This study examines how service innovation influences consumers’ perceived service luxuriousness and willingness to pay more. Service innovation influences willingness to pay more when service luxuriousness mediates. Type of service (functional vs. emotional) and level of brand equity (high vs. low) moderate the relationship between service innovation and service luxuriousness.

This study explores influencing factors for firms’ willingness to participate in open innovation. We identify commitment and trust, switching cost, and IT infrastructure as the key predecessors. The study further examines how these variables affect the firms’ participation in open innovation using datasets from the UK biotechnology industry.