Implement service innovation through STOF model towards green economy in automotive industry

Abstract

This paper aims to discuss the relationship between service innovation and green economy in the automotive industry. In Malaysia, the automotive industry is known to be one of the industries that contribute significantly towards green economic. The automotive industry is described as a fragmented process implementation requires involvement of varying combination of several departments across the supply chain spectrum and organizations. The green economy of Malaysia’s automotive industry is reported to be new in the industry for its improvement have inspired this study initiative. Appropriate process adopted by managers are capable in bringing resources and reducing the adversarial relationships among divisions for greater performance. The purpose of this study is to unveil the extent of new business model namely STOF on the performance of green economy automotive industry. In the streams of existent service innovation, a universal overview of the literature will be discovered in this study. In this fast-emergent arena, one of the most crucial components of the automotive industry is service innovation. The success of green economy depends on the success of service innovation to the companies and mediating effect of core competencies in relationship between STOF Model and green economy. The core competencies would be mediating effect for measuring factor of (service, technology, organization and finance) towards green economy where the factor is crucial point in participation along with the service innovation management. Thus, this study is relevant to academia and manager level for further research towards improving service innovation management and enhance green economy in automotive industry.