Service Innovation Capability Research Articles

The linkages among environmental dynamism, dynamic capability and competitive advantage: Significant implication for retail development

This study simultaneously examined the linkages among environmental dynamism, three dynamic capabilities, and the competitive advantages of retail businesses, which have not been identified before. Furthermore, this study fills the significant gaps in the literature and practical guidelines for retail development through improving retailer’s dynamic capabilities in response to environmental dynamism. The study used a quantitative approach by partial least squares SEM (PLS-SEM) to examine the hypotheses. Data were collected from 304 Vietnamese retail business managers. The results show that environmental dynamism plays a significant role in fostering the improvement of retailers’ dynamic capabilities. The findings also reveal positive linkages among the three dynamic capabilities before they significantly improve retailers’ competitive advantage. These are the valuable guidelines for retailers to nurture their dynamic capabilities, including service innovation capabilities, multi-channel integration, and brand orientation for sustaining their competitive advantages.

A Study on the Impact of Free Trade Zones on Regional Service Innovation Capability: Experimental Evidence from Guangdong Province Free Trade Zone

A Study on the Impact of Free Trade Zones on Regional Service Innovation Capability: Experimental Evidence from Guangdong Province Free Trade Zone

Essential Capabilities for Successful Digital Service Innovation at the Bottom of the Pyramid

Several firms worldwide that attempted to penetrate the bottom of the pyramid (BOP) with digital service innovations have encountered disappointing returns. This article explores what capabilities firms should develop and how they should nourish them for value creation at the BOP. Using the multiple-case method, this study inductively derives persuasion, co-creation, adaptation, and self-sustainability as essential capabilities. Cumulative maneuvering of these capabilities resulted in a sand cone model. Both established incumbents and digital natives benefit from this model, which enables them to safeguard their digital offerings while penetrating or expanding within BOP markets.

The Relations between Digitalization, Service Innovation and Service Value Creation Capability: A Model Adaption in the Service Industry

Purpose: The purpose of this paper is to determine the effect of service innovation and service value creation capability on the digitalization process on a firm scale.
 Methodology: The 1-7-point Likert-type measurement scale was administered to tourism enterprise managers and operational staff. Partial Least Square-Structural Equation Modelling (PLS-SEM) modeling was used to analyze the relationships among the following constructs: service innovation capability, service value creation capability, and effect on digitalization. Three types of service facilities were considered: Hospitality, Food & Beverage (F&B), and health care. Descriptive analysis and model structure were analyzed on SPSS 24 and Smart PLS 3.0 respectively.
 Findings: The relationship between service value creation capability and digitalization service innovation capability and service value creation capability, and service value creation capability and digitalization is supported, as all other constructed hypotheses respectively.
 Originality: This study is one of a limited number of studies that have empirically addressed service innovation capability and value creation capability relations with digitalization in firms’ operational processes. Additional attempt is required to integrate all functions of the enterprise with in organizational perspective. The main contributions of this paper lie in proposing empirical research that supports service innovation capability, service value creation capability, and digitalization in the case of tourism enterprises.

Unleashing the power of artificial intelligence for climate action in industrial markets

Artificial Intelligence (AI) is a game-changing capability in industrial markets that can accelerate humanity's race against climate change. Positioned in a resource-hungry and pollution-intensive industry, this study explores AI-powered climate service innovation capabilities and their overall effects. The study develops and validates an AI model, identifying three primary dimensions and nine subdimensions. Based on a dataset in the fast fashion industry, the findings show that the AI-powered climate service innovation capabilities significantly influence both environmental and market performance, in which environmental performance acts as a partial mediator. Specifically, the results identify the key elements of an AI-informed framework for climate action and show how this can be used to develop a range of mitigation, adaptation and resilience initiatives in response to climate change.

Does emotional intelligence impact service innovation capabilities? Exploring the role of diversity climate and innovation culture

PurposeThe study examines the impact of emotional intelligence on service innovation capabilities. Furthermore, it explored the mediating role of diversity climate and the moderating role of innovation culture.Design/methodology/approachAn online questionnaire helped to collect data from 257 public sector employees in the United Arab Emirates (UAE). The proposed hypotheses were analysed using structural equation modelling.FindingsBuilding on the ability model, the study found that employees' emotional intelligence has a positive impact on diversity climate; that diversity climate does not mediate the relationship between emotional intelligence and service innovation capabilities and that innovation culture has a moderating effect between diversity climate and service innovation capabilities.Originality/valueThe paper clarifies the emotional intelligence of the workforce and its ability to influence innovation culture and diversity climate in public organisations, ultimately benefiting service innovation capability research. As such, the study contributes to the literature by proposing and analysing some antecedents of service innovation capabilities in the context of public organisations. The study also offers policymakers information on what prevents innovation, which they can use to raise the bar on service quality requirements in the public sector.

