, but are still quite significant innovations. As our
findings suggest, these innovations are not just small adjustments that cannot be
defined as innovations. An example from the ski school is the concept of Hafjell-
Skatten that has been considerably changed, almost redeveloped. This innovation is
not captured in the CIS because it has not been renamed, and therefore has not
involved senior management. The ski school has the authority to develop products
on their own. None of the companies has routines for reporting information to senior
management. This means that their innovations remain hidden in a CIS survey.
Another example is the two relatively large product innovations that were forgotten
by R7. In this case, the respondent forgot because he was so focused on investments
in new apartments and kitchen facilities. Furthermore, there are various examples of
hidden innovation shown in Table 1. Because senior managers are unaware of these
innovations, they would not be reported in a CIS survey. Requiring companies to estab-
lish routines and gather information from department managers is one alternative to
help overcome certain types of hidden innovation.
Some of the hidden innovation examples involve interacting with guests or the delivery
of services. This means that those innovations will be captured by adding the question:
Have you established new or significantly improved routines/methods for how you inter-
act with or serve customers? By comparing the CIS instrument as it is today with the model
of Grönroos and Voima (2013), it might be possible to identify even more missing items,
particularly in relation to design and development, as well as to service delivery (which
Camisón and Monfort-Mir (2012) state are not captured by the Oslo Manual).
Finally, we can conclude that our findings support those of Camisón and Monfort-Mir
(2012) that some innovations in tourism are not captured by the CIS. The CIS only captures
the tip of the innovation iceberg. Hidden innovations range from all the small changes and
improvements, which may or may not be considered innovations, to larger and more sig-
nificant innovations such as the ones identified in this study. Figure 2 illustrates the
SCANDINAVIAN JOURNAL OF HOSPITALITY AND TOURISM 437
innovation iceberg, illustrating how hidden innovations lie under the surface waiting to be
reported.
Even though these results show a clear tendency of under-reporting, the potential issue
of over-reporting should also be mentioned. This study does not reveal any over-reporting.
However, R3 and R4 reported relatively small innovations, which have had significant
overall effects, and thus interpret them as hidden innovations. In addition, our results
suggest that the informants naturally think of innovation as major changes only. One infor-
mant (R8) asked how small can the reported innovations be, which underlines this think-
ing. The fact that R7 forgot to report two new experience–dinner concepts, because he
was so focused on apartment and kitchen investments, further highlights this issue.
According to these findings, under-reporting (hidden innovation) is the biggest challenge
and should thus be given the most attention.
Conclusion
The findings of this study represent a first step in making the CIS a more valid instrument.
The paper suggests various ways in which the CIS should be improved. First, there are indi-
cations that the technical language and formulation should be modified to allow the
respondents to better understand the measurement aims of the survey. Second, the find-
ings point to major challenges for the respondents because they fail to distinguish among
the four types of innovation in the CIS or are confused and therefore forget or overlook
innovations. One suggestion is to remove the headlines and introductions distinguishing
between innovation types, and present all items together. Furthermore, statistical tech-
niques such as factor analysis can be used to identify underlying innovation dimensions.
Then, it is possible to infer a typology based on the empirical finding and not on the main-
stream innovation literature. Another suggestion is to test the effectiveness of an index at
the start of the survey that better prepares the respondents for the survey. We also ident-
ified a potential to develop new items related to service logic and additional items reflect-
ing the educational level of the person completing the questionnaire.
438 A. J. NORDLI
Last but not least, the study finds empirical evidence of hidden innovations that are
illustrated in the iceberg metaphor. Several types of innovation are hidden, especially
innovations at the department level. In regard to identifying more hidden innovations,
the findings also reveal that none of the companies has routines for reporting information
about innovations developed and implemented at the departmental level. Such pro-
cedures may also help to reveal more of the hidden innovations. Another issue is
whether it would be appropriate to separate reported innovations into two types of inno-
vation: easily reported innovation and hidden innovation. If surveys that find high inno-
vation rates, such as Rønningen (2009), have managed to capture more hidden
innovations, this implies that the tourism companies might be weak innovators in
regard to innovations that the CIS captures easily. Consequently, it is important to
analyse both captured and hidden innovation to determine how best to stimulate both
types of innovation in the tourism industry. For example, could more significant/major
innovations that are easily captured be categorized as type 1 innovations and smaller
innovations/reported at the department level be categorized as type 2 innovations?
This means that future research needs to examine qualitatively the difference between
reported and hidden innovations in tourism.
Furthermore, in regard to over-reporting, it is important to do more qualitative research
on how to separate hidden innovation and continuous development, where the latter
should not be classified as innovation.
All suggested improvements to the CIS instrument should, of course, be implemented
and tested further in a pilot study before use, since this study only represent a first explora-
tive step. Because the paper focuses on the contents the CIS (survey) is addressing, it does
not evaluate the survey from a technical survey quality perspective. This means that the
general literature on survey methodology has not been addressed, though this issue
deserves further attention.
Furthermore, in regard to other service industries and manufacturing, a research design
similar to the one used in this paper would be useful. The present study has improved the
knowledge about the use of quantitative instruments such as the CIS to measure inno-
vation in tourism. This study contributes by examining ways to improve innovation
surveys/CIS to capture more service innovation, and more hidden innovation. It is
argued that the CIS should not be rejected, but rather be improved by implementing
more ideas from the demarcation approach, and thus moving the CIS in a more integrative
direction. The suggestions given in this article may be characterized as a moderate inte-
grative approach.
Acknowledgements
The author would like to thank Professor and Supervisor Martin Rønningen for careful feedback,
supervision and collaboration through the working process. The article is a part of the PhD thesis
“Measurement and Management of Innovation in Tourism.”
Disclosure statement
No potential conflict of interest was reported by the author.
SCANDINAVIAN JOURNAL OF HOSPITALITY AND TOURISM 439
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