Dynamic Capabilities for Service Innovation

Abstract

In this paper we try to apply dynamic capabilities framework for service innovations. We aim to develop unified conceptual framework for analyzing and enhancing understanding of dynamic service innovation capabilities, by using existing literature analysis, systematization and synthesis, comparative analysis. We review the existing conceptualizations of dynamic capability in service firms. Then concentrate on the dynamic capabilities necessary for service innovation. Service innovation construct is multidimensional, and many types of different dynamic capabilities are used in research. In order to find those similarities between distinctive sets of dynamic capabilities, we have identified five dimensions that affect dynamic service innovation capabilities: strategy, client, knowledge, network, and technology-focused dimensions. This paper presents conceptual model for identifying dynamic service innovation capability dimensions. Provides model for grouping dynamic capabilities based on dimensions and perspectives. This conceptual model enhances collective understanding of the discipline and directs the attention of firms to dynamic capabilities most important for achieving continuous service innovations; and adds to the knowledge for researchers when analyzing dynamic capabilities in service innovation.