The contingent impacts of dynamic service innovation capabilities on firm performance

The contingent impacts of dynamic service innovation capabilities on firm performance

Understanding the effects of service innovation capability on firm performance in AEC industry: mediating role of business model

PurposeThe purpose of this study is to examine whether service innovation capability can affect firm performance in the architecture, engineering and construction (AEC) context, and, if so, how.Design/methodology/approachThis study developed a theoretical framework illustrating the performance impacts of service innovation capability through the business model in the AEC sector. An empirical study was conducted to test the hypotheses using 374 valid questionnaires using structure equation model (SEM).FindingsThe results verify that service innovation capability positively influences firm performance mediated by the business model. As to the direct effect, service innovation capability is positively associated with firm performance.Originality/valueThis study highlights how service innovation capability affects performance and reveals the underlying mechanism.

Service innovation capability: a systematic literature review and research agenda

ABSTRACT Though singular or discrete service innovations are accepted as essential to the performance and survival of organizations, practitioners and researchers are increasingly directing their attention towards the firm-level capability that underlies their repeated and continuous introduction, commonly referred to as service innovation capability (SIC). However, compared to the rich body of literature on the innovation capability of manufacturers and industrial organizations, SIC is poorly understood by managers and service researchers and there is no consensus on its definition, antecedents, outcomes, or dimensions. This study remedies this protracted gap through a comprehensive review of 45 academic journals reporting on firm-level studies of SIC using the SPAR-4-SLR protocol. These were found in the Web of Science and Scopus databases and analyzed according to the TCCM framework. Our research provides new theoretical and managerial insights, advancing a consolidated original definition of SIC, reconciles and organizes factors in SIC’s nomological network advanced by disparate studies and synthesizes links between them in an integrating framework, and makes 13 propositions for advancing this topic based on the research gaps identified.

The The Interplay of Tactical Green Marketing Orientation and Service Innovation Capability on Sustainable Business Performance

Sustainable business performance has gained significant attention in today’s business landscape. Increasing global apprehension regarding environmental issues is compelling organizations to align with sustainable development principles (Khan, Ahmad, et al., 2023). This study examines the direct and indirect effects of stakeholder pressure, tactical green marketing orientation, and service innovation capability on sustainable business performance in five specific SME sectors. A web-based questionnaire was administered to 233 SME representatives from the selected industries using the resource-based view theory and stakeholder’s theory. Path modeling using Partial Least Squares (PLS) 4.0 was used to analyze the data and assess the research hypotheses. The results indicate that stakeholder pressure influences green marketing tactics. In addition, the results indicate that green marketing orientation moderates the relationship between stakeholder pressure and sustainable business performance. In contrast, service innovation capability moderates the relationship between green marketing orientation and sustainable business performance. This study contributes to better comprehending the relationship between tactical green marketing and a company’s sustainable performance, thereby providing managers with valuable insights for enhancing sustainable business performance

Impact Of Service Inovation Behaviour On Service Development In Hospitality Industries (Research On Hotels & Restaurant In East Java Indonesia)

The ability to inovate is very important task for a multinational hotel where this is the main goal is to get a competitive advantage, which allows them to provide services that exceed customer expectations. Service innovation capabilities also contribute to hotel competitive advantage, however, there is very little research exploring ways to improve service innovation capabilities. In addition, while social capital fosters the power of innovation, research on the process of transforming available resources embedded in social interactions into actual service innovation capabilities is also limited. Thus, the aim of this study is to investigate the effect of social capital on the ability of service innovation through knowledge sharing in the hospitality industry. The sample used in this study is the hotel industry, especially hotels with 4 or 5 stars in East Java, the results of this study indicate that sharing knowledge mediates the effect of social capital on the ability of service innovation and knowledge sharing is a mechanism for transforming social capital innovation into service innovation capabilities

Does human capital mediate the relationship between digital competence and service innovation capability? Evidence from the UAE during covid-19 pandemic

Purpose The purpose of this study is to investigate the relationship between digital competence and the capability to innovate in the service sector and examine if this relationship is mediated by human capital in the context of COVID-19 pandemic. Design/methodology/approach Using a cross-sectional survey, data were collected from 188 service sector professionals in the United Arab Emirates. Data were analyzed using partial least square-based structural equation modeling. Findings The findings of partial least square based structural equation modeling analysis indicate that there is a significant positive relationship between digital competence and the capacity to innovate in the service sector, which is partially mediated by human capital. Originality/value This study contributes to knowledge by offering an understanding of the relationship between digital competence and innovation capability, especially in uncertain situations. This study also notes the importance of human capital as a strategic resource for innovation.

