Abstract

Along with the advancement of information technology and service innovation, service-dominated logic has become one of the most important concepts for firms to acquire a competitive advantage. According to service-dominated logic, all service innovation should be conceptualized based on the application of competencies (e.g., knowledge and skills), and firms should leverage these competencies to promote values and benefits for each exchange or transaction. This study integrates relevant theories and constructs to develop a comprehensive model of service innovation focusing on a service-dominated logic perspective. Data from 135 Vietnamese business owners or management executives were collected and analyzed, and research hypotheses were assessed by employing partial linear square structural equation modeling (PLS-SEM). The findings indicated the interrelationship between service-dominated orientation, dynamic service innovation capability, service knowledge creation, service innovation, and service satisfaction. The results could be beneficial for academicians to further validate the research model and could also be very useful for professionals to design and implement their service innovation strategies.

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