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Abstract
Research suggests that business network embeddedness is an important element in innovation performance, but most often manufacturing industry is the object of study. In recent years, the service industries have become more important; hence, this study explores the relationship between network embeddedness and service innovation performance. Statistical tools, including correlation, structural equation modelling, and regression analysis, are used to analyse questionnaire results. It is found that, except for research institute embeddedness, all other forms of network embeddedness have a significant impact on service innovation performance. It is concluded that enterprises need to be tied more closely to their business partners to achieve better service innovation performance.