A framework for AI-powered service innovation capability: Review and agenda for future research

Artificial intelligence (AI)-powered service innovation (e.g., OpenAI's ChatGPT, Google's Bard and Microsoft's Sydney) has become one of the most significant determinants of firms' success in the Fourth Industrial Revolution. However, extant studies on this topic show that research studies hitherto have been ad-hoc, lacking a conceptual framework for the strategic management of AI-powered service innovation capability in dynamic markets. Thus, this study synthesises the current body of knowledge, proposes a framework, and develops an agenda to advance our knowledge. The findings reveal: (1) AI-market capability relates to customer orientation, industry orientation, and cross-functional orientation; (2) AI-infrastructure capability relates to data, business models, and ecosystem; and (3) AI-management capability relates to AI-orientation, organisational learning, and AI ethics which are crucial determinants of forming AI-powered service innovation capability. These capabilities for the strategic management of AI-powered service innovations play an essential role in achieving organizational agility and competitive advantage.

Impact of service innovation and digital supply chain capability on risk protection in supporting online foods delivery

PurposeThis study has aimed to investigate the impact of service innovation capabilities (SIC), supply chain digitalization capabilities (SDC) and customer risk protection (CRP) capabilities of GrabFood on customer satisfaction. GrabFood has been chosen as a case study because GrabPay is one of the Malaysian government's digital wallet partners, and GrabFood is one of the region's leading Online Food Delivery Service (OFDS) providers.Design/methodology/approachA total of 410 valid responses have been gathered from the GrabFood users for data analysis using the partial least square technique.FindingsThe findings reveal that SIC, SDC and CRP of GrabFood have a highly significant influence on customer satisfaction. CRP has been found to partially mediate the relationship between SIC and customer satisfaction and the relationship between SDC and customer satisfaction.Originality/valueOFDS providers need to consider how to minimize the potential risk to be encountered by customers in delivering services that satisfy the customers. OFDS providers must identify the gap between their capabilities and customer perception and continuously improve their service quality to mitigate the gap.

Orchestrating firm-specific resource integration to achieve customer service performance: an investigation in the hotel context

PurposeThis study aims to identify factors that can improve customer service performance by verifying the relationships between these factors, such as customer orientation, firm-specific resource integration, transactive memory system and service innovation capability. In other words, this study identifies the determinants of customer service performance from the perspective of the resource advantage theory of competition.Design/methodology/approachThis research was conducted through an online survey of hotel managers and supervisors in Indonesia, which produced 327 questionnaires that could be processed with a response rate of 70.6%. Structural equation modelling was used to analyse the data and test the hypotheses with the help of AMOS 23.FindingsThis study confirms that firm-specific resource integration can improve customer service performance, with the antecedents of the former being customer orientation and a transactive memory system.Research limitations/implicationsThis research was conducted with a sample of three-, four- and five-star hotels, which have different conditions. In future research, it would be interesting to compare how such hotels over a larger geographical area behave in improving customer service performance using the investigated variables.Originality/valueThis research provides additional insight into the resource advantage theory of competition, namely, that integrated enterprise-specific resources are good antecedents for innovation and customer service performance.

Leadership's long arm: The positive influence of digital leadership on managing technology-driven change over a strengthened service innovation capacity.

