Innovation development in service firms: a three-model perspective Online publication date: Fri, 18-Aug-2017
by Thomas Anning-Dorson
International Journal of Services and Operations Management (IJSOM), Vol. 28, No. 1, 2017
Abstract: This paper develops a three-model approach through the dynamic capability view to showcase the forms and dimensionalities service innovation could take. The paper explains that the different resource and capability-base for firms provide the source of variation for innovation. These capabilities allow service firms to create and implement innovation through their service mix that represents basic competitive tools for service engagement, interaction with customers and through the market as a result of external capability activation. The approach recommends the development of innovation with the service mix which is the basic competitive tool for service firms; through the customer-firm interface that enables value co-creation; and the market that allows the firm to capitalise upon its external capabilities. These service innovation dimensions therefore determine how well a service firm performs on the market in both the short and long-term.
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