Importance of continuous improvement and emerging technologies on service sector in firms in ab emerging economy

Abstract

Purpose: This study examines the impact of continuous improvement practices and emerging technologies on business performance in the service sector of an emerging economy. It seeks to identify whether these factors contribute positively to competitiveness and how their effects compare to findings from developed economies.

Design/methodology/approach: A survey was conducted among 85 senior executives from medium- and large-scale service companies. The data were analyzed using Principal Component Analysis (PCA), a multivariate statistical method widely used in social science research to identify key patterns and relationships.

Findings: The results contrast with studies in developed economies, where continuous improvement practices and technology adoption are strongly associated with enhanced business performance. In the context of this emerging economy, the findings suggest a more nuanced relationship, highlighting the need for further investigation into sector-specific and regional factors.

Research limitations/implications: The study is limited to a single emerging economy and focuses exclusively on the service sector. Future research could expand the sample size and explore additional industries to provide a more comprehensive understanding of these relationships.

Practical implications: The insights from this study can help business leaders refine their strategies for implementing continuous improvement and technological advancements, ensuring better alignment with the unique challenges of emerging markets.

Social implications: By improving business performance through strategic technological and process innovations, companies in emerging economies may enhance job stability, service quality, and overall economic development.

Originality/value: This study contributes to the ongoing discussion on business performance in emerging economies by providing empirical evidence from the service sector. It offers valuable insights for academics, entrepreneurs, and policymakers seeking to enhance competitiveness and adapt continuous improvement practices to dynamic economic conditions.