In this qualitative study, we examine digital leadership (DL) capabilities and their positive influence on the management of technology-driven change by leveraging service innovations. The context of digital transformation (DT) has triggered a new leadership paradigm, among others referred to as digital leadership (DL). However, despite its practical relevance, leadership research has yet paid little attention to conceptualise DL as an approach to digitally transform organisations. Drawing on mid- and top-level mangers' experiences with service innovation projects, and based on Grounded Theory, we develop a taxonomy of DL-related capabilities and a conceptual framework which exemplifies their influences on dynamic service innovation capabilities (DSICs). DSICs build on the dynamic capabilities view (DCV) and represent the "organisational muscle" to repeatedly deliver service innovations indicating an effective management of technology-driven change. Taxonomy results show that aggregated dimensions in terms of a digital leader's personal, social, and organisational capital serve as underpinnings (DL-related capabilities) to drive strategic change in DT contexts. The conceptual framework further reveals that especially the personal and organisational capital of a digital leader owns several strong and moderate influences on DSICs which demonstrates DL's "long arm" on the management of technology-driven change. Our findings contribute to leadership research by advancing the conceptualisation of DL and by adding a novel micro-foundational perspective towards the DCV discourse. As organisations struggle to realise the full benefits of DT initiatives, our results also provide a valuable contribution for practitioners by supporting them to strategically prepare for the human-related challenges of DT.

The impact of user entrepreneurship mode on entrepreneurship performance

This paper discusses the formation process of user entrepreneurship model and its impact on entrepreneurship performance with the case of private cinema. At the same time, use the performance of specific cases to summarize and summarize how the user's entrepreneurial ability and entrepreneurial intention affect the formation path of the entire process of the user's entrepreneurial model, and complete the impact on entrepreneurial performance under the role of relevant variables. The research shows that high user entrepreneurial ability and entrepreneurial willingness promote the formation of independent user entrepreneurial model, and promote the transition from survival performance to growth performance in the process of both increasing, that is, independent user entrepreneurial model promotes the transition from user entrepreneurial survival performance to growth performance. Finally, user entrepreneurship can improve innovation performance and promote the innovative development of private cinemas through personalized design of product portfolio, diversified development of profit methods, and networked embedding of product and service innovation capabilities.

Standardization as a Catalyst for Extending Resources and Capabilities in Service Systems Engineering: Findings from the omlox case

(Smart) service systems have inspired the emergence of a new research area that builds on smart, connected products and networked business models with smart services and brings together various social-science and technological disciplines. However, the factors that lead to successful service systems engineering initiatives have remained under-explored, despite their increasing significance in industry. In particular, the role of standardization is unclear, even though it seems to be central to making smart products interoperable and to establishing innovative (smart) service systems. In an exploratory case study of the standardization initiative omlox, we set out to identify and investigate empirically the effects that standardization can have on engineering (smart) service systems. Our focus is to determine how standardization can assist a company in accessing external resources and capabilities for recombinant service innovation. The results reveal that compliance with a standard enables companies to tap into compatible solutions, data, and knowledge from external stakeholders and that participation in standardization initiatives can be a platform for identifying potential collaboration partners. We conclude that standardization plays a major role in all phases of service systems engineering, from analysis to design and implementation.

Mobile information technology's impacts on service innovation performance of manufacturing enterprises

PurposeGiven the rapid adoption of intelligent and digital manufacturing among the current business environment, emerging mobile information technology (MIT) becomes an ever more important factor, driving innovations in manufacturing sectors. This paper analyzes the impact of MIT on innovation service performance in manufacturing firms and builds a model structuring the mechanisms of this information technology. Design/methodology/approachThis paper proposes a theoretical model and derives a set of hypotheses based on the dynamic capability theory and innovation diffusion theory. Data used in this paper is collected via surveying 462 manufacturing firms in China using valid questionnaires. Statistical analysis, such as the AMOS method, is then carried out using the data collected to investigate and identify influencing factors upon which to build the model and test the hypotheses. FindingsThis paper presents findings that indicate MIT having a direct impact on a firm's service innovation capabilities (SIC) and service innovation performance (SIP). In particular, SIC continuously drives the growth of SIP in a firm, and hence acts as a mediating factor. Moreover, results indicate that both SIC and SIP varies with the strength of innovation network in each firm, while the moderated mediating effect of SIC remains constant. In other words, the performance of service innovation was not to be impacted by certain basic conditions of firms. Originality/valueThis paper is the first attempt to investigate the relationship between the manufacturing industry and advanced technology adoption of enterprise innovation networks and service innovation capabilities. Results are application for adaptation in firms within the manufacturing industry regarding adoption of such advanced technology, such as MIT, and are supportive of these firms constructing enterprise innovation networks and investing in efforts to shape service innovation capabilities. Findings suggests that initiatives associated with adoption of advanced technology are likely to improve service transformation abilities and service innovation performance.

Service-Dominant Logic: A Model of Service Satisfaction and Its Antecedents

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.