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Co-production of service innovations through dynamic capability enhancement

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  • Ja-Shen Chen
  • Don Kerr
  • Seng-Su Tsang
  • Yu Chieh Sung

Abstract

The main aim of this paper is to investigate the effect of co-production practices with customers on service innovation. Specifically, we sought to determine whether dynamic capabilities (the specific abilities a company has to shape, reshape, configure, and reconfigure idiosyncratic assets to respond to changing technologies and markets) could mediate the effect of co-production on service innovation. In this paper, we examine the factors that could influence co-production practices and determine whether organizational commitment moderates the effect of co-production practice on an organization's dynamic capabilities. Using a survey approach of Taiwanese firms, we showed that dynamic capability fully mediates the effects of co-production practice on service innovation and that market orientation and customer matching have a significant influence on co-production practices. In addition, this study has empirically demonstrated that service firms would be well advised to engage in developing service innovation through enhancing their own dynamic capabilities.

Suggested Citation

  • Ja-Shen Chen & Don Kerr & Seng-Su Tsang & Yu Chieh Sung, 2015. "Co-production of service innovations through dynamic capability enhancement," The Service Industries Journal, Taylor & Francis Journals, vol. 35(1-2), pages 96-114, January.
    • Handle: RePEc:taf:servic:v:35:y:2015:i:1-2:p:96-114
    DOI: 10.1080/02642069.2014.979405
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    References listed on IDEAS

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    Cited by:

    1. Yu Zhang & Yajuan Wang & Yao Li, 2021. "Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    2. Alberto de la Calle & Inmaculada Freije & Aitor Oyarbide, 2021. "Digital Product–Service Innovation and Sustainability: A Multiple-Case Study in the Capital Goods Industry," Sustainability, MDPI, vol. 13(11), pages 1-29, June.
    3. Shah, Syed Aamir Ali & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Servitization and supply chain integration: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 229(C).
    4. Bandar Khalaf Alharthey, 2020. "Linking Interactive and Supportive Service Innovation with Customer Satisfaction Through Customer Value Creation," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(4), pages 108-108, March.
    5. Dao Thi Ta & Chia-Han Yang, 2018. "Exploring The Impacts Of Service Innovation On Customer Satisfaction In The Telecom Industry: A Perspective From Interactive And Supportive Service Innovations," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-30, October